The Top 7 Most Common Wage and Hour Mistakes

March 31, 2010Articles Fast Casual

For much of the last decade the restaurant industry has faced heightened scrutiny of its wage and hour practices. In particular, the industry came under fire from department of labor (DOL) investigations and private class action law suits. Unfortunately, operators have discovered that many long held industry practices and customs were not always compliant with existing wage and hour laws.

Whether intentional or not, when violations are found, restaurant operators face draconian penalties which include not only unpaid back wages, but liquidated damages (up to 100% of the monies owed), civil penalties, interest, and the employees’ attorneys’ fees incurred.

With no signs of these class action suits abating, and an increasingly activist Obama Labor Department, it is imperative that restaurants review their compliance with all applicable wage and hour laws.

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