{3:36 minutes to read} One of the most challenging decisions facing any employer is whether to designate an employee as salaried or hourly.
Many employers are under the impression that if they provide an employee with a supervisory title and give them a smartphone or a laptop, that employee is off the clock. As such, the employer is not required to pay overtime to that employee.
{3:00 minutes to read} It is critical that restaurants make sure that owners (or managers with significant supervisory authority) do not participate in tip pooling and tip sharing arrangements. There have been significant penalties assessed against establishments that have run afoul of this rule. An East Coast restaurant chain was fined by the Department of Labor for employers illegally retained a portion of employee tips and for failing to properly pay minimum wage, overtime, and other required income. They paid a settlement of $6.8 million to over 1,100 employees.