Every week we comb through the news to find employment trends affecting the hospitality industry so you don’t have to. This week’s topic: managing overtime.
Getting over overtime
In the demanding food service and hospitality industries, employees working overtime (OT) is not uncommon. It often occurs when venues are understaffed or experiencing seasonality, forcing staff to work more than 40 hours per week. There are several issues with employees racking up overtime hours, including:
- Burnout. Employees who work more than the standard workweek can start to feel fatigued, see a change in motivation or attitude, and lower company morale. Burnout frequently leads to high turnover, especially at restaurants.
- Increased costs. According to the U.S. Department of Labor, “employees covered by the Fair Labor Standards Act (FLSA) must receive overtime pay for hours worked in excess of 40 in a workweek of at least one and one-half times their regular rates of pay.” (Federal guidelines mandate overtime pay as over 40 hours worked in seven day pay period, but some states have OT specific regulations which differ dramatically. Look up your city/state specific laws to stay up to date.)
While overtime pay typically effects hourly workers like servers and cooks, a recent law may make salaried employees eligible for overtime as well depending on pay. (Read more about the overtime update here.) This means that managers can also be affected by overtime too, not just hourly workers.
One way to prevent overtime is by partnering with a staffing agency that can provide additional workers when necessary. When working with an organization like LGC, restaurants or hotels can request hourly staff for long- or short-term assignments. LGC also offers direct hire placements; combat overtime by growing your team, and leave LGC to do the recruiting, interviewing, and screening. Here are a few ways LGC can help decrease overtime hours:
- Providing staff during the busy holiday season
- Supplementing your team during special events
- Utilizing temporary workers while clients cross train internally
- Use experienced FOH or BOH staff to supervise
Accruing overtime hours can have detrimental effects on both employers and employees. By working with a staffing agency like LGC, clients can cut down on costs without sacrificing the success of their business or team. Contact us today to learn more about our staffing solutions.