Empathetic, Bilingual Legal Support

5 common employment law issues in the hospitality industry

On Behalf of | Nov 7, 2024 | Employment

In the world of hospitality, customer satisfaction is vital. Still, companies sometimes overlook the rights of the employees that make it all happen. That is why if you work in this industry, you must become aware of common violations and stay vigilant.

Minimum wage and overtime

One issue in the hospitality industry is the failure to adhere to minimum wage and overtime laws. California has its own minimum wage, often higher than the federal standard. Despite this, certain employers continue to pay workers below the legal threshold.

Moreover, overtime pay is frequently overlooked. This pay should be 1.5 times the normal rate for hours worked beyond 40 per week. If you are a tipped employee, stay alert to this issue. Your employer could miscalculate overtime by excluding tips from the wage base.

Misclassification of employees

Another frequent violation is misclassifying employees as contractors. This lets employers bypass overtime pay, causing underpayment for affected workers. In hospitality, managers often face this issue, wrongly classified even if their duties do not qualify for exemption. Fortunately, this practice is against the law, and you can take legal action if you are experiencing it.

Tips and tip pooling

Tipped workers often face tip-related violations. Some employers illegally keep part of the tips or add non-tipped staff to tip pools, which is not allowed. Additionally, employees need to be informed about tip credits and ensure their total pay meets the minimum wage.

Meal and rest breaks

California law dictates specific meal and rest breaks, yet violations remain rampant in the hospitality industry. Employees can be denied their breaks due to understaffing or high customer demand. Such actions breach regulations and cause staff burnout and frustration.

Discrimination and harassment

Despite California’s robust anti-discrimination laws, these issues remain in hospitality. Some workers experience bias due to age, gender, race, or other protected traits. Sexual harassment is a major issue stemming from close and informal interactions in this industry.

A portion of San Diego’s economy relies heavily on hospitality. However, this industry often violates employment laws. Consequently, these violations can hurt workers’ rights and well-being. Therefore, employees must know their rights to ensure fair treatment at work. Remember, if you are facing employment violations, you can seek legal counseling.