Restaurant Workers as Independent Contractors

An Atlanta-area restaurant company incorrectly classified restaurant workers as independent contractors to avoid paying overtime. The company also required tipped employees to perform cleaning tasks off the clock, failing to record or pay for all time worked. The employer also made illegal deductions from tipped employees’ pay to account for incorrect orders and customer walkouts. These improper deductions brought the hourly wages below the federal minimum wage.

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Misclassified Independent Contractors Owed Overtime

Misclassified independent contractors are owed overtime.  Granite Masters Inc., a granite countertop installation company based in Suwanee, Georgia, will pay $105,020 in back wages and liquidated damages to 36 employees for violations of the overtime requirements of the Fair Labor Standards Act (FLSA). Granite Masters Inc. misclassified employees as independent contractors, paying straight time rates to overtime-eligible employees.

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Steak ‘n Shake Working Managers Win Overtime

When does a “manager” get overtime pay? Some managers sit in a back office and supervise, without getting their hands dirty. Other “managers” are working supervisors out on the floor with the same job duties as the workers they supervise. Who is exempt from overtime pay?

On May 10, 2019, a judge ordered Steak ‘n Shake to pay $7.7 million in back pay and liquidated damages for misclassifying store managers as exempt employees and failing to pay overtime.

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