Here’s the general rule of thumb when employees receive tips.
Earlier this month, the U.S. Department of Labor announced that an investigation into a Japanese restaurant had uncovered violations of federal wage and hour laws, resulting in 75 servers, sushi, and hibachi chefs not receiving all of their legally earned wages.
The final bill was $171,834.
That’s a lot of toro and high-end sake. Continue reading
Folks, someday, the U.S. Department of Labor’s Wage and Hour Division (WHD) may darken your door to audit your books and records. Perhaps, they’ll find a violation and require you to pay back wages and liquidated damages. If your next steps involve retaliating against employees who cooperate with investigators and demanding kickbacks of back wages, you will compound those problems.
I told you so.
Has anyone ever sued your business for violating the Fair Labor Standards Act? This federal law requires covered employers to pay minimum wage and overtime at time-and-a-half when employees work more than 40 hours in a workweek.
They can be expensive to defend — even the ones that aren’t collective (class) actions.
Last week, the House and Senate introduced a bill called the Wage Theft Prevention and Wage Recovery Act. One of the bill’s primary goals is to ensure that workers receive timely regular paystubs and final paychecks. That seems non-controversial.
But as you read deeper into the proposed legislation, you’ll find that, perhaps, the main objectives of this legislation aren’t just pay stubs, but something else entirely.
Last week, I read this press release from the U.S. Department of Labor’s Wage and Hour Division announcing a six-figure recovery from an employer that “illegally placed a cap on overtime at 16 hours per pay period and paid any overtime beyond 16 hours at straight time rates, a violation of the Fair Labor Standards Act.”
So, let’s discuss some FLSA/overtime rules. Continue reading