Over the last month, I have noticed an increase in the number of salaried employees who have become concerned about their paycheck. Some salaried employees have found themselves mandated to reduce their work to less than forty hours per week, and as a result to account for the reduction, their employers have threatened to reduce their pay. Conversely, other salaried employees have found themselves working significantly more than their traditional forty-hour work week as a result of the high COVID demands in their particular industry. However, some companies are not compensating employees for the extra hours worked – can they do that? Well, the answer is, it depends.
The restaurant industry is known for stealing hard-earned tips from its employees. This practice has been going on for years, yet it continues to be a paramount issue in the industry. As a restaurant employee, you may have asked yourself the following question because you have seen it done time and time again: Can my manager take my tip? Am I obligated to pay for a walked tab? Do I have to share my tip with cooks? The answer to all of these questions is likely no.
Likely yes. The Consolidated Omnibus Budget Reconciliation Act (COBRA) requires employers (or their plan administrators) to notify qualified employees of their entitlement to the continuation of the same health coverage that they would have otherwise lost due to specific qualifying events, like a job loss. Failure to do so may expose the employer to statutory penalties of up to $110 per day, reimbursement of medical bills incurred by the employee, and the employee’s attorneys’ fees and costs.