Top 5 Ways Restaurants Violate Wage Laws

1. Failing to pay the correct amount in overtime. Tipped employees who receive the special restaurant sub-minimum wage are entitled to overtime at one and one-half times the actual minimum wage.

2. Failing to pay the correct special restaurant sub-minimum wage. In Maryland it is $3.08 per hour.

3. Failing to pay employees any direct wages (and paying the employees only in tips).

4. Keeping a portion of pooled tips for "the house" (i.e., the restaurant).

5. Failing to pay overtime to "assistant managers" who otherwise do not qualify for a white collar exemption.

Federal Minimum Wage Increases to $5.85 Per Hour; Maryland Minimum Wage is $6.15 Per Hour; DC Minimum Wage is $7.00 per hour

Don't forget -- July 24, 2007 marks the effective date of an increase in the Federal Minimum Wage from $5.15 per hour to $5.85 per hour. This is the first of three incremental increases in the federally-mandated minimum wage and is part of the Fair Minimum Wage Act of 2007. The next increase to $6.55 per hour goes into to effect on July 24, 2008 and the final increase to $7.25 per hour goes into effect on July 24, 2009.

In Maryland, the minimum wage is currently higher than the Federal Minimum Wage and requires employers to pay employees working in Maryland at least $6.15 per hour. On July 24, 2008, it will increase to $6.55 per hour. On July 24, 2009 it will increase to $7.25 per hour.

In the District of Columbia, the minimum wage is also higher than the Federal Minimum Wage and is now $7.00 per hour. On July 24, 2008, it will increase to $7.55.