Restaurant Employee Wage Theft Attorneys in the U.S.

Examples of Wage Theft in the Restaurant Industry

The fast-paced, high-turnover nature of the restaurant industry often leads to employers cutting corners when it comes to employee pay. Unfortunately, this results in widespread wage violations. 

Examples of wage theft that restaurant employees may suffer include the following: 

• Improper Tip Pooling: Employers sometimes require tipped employees to share their tips with non-tipped workers, such as cooks or dishwashers. However, employees cannot be forced to share their tips with others who do not work as servers, like managers, cooks, dishwashers, and other staff. 
• Failure to Pay Minimum Wage: Restaurant employees who earn tips are often paid a sub-minimum hourly wage, but their combined tips and hourly rate must equal or exceed the federal or state minimum wage. If your tips fall short and your employer fails to make up the difference, this violates wage laws. It is also important to note that employers must ensure you still receive minimum wage even if they plan to deduct your paycheck for broken dishes or lost payments (from having customers walk out).
• Unpaid Overtime: Many restaurant workers are required to work long hours, sometimes beyond the 40-hour workweek. Employers must pay non-exempt employees overtime for all hours worked beyond 40 hours. Failure to pay overtime at the correct rate is a violation of federal and state labor laws.
• Off-the-Clock Work: Restaurant employees are often asked to perform tasks before clocking in or after clocking out, such as setting up tables or cleaning the restaurant. Any work performed before or after your shift must be compensated, and failure to do so constitutes wage theft.
• Tip Credit Violations: Employers can pay tipped employees less than the federal minimum wage by claiming a “tip credit.” However, if an employer fails to inform employees about the tip credit or if employees spend a substantial portion of their time performing non-tipped duties, the employer may lose the right to claim the tip credit. This could mean you are entitled to back pay at the full minimum wage rate.
• Illegal Deductions: Restaurant employers sometimes make unlawful deductions from employees’ wages, such as charging for broken dishes, customer walkouts, or uniform costs. These deductions are often illegal and could entitle you to recover the deducted amounts.
• Misclassification of Employees: In an effort to avoid paying overtime and benefits, some restaurant employers misclassify workers as “independent contractors” or exempt employees. This tactic allows employers to bypass important labor protections, including overtime pay and the minimum wage. If you’re classified incorrectly, you could be entitled to compensation for unpaid wages and benefits.