Tag Archives: Salary

IHOP Assistant Manager Received $40,000 Settlement for Overtime Claims

ihop assistant manager overtime pay lawsuit

An IHOP franchisee restaurant on Staten Island, New York will pay $40,000 to a former assistant manager to settle a lawsuit for unpaid overtime wages.  The assistant manager claimed that IHOP failed to pay her overtime wages for hours worked over forty per workweek.  This lawsuit continues a recent trend of restaurant workers alleging misclassification as Assistant Managers so they would be “exempt” from the FLSA requirement to receive overtime pay at time and a half for hours worked over forty in a workweek.

Only a limited number of employees in restaurants are “exempt” from the requirement of overtime pay under the federal Fair Labor Standards Act (FLSA) and the New York Labor Law (NYLL).  In order to qualify as an “exempt” under these laws, a restaurant worker has to fit within the administrative, executive, or professional exemption.  So, if a restaurant is paying a cook, maître’d, bookkeeper, host, or other non-management employee a salary for a workweek in excess of 40 hours, it is unlawfully failing to pay the employee overtime — regardless of how much the employee is paid.

The assistant manager was represented by Gianfranco Cuadra, an attorney at Pechman Law Group.  Congratulations to Franco on a successful litigation and negotiation of an excellent settlement.

 

 

Denny’s Restaurants Cheated Assistant Managers out of Overtime Wages According to New York lawsuit

Denny's overtime New York assistant managers

Denny’s restaurants paid Assistant Managers on a salary to avoid paying them overtime, according to a lawsuit filed in New York federal court. An Assistant Manager in Horseheads, New York alleges he worked 50 to 70 hours per week on average, but was not paid overtime compensation at time- and-a-half his regular hourly rate for all hours worked over 40 each week.  Instead, he says Denny’s paid Assistant Managers an annual salary regardless of the number of hours worked.

The lawsuit is directed at franchise FEAST American Diners LLC, which operates 17 Denny’s restaurants in New York.  Attorneys for the Assistant Manager claim that Assistant Managers at Denny’s had primary job duties that included preparing food, helping customers, bussing tables, cleaning the restaurant, labelling and rotating food product, and checking inventory.  The lawsuit alleges that the Assistant Managers did not exercise the responsibilities of a manager or use independent judgment and discretion in running the restaurants, as they did not hire, fire, discipline, or direct the work of other Denny’s employees.

The lawsuit claims that Denny’s restaurants did not provide labor budgets with enough money to cover all hours needed to complete the necessary manual labor tasks.  As a result, they contend Denny’s had knowledge that this underfunding led to Assistant Managers working more than 40 hours per week while mainly performing the overtime-eligible work tasks described above.  The lawsuit also alleges Denny’s failed to keep accurate time records, does not record all hours worked by Assistant Managers, and failed to post a notice explaining the minimum wage and overtime wage requirements anywhere in the restaurants.

This lawsuit continues a recent trend of restaurant workers alleging misclassification as Assistant Managers so they would be “exempt” from the FLSA requirement to receive overtime pay at time and a half for hours worked over forty in a workweek.  Other restaurants hit with lawsuits claiming Assistant Managers were paid a salary to avoid overtime pay include Cracker Barrel, Dunkin Donuts, Chipotle, Jack in the Box, and Jimmy John’s.

 

Notice Requirements Under the New York State Wage Theft Prevention Act Are Now in Effect

department of labor stamp

Under the New York State Wage Theft Prevention Act, effective February 1, 2012, New York employers are now required to give annual notice to their employees of wage information, including:

•His or her regular rate(s) of pay and overtime rates of pay (if applicable);

•The basis of the employee’s wage rate (i.e. hourly, weekly, salary, commission, other);

•Any allowances claimed against the minimum wage (tip credit, meal credit, lodging allowances, etc.);

•The employer’s principal place of business, and mailing address (if different);

•The employer’s telephone number; and

•Additional employer information, such as the official name of the business and all “doing business as” names.

Employers are also required to obtain signed acknowledgements from each employee which memorialize the employee’s receipt of his or her wage notice.  These signed acknowledgements must be retained by employers for six years.

This Notice requirement is an important law with significant penalties for non-compliance.  Any new employee not provided with the notice within 10 business days of his or her start date may bring a claim to recover $50 for each workweek that a violation occurs and may recover up to $2,500, plus attorneys’ fees.  For statutory violations relating to a current employee, the employer may be liable for damages of up to $100 per week and may recover up to $2,500, plus attorneys’ fees.

The New York State Department of Labor has prepared a FAQ and sample form notices in English and Spanish.