Houston’s Ocean Palace Restaurant settled a “palace revolt” of sorts by paying the princely sum of $125,763 in back wages to 61 current and former kitchen and wait staff, cashiers, hostesses, runners, cart pushers, busboys and dishwashers.
A U.S. Department of Labor’s Wage and Hour Division investigation revealed the restaurant illegally classified some of its employees as exempt under the Fair Labor Standards Act (). In many cases, the restaurant paid employees flat wages regardless of the number of hours they worked. failed to ensure tipped employees received the equivalent of minimum wage, and did not maintain accurate records of the hours worked and wages paid to employees.
Tips for those with tipped employees: Employers cannot assume that tipped employees’ wages and tips add up to minimum wage. Check to make sure.
Another assumption that gets employers into trouble is assuming employees are exempt from the FLSA without analyzing positions to determine whether they meet the law’s standards for exemption. Always consult your attorney when making FLSA determinations. Doing so shows that you take wage-and-hour compliance seriously. That provides some legal cover should your classification decisions be challenged.
Like what you've read? ...Republish it and share great business tips!
Attention: Readers, Publishers, Editors, Bloggers, Media, Webmasters and more...
We believe great content should be read and passed around. After all, knowledge IS power. And good business can become great with the right information at their fingertips. If you'd like to share any of the insightful articles on BusinessManagementDaily.com, you may republish or syndicate it without charge.
The only thing we ask is that you keep the article exactly as it was written and formatted. You also need to include an attribution statement and link to the article.
" This information is proudly provided by Business Management Daily.com: http://www.businessmanagementdaily.com/33454/flsa-violations-cost-houston-restaurant-126000 "
- Houston ice cream workers get double scoop of back OT
- For exempt status, it's job duties that count
- When workers must wear special gear, beware lawsuit if you don't pay for 'donning & doffing'
- Misclassification could cost Dayton cable firm $1.6 million
- Your best defense against meritless lawsuits: Proof that your processes are fair, transparent