WRA has heard that restaurants in Wisconsin have been of specific interest by the Department of Labor for Wage & Hour Audits to ensure labor law compliance. 

Do you know all the labor laws that businesses must follow - including the laws specifically relating to employment of teens? Are all of your managers following these laws? This is a good time to double check to avoid the serious consequences of labor law violations. 

WRA consulted with Attorney Barry Chaet who routinely represents restaurants in wage and hour audits to provide practical guidelines for restaurants. This is a must read for all restaurant operators!

Department of Labor Audits
Guide to laws and regulations for restaurant owners from attorney Barry Chaet
 

1. You must review all of your payroll procedures and records NOW.
2. You must ensure that your minor employees are not working over the maximum number of hours allowed each week, and are following the hour restrictions set.
3. You must ensure that your hourly employees are paid time and one half for all hours worked over 40 hours in a work week.
4. DO NOT PAY YOUR EMPLOYEES CASH (if you do, keep corresponding time records and have employee sign a receipt of payment – you still have to withhold federal/state taxes and report them.)
5. Make sure your salaried “managers” are in fact exempt.
6. If you still take a tip credit make sure the tipped employees sign a Tip Credit Notice form and that you make sure the employees reports all their tips and that the tips make up the difference to cover the minimum wage rate – EACH WEEK.
7. Once the DOL makes its assessment as to unpaid wages – it becomes virtually non-negotiable and you WILL be expected to pay the impacted employees “liquated damages” , which is two time the amount.  The Civil Money Penalties however may be negotiated.
8. The DOL will not have any sympathy for you and do not care what impact their assessment has on your company and ability to continue to operate in the future.
9. Their sense of “negotiation” is more like “capitulation”.
10. Investigations do not have to begin with an employee and normally don’t.  The DOL has a policy of picking industries, such as the restaurant industry who usually have limited resources, to conduct directed audits.
11. Finally, the best time to hire an employment lawyer or ask questions to the WRA is NOW, before you are investigated. Lawyers cannot recreate the facts.

Barry L. Chaet is a partner with the Milwaukee law firm of Beck, Chaet, Bamberger & Polsky, S.C. and head of the firm’s hospitality section. The firm routinely represents restaurants in wage and hour audits. Chaet has written extensively and presented seminars on this topic since 1981. www.bcblaw.net 414-273-4200
 
Other Resources From WRA 
Teen Labor Basics
Laws and Regulations Info for WRA Members - You will need your member login to access this information – Email Christina Nistler for assistance 

Questions? 
The AskWRA Team is here to help! Call 608.270.9950 or email [email protected]​

The payment card settlement sets aside at least $5.54B for millions of US merchants who for years paid artificially inflated interchange fees.

If your restaurant accepted Visa and Mastercard between Jan. 1, 2004 and Jan. 25, 2019, then you could be entitled to a share of the settlement.

Visit the official class action website to submit a claim. You don't need to gather your credit card records to submit a claim, you just need to provide proof of business ownership. Once you submit your claim, processing can take several weeks.

The deadline for submitting a claim has been extended to August 30, 2024. You don't need to have the claim processed by August 30, just submitted.

Check out WRA's flyer for more details on the settlement and filing a claim.

Mastercard and Visa are cracking down on merchants who are not following surcharge rules. A Wisconsin restaurant recently was hit with a $25,000 fine from Visa for non-compliance with surcharge rules! Do you know what is allowed and what can get you in trouble? WRA has all the facts to help you stay compliant.
 
Over the last few years, as food, labor and property costs have increased, the trend of surcharging has emerged to help offset the cost of accepting credit cards. But what some merchants don’t know is that there are specific rules regarding surcharges that need to be followed. And there are serious consequences for not following them.
 
Here are the facts

• In the State of Wisconsin, it is legal to charge a surcharge to credit cards as long as the customer is notified in writing prior to ordering.  
• Also, it is against card brand rules to add a surcharge to sales completed by debit card, regardless of using the debit card or credit card network. 
  
• You must also apply the same surcharge amount to all cards and cannot offer a cash discount in conjunction with surcharging. In short, it must be one or the other across the board.
• The maximum that you can charge as a surcharge is 3%.

 
What happens if your business is found to be in violation of the surcharge rules?
 
If you receive a notice of a violation of the card brand surcharge rules, you will not be able to address the fines with the card brand (Visa, Mastercard, etc.) directly. You are required to work with your credit card processor. Merchants do not have a direct relationship with the card brands so Visa, Mastercard, etc. would not be able to help you directly. The violations flow from the card brand to the sponsor bank, the sponsor bank to the processor, and finally from the processor to the merchant.  
 
Here’s an example of Visa’s process: If your business violated surcharging rules, then, unfortunately, $25K is the first-tier fine for surcharge non-compliance. Visa may charge the sponsor bank an initial $1K for a first-time offense notification and it is up to the bank and processor if they pass that to the merchant (likewise if there are additional fines like the $25K). Within that notification they allow 30 days to rectify the non-compliance. If non-compliance is not mitigated within that timeframe, or if additional time is not requested, then Visa will assess the $25K non-compliance assessment. If non-compliance continues, then it will reach a second tier assessment, and so on.
 
Click here for all the facts on surcharges, convenience fees and cash discounts to help you stay compliant and avoid huge fines.
 
Thank you to Heartland for providing this information.