A recent settlement announced by the Department of Labor's Wage and Hour Division underscores the agency's continued focus on ensuring wage and hour compliance in the restaurant industry.

 

A restaurant company in Charleston, South Carolina has reached a resolution with the Department of Labor's Wage and Hour Division after Division investigators found that it had violated overtime, minimum wage and recordkeeping provisions of the Fair Labor Standards Act at thirteen of its Charleston establishments.  These violations included requiring servers to give a percentage of their tips back to the company or to work for tips only; mandating that employees purchase their uniforms such that their earnings fell below minimum wage; failing to pay cooks, dishwashers and runners of all hours worked, which resulted in them not receiving minimum wage or overtime compensation; and failing to keep time and attendance records required by the Fair Labor Standards Act (FLSA).

 

To resolve the matter, the parties entered into a consent judgment in which the restaurant and its owners will pay a total of $1,179,045 in back wages and liquidated damages.  In announcing the settlement, Jamie Benefiel, Director of the Wage and Hour Division's Columbia office stated "Labor violations like [those described] are unfortunately all too common in the restaurant industry.  The Wage and Hour Division is resolute in its commitment to increasing compliance in this industry."  As a result, employers are reminded that they should periodically audit their wage practices and make the adjustments needed to ensure continued compliance in this area.