Employers have stolen $52 million from people working in restaurants from 2017 through 2021, more than in any other industry in New York, according to an investigation recently published by Documented and ProPublica. What are some common wage theft schemes in restaurants and other industries? This article gives you a reference and aims to help you identify and avoid them. This list below is summarized from information provided by Herrmann Law, Pelton Graham LLC, Lipsky Lowe LLP and McInnes Law LLC.
Also Read: Restaurant Workers Struggle to Recover Wages Stolen During the Pandemic
As a newsroom that serves immigrant communities, Documented has written a comprehensive guide for New York immigrants. This article is part of Documented’s series on workers’ rights and wage theft.
1. Paying less than minimum wage
The federal minimum wage for covered nonexempt workers is $7.25 per hour effective July 24, 2009, which is established by The Fair Labor Standards Act (FLSA).
For employees regularly receiving over $30 per month in tips, employers must pay them $2.13 per hour. However, employers must make up the difference if the amount of tips plus the $2.13 is less than $7.25 per hour.
The New York state-level minimum wage is $15 per hour for New York City, Long Island and Westchester residents, and $14.20 for the residents in the remainder of the state. The minimum wage for home care aides is $2 per hour above the basic minimum hourly rate.
Any employers who don’t pay according to the...
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