Hsp_Mgmt 1113 1st Edition Lecture 34 Outline of Last Lecture I. Dram shop liability continueda. Aramark caseb. Negligent entrustment examplec. Liability of social hostsII. ARTOSa. DWIsOutline of Current Lecture III. Wage and hour lawsIV. Employment at will V. Unions Current LectureLabor issues impacting hospitalityWage and hour lawsFederal law- FLSA Fair Labor Standards Act covers:- Minimum wageo States and cities can pass a higher minimum wage than the federal government mandateso Missouri’s minimum wage- about 25 cents higher than federal minimum wage Situations where you don’t have to pay employees minimum wage:- If you’re being paid a salary you don’t have to be paid minimum wage- New employees under age 20, you can pay them a training wage for 90 days while they are just starting the jobThese notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.- Tip credit exemption- employees who earn at least $30 a pay period in tips do not have to be paid minimum wage by the restaurant- Overtimeo Exceeding 40 hours in any 168 hour work period- you have to pay 1.5 times their regular payo Managers- if they satisfy the salary and the duty test you don’t have to pay them overtime Duty- if they manage two or more people and have the authority to hire, fire, etc Salary- if they are being paid a salary and not hourly  Most hospitality managers are exempt from overtimeo Some states say if you go over 8 hours a day at work you get paid overtime (California)o Unauthorized deductions from employees pay: Anything considered an unliquidated sum: ex: at cracker barrel they were taking money out of dishwasher’s pay checks for every dish they broke—you can’t do thato Wage theft- describes lawsuits that are filed against businesses who failed to properly account for all the hours an employee has worked If they worked 42 hours but the sheet says 40 when they get their paycheck If you ask them to clock out but then continue asking them to do work for you - Child labor- once you are 18 years old the child labor provisions do not apply anymoreo 2 standards: 14 & 15 year olds- Task restrictions- are not supposed to engage in hazardous employment tasks; Clock restrictions- restrictions on number of hours per day and week that they can work; no more than 18 hours a week when school is in session 16 & 17 year olds- No hazardous tasks Employment at Will-History and Rationale- followed in 49/50 states- Employee can be fired at anytime for any reason without cause - Reason- benefits businesses that want to expand, so they could hire more people but if things didn’t work out they could let those employees go without penalizing them - Employees can also quit their job at any time for any reasonExceptions- - If you’re a member of a labor union, you have to have a good reason for firing them - Government employee- generally has protections against arbitrary termination- Written employment contract- must have good reasoning to get rid of that person if they have a contract (like tenure) - Cannot sue on a grounds of race/religion/all civil rights categories - Miscellaneous examples: can’t fire an employee who is on jury duty; someone who had to leave work because of military reasons; someone who reports misconduct about your business to a government agency (whistle blowing exception)Criminal convictions in hiring and firing- Hiring- o Background checks- a good idea to prevent negligent hiring suits- “Ban the box” laws- prevents the employment application from asking people whether they have been arrested or convicted of a crimeo Cannot ask them on the application but can ask them during the interview o Can condition a job offer on them passing a background check o Allows a convicted felon who is trying to do right, the chance to get an interview to explain themselvesTermination for Criminal convictionso Criminal charges are not criminal convictions o But if they have been convicted, there are some situations where you have to fire them (like if you realize that your delivery driver has multiple DWIs, or your bank president is a convicted thief)o If they are convicted away from the workplace it can still be relevant to the business and it’s imageo Legally, you can fire them because the employment at will doctrine says you can Unions-----What laws?o Right to work law- state law that says a business cannot force an employee to be a member of a labor union as a condition of working