Recently, the Miami Herald wrote about a case against the Orlando location of Giordano’s Pizza that was brought on by the U.S. Department of Labor. The restaurant’s owners were accused of not paying their employees properly and was ordered to pay each worker $5,000, for a total fine of $125,625.
For a restaurant or any business, that is a significant fine that could result in the restaurant going out of business.
In that case, the Department of Labor accused the company of not paying its servers time and a half for overtime hours and of paying its servers exclusively in cash.
Both of these should be fairly standard for any businesses using tipped employees to do so, but on September 30, 2023, the numbers associated with tips and pay changed. It is important for you to review your payroll standards and ensure your business is complying.
The attorneys at The Orlando Law Group can help review your situation and ensure your business is following the often-confusing issues related to tipped employees.
How Tips Work
Anyone who dines at a restaurant understands the tips system for compensating restaurant employees. You pay more for your meal based on the quality of service you receive. In addition, it is assumed the cost of the meal is lower because the restaurant has lower labor costs.
The Orlando Law Group
-
Jennifer Englert Schmitt President
- October 25, 2023
- (407) 512-4394
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