U.S. Department of Labor Sweeps West Coast Fast Food Businesses for Pay Compliance

APPLIES TO

All West Coast Employers Owning a Fast Food Franchise

EFFECTIVE

Immediately

QUESTIONS?

Contact HR On-Call

(888) 378-2456

Investigators from the U.S. Department of Labor (DOL)’s Wage and Hour Division are sweeping fast food establishments on the west coast to ensure that proper minimum wage and overtime regulations are being observed. This investigation continues to focus on establishments located in California, Oregon and Washington.

Since 2013, over $6.7 million in back wages has been recovered for nearly 18,000 fast food employees.  The investigation is part of ongoing efforts to ensure Fair Labor Standards Act (FLSA) compliance, and will include round table meetings with local industry stakeholders, training sessions for employers on FLSA compliance, and one-on-one meetings with franchisers.

Common industry violations to look out for include:

  • Failure to pay for all hours worked, typically time spent before or after a scheduled shift (e.g., “off-the-clock” time)
  • Deductions from pay that result in minimum wage and overtime violations
  • Unlawful categorization of some salaried workers as exempt from overtime
  • Requiring minors to work in jobs or at times prohibited by child labor laws
  • Misclassifying delivery drivers as independent contractors, rather than employees

 

Action Items:

  1. Contact ManagEase at (888) 230-3231 for assistance in conducting a compensation audit to ensure that all covered, non-exempt employees are being paid the appropriate minimum wage.
  2. Maintain accurate time and payroll records. Train supervisory staff who manage shift schedules to be aware of, and appropriately track, compensable hours and overtime.
  3. Review status of any independent contractors with counsel to determine if a change in classification may be necessary.

Disclaimer: This document is designed to provide general information and guidance concerning employment-related issues. It is presented with the understanding that ManagEase is not engaged in rendering any legal opinions. If a legal opinion is needed, please contact the services of your own legal adviser.

© 2016 ManagEase, Incorporated.

0 replies

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply

Your email address will not be published. Required fields are marked *