Hospitality Serves Up Thousands of Wage and Hour Claims

Wage and hour disputes have rapidly increased for U.S. restaurant employers. In 2017 alone, the U.S. Department of Labor (DOL) took over 7,000 hospitality wage and hour claims, recovering more than $483 million in back wages for employees. That’s nine times more than any other industry.

Workers can file a lawsuit when they are just a minute late for a meal or rest break, or if their overtime was miscalculated by one dollar. And, more and more hospitality employers are being investigated for Fair Labor Standards Act (FLSA) compliance. 

The problem is, proprietors and restaurateurs aren’t likely covered for these infractions. A common misconception is that wage and hour disputes regularly fall under the umbrella of employment practices liability insurance (EPLI).  Although some wage and hour coverage can be found under EPLI, it’s unlikely and depends on which state you are in and the carrier’s willingness to offer the coverage.   

An employee is supposed to get a break…