US Department of Labor recovers $95K in owed wages for 33 cooks denied overtime pay at IHOP restaurants

COLUMBIA, SC (StLouisRestaurantReview) The U.S. Department of Labor has recovered $95,095 in back wages for 33 cooks at three IHOP franchise locations in both North and South Carolina that failed to pay overtime as required by federal law.

The department’s Wage and Hour Division found a restaurant franchise based in Westend, North Carolina, violated overtime provisions of the Fair Labor Standards Act at all three of its locations after it paid cooks straight time for all hours worked instead of the federally-mandated time-and-one-half their regular rate for hours worked in excess of 40 in a workweek. The employer, which operated all three establishments as IHOP restaurants, also maintained payroll records that falsely listed those wage payments as bonuses.

The division’s investigation found these overtime violations at Foothills Hospitality LLC in Easley, South Carolina, as well as Sandhill Hospitality LLC in Southern Pines and Highland Hospitality LLC in Charlotte, North Carolina.

“Wage violations like these are all too common in the restaurant industry. Employers are encouraged to review their pay practices to ensure they pay workers in accordance with the law,” said Wage and Hour Division Acting District Director Michael Gannet in Columbia, South Carolina. “The Wage and Hour Division offers assistance to help employers, regardless of the industry, understand their legal obligations.”

Employers and workers can contact the Wage and Hour Division with questions and requests for compliance assistance at its toll-free number, 866-487-9243. Employers are encouraged to use the agency’s industry-specific compliance assistance toolkits to learn about their responsibilities under the division’s laws. The agency’s PAID program offers employers an opportunity to self-report and resolve potential minimum wage and overtime violations under the FLSA, as well as certain potential violations under the Family and Medical Leave Act.

Learn more about the Wage and Hour Division, including its search tool that helps workers determine whether they are owed back wages. Download the agency’s free timesheet app for iOS and Android devices to track hours and pay.

Disclaimer

This article references a recent enforcement action by the U.S. Department of Labor regarding wage-and-hour compliance in the restaurant industry. The purpose of publishing this information is not to single out or criticize any specific business, but to provide a real-world example that illustrates how serious these legal obligations are.

For restaurant owners and management teams, cases like this serve as an important reminder that wage-and-hour compliance is not optional. Requirements such as proper overtime pay, accurate recordkeeping, and correct employee classification must be handled with precision and consistency.

The restaurant industry is particularly vulnerable to compliance issues due to the complexity of scheduling, tipped wages, and payroll calculations. Even unintentional errors can result in significant financial consequences, including back wages and penalties.

We publish this information to emphasize the importance of being properly prepared, maintaining accurate systems, and ensuring full compliance with labor laws.

Restaurant operators are strongly encouraged to review their payroll processes, properly train management staff, and seek professional guidance when necessary to avoid costly mistakes and protect their business.

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