Charleston Area Restaurant Chain to Pay $1,179,045
to 119 Employees for Overtime, Minimum Wage and Record Keeping
Recently, Investigators from the U.S. Department of Labor’s
(DOL) Wage and Hour Division, Columbia, South Carolina District
Office, found that an employer violated the overtime, minimum wage
and record-keeping provisions of the Fair Labor Standards Act (FLSA)
at 13 of its owned restaurants in the Charleston area.
On April 18, 2016, the presiding judge approved a consent judgement
between the DOL and the restaurant owners. The owners will pay
a total of $1,179,045 to 119 employees. The amount includes $589,523
in back wages as well as an additional $589,523 in liquidated damages
for all affected employees.
The investigation found that the employer required servers to
give a percentage of their tips back to the employer. The investigation
also found that three servers worked only for tips. At some locations,
the employees were required to purchase their own uniforms which
had the effect of reducing their earnings below the minimum wage.
Investigators also found that the employer failed to pay cooks,
dishwashers and runners for all hours worked which resulted in
these employees not earning the required minimum wage for all of
their hours and not receiving time and one half (overtime) for
all hours worked over 40 within a one week period of time. Lastly,
the employers failed to keep legally mandated time and attendance
records for each employee.
It is important for all employers to remember that tips are the
property of the employee who receives them. The FLSA also requires
that employees receive overtime pay for all hours worked over 40
within a one week period of time. Additionally, all employers must
maintain accurate time records (clock in and clock out), attendance
and payroll records for each employee.
A company’s best defense against
the potential expense and aggravation related to federal or state
law violations is to proactively review and revise as needed their
Human Resources policies, handbooks, hiring procedures, compensation,
benefits, training programs, communications tools and other functions.
The professionals of PHHR are ready to assist your organization
maintain compliance with the latest state and federal mandates.
Paul Hilton Human Resources Consulting works with our clients to insure that all required documentation is correct and sufficient to successfully defend against a claim to any unemployment compensation commission.
|For assistance with any Human Resources related questions or other
issues, please Contact Us.
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