Fact Pattern: Mr. Gull Able Student works as a waiter at the Badplacetowork Café

Question

Fact Pattern: Mr. Gull Able Student works as a waiter at the Badplacetowork Café. The owner of the Café, Mr. Ronald Frump, pays all of his waitstaff $2 per hour on the theory that they “make so much money on tips, I shouldn’t have to pay them more.” Although Gull Able Student is only scheduled 38 hours per week, Mr. Frump requires all staff to show up 1 hour early everyday to roll silverware and study the specials of the day. Furthermore, if all the cleaning and station work is not completed by the end of the shift, you must stay late to finish. Staff is also required to take materials home after work at least once a week for training. Typically the training takes an additional 1 to 2 hours. Please answer the aforementioned questions about this scenario. 1) What are the potential issues arising in this scenario pursuant to the FLSA laws? 2) What if any potential liability issues arise for the employer?

answer the following questions in 200 words or more.

Explanation / Answer

1. The federal law Fair labor standards Act (FLSA) establishes that the employers should stick on t the minimum wages policy as per the market, should provide eligibility based payment for the overtime, etc. When this law is considered with this case some potential issues can be identified.

2. The potential issues for which the employer can be liable is the wage which he provided for the waiter. His wage doesn’t meet the minimum wage standard of the market and he can be liable for it if any waiter sues him under the FLSA act.

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