Investigations of wage violations become more aggressive

There’s never a good time to cheat your workers out of their hard-earned pay. Having said that, now’s an even worse time to do it. Cities, states and the feds are getting more aggressive—and are working more closely—in nailing companies that play fast and loose with employee wages. And restaurants are one of their prime targets.

“The urgency of addressing this issue has become more pronounced because we’re seeing these illegal business practices used by more and more industries, like restaurants,” Nancy Leppink, head of the Department of Labor’s Wage and Hour Division, told the Associated Press. The number of cases, the amount of penalties and the number of employees involved have all skyrocketed in 2011, and the year’s not over yet.

YearCasesBack wagesEmployees
20074,469$17,432,80527,661
20083,942$18,917,99223,433
20093,818$17,016,10924,375
20103,759$16,415,51923,042
20115,161$24,460,22246,125

 

Members help make our journalism possible. Become a Restaurant Business member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.

Multimedia

Exclusive Content

Financing

In Red Lobster, a symbol of the challenges with casual dining

The Bottom Line: Consumers have shifted dining toward convenience or occasions, and that has created havoc for full-service restaurant chains. How can these companies get customers back?

Financing

Crumbl may be the next frozen yogurt, or the next Krispy Kreme

The Bottom Line: With word that the chain’s unit volumes took a nosedive last year, its future, and that of its operators, depends on what the brand does next.

Technology

4 things we learned in a wild week for restaurant tech

Tech Check: If you blinked, you may have missed three funding rounds, two acquisitions, a “never-before-seen” new product and a bold executive poaching. Let’s get caught up.

Trending

More from our partners