Sometime back in 2015, the Federal Department investigators claimed that one of the most established restaurants in the U.S failed to pay its employees overtime and minimum wage, and even went ahead to claim that restaurants are among the top violators when it comes to employee overtime. The popular lunch time spot in question is now being forced to pay over $100,000 in back-wages to its workers who were either not getting paid the minimum wage per hour or weren’t getting any overtime pay.
According to a district director in the United States Labor Department, overtime violations are perhaps more common in restaurants because there is a lot of competition for restaurant jobs, which makes employees more willing to accept employer’s rules regardless of whether they are being taken advantage of or not.
When employers fail to pay overtime or minimum wage, this doesn’t just affect employees, it affects their families as well.Violating overtime rules and other labor laws can also lead to expensive law suits which are not only time-consuming; they can cause irreparable damage to the reputation of a restaurant. And the new overtime rules proposed recently, which would double the threshold for overtime eligibility, are not expected to help matters at all.
In some cases, overtime is caused by shortage of labor. But it can also be caused by a shortage of trained labor in a specific area or department. The latter may not be obvious until a specific employee goes on vacation or resigns and a restaurant is left with only 2 or 3 employees with a crucial skill set. In such cases, overtime becomes necessary and it is the duty of every restaurant owner or manager to track all cases of overtime and to make sure that every employee gets paid accordingly so as to stay on the right side of the law.
In a bid to adhere to all labor laws, including overtime rules, restaurant owners and managers are now keener on investing only in the best restaurant software in the market today. To understand what restaurant software has got to do with do with adhering to overtime rules, read on. http://zipclock.com/blog/how-to-avoid-overtime-violations-with-restaurant-software/