compliance
Restaurant Wage and Hour Compliance Tracker
Wage and hour law is one of the most active areas of regulatory change for restaurant operators. Minimum wages are changing in multiple cities and states every year, and DOL enforcement actions against restaurant employers are a consistent priority. Staying current matters.
Minimum wage changes in 2026
Multiple states and cities are scheduled for minimum wage increases in 2026. Cities like Seattle, San Francisco, and New York City have minimum wages significantly above the federal minimum, with scheduled annual increases tied to inflation or cost-of-living indexes. Failing to update pay rates by the effective date exposes restaurants to DOL back-pay claims and civil penalties.
Tip credit and tip pooling rules
The federal tip credit — which allows employers to pay tipped employees below minimum wage — varies by state. Some states (California, Minnesota, Alaska) don't allow a tip credit at all. Tip pooling rules have also changed in recent years, with new DOL rules expanding which employees can participate in tip pools. These rules differ by state and are actively litigated.
DOL enforcement and what it covers
The Department of Labor's Wage and Hour Division investigates tip credit violations, minimum wage violations, overtime violations, and child labor law violations in restaurants. Food service is consistently one of the most investigated industries. Panko Alerts monitors DOL enforcement actions and rule changes and delivers them to your feed the day they're published.
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