Department of Labor Targeting Restaurants for Labor Law Audits

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]​