Hospitality Industry Law for Management

Claims Filed Against Employers In The New York Hospitality Industry

The following article will cover:

• How to protect your business from the common claims hospitality employees file against their employers in New York State.
• Strategies for business owners and managers in the hospitality sector to ensure compliance with labor laws and minimize the risk of lawsuits and penalties.

What Are Some Of The Most Common Types Of Claims Restaurants, Hotels, And Other Hospitality Industries Employees File Against Employers In New York State?

In New York State, hospitality employees can present various types of claims against their employers. Here's a breakdown of the claims that are most common:

• Frequency Of Pay

New York state emphasizes the importance of "frequency of pay." For instance, most waiters and construction workers are classified as manual workers, so they should receive weekly pay. If waiters are paid bi-weekly, the initial week is viewed as “unpaid” and the employer owes 100% of the wages all over again.

• Spread Of Hours Pay

If an employee's total work duration exceeds 10 hours in a day, they deserve an extra hour of pay at the minimum wage. This applies even if they have a break in between their shifts.

For example, if a waiter works both lunch and dinner shifts, but has three hours off in between, and the total time spent from the beginning of their work to the end of the day is over 10 hours, they get an extra hour of pay.

• Liabilities In The Construction Sector

General contractors might be held accountable for a subcontractor's wage underpayment. This means employees can pursue claims against both their immediate employer and the general contractor.

To defend against these claims, employers need to be meticulous about payroll practices and record retention. Employment records, for instance, must be maintained for a minimum of six years. If an employee claims underpayment and the employer lacks records, the employee's reasonable estimate stands and the potential implications for employers can be significant.

As A Business Owner Or Manager Of A Hotel Or Restaurant In New York, How Can You Ensure Compliance With Federal And State Labor Laws To Avoid Potential Lawsuits And Penalties?

Ensuring compliance is akin to preventative maintenance. Here are three major steps you, as an employer, can take to stay aligned with New York state employment laws…

• Review & Audit: Regularly scrutinize payroll practices and policies. One way to do this is by confirming that the sample payroll mirrors sign-in and sign-out sheets, capturing all work hours correctly.
• Talk To Your Employees: Occasionally engage with your employees to affirm that their payroll details are accurate and authentic.
• Seek Employee Confirmation: Much like in business deals, it’s important to get confirmation from your staff about their hours and potential claims. This proactive approach can preempt any later contradictions if they claim underpayment after termination or resignation.

Why Is Thorough Record Keeping Essential For Employers To Defend Against Employment Law Claims?

Accurate employment records are the backbone of any defense against employment claims. In large part, this is because both state and federal laws require employers to provide weekly statements to employees detailing regular hours, overtime hours, and corresponding pay.

Without these records, courts may be skeptical of the employer's claims. What’s more, in scenarios where employees challenge the accuracy of the records provided, it’s their responsibility to substantiate those claims.

In short, during employment disputes, employees must first present their claim, then employers need to produce detailed records as their response. Should these records be unavailable, the employer's defense becomes highly vulnerable.

As such, adhering to strict record-keeping guidelines is the best way to ensure that you remain compliant with state and federal laws while reducing the risk of potential disputes or penalties. For more information on Claims Filed Against NY Hospitality Industry Employers, an initial consultation is your next best step.

More Information:

• Important Legal Considerations For Hospitality Employers In New York
  
• An Employer’s Responsibilities To Hospitality Employees In New York