Wage & Hour Issues in the Hospitality Industry
Wage and hour law continues to be a source of confusion and compliance issues for many employers, but particularly so for those in the hospitality industry. Employers must comply with both federal and state regulations, which frequently differ, especially regarding service workers. Recent changes in federal law have further narrowed the circumstances in which employers can take the “tip credit,” requiring a new assessment of whether customarily tipped employees can continue to be paid a lower, tipped minimum wage that is offset by tips. Other recent changes affect the types of employees who may share in a tip pool, a common industry practice but one that can lead to legal headaches when administered incorrectly. The federal and state Departments of Labor continue to target this industry for audit and the consequences of non-compliance can be substantial, threatening the viability of smaller businesses.
On May 25 Employment partners Dan Strader and Katy Rand held a webinar to discuss the key regulatory principles every hospitality employer must know. Attendees were supplied with the information needed to ensure they enter the 2022 season with compliant pay and leave practices.