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Feds probe pay at restaurants in Los Angeles, San Francisco

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in Human Resources,Overtime Labor Laws

The U.S. Department of Labor’s Wage and Hour Division (WHD) announced in April that it’s cracking down on alleged restaurant-industry violations of the Fair Labor Standards Act (FLSA) in Los Angeles and San Francisco.

The initiative is intended to ensure compliance with the FLSA minimum wage, overtime, record-keeping and child-labor provisions. WHD officials said they will make unannounced visits to restaurants to inspect wage-and-hour records.

In past enforcement efforts, the WHD found pay violations at 72% of the restaurants it investigated in the Los Angeles area, and at 68% of those in and around San Francisco.

Violations included failing to pay employees for all hours worked, forcing them to work off the clock, misclassifying nonexempt workers as exempt and paying wages in cash to avoid tax liabilities.

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