Understanding Restaurant Wage Violations in Georgia

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Understanding Restaurant Wage Violations in Georgia-image

According to the National Conference of State Legislatures, the current minimum wage in Georgia is $7.25. This amount hardly seems sufficient to pay the household bills and put food on the table, but those who work as restaurant servers face even tougher issues as owners and operators often violate wage laws. Whether someone is employed as a server, host, waiter or waitress, bartender, or banquet staff, the tips or “gratuities” customers give are a substantial portion of their compensation. Those who believe their employers are participating in unlawful practices regarding tips and need help understanding restaurant wage violations may want to consider visiting with Hall & Lampros, LLP at (404) 876-8100.

What Restaurant Servers & Employees Should Know

Waiters, waitresses, and others who work as servers in restaurants often do not understand how they should be paid under the law. According to the United States Department of Labor, tipped employees in Georgia are paid a minimum cash wage that is the same as required under the federal Fair Labor Standards Act, which is $2.13 per hour. Since the state minimum wage is currently $7.25, employers are required to pay an amount that brings the hourly wage up to $7.25 when tips are not sufficient to do so. When combining tips and the $2.13 minimum cash wage, the hourly wage should be no less than $7.25.

Common Restaurant Wage Violations

Unfortunately, there are several ways restaurant owners and operators cheat servers who work to make the restaurant one that patrons enjoy and want to come back to. Some of the most common restaurant wage violations include:

Illegal Tip Pooling

While tip pooling is not unlawful, it can be when restaurant employers force employees who are tipped to share tips with employers who do not work in server positions. Managers, cooks, dishwashers, and other staff should not share in the tip pool, as it is unlawful.

Requiring Servers to Pay for Dine and Dash / Customer Walkouts

It is unethical and illegal to make a server pay when a customer walks out of the restaurant without paying for their food. It is also illegal for an employer to deduct pay because of a customer’s theft or failure to pay because the server is not responsible for a customer’s actions.

Dual Job Responsibilities – Excessive Sidework

There are circumstances in which a server who works for tips engages in other duties in performing their work that are not tipped. For instance, when a person works as a waiter in general but also brews tea or coffee, rolls silverware, sets tables, or performs other duties that are considered non-tipped for more than 20% of the full workweek, employers cannot take the tip credit. Unfortunately, many servers do not understand this and continue to get cheated by their employers.

Restaurant employers often take advantage of servers by requiring excessive opening and closing sidework: paying the servers $2.13 per hour for time spent before the restaurant opens or after it closes, before customers arrive to be served, or after the leave.  It is illegal for restaurants to pay a tipped wage during this time when customers are not being served (and when the servers cannot earn their tips).

Tip Skimming

Servers in the United States earn more than $36 billion in tips each year, so it is easy to see how restaurant wage violations negatively impact the lives of servers and their ability to support their families. Under the law, tips belong to restaurant servers and not the owners. Owners are banned from withholding or “skimming” tips under Federal law.

Unpaid Overtime

Workers are often allowed to work overtime regardless of whether they are servers or work in another capacity such as a cook or dishwasher. Any employee who works more than 40 hours in one week should be paid time-and-a-half for those hours. For instance, in Georgia the overtime wage for restaurant workers is $10.88 ($7.25 + $3.63). Tipped employees receive overtime pay based on the full minimum wage ($7.25) as they receive special protections. Every employee in a restaurant other than those in management who are paid a salary are entitled to overtime pay.

Unpaid Breaks or Meal Periods

Restaurant employers are not required to give workers breaks or meal periods under federal or state laws, however many restaurant owners do provide them to employees. The Fair Labor Standards Act (FLSA) requires that when employers do provide short break periods of between five and 20 minutes, employees are paid for that time. Restaurant owners are not required to compensate servers or other employees for breaks or meal periods that are 30 minutes or longer.

Paying Kitchen by Salary

Many restaurants take advantage of kitchen staff by paying them salary or weekly amounts to cover all hours worked.  This practice is illegal if the restaurant does not include extra overtime compensation for hours worked in excess of 40 hours per week.

Failure to Pay Minimum Wage for Training

It is illegal for restaurants to pay a tip credit was of $2.13 per hour for server training or computer training if the server is not serving customers at the same time to earn tips.

Consider Scheduling a Consultation with Hall & Lampros, LLP

Restaurant employees want to know their rights even when they are not certain if they want to make a wage claim against their employer. This is understandable, especially when there is not another employment opportunity waiting right away. Many servers are curious as to whether they even have a claim and are interested in learning more about restaurant wage violations in Georgia. Those who work for family-owned restaurants or franchise establishments are entitled to the wages they work for. If you need further information or skilled legal guidance you may want to consider scheduling a consultation with Hall & Lampros, LLP at (404) 876-8100.