Restaurant Roundtable: Playing By The New Rules 2016

PLAYING 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 YS
C 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 S
C 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 LAW
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

QUALIFYING FOR EXEMPTION:
PASSING THE PRIMARY DUTIES TEST
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

EXECUTIVE EXEMPTION
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 DUTY
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

ADMINISTRATIVE EXEMPTION
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

INSULATING YOURSELF FROM CLAIMS
DURING ON-BOARDING
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

MARTIN BOROSKO, ESQ.
BECKER LLC
MLBOROSKO@BECKER.LEGAL
(973) 251-8921
NICK FLORIO, CPA
CITRIN COOPERMAN
NFLORIO@CITRINCOOPERMAN.COM
(212) 697-1000
STACY GILBERT, CPA
CITRIN COOPERMAN
SGILBERT@CITRINCOOPERMAN.COM
(973) 218-0500
P R E S E N T E D B Y:
BRIAN CURTIS, ESQ.
BECKER LLC
BCURTIS@BECKER.LEGAL
(973) 251-8946

Restaurant Roundtable: Playing By The New Rules 2016

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Restaurant Roundtable: Playing By The New Rules 2016