Restaurant industry forced to pay millions in back wages

The restaurant industry was forced to pay $34,863,786 in back wages to workers in FY 2013, far more than any other low-wage industry, according to Department of Labor records.

The Department of Labor investigated 6,053 cases at restaurants in FY 2013.  Federal records show 47,861 restaurant workers were involved in the investigations.

The Department of Labor’s Wage and Hour Division finds violations in greater than 80 percent of its restaurant cases, according to spokesperson Scott Allen.

"I think restaurant workers are especially vulnerable because they have a lack of bargaining power.  In other words, they can be replaced. There are a lot of workers looking for those jobs,” said Andrew Biller, a Columbus attorney whose practice focuses on wage and hour laws.

“In the restaurant industry, when someone calls, there's a good chance I'll find wage and hour violations,” said Biller.

Minimum wage, overtime violations and recordkeeping violations are the most common violations found at restaurants, according to Allen.

Read the Full Article

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

Despite their complaints, customers keep flocking to Chipotle

The Bottom Line: The chain continued to be a juggernaut last quarter, with strong sales and traffic growth, despite frequent social media complaints about shrinkflation or other challenges.

Operations

Hitting resistance elsewhere, ghost kitchens and virtual concepts find a happy home in family dining

Reality Check: Old-guard chains are finding the alternative operations to be persistently effective side hustles.

Financing

The Tijuana Flats bankruptcy highlights the dangers of menu miscues

The Bottom Line: The fast-casual chain’s problems following new menu debuts in 2021 and 2022 show that adding new items isn’t always the right idea.

Trending

More from our partners