A restaurant in San Francisco had to pay 14 employees more than $239,000 for wage theft violations, according to the California Labor Commissioner.
According to California law, employees who work more than eight hours in a day are required to be paid 1.5 times their normal pay rate for the first four hours over eight, and double time after 12 hours in a day. An employee who works more than 40 hours in a week is entitled to receive 1.5 times their normal pay rate for any hours over 40.
However, in the case of the Big Lantern restaurant, employees did not receive overtime pay and some salaried employees did not even receive minimum wage after working overtime, according to attorney David Balter.
Underpaying workers is a large problem in the restaurant industry, and the labor commissioner is getting tougher on restaurants in general. To protect yourself as a restaurant owner, you should get Employment Practices Liability Insurance.
If you are in Southern California, call the restaurant specialists at Invensure to learn more: (949) 756-4100.