New Wage Laws – are you in compliance? If not the stakes are high.

24 Feb, 2014 | Tags: , , , , , ,

This year we are seeing a lot of news about wage laws and currently politicians in Congress and the House of Representatives are discussing increasing the minimum wages and other updates to our national wage laws. Do you know the current laws? If you aren’t in compliance, the repercussions can be severe. A Philadelphia sports bar has recently agreed to pay 6.8 million dollars in back wages and damages for violating these wage laws.

Current wage laws for servers require a minimum wage of $2.13 per hour, IF the server’s tips bring their gross pay up to $7.25 (the federal minimum wage). If the server’s tips are too small and do not raise up their hourly pay, the restaurant is legally required to increase the server’s hourly wages to meet the federal minimum wage.  While overtime pay is a regular occurrence in most industries, many restaurants don’t know that legally, if an employee works more than 40 hours in a week, they must be paid time and a half. The Labor department is also coming down hard on tip policies, as federal laws bar employees and manages from taking any portion of a waiter’s tips. Click here to read about labor laws.

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