FederalEmployment & HRRequired

Applies to all US restaurants regardless of state

FLSA Wage & Hour Policy

Federal minimum wage, overtime, tip credit, and record-keeping policy for restaurant employees.

What this document covers

The FLSA sets federal minimum wage ($7.25/hr), overtime rules (time-and-a-half after 40 hours), tip credit provisions ($2.13/hr minimum for tipped employees), and youth employment standards. Restaurants are among the most frequently investigated industries for FLSA violations.

Key sections included

  • Minimum wage compliance
  • Tip credit procedures
  • Overtime calculation policy
  • Tip pooling rules
  • Youth employment restrictions
  • Record-keeping requirements
  • Exempt vs non-exempt classification

Frequently asked questions

Can I pay tipped employees $2.13/hr?

Only if tips bring their total hourly earnings to at least $7.25/hr (the federal minimum). If tips fall short, you must make up the difference. Some states don't allow tip credits at all.

Do managers earn overtime?

Managers may be exempt from overtime if they meet the 'executive exemption' test: salary of $684+/week, primary duty is management, and they regularly direct 2+ employees.

Document details

Legal basis
Fair Labor Standards Act (29 USC §201 et seq.)
Enforced by
Department of Labor, Wage and Hour Division
Penalty for absence
Back wages plus liquidated damages (double damages), civil penalties up to $2,203 per violation for repeat/willful offenders, criminal penalties up to $10,000.
Category
Employment & HR

Document preview

Here's what your generated FLSA Wage & Hour Policy looks like. Each document is customized with your business details.

SAMPLE

DocketPack — Generated Document

FLSA Wage & Hour Policy

Prepared for: [Your Business Name]Date: April 27, 2026

Legal Reference

Fair Labor Standards Act (29 USC §201 et seq.). Enforced by Department of Labor, Wage and Hour Division.

1. Minimum wage compliance

2. Tip credit procedures

3. Overtime calculation policy

4. Tip pooling rules

+ 3 more sections...

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