Restaurant ​Labor Laws & Employment Requirements

Restaurant Labor Laws

Restaurant labor laws are complicated and all too often, a small mistake can turn into a serious problem, risking fines and possible lawsuits from the Department of Labor.

If an employee continues to work at the end of his/her shift, are you responsible for wages during that time? Do rest breaks count as hours worked? Are you required to offer breaks and meal periods? Do you know what your tip credit is and how it relates to calculating overtime? Can you deduct any shortages or breakages from employees' wages? Are you required to pay for employees' uniforms?

It’s easy to get caught up in technicalities despite your best intentions. Additionally, it’s critical to keep up with current law, have clear policies and procedures in place, maintain organized records, and ensure that employees receive continuous training. Understanding restaurant labor laws and employment requirements can save your business a lot of money. Let Texas Restaurant Association help ensure you’re prepared.

Visit the Resource Center for the answers to these and more labor-related questions.


Trending Issues


Wage and labor issues in the restaurant industry have received a great deal of attention over the past year. The DOL Wage and Hour Division classified the restaurant industry as a high-risk industry for FLSA violations. And some believe that restaurants are being targeted for audits. More

Federal Overtime Rules

The Labor Department's new overtime rule doubles the salary threshold for overtime-exempt employees but makes no changes in the duties test. The DOL plans to put the rule into effect December 1, 2016. The rule comes despite intense and ongoing opposition, and the fight is expected to continue in both Congress and the courts. More