Ten Best Wage and Hour Practices for Restaurant Employers

With all the recent focus on pay equity and alleged gender-based disparities in compensation practices, restaurant employers should be aware that in the restaurant industry, the most important focus to avoid litigation should be on wage and hour practices. This is not to say that there is no need to always keep an eye on compensation practices from a gender equity perspective, but it is to say that there is far more wage and hour litigation in the restaurant industry than there is pay equity litigation, and it most often comes in the form of FLSA collective actions or class actions under state wage and hour law, which brings with it the higher potential exposure and cost of defense associated with class litigation.

Thus, the following best wage and hour practices are offered for consideration to stay in the restaurant, and out of court.

Never forget that there is no federal preemption of state or local wage and hour laws. A large number of states (over half) now have state minimum…