CATERING HALL FORCED TO PUT MINIMUM WAGE AND OVERTIME ON THE MENU
What some wit once said about gravity—it’s not just a good idea, it’s the law—also applies to the Fair Labor Standards Act (FLSA). The FLSA is not, as some employers seem to think, a set of suggested guidelines or best-practice recommendations. It’s the law. Violating it incurs liability—especially if a company violates the FLSA and a prior court order directing it to obey this very law. That’s exactly what a Long Island, New York restaurant and catering hall did, which is why the Westbury Manor now has to pay F$610,000.00 in back wages, interest, and penalties.
Back in 2005, this restaurant became subject to a federal court order telling it to not violate the FLSA. Six years later, the Manor engaged in further violations. Specifically, it did not pay dishwashers, cooks, waiters, busboys, and bartenders minimum wage or overtime pay when employees worked more than 40 hours in a week. In addition to these violations—which resulted $482,780.00 in back wages, $50,000.00 in prejudgment interest, and $69,330.00 in penalties for overtime and minimum wage violations—the facility also:
• Violated recordkeeping requirements of the FLSA by not keeping accurate time and payroll records (the restaurant reported the same hours for kitchen employees, for example, week after week for years, even though the actual hours worked varied) and
• Violated child labor laws by having 14 and 15 year olds work longer than permitted (another $7,920.00 was owed for child labor penalties)
In the consent judgment which it then entered into, the restaurant agreed to pay $610,000.00 and promised (again) not to violate the FLSA in the future. In addition, three officers of the company all also had to agree, personally, to not violate the FLSA. Unlike some other laws, company officers can become personally liable to their employees if the business does not pay those employees properly under the wage and hour laws.
Here’s a hint: it’s bad enough to violate the FLSA, but if there’s already a court order against the company, be extra careful. Not only will the Department of Labor tend to scrutinize past violators more closely, but the courts understandably take a dim view of anyone who ignores them. Companies would be wise to learn about these laws and work out how to be in compliance.
