Restaurant Staff Wages: Employee Management Guides That Matter

The Year Is Coming To An End, And The Holidays Are Right Around The Corner.

Vacation plans (if you had them pre-Covid) are in the books, while new preparations for the holiday season are going on or definitely changed due to the pandemic. This is where knowledge of important employment laws comes in very handy. For restaurants that do not close for major yearly events, the worker’s holiday, overtime, and vacation pay should be done and observed the proper way.

They may seem to be a quick and easy concept, but keeping in mind the different rules and regulations that are applied and practiced for each is an important duty for a wise business owner. They may also be different for regular, salaried employees than tipped, hourly employees. Such legalities and benefits are to be given importance in running a business.

Common Questions Regarding Worker’s Pay:

Do restaurants have to pay employees overtime?

Restaurant workers are entitled to receive the well deserved overtime pay when there are more than 40 hours of service rendered a week. It is according to the Department of Labor, that unless the worker is an exempt (salaried) employee, they are to be given overtime pay ‘at a rate, not less than time and one-half’ their normal rate of pay.

The 40-hour threshold requirement is a standard week with seven consecutive 24-hour periods. A workweek period counts any day and any hour of the week to be a starting point. Overtime pay, on the other hand, cannot be averaged out over any other timeline.

Overtime Pay Management for Tipped Employees

You must know by now that labor costs are among the most valuable but expensive expenses in the course of running a business. These tips may help reduce overtime pay costs for hourly restaurant workers.

– Double check staff schedules, making sure, not one employee is set to work for more than 40 hours at a time within each pay period.

– Ensure that employee changes in work shifts do not push one or both of them over the 40-hour threshold for any given week.

– Cross-train employees so they can take over other co-workers’ duties in more than one capacity.

Do restaurants have to pay holiday pay?

No federal law backs up the statements that require employers to provide time off for holidays, either paid or unpaid or provides any special holiday pay like time and a half for hourly workers. Salaried employees can expect to be paid their full weekly salary even if the restaurant closes on a day that worker would be working on a regular day of the week.

Holiday and Time Off Pay for Tipped Employees

Regardless of the lack of mandated restaurant laws about this matter, you may still want to make sure your workers get to enjoy their holiday season the best with their loved ones. You may want to find just the right balance.

– For employees who willingly volunteer to work on the holidays, you may want to offer time and half pay to such workers even though it isn’t mandatory.

– Employees that would rather work on holidays can be offered great incentives as a start, like the ability to ask for an additional paid day off in the future.

Spread holiday cheer! It’s easy to forget to show gratitude and say thank you once the busy holiday rush comes around.

Here at CBA Bookkeeping, we offer payroll service so if you are interested in hearing more about what we offer

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