FLSA Wage & Hour Compliance Plan

FLSA wage and hour compliance covering minimum wage, overtime, tip credit, and event-based scheduling unique to food truck operations with seasonal and part-time staff.

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What this document covers

Food truck operators face distinct wage and hour challenges under the FLSA: event-based scheduling with long shifts followed by days off, tip credit calculations when employees perform both tipped and non-tipped duties (80/20 rule), prep time at the commissary versus service time on the truck, travel time between locations, and seasonal fluctuations that affect overtime calculations. The FLSA requires minimum wage ($7.25 federal, often higher by state), overtime pay at 1.5x for hours over 40 per workweek, accurate time-keeping, and proper tip credit application. This plan ensures your food truck wage practices comply with federal standards and documents your policies for the Department of Labor.

Key sections included

Minimum wage compliance and tip credit application
Overtime calculation for event-based schedules
Tip pooling and distribution policies
Time-keeping for commissary prep, travel, and service
Youth employment restrictions (minors operating cooking equipment)
Seasonal employee wage requirements
Pay stub and record-keeping requirements
Wage and hour complaint response procedures

Frequently asked questions

Can I use tip credit for my food truck employees?

Yes, if your employees customarily and regularly receive more than $30/month in tips, you can take a tip credit of up to $5.12/hour (paying a cash wage of $2.13/hour). However, many states have eliminated or reduced tip credit — check your state law.

Does prep time at the commissary count as hours worked?

Yes. All time an employee is required to be at the commissary preparing food, loading the truck, or performing work-related tasks is compensable time. This includes pre-shift prep and post-shift cleanup.

How do I calculate overtime during a festival week?

All hours over 40 in a workweek must be paid at 1.5x the regular rate. A 12-hour festival day is legal, but if the employee works 5 such days (60 hours), you owe overtime for 20 hours. The workweek must be a fixed, recurring 168-hour period.

Document details

Legal basis: Fair Labor Standards Act (29 USC §201 et seq.); 29 CFR Parts 516, 531, 778, 785
Enforced by: U.S. Department of Labor, Wage and Hour Division (WHD)
Penalty for absence: Back wages owed plus an equal amount in liquidated damages. Civil penalties of $2,451 per repeated/willful violation. Willful violations: criminal fines up to $10,000 and/or imprisonment. WHD investigations can audit 2-3 years of payroll records.
Category: Employment & HR

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