Restaurant Roundtable: Playing By The New Rules 2016

PL AYING BY THE NEW RULES:

HOW TO MAKE OVERTIME PAY LAWS

WORK FOR YOU

C I T R I N C O O P E R M A N R E S TA U R A N T R O U N D TA B L E S E R I E S

P R E S E N T E D B Y : C I T R I N C O O P E R M A N A N D B E C K E R L L C

TODAY’S

SPEAKERS

MARTIN BOROSKO, ESQ.

BECKER LLC

BRIAN CURTIS, ESQ.

BECKER LLC

NICK FLORIO, CPA

CITRIN COOPERMAN

STACY GILBERT, CPA

CITRIN COOPERMAN

AT TO R N E YSC O R P O R AT E L A B O R

A N D E M P L O Y M E N T

A N D L I T I G AT I O N

PA RT N E R SC O - L E A D E R S ,

R E S TA U R A N T A N D

H O S P I TA L I T Y P R A C T I C E

PRESENTATION TEAM

CHANGES TO OVERTIME L AW

Salary thresholds

Bonuses

Primary Duties

Effective: December 1, 2016

A NEW

FRONTIER

Reinforcing Best

Practices

BECKER.LEGAL.COMCITRINCOOPERMAN.COM

BONUS COMPLIANCE

10% of the 47,476 can come in

non-discretionary bonus

In other words, you can set base pay at $42,729

and pay $4,747 in bonus to meet the threshold

Must be Careful to Structure

Properly – Avoid Pitfalls

CONSEQUENCES FOR NON-COMPLIANCE:

Pay penalties and

back wages


NON-DISCRETIONARY BONUSES

Performance Metrics

Make-up Payments


Ways to properly structure

non-discretionary bonus

OLD LAW VS. NEW LAW

CITRINCOOPERMAN.COM

IMPACTS TO MANAGEMENT

Must make a decision to raise

to threshold or keep hourly

If you decide to keep hourly, you must schedule

and assign duties to maximize efficiency and

avoid overtime pay

WHO IS EFFECTED?

Assistant Managers

Managers

Sous Chefs


FINANCIAL IMPACT

Possibilities:

• Increase pay

• Pay overtime

• Hire more staff

EXAMPLES

CITRINCOOPERMAN.COM BECKER.LEGAL.COM

SCHEDULING

Avoiding overtime payments

Hourly employees must stick to specific

schedules, and clock-out end of shift

Do not assign after-hour tasks to hourly

employees

EXAMPLES


EFFICIENT WORKFLOW

Avoiding overtime payments

DUTIES MUST FIT

WITHIN SPECIFIC

JOB DESCRIPTIONS


QUALIF YING FOR EXEMPTION: PA S S I N G T H E P R I M A R Y D U T I E S T E S T

If you are going to pay threshold

then you must make sure you

are classified to meet the

exemption

Otherwise you will have to pay overtime

TWO

EXEMPTIONS

Executive

Administrative


QUALIF YING FOR EXEMPTION: E X E C U T I V E E X E M P T I O N

Executive job duty exemptions

include if the employee:

1. regularly supervises two or more other

employees, and

2. has management as the primary duty of the

position, and

3. has genuine input into hiring, firing,

compensation, promotions, or assignments to

supervised employees

TWO

EXEMPTIONS

Executive

Administrative


WHAT IS SUPERVISION

Supervision means what it implies

Supervision must be a regular part of the

employee's job, and must be of at least two

other full time employees

Supervision of non-employees does not

meet the standard

“WHO IS

YOUR BOSS?”


MANAGEMENT AS A

PRIMARY DUT Y

Supervision alone is not sufficient

In addition, the employee must have

management as the "primary duty" of the job

IS MANAGEMENT A

PRIMARY DUTY?

Requires case-by-case

evaluation


INPUT INTO PERSONNEL MATTERS

The final requirement for

executive exemption:

Does the employee have genuine input

into personnel matters?

IS MANAGEMENT A

PRIMARY DUTY?


evaluation


QUALIF YING FOR EXEMPTION: A D M I N I S T R AT I V E E X E M P T I O N

Job duties are exempt administrative

job duties if the employee:

1. is compensated on a salary at a rate not less

than $913 per week; and

2. performs office or non-manual work directly

related to the management or general business

operations of the employer or the employer’s

customers; and

3. exercises discretion and independent judgment

on matters of significance

TWO

EXEMPTIONS

Executive

Administrative


APPLYING THE DUTIES TEST

EXAMPLES

Night Manager – Fast Food

Kitchen Manager

Beverage manager

Tips

DETERMINIG

PRIMARY DUTY?


evaluation


I N S U L AT I N G Y O U R S E L F F R O M C L A I M S

D U R I N G O N - B O A R D I N G

Documented rules and policies

Employee Handbook should include strict

after hour work rules

Arbitration and Waiver of Class Action

Agreement

Should have clear and precise job

descriptions and hierarchy

MUST-HAVE:

Employee Handbook


RECORD KEEPING IS CRITICAL

Pay and classifications

Time card – clock-in as a general rule

Schedules – adhere to specific schedules

Other records – keep all records related

to employees and schedules

MUST-HAVE:

Records


T H A N K Y O UQ U E S T I O N S ?

MARTIN BOROSKO, ESQ.

BECKER LLC

[email protected]

(973) 251-8921

NICK FLORIO, CPA

CITRIN COOPERMAN

[email protected]

(212) 697-1000

STACY GILBERT, CPA

CITRIN COOPERMAN

[email protected]

(973) 218-0500

P R E S E N T E D B Y:

BRIAN CURTIS, ESQ.

BECKER LLC

[email protected]

(973) 251-8946

Business

Restaurant Roundtable: Playing By The New Rules 2016