Wage Theft by Service Charge: Circuit Decisions Go Against the Purpose of the Fair Labor Standards Act and Approach Judicially Sanctioned Fraud

By: Erik Allgood* 

Abstract

Rising costs and inflation rates have created difficult times for both service industry employers and their employees. Business owners often implement service charges to offset their costs. But problems arise when employers try to siphon off service charges, effectively reducing total wages paid to their employees. Attempting to address this problematic ambiguity, courts have determined that … Read the rest