Given the industry’s fast pace and unique business practices, hospitality employers have become increasingly vulnerable to wage and hour claims. The federal and state government agencies across the country have stepped up vigorous enforcement of various wage and hour laws. Plaintiffs’ attorneys also are filing high-stakes lawsuits against restaurants, hotels and other hospitality businesses daily.
Want to ensure compliance in the New Year? Follow this checklist that highlights the top five issues impacting hospitality employers.
Under the Fair Labor Standards Act, employers are allowed to pay tipped employees a direct cash wage below the federal minimum wage of $2.13 per hour and take the “tip credit” of up to $5.12 per hour to make up the difference. A tipped employee is defined by the United States Department of Labor as “any employee engaged in an occupation in which he or she customarily and regularly receives more than $30 a month in tips.” The key is that the direct wage and tip must equal the federal minimum wage of $7.25 per hour for the hours worked in the pay period. You will want to check your local and state laws to determine whether you can take a tip credit.
If you rely on the tip credit, then:
A slew of NYPD officers recounted on Sunday horror stories from their careers in which they say they were falsely accused of sexual misconduct and, despite being exonerated, had the allegations sh...