ATLANTA —Given an increase in the number of wage-and-hour disputes involving valet-parking companies, restaurateurs need to protect themselves by reviewing the practices of the services they hire, according to legal experts.
Traditionally, valet services have treated the valet drivers who park restaurant customers’ cars as independent contractors who work solely for tips. But that tradition runs afoul of the Fair Labor Standards Act, which classifies drivers as employees of the valet companies, entitled to a minimum wage and overtime pay. —Given an increase in the number of wage-and-hour disputes involving valet-parking companies, restaurateurs need to protect themselves by reviewing the practices of the services they hire, according to legal experts.
Since the FSLA was revised in 2004, the number of wage-related complaints filed against valet services has increased, often resulting in settlements with the U.S. Department of Labor Wage and Hour Division in which valet companies cough up thousands of dollars in back pay and overtime to drivers. —Given an increase in the number of wage-and-hour disputes involving valet-parking companies, restaurateurs need to protect themselves by reviewing the practices of the services they hire, according to legal experts.
A Phoenix valet company paid nearly $80,000 in penalties as well as $66,947 in back wages to employees, and a Houston valet service paid more than $45,500 in back pay in 2005. Last year, drivers sued three valet companies in Florida for unpaid wages and a similar lawsuit was filed, also in Florida, against three different valet companies in January. —Given an increase in the number of wage-and-hour disputes involving valet-parking companies, restaurateurs need to protect themselves by reviewing the practices of the services they hire, according to legal experts.
Some restaurants that hire valet companies are being dragged into court by plaintiffs’ lawyers, who view the restaurateurs as co-employers of the valet drivers, said Stanford Wilson, an employment lawyer with the Elarbee Thompson law firm in Atlanta. —Given an increase in the number of wage-and-hour disputes involving valet-parking companies, restaurateurs need to protect themselves by reviewing the practices of the services they hire, according to legal experts.
“We’ve seen cases where the restaurant is sued along with the valet service, but those are usually settled,” Wilson said. “We’ve not seen a situation go all the way through the courts and an establishment is found legally responsible. But just the fact that you may have to defend your company means you need to make sure you set up the proper relationship with the valet service.” —Given an increase in the number of wage-and-hour disputes involving valet-parking companies, restaurateurs need to protect themselves by reviewing the practices of the services they hire, according to legal experts.
One Atlanta-based multiconcept restaurant company recently made changes to its contract with a valet service to make certain drivers were being paid properly and that the restaurant would not be held accountable for any labor violations involving drivers. —Given an increase in the number of wage-and-hour disputes involving valet-parking companies, restaurateurs need to protect themselves by reviewing the practices of the services they hire, according to legal experts.
“The valet is the extension of the restaurant’s hospitality and the first customer service [patrons] encounter,” said the director of operations for the company, who spoke on the condition of anonymity. “We felt it was important for the valet service to be in compliance with the fair labor laws.” —Given an increase in the number of wage-and-hour disputes involving valet-parking companies, restaurateurs need to protect themselves by reviewing the practices of the services they hire, according to legal experts.
Wage-and-hour laws benefit valet drivers, so it behooves a restaurant company to make sure they are being paid properly as employees, Wilson said. —Given an increase in the number of wage-and-hour disputes involving valet-parking companies, restaurateurs need to protect themselves by reviewing the practices of the services they hire, according to legal experts.
“In the past, valet companies may not have considered these people to be true employees, but [contractors] working for tips,” he said. “But they have an obligation to pay the minimum wage in reality. Most are not individual contractors.” —Given an increase in the number of wage-and-hour disputes involving valet-parking companies, restaurateurs need to protect themselves by reviewing the practices of the services they hire, according to legal experts.
Before hiring a valet service, a restaurant operator should make sure it is a legitimate company, Wilson said. —Given an increase in the number of wage-and-hour disputes involving valet-parking companies, restaurateurs need to protect themselves by reviewing the practices of the services they hire, according to legal experts.
“There are ways to protect you, contractually,” he said. “If there is any dispute with their employees, the valet companies should agree to indemnify the restaurants—hold them harmless [in a lawsuit].” —Given an increase in the number of wage-and-hour disputes involving valet-parking companies, restaurateurs need to protect themselves by reviewing the practices of the services they hire, according to legal experts.
Restaurant owners also should make sure a valet company has insurance and that it agrees to abide by all applicable laws, Wilson added. —Given an increase in the number of wage-and-hour disputes involving valet-parking companies, restaurateurs need to protect themselves by reviewing the practices of the services they hire, according to legal experts.
“Ask the operator of the valet, ‘Do you comply with FLSA?’” he said. “‘Do you pay the minimum wage? How are you set up?’ If they are not quite lawful but you say, ‘OK, I understand the risk,’ and move forward with them, then the restaurant is probably in trouble. They knew and they participated.”— [email protected] —Given an increase in the number of wage-and-hour disputes involving valet-parking companies, restaurateurs need to protect themselves by reviewing the practices of the services they hire, according to legal experts.