Restaurants often fail to pay their employees correctly for the overtime hours they work. Employees must be paid 1.5 times their regular hourly rate for all hours worked over 40 hours. Employees who receive a set daily, weekly, monthly, or shift rate are usually not being paid correctly for their overtime hours worked.

Many restaurants illegally take tips from their employees. Restaurants owners and managers are not allowed to take tips that are earned by their employees. Additionally, employees must consent to any tip sharing or “pooling” arrangements. Non-tipped workers are not allowed to share tips. Employers must give 100% of the money generated by a “gratuity” line on the bill to their tipped employees.

Under New York state law, employees who receive the minimum wage (or below the minimum wage) must receive an additional hour of pay at the minimum wage rate if they work a shift of 10 or more hours.

Restaurant employees are often scheduled to work long or “double” shifts where they do not receive this payment for “spread of hours.”

Restaurants often fail to provide their employees with a notice in their primary language that states their regular rate of pay, overtime rate of pay, and any benefits or deductions they receive when they are hired. A new notice must been given to employees every time their rate of pay, benefits, or deductions change. This information must also be included on employees’ pay stubs, as should their hours worked. Restaurants who fail to provide these two types of notices accrue financial penalties under New York state law.