Recently, RI Hospitality Association has heard from several restaurant owners who are claiming that potential employees are asking if having their wages paid „under the table‟ is an option, so that they can still collect unemployment benefits.

While this is not only illegal, it can result in enormous fines. The U.S. Department of Labor recently launched a new campaign, “We Can Help,” aimed at reducing violations in federal wage and hour laws. The campaign targets workers – including those in the hospitality industry – to report any violations in how they are being compensated by their employers.

Many states, including RI, have reported a recent uptick in „stings‟ targeting businesses for violations including wage, underage drinking and health code violations.

If you are approached by an employee or potential employee to provide compensation through illegal means, please let me know.

If an owner is caught practicing under-the-table compensation, it can result in multiple hundreds of thousands of dollars in fines. And, it also opens the door for the US DOL to audit EVERY SINGLE EMPLOYEE in a company, dating back for a period between three and seven years.

Simply put – we cannot afford to operate in any way other than to follow the letter of the law. If you have questions on labor laws or compensation, please don‟t hesitate to call.