How Hospitality Employers Can Avoid Wage and Hour Mistakes
Tip Pool Rules, Rates of Pay Are Common Problem Areas
Even when employers are acting with the best of intentions, they can make mistakes that could get them in trouble with wage and hour laws.
HOUSTON - Even when employers are acting with the best of intentions, they can make mistakes that could get them in trouble with wage and hour laws.
Speaking at the Hospitality Law Conference, Courtney Leyes, partner at Fisher Phillips, outlined ways hotel and restaurant employers have run afoul of the U.S. Department of Labor's Wage and Hour Division by not understanding the Fair Labor Standards Act and associated state labor laws.
Handling Tips
For operations that have employees pool tips, such as in a restaurant, the rule of thumb is never include a manager, supervisor or even a team lead in the pool, Leyes said.
It’s common enough in restaurants for servers to make more than their managers because of tips, making it enticing for managers to wait tables when the team is short-staffed for a shift or two, she said. Some may say that when the manager is waiting tables, they’re not acting as a supervisor.