Payroll requirements differ greatly according to local regulation and state laws. New York, home to many Paperchase clients, has specific payroll compliance points including spread of hours, call in pay, and meal deductions. Keeping up with these requirements can be tricky, so we broke it down for you to ensure your business is compliant and stay safeguarded against potential fees or litigation.
About Paperchase
Paperchase, a leading global accounting firm for the hospitality sector, offers scalable financial solutions for restaurants of all sizes. Their comprehensive range of services includes day-to-day accounting tasks, forecasting and growth analysis, budgeting, operations consulting, and robust weekly reporting. In addition to providing accounting services, Paperchase also provides payroll processing for hospitality businesses
Spread of Hours
Spread-of-hours pay is due when the length of time between the beginning and end of a workday is greater than 10 hours. This includes time off-duty, including meals, rest periods or time in between shifts. All employees who work a covered spread of hours in a single workday must be paid an additional hour at minimum wage for that day.
Call-In Pay:
Call-In Pay, also known as On-Call Pay, is wages owed to employees for showing up to work on a given day even if they are sent home early. Call-in pay requires non-exempt employees (even where the employee did not remain at work for this period) to be paid for a minimum of:
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Three hours for one shift
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Six hours for two shifts totaling six hours or less.
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Eight hours for three shifts totaling eight hours or less.
Meal Deductions (Meal Credit):
Employers may deduct the cost of meals provided to employees under certain conditions. Generally, the cost of meals can be deducted if the meals are provided for the employer’s convenience and are necessary for the employee to properly perform their job duties. However, there are specific rules and limits on these deductions, and it is crucial to maintain accurate records to substantiate the deductions.
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A credit for more than one meal shall not be permitted for any employee working less than 5 hours on any day.
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Credit for more than two meals shall not be permitted for any other employee on any day, except that a credit of one meal per shift may be permitted for an employee working on a split shift.
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Current meal credit rates are $3.85 Food Service employees, $4.45 Service employees, $5.50 Other employees per meal.
Uniform Maintenance pay:
Employers in the hospitality industry in New York State must either maintain required uniforms for their employees or provide uniform maintenance pay. This ensures that employees are not burdened with the costs of maintaining their work attire.
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It is the employer’s responsibility to either provide and maintain uniforms or compensate employees for maintenance costs. Maintenance includes washing, ironing, and dry cleaning. Maintenance pay differs based on weekly working hours.
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Employers must inform employees in writing about any laundry provided.
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Refer below link for Uniform Maintenance Pay Rates (2024):
Guidance for the New York State Hospitality Industry on Uniforms (LS400) (ny.gov)
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Employers can avoid these costs by
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Establishing a dress code with ordinary clothing.
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Providing “wash and wear” uniforms that do not require special care.
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Offering free laundry services for uniforms.
Conclusion
Staying compliant with payroll regulations is essential for operating a successful and legally sound business. If you have any questions regarding your payroll status, contact a legal or HR professional. Working with a hospitality accountancy like Paperchase will give you the peace of mind to safeguard your financial future through steadfast knowledge of local and state laws involving payroll.
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