As with most HR Audits we perform, there are always areas where even the most well-informed restaurants fall short. While these oversights can seem minimal and insignificant, they can more often than not, result in extremely costly violations if not rectified. Below details the top 3 infringements we see when performing audits for our clients. If you have any questions or would like us to review your restaurant’s compliance, please call Paula Brannon at ext. 122 or email her at pbrannon@vinesolutions.com

Improper I-9 record keeping

Ø Undocumented workers could result in fines from $250 to $5,500 per worker depending on the prior history of violation.

Ø Each mistake or missing item on a form can result in a $100 penalty up to $1000 for each form.

Ø A missing form would automatically be assessed at $1000.

Ø ICE (Immigration and Customs Enforcement) can issue fines for poor record keeping as they see fit. (Recently fined a large retail firm 1 million dollars for poor HR record keeping practices)

Wage and Hour

Mis-Classification of Jobs: Exempt vs Non-Exempt

Ø Mis-classification of jobs could result in back pay for overtime, missed meal period penalties, and missed breaks. Look back period of 3 years.

Meal and Break Violations

Ø For each workday you fail to provide an employee a rest break and/or meal break as required, you owe the employee one additional hour of pay at the employee’s regular rate. (3 Year Statute of Limitations).

Ø Possible Class Action Law suit

Final Payment of Wages: Final wages are due immediately upon terminations that are involuntary, or where more than 72 hours notice was given. If less than 72 hours notice is given, wages are due within 72 hours of termination.

Ø Waiting time penalty. The penalty is measured at the employee’s daily rate of pay and is calculated by multiplying the daily wage by the number of days that the employee was not paid, up to a maximum of 30 days.

Workplace Safety

Absence of an Injury and Illness Prevention Program (IIPP)

Ø The absence of an Injury and Illness Prevention Program (IIPP) ranks among the most frequent Cal/OSHA (California Occupational Safety and Health Administration) citations against businesses. Fines for the failure to have an IIPP are upwards to $7,000