Seven (7) Long Island restaurants have consented to a settlement with the United States Department of Labor (“DOL”) that includes $1.6 million in back pay as well as over $110,000 in penalties and interest for willful violations of the Fair Labor Standards Act (“FLSA”). Specifically, the DOL found the restaurants failed to pay employees a minimum wage, paid employees in cash, had illegal tip pools, and failed to keep records of all hours worked.
While this case is by no means an anomaly (the Long Island office netted more than $6.4 million in back wages in 2013) it highlights the need for proper wage and hour policies for businesses in order to avoid the harsh penalties the DOL can impose for violations of the FLSA.
As a general matter, businesses need to make sure that (1) their employees are properly classified; (2) that all hours worked are recorded and paid at the appropriate rate; and (3) that all records concerning hours worked and paid are maintained for a period of at least three (3) years.
If you cannot recall the last time your policies were reviewed (or if you wish to establish new policies) our team of experienced labor and employment attorneys are here to assist you. Our team will ensure you are in compliance with federal and state wage and hour laws.