DGAA bLAWg

Overtime Violations in Restaurants

Web Admin - Tuesday, May 27, 2014

illinois overtime violationsWage theft is an increasingly common practice in which employers deprive their workers of wages they are owed through practices like improperly logging their hours or simply failing to pay wages fully and promptly. The problem is serious enough that a report from the Center for Urban Economic Development at the University of Illinois at Chicago estimates that workers in Cook County lose more than one million dollars a day to the practice. One of the most common methods of wage theft is through the violation of overtime laws. Overtime in the restaurant industry is a particular problem because of how overtime rules interact with minimum wage provisions and the tip credit.

Understanding the Tip Credit

The tip credit is a specific exception to minimum wage law that allows employers to pay employees less than minimum wage on the assumption that the worker’s tips will make up the difference. Restaurants are one of the main industries that can take advantage of the tip credit because of their high percentage of tipped employees, such as servers and bartenders.

The exact amount of the tip credit varies by state. In Illinois, employers may deduct up to 40 percent of the Illinois minimum wage as tip credit, giving a new minimum wage of $4.95. The tip credit is a complex piece of the minimum wage law that can give rise to a variety of violations by employers. One of the most complicated of these issues related to the tip credit is how it interacts with overtime law.

The Tip Credit and Overtime

Generally speaking, overtime laws require employers to pay their workers one and a half times their hourly wage for working more than 40 hours in a week. However, restaurants and other employers can still take advantage of the tip credit. Unfortunately, many do so incorrectly. The issue is that many employers take the tip credit out before multiplying the hourly wage by one and a half, when they should take it out after. To illustrate the difference, suppose a server works 60 hours in one week and is paid $4.95 an hour plus tips.

For the first 40 hours, the employer can simply pay the $4.95, but for the last 20 they need to start paying overtime. The incorrect way to do the calculation would be to simply multiply the $4.95 wage by 1.5 giving a new wage of $7.43, which would result in a paycheck of $148.60 for those 20 hours. The proper way to perform the calculation is to multiply the full minimum wage, $8.25, by 1.5 to get $12.38, and then subtract the tip credit afterwards to get a minimum wage of $9.08 and a paycheck of $181.60, a serious difference from the incorrect calculation.

If you believe you have been the victim of an overtime violation, contact an Illinois employment lawyer today. Our firm helps clients in many towns across the northwest suburbs, including in Palatine, Barrington, and Schaumburg.

About the Author: Attorney Ken Apicella is a founding partner of DGAA focusing in the areas of personal injury, employment, insurance coverage disputes, and civil litigation. Ken earned his J.D. from DePaul University College of Law in 1999. He has been named a SuperLawyers Rising Star and a Forty Illinois Attorneys Under Forty to Watch. Ken has written and lectured for the Illinois Institute for Continuing Legal Education and regularly serves as a moderator at Northwest Suburban Bar Association's Continuing Legal Education seminars.

Common Methods of Wage Theft

Web Admin - Tuesday, February 11, 2014

illinois wage theft lawyerMore and more employees are facing issues related to wage theft. Even though many are not aware of what the term actually mean, legal claims related to it have been steadily rising in recent years.

Broadly speaking, wage theft happens when an employer illegally deprives an employee of wages that they are owed. In some cases that can mean subverting laws that guarantee certain benefits to employees, like the minimum wage law, while in others it can simply mean not abiding by the agreement between the employer and the employee, both of which are violations of the law. Wage theft can be broken down into two categories based on the method the employer uses, methods relating to simply depriving the worker of money they are owed, and methods relating to improperly documenting the worker or their pay.

Wage Deprivation

Wage deprivation methods involve improper payroll practices designed to deprive an employee of their pay. The simplest method of this is an employer’s failure to pay their employees on time. This can include tactics like withholding an employee’s last paycheck or paying them for only certain hours or days worked, rather than paying for all their time.

One common, similar method of wage theft involves withholding overtime pay. Under the Fair Labor Standards act, many employees are entitled to overtime if they work more than 40 hours a week. Employers often take advantage of confusion among employees as to whether they qualify and refuse to pay overtime. Fortunately, the Department of Labor maintains a guide explaining worker’s overtime rights.

Documentation Issues

Documentation issues are a slightly subtler version of wage theft. Rather than simply withholding wages, employers will adjust their payroll or misclassify employees to stop paying them everything that the employer owes them. One of the simplest documentation violations is agreeing to pay someone below the minimum wage ($8.25 currently), which is illegal. Employers may also adopt improper policies related to clocking-in, like forcing employees to work for a period in the morning before they start logging hours. These sorts of policies qualify as wage theft since employers owe employees for that time.

Additionally, employers could improperly classify their employees as independent contractors. Independent contractor is a specific legal status related to the amount of freedom a worker has to set their hours and perform tasks as they see fit. Most workers a business hires will not fall into this category, but an employer may try to label employees as this since it allows the employer to avoid things like workers compensation insurance and payroll tax by shifting the burden to the worker.

If you believe you have been a victim of wage theft, or have questions about your employer’s practices, get in contact with an Illinois employment lawyer. We serve clients in areas across the northwest suburbs such as Buffalo Grove, Barrington, and Arlington Heights.

About the Author: Attorney Ken Apicella is a founding partner of DGAA focusing in the areas of personal injury, employment, insurance coverage disputes, and civil litigation. Ken earned his J.D. from DePaul University College of Law in 1999. He has been named a SuperLawyers Rising Star and a Forty Illinois Attorneys Under Forty to Watch. Ken has written and lectured for the Illinois Institute for Continuing Legal Education and regularly serves as a moderator at Northwest Suburban Bar Association's Continuing Legal Education seminars.


Recent Posts


Tags

personal injury law firm Illinois Probate Act of 1975 Illinois jet ski accident lawyer insurance agent negligence Illinois employment law attorney dog bites college kids Schaumburg elder law lawyer Illinois driving without license probate claims workers compensation benefits Crystal Lake pet attorney Illinois estate planning Long Grove estate planning boating under the influence Rolling Meadows marijuana attorney GM ignition switches Rolling Meadows Attorney owner responsibility unauthorized overtime Landlord Tenant Ordinance Illinois rollover accident lawyers expungement power of attorney for healthcare employment lawyer Palatine drug lawyer mass shooting Barrington civil litigation attorney Schaumburg Attorney Rolling Meadows insurance lawyer Rolling Meadows personal injury lawyers employment law, meal breaks, rest breaks, hotel employees, Des Plaines employment law attorneys Barrington estate planning lawyer Rolling Meadows drug defense attorney workplace sexual harassment Buffalo Grove criminal defense lawyer Rolling Meadows business lawyer Palatine probate lawyer estate planning trusts Barrington Traffic Lawyer Des Plaines accident attorney Schaumburg insurance lawyers Arlington Heights car crash attorneys Illinois employment attorneys spinal cord injury Crystal Lake employment lawyer pizza emoji condo association Chicago employment attorney probate Buffalo Grove traffic attorney Schaumburg car accident attorney Illinois Wage Payment and Collection Act Arlington Heights insurance attorney Palatine real estate lawyer Palatine traffic lawyer trustee murder Illinois estate planning law firm Des Plaines collections attorney construction accidents pet law Illinois civil litigation lawyer Long Grove estate planning attorney Federal Food Drug and Cosmetic Act employment law, Illinois employment laws Schaumburg employment attorney ACA real estate closing low-ball insurance settlement revenge porn Illinois mortgages Chicago car accident lawyer elder abuse vacation home fines Palatine employment law lawyer Illinois Transfer on Death Instrument Inverness probate lawyer Des Plaines Traffic Lawyer Illinois attorney healthcare Chicago insurance claim attorneys hit and run accident Deer Park workers compensation lawyer IRELA overtime pay Palatine insurance lawyer Rolling Meadows criminal attorney Illinois wills and trusts attorneys Barrington real estate lawyer Crystal Lake estate planning lawyer Colin H. Gilbert Illinois will lawyer Legal Info motorcycle accident lawyer Super Mario Buffalo Grove injury lawyer Illinois estate planning attorney Deer Park personal injury lawyer Schaumburg drug defense lawyer Buffalo Grove employment lawyer Rolling Meadows litigation lawyer Des Plaines tax law firm insurance disputes traffic laws medical malpractice claims loopholes new real estate form filing a medical malpractice claim blood alcohol content meal breaks living trust benefits involuntary manslaughter clemency Des Plaines claims law firm estate planning lawyer pedestrian accidents Des Plaines DUI attorney Illinois wrongful termination lawyer insurance disputes, Illinois insurance disputes, Illinois insurance dispute attorneys, denied insurance claims, Arlington Heights insurance dispute attorneys traffic violations defense Illinois red light cameras advance healthcare directive car accident commercial leasing estate tax Chicago biking tips severance agreements underage DUI estate plan Chicago corporate attorney Rolling Meadows insurance dispute lawyers, insurance dispute Rolling Meadows tax attorney Chicago attorney drug crime personal injury attorney Barrington business law firm Arlington Heights accident attorney wage theft Illinois pedestrian accident attorney Arlington Heights injury attorney Arlington Heights wills and trusts attorneys Illinois Trust Code pedestrian-automobile accident insurance claim dispute attorney overtime violations dealing with problem employees Illinois living will Buffalo Grove probate lawyer DUI life insurance claims Affordable Care Act Crystal Lake law firm modern family estate planning living trust vs will Illinois boating accident lawyer Crystal Lake personal injury attorney work unions Barrington drug crime attorney bicycle accidents Illinois insurance dispute lawyers controlled substance Buffalo Grove law firm Palatine law firm Rolling Meadows insurance dispute lawyers forming a corporation in Illinois federal regulations for LLCs Long Grove wills and trusts attorneys Schaumburg medical malpractice lawyer Arlington Heights lawyer Schaumburg estate planning attorney Illinois lawyer Schaumburg personal injury lawyers car crash child safety liability Illinois traffic ticket lawyer living wills problem employees DMV income distribution deducation Rolling Meadows probate lawyer Crystal Lake medical malpractice law firm Illinois bicycle safety Rolling Meadows employment attorney boating DUI Illinois LLC creation South Barrington real estate attorney financial advisors personal injury lawyer pet bites automated cars Crystal Lake traffic lawyer anesthesia errors Illinois employment law medical research Rolling Meadows estate planning attorney insurance agents health insurance dispute Chicago traffic lawyer Policy Cancellation Illinois medical malpractice case Home Sale Contingencies distracted driving accidents LLCs Illinois law employment attorney Illinois employment lawyer hands free device Illinois injury lawyer trucking accident lawyers Barrington injury attorney digital assets traumatic brain injuries Crystal Lake medical malpractice attorneys preventing accidents BAIID Illinois trucking safety spinal cord injuries nursing home negligence Arlington Heights traffic attorney personal injury accidents Arlington Heights estate planning attorney real estate Illinois small business Illinois trusts attorney breach of contract Inverness real estate attorney Barrington personal injury lawyer Do Not Resuscitate Chicago estate planning Arlington Heights personal injury lawyer Des Plaines personal injury lawyers fiduciary rule delay criminal drugs underfunded trust car collision construction contracts insurance dispute attorney fees Rolling Meadows DUI lawyer distracted driving accident victims Jay Andrew Schaumburg employment law attorneys trusts guardianship attorney sole proprietorship life insurance policy Buffalo Grove car accident lawyer reckless homicide Crystal lake insurance dispute attorney trauma after an accident job lawyers compensatory time Illinois employment laws insurance claim Illinois insurance disputes Illinois traffic accident lawyer personal injury claims dram shop law taxes motorcycle accident Chicago lawyer senior citizens Crystal Lake medical malpractice lawyer estate planning first degree murder eluding a police officer coronavirus Illinois job attorney Long Grove real estate lawyer rollover car crashes privacy Palatine employment attorney Barrington workers compensation attorney agent tax attorney drug crimes Illinois Schaumburg estate attorney ObamaCare deed transfer Family Medical Leave Act icy parking lots Forcible Entry capital gains tax gift tax exemption, estate planning, estate planning strategies, Illinois estate planning, South Barrington estate planning attorneys contracts subcontractor holiday statistics foreclosure Kenilworth estate planning attorneys Des Plaines personal injury attorney Crystal Lake civil litigation lawyer condo Schaumburg personal injury attorney civil rights violation Barrington employment law firm employment law Arlington Heights medical malpractice lawyer marijuana probate claims process Palatine civil attorney cell phone tower data South Barrington real estate lawyer independent contractor pregnant women Joliet general practice lawyers landlord tenant law deadly crashes Rolling Meadows traffic law firm insurance claim denial Buffalo Grove personal injury lawyer denied insurance claim foreclosed rental property creditors insurance attorney Schaumburg traffic lawyer comparative negligence Inverness accident lawyer Crystal Lake tax lawyer Food and Drug Administration's Food Safety Modernization Act Illinois employee rights attorney. employee discrimination loss of consortium traffic deaths healthcare claims Buffalo Grove real estate attorney Inverness traffic law firm comp time suspended license back injuries medical malpractice compensation Fair Labor Standards Act rest breaks personal injury claim jet ski investment property Illinois traffic laws paid sick leave food poisoning underinsured motorist Rolling Meadows criminal lawyer Chicago estate planning lawyer Chicago employment lawyer denied insurance claims consent to a search Transfer on Death Instrument drunk driving corporate law Crystal Lake car accident attorney Buffalo Grove medical malpractice lawyers Barrington boating accident attorney Inverness insurance attorney life insurance lawyer BAC Colin Gilbert Schaumburg criminal law attorney premises liability surgical mistakes residential real estate real estate attorneys pain and suffering sexual harassment trust payments traffic offenses Barrington estate planning attorney Crystal Lake business law attorneys Inverness civil lawyer Crystal Lake bike accident lawyer Schaumburg probate attorney life insurance Des Plaines Illinois workplace discrimination attorney Buffalo Grove traffic lawyers jet ski accidents rent to own real estate contracts Exclusions Liquor Control Act Illinois traffic attorneys Barrington employment attorney truck collisions estate planning attorney car crashes product liability Illinois personal injury estate attorney Palatine employment lawyer digital evidence elder law Des Plaines motorcycle accident attorney living trust Rolling Meadows car accident lawyers Illinois insurance claim dispute lawyer Illinois personal injury lawyer bad faith insurance claims Palatine injury attorney Crystal Lake employment law attorney traffic violations Crystal Lake accident attorney internet probate process DUI attorney Palatine construction attorney Des Plaines drug lawyer Schaumburg real estate lawyer Illinois Smoke Detector Act car crash injuries trucking accidents special needs trust Crystal Lake car accident lawyer Arlington Heights wills and trusts lawyers Arlington Heights employment law attorneys crossover accidents Arlington Heights employment attorney insurance claim delay changes to mortgage law insurance claim denials Crystal Lake injury attorney business litigation small business Barrington attorney Illinois motorcycle accident lawyer PTSD Des Plaines civil attorney Des Plaines injury law firm School Visitation Rights Act Palatine estate planning lawyer Illinois Workers’ Compensation Commission defective products lawyer privacy laws drug crimes lawyer Barrington criminal defense lawyer probate fees speeding Deer Park medical malpractice attorney DNR Illinois medical malpractice attorney license reinstatement trench injuries traumatic brain injury dynasty trusts pedestrian accident Des Plaines drug crimes lawyer Chicago trucking accident attorney Inverness personal injury attorney real estate leasing insurance claim dispute Rolling Meadows medical malpractice lawyers installment contracts Crystal Lake personal injury lawyer Illinois speeding lawyer insurance dispute attorney license suspension Barrington Illinois estate planning lawyer whistleblower protections pedestrian injuries, pedestrian fatality Long Grove estate planning attorneys Illinois medical malpractice lawyers Retaliatory Discharge Illinois employment law attorneys Illinois workplace lawyer Rolling Meadows personal injury lawyer Des Plaines personal injury lawyer no contest clauses Palatine punch death Inverness injury lawyer Arlington Heights car accident lawyer defective products unpaid assessment Deer Park employment law attorney Rolling Meadows boating crash lawyer auto accidents Barrington employment law attorney Palatine Attorney Barrington litigation attorney Arlington Heights real estate lawyer Rolling Meadows corporate lawyer llinois Real Estate Lawyers Association Inverness estate planning lawyer vacation home Buffalo Grove personal injury attorney fault based insurance license disability benefits IRA benefits Schaumburg wrongful death attorney liability claims IRA trust transfer Illinois construction accident attorney insurance claims Des Plaines pet law attorney texting while driving fiduciary rule wrongful termination Schaumburg corporate attorney bike accident digital assets, digital fiduciary, estate planning, digital content, Long Grove estate planning lawyers Rolling Meadows insurance attorney hiring employees commercial leases traffic crimes traffic accidents digital media accounts, estate planning, Arlington Heights estate planning attorney, wrongful death Buffalo Grove corporate attorney Palatine corporate law attorneys medical malpractice, missed diagnosis, delayed diagnosis, medical mistake, Deer Creek medical malpractice lawyers Arlington Heights tax lawyer criminal record Palatine corporate attorney Chicago insurance law firm Whistleblower Claims BUI Arlington Heights TBI attorney POA Illinois insurance claims lawyers Deer Park accident attorney murder defense insurance denials Palatine elder law attorney Illinois business law atorneys Illinois insurance attorney IRS gift taxes Illinois pet lawyer car accident lawyers Riverwoods estate planning lawyer Rolling Meadows Traffic Lawyer Illinois wills and trusts golf accidents slip and fall drunk driving statistics wills Rolling Meadows natural gas explosion Rolling Meadows accident lawyer Kenilworth estate planning attorney estate planning, digital assets, Revised Uniform Fiduciary Access to Digital Assets Act, Illinois digital assets, Illinois estate planning, Des Plaines real estate lawyer power of attorney civil litigation attorney Rolling Meadows personal injury attorney cell phone accidents Rolling Meadows employment law attorneys Illinois corporate lawyer mortgage sexual images Schaumburg construction accidents, personal injury, wrongful death, Arlington Heights personal injury attorneys, workers' compensation Rolling Meadows employment law attorney Crystal Lake traffic attorney wills and trusts brain injury Mt Prospect Attorney manufacturing Palatine civil litigation lawyer digital information Arlington Heights Traffic Lawyer Illinois real estate Palatine traffic accidents blended families Arlington Heights criminal lawyer Deer Park traffic lawyer workers comp Illinois defective products attorney Home Remodeling Repair Act Detainer Actions landlord DUI defense Crystal Lake will lawyer Schaumburg personal injury lawyer Illinois probate lawyer slip and fall accidents Deer Park motorcycle accident lawyer Inverness real estate lawyer civil litigation Kenilworth estate planning lawyer Mount Prospect elder law attorney Schaumburg injury lawyer real estate contract operating agreements real estate attorney insurance adjusters Illinois employment law firm Crystal Lake insurance lawyer Inverness elder law lawyer FMLA personal injury, auto accident injuries, delayed injuries, serious injuries, Des Plaines personal injury attorneys Schaumburg criminal attorney unfunded trust denial of life insurance products liability criminal law Crystal Lake pedestrian accident lawyer Des Plaines insurance attorney Illinois medical malpractice claim startup company boating accidents Arlington Heights wills and trusts lawyer home inspection lawyer Illinois workers compensation lawyer Thanksgiving insurance dispute, insurance dispute lawyers, insurance claim denial, insurance claim delays, Rolling Meadows insurance dispute attorneys employees marijuana crimes attorney Illinois tax attorney real estate lawyer Illinois business lawyer Illinois traffic attorney commercial real estate insurance denial appeals Illinois criminal defense attorney Fourth of July Arlington Heights trucking lawyer Class A misdemeanor cell phone institutional trustee real estate zoning pay when paid contract natural gas accidental death benefits Chicago will attorney Illinois Sales Representative Act liens Illinois personal injury lawyers texting and driving Attorney Ken Apicella Rolling Meadows real estate attorney employee misclassification Arlington Heights pedestrian accidents Illinois registered agent Chicago will attorney, social media platforms, Illinois estate planning lawyer, bicycle dooring accidents Palatine business attorney ken apicella Deer Park criminal attorney Mount Prospect wills and trusts lawyers Illinois collections attorney Schaumburg civil litigation attorney federal crimes Arlington Heights Attorney irrevocable trust Palatine workers compensation lawyer Illinois car accident attorney Arlington Heights personal injury attorney Crystal Lake criminal defense attorney caregiver Long Grove real estate attorney Palatine personal injury lawyer Illinois Human Rights Act FSLA TBI Employment Discrimination Law estate planning for college students swimming pools Arlington Heights wills and trusts attorney medical malpractice right to work Deer Park real estate law firm license revocation rollover accidents Illinois home inspection personal injury employee rights medication errors Mount Prospect real estate lawyer unpaid overtime employment contract, employment law, employment at-will, Deer Park employment law attorneys, contract, wrongful termination, employment law, whistleblower protections, Illinois employment laws, discrimination in the workplace Des Plaines medical malpractice attorney Illinois workers compensation attorney Illinois insurance lawyer Illinois elder law attorney rumble strips murder charges Inverness corporate attorney Deer Park traffic accident attorney Barrington criminal lawyer Des Plaines real estate attorney caretaker rights Illinois insurance claim dispute lawyers DUI penalities in terrorem provision Illinois personal injury attorney employment contract Palatine trusts lawyer traffic tickets Self-Directed IRA Accounts car accidents field sobriety test homestead rights Deer Park DUI lawyer Schaumburg construction accident lawyer minimum wage estate planning, death tax, succession plans, business estate plans, Barrington estate planning lawyers head on collisions insurance negligence medical marijuana Des Plaines criminal attorney preventable medical errors Inverness DUI lawyer Illinois DUI attorney DGAA appealing an insurance claim fatal car accidents Barrington medical malpractice lawyers Rolling Meadows traffic attorney uninsured motorist Palatine criminal defense lawyer driving Buffalo Grove insurance claim dispute lawyers social media after death Illinois real estate lawyer breathalyzer test criminal defense CAM Barrington personal injury attorney Crystal Lake employment attorney workers compensation car accident lawyer Illinois insurance claim attorney drug possession Schaumburg estate planning lawyer probate lawyer

Archive