Unreported tips could spell high workers’ compensation payout — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily
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Unreported tips could spell high workers’ compensation payout

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in Compensation and Benefits,Employee Benefits Program,Human Resources

Employers and employees in cash businesses often bluff, wink and nod their way around the edge of wage-and-hour law legality. But when it’s time to settle workers’ compensation claims, all the cards must go on the table.

A recent Florida workers’ compensation case shows just how wrong things can go when employers give their employees unrequested advice on reporting income. At issue in this case: The restaurant industry’s traditional—and illegal—practice of underreporting tip income.

Injury forces employer’s hand

A waitress at the Myakka River Oyster Bar injured herself on the job. Florida workers’ compensation benefits are based on the employee’s average weekly wage during the 13 weeks before the injury. In this case, the woman had been working for only six weeks when the injury occurred. So those six weeks were used to calculate her benefit.

At first it appeared as though she would not receive much. When the court...(register to read more)

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{ 1 comment… read it below or add one }

Abélia March 2, 2016 at 3:12 pm

I find this article interesting on unreported tips being linked with high workers’ compensation payout. This Florida compensations case is a good example of illegal practice of under reporting tip income. Thank you so much for sharing this advice. I will be sure to tell my brother the legal procedures in handling workers compensation issues for the benefit of his business.


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