Restaurants Face Crack Down on Wage and Hour Violations Nationwide

A restaurant in Ohio was recently sued by the United States Department of Labor for alleged failure to pay overtime to employees who were primarily paid in tips. The restaurant contends that the employees were exempt from the overtime requirements under the Fair Labor Standards Act. In Illinois, a restaurant was also sued by the Illinois Department of Labor for alleged wage and hour violations related to whether employees were entitled to pay for break time, or whether that was properly omitted from their paychecks.

There is a recent trend across the country where Federal and State authorities are seeking to enforce the wage and hour laws, especially in the restaurant industry. The Fair Labor Standards Act governs the federal minimum wage and overtime pay laws, and provides for certain exemptions for employers.  Additionally, most, if not all, states have their own wage and hour laws.  The fact that servers receive most of their pay from tips, the reporting requirements for tipped wages, and the reduced minimum pay based on tips complicates matters further for restaurant owners and management. Many overlook the fact that seemingly minor issues such as having employees clock out during break periods, or relatively straightforward facts such as the federal vs. state minimum wage, can be complicated by the complex wage and hour laws at the federal and state levels.

The Labor and Employment group at Clark Hill is knowledgeable about all aspects of the Fair Labor Standards Act, the various state laws relating to wage and hour issues, and handling inquiries or litigation with the US Department of Labor or the state counterpart. The best way to avoid costly wage and hour issues down the line is to consult with a professional ahead of time and determine the wage and hour requirements for your employees, determine your compliance with the various laws, and implement a system that takes into account the complexities facing the specific industry.

http://www.lawyersandsettlements.com/articles/ohio-employment-labor-law/ohio-employment-labor-laws-16-19160.html#.UmaGY9Kkr9k

Chicago Alderman Seeks Further Restrictions in Dry Precincts

 The exceedingly complicated laws regulating the City of Chicago's liquor licenses have just gotten even more complicated.  Dry precincts are areas in the City of Chicago that have been voted dry by the voting constituents.  Up until now, restaurants and bars still could open there and allow "BYOB" or bring your own beer/wine/alcohol.  Alderman Deb Graham has just introduced a bill to prohibit allowing BYOB establishments in the already established "dry precincts."

Prior to opening a new bar or restaurant in the city, it is important to do your homework regarding zoning and licensing capabilities.  The food and beverage team at Clark Hill can certainly help with both the background work, zoning considerations, licensing, and advise you about the licensing options, as well as restrictions like moratoriums and dry precincts.


http://www.chicagotribune.com/news/local/ct-met-deb-graham-byob-1004-20131004,0,5442758.story