Contact the experienced employment law attorneys at Maya Murphy, P.C. today at (203) 221-3100 or JMaya@Mayalaw.com.

The Fair Labor Standards Act (FLSA), is administered by the Wage and Hour Division of the Department of Labor.  The FLSA establishes standards for minimum wages, overtime pay, recordkeeping, and child labor. These standards affect more than 130 million workers, both full‑time and part‑time, in the private and public sectors. (29 USC §201 et seq.; 29 CFR Parts 510 to 794).

Restaurants and fast food businesses may be covered under the FLSA if they have annual gross sales from one or more establishments that total at least $500,00.  Also, any person who works on, or otherwise handles goods that are moving in interstate commerce is individually subject to the minimum wage and overtime protection of the FLSA.  For example, a waitress or cashier who handles a credit card transaction would likely be subject to the FLSA.

For minimum wage purposes, covered, non-exempt workers are entitled to the Federal minimum wage.  Wages are due on the regular payday for the pay period covered.  An employer is authorized to make deductions from an employee’s pay for items such as cash shortages from the register, required uniforms, or costumer walk-outs, but will violate the FLSA if such deductions reduce the employee’s wage below the minimum wage level, or cut into overtime pay due the employee.

An employer may also take deductions for food credits to an employee, however such deductions are typically an hourly deduction from the employee’s pay.  The employer however, is prohibited from taking credit for discounts provided to its employees.

For employees receiving tips, tips may be considered as part of wages, but the employer must not pay less than $2.13 an hour in direct wages.  The employer must also ensure that the amount of tips received is enough to meet the remainder of the required minimum wage.  Under the FLSA, tipped employees are those who customarily and regularly receive more than thirty (30) dollars a month in tips.  If an employer elects to use tip credits for such employees, the employer must notify the employee in advance of their intention.  The FLSA requires that all tipped employees be allowed to keep their tips earned, unless the employee participates in a valid tip pooling, or sharing arrangement.

This article is meant only as a reference to fast food and restaurant employers addressing some of the common questions and concerns that they may encounter.  If you are an employer and are seeking compliance with the FLSA, or have more specific and poignant questions, contact the experienced employment law attorneys today at 203-221-3100, or by email at JMaya@mayalaw.com. We have the experience and knowledge you need at this critical juncture. We serve clients in both New York and Connecticut including New Canaan, Bridgeport, White Plains, and Darien.

Source: dol.gov