Reporting Pay in Restaurants
Restaurants frequently experience fluctuations in the number of customers from day to day. It is not always possible to know how many staff to put on the schedule – some days, more employees are scheduled than are needed while, on other days, the business is scrambling to find people to work an unexpectedly busy lunch or dinner shift.
Employers have the right to schedule and change shifts to meet their business needs. At the same time, employees are assured of being paid a minimum amount if they are scheduled to work a shift that is cancelled or shortened by the employer, or if they are called in to work without prior notice.
Employees are generally entitled to three hours of reporting pay unless the employer has scheduled a shorter shift. If employees are not told of the length of their shift in advance, they must be paid for three hours or for the time they worked, whichever is more.
Employers cannot avoid reporting pay by asking for volunteers to go home. See our Wages for Reporting to Work fact sheet for more information.
The following examples show investigations conducted by Employment Standards related to reporting pay:
- A restaurant from the Brandon area admitted to asking for employees to “volunteer” to leave early. Employers cannot evade the responsibility for reporting pay by asking employees to agree to shorten a shift. We educated the employer and issued a Notice to Comply. A Notice to Comply is a warning to the employer that can lead to penalties if the employer is found not to be following the law in the future.
- A follow-up review of an investigation showed improvement with the requirement for reporting pay at a Winnipeg restaurant. But there were still times where employees were working fewer hours than the scheduled shift and not being paid the minimum reporting pay. The employer was directed to post an information sheet in the workplace on the rules for reporting pay, including information about making anonymous tips to Employment Standards.
- Employees of a franchise restaurant and bar were not being paid reporting pay. The investigation showed employees had been scheduled for longer shifts and did not receive reporting pay when the shift was ended early. The area manager co-operated with our review to ensure all locations came into compliance on this issue. A formal Notice to Comply was issued to each of the businesses.
- Investigation resulting from several tips to Employment Standards showed that employees at a recently-opened franchise restaurant were not being paid reporting pay. The employer was educated and now understands their obligations. Employment Standards is satisfied the employer will voluntarily comply with the requirement for reporting pay based on their cooperativeness with our investigation.
