FLSA Regulations Protect Restaurant Workers from Unpaid Wages
By Robert J. Boumis
The Fair Labor Standards Act is a federal statute of United States law. FLSA regulations are administered and enforced through the United States Department of Labor. The Act was introduced in 1938 to curb exploitive labor practices, including child labor and unpaid overtime. However, passing the FLSA did not magically cure every dispute over employee wages. Even today, employees still sometimes resort to lawsuits to ensure that they get a fair day’s pay for a full day’s wage.
Restaurants operate within murky areas of FLSA regulations. For example, minimum wage laws may not apply if employees make enough money in tips to satisfy the difference between their wage and the federally mandated minimum wage. Additionally, the bulk of cash transactions, including tips, can sometimes obscure business practices related to tips and payment. For this reason, many lawsuits involving FLSA violations center on restaurants and similar businesses.
Lawsuits against businesses that allegedly violate FLSA regulations include issues that boil down to paying employees less than they are required to by law. For example, recent FLSA lawsuits have centered on issues like failing to pay employees minimum wage, forcing employees to work off the clock, and keeping some or all of employees’ tips. Typical violations include practices like:
- Working off the clock: performing work tasks before or after clocking in.
- Tip pool issues: sharing your tips with employees that don’t serve customers directly; e.g., with management.
- No meal breaks: working for more than 6 hours without a 45 minute meal break.
- Minimum wage violations: getting paid less than 7.25 an hour.
- No overtime pay: despite working more than 40 hours a week without overtime.
As the economy declined, many companies and restaurants began to look for ways to cut costs. Unfortunately, it appears that some resorted to illegal FLSA violations, cutting employees’ wages in order to cut costs. Practices like this have cost employees millions of dollars every year. People working in the food service industry often depend on getting all of the money their employers are supposed to pay them.
A class action lawsuit investigation has been launched for those in the food service industry that have allegedly experienced FLSA violations like those described here. The size of the restaurant or chain in question does not matter; major national chains have been implicated by FLSA overtime and minimum wage lawsuits. These lawsuits seek back-owed monies, and often take the form of class action lawsuits or multi-district litigation — that is, lawsuits involving multiple parties alleging similar damages.
If your employer has not paid you for your work, you may have a claim. You can explore your legal options by visiting the Restaurant and Bar (Service Industry) Wage and Hour Class Action Lawsuit Investigation. Here, you can enter information about your situation. Your information will be reviewed confidentially by an employment lawyer with a background in federal labor laws. This initial consultation is free of charge. If you have a case, you can receive additional guidance on the best steps to take in your exact legal situation, with no obligation or out-of-pocket charge.
All employment related class action and lawsuit news updates are listed in the Employment and Labor section of Top Class Actions
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