The restaurant industry is often the target of wage and hour lawsuits, particularly, ethnic restaurants, which find themselves on the defense side of a wage claim or lawsuit filed by a server or cook who was recently terminated.  For ease of administration, many smaller restaurant owners and their staff agree on wages in the form of a fixed daily rate that is paid regardless of the number of hours the employee works. Unfortunately, many of these restaurant owners believe that because there’s an agreement between them and the employee and because a close personal relationship that this type of arrangement is fine.  However, this mistaken understanding will cost many hard-working small business owners tens of thousands of dollars if not ultimately force them to close down the business.  Here is information that could keep you and your restaurant business out of trouble. Can I pay employees a flat daily rate instead of hourly? Technically, yes because neither federal nor California law requires that you pay employees on an hourly or any other basis.  BUT paying employees a flat daily rate regardless … Continue reading →