Chapter 12 Employee Management

1. © 2011 John Wiley and Sons, Inc. All Rights Reserved

2. Chapter 12 Employee Management © 2011 John Wiley and Sons, Inc. All Rights Reserved

3. This Chapter Will Help You Become familiar with the types of jobs in the beverage industry. Write job descriptions and interview applicants. Develop effective training programs. Schedule personnel to meet daily needs. Supervise employees to avoid legal pitfalls. Meet federal and state compensation and record-keeping requirements. Figure wage and overtime amounts for various methods of payment. Understand the laws about tips and tip reporting. Decide which employee benefits to offer. © 2011 John Wiley and Sons, Inc. All Rights Reserved

4. Staff Positions • The bartender’s primary function is to mix and serve drinks for patrons at the bar and/or to pour drinks for table customers served by waiters or waitresses. • In a high-volume bar, often referred to as a speed bar, the ability to work quickly and under pressure is essential. © 2011 John Wiley and Sons, Inc. All Rights Reserved

5. Staff Positions • A barback typically relieves the bartender of all chores except pouring the drinks and handling the customers and the cash register. • The barback is also a runner or “go-fer” who “goes for” liquors, beers, wines, and other supplies as needed by the bartender. • Beverage service at tables is handled by waiters or waitresses, a group collectively referred to as servers. © 2011 John Wiley and Sons, Inc. All Rights Reserved

6. The Wine Steward or Sommelier • The wine steward (also called the cellarmaster, winemaster, wine captain, or wine waiter) • Presents the wine list at the table. • Makes recommendations. • Discusses wines with customers. • Takes care of serving the wines. • A traditional symbol is a tasting cup called a tastevin that hangs from their neck on a cord or ribbon, a cellar key, and sometimes a leather apron. © 2011 John Wiley and Sons, Inc. All Rights Reserved

7. Security Positions • This person keeps order, asks for I.D., enforces dress codes, and collects cover charges. • The cover charge is a fee for admittance to the bar. • Security needs may also call for hiring bouncers, individuals whose job it is to protect both bar patrons and employees from unruly behavior. © 2011 John Wiley and Sons, Inc. All Rights Reserved

8. Beverage Management Positions • A beverage steward isa person in charge of all wine and liquor purchasing, storage, receiving, requisitioning, and inventory control. • In very large operations the beverage steward may work for the beverage manager or beverage director. • In some large organizations responsibility for food-and-beverage service is combined into one position called the food-and-beverage director. © 2011 John Wiley and Sons, Inc. All Rights Reserved

9. Developing Job Descriptions • To develop a job analysis. • First the task analysis lists each small task performed as part of a particular job: its purpose, how it is done, and what equipment and skills are required to do it. • Then the job specifications are written. This list identifies the knowledge, skills, and/or abilities a person must have. © 2011 John Wiley and Sons, Inc. All Rights Reserved

10. Hiring and Scheduling • Planning a Staff Schedule • The Job Interview • Undocumented Employees • The I-9 Form • This is the federal Employment Eligibility Verification form that lists the correct documents used to establish identity and eligibility to work in the United States. © 2011 John Wiley and Sons, Inc. All Rights Reserved

11. Training the Staff • The Use of Uniforms • Bartender Training • Sales Training • Training in Beverage Laws • Learning from Employee Turnover © 2011 John Wiley and Sons, Inc. All Rights Reserved

12. Labor and Employment Laws • Managers and supervisors should be trained to spot potential problems and to act in ways that reduce their employers’ exposure to legal action. • BNA Communications, Inc., of Rockville, Maryland, a company that conducts corporate training for managers, has created “10 Rules for Workplace Liability.” © 2011 John Wiley and Sons, Inc. All Rights Reserved

13. An Overview of Labor and Employment Laws • U.S. major federal labor and employment laws are most frequently implicated in court actions. • Many states have passed their own similar legislation about these topics that in some cases is more restrictive. © 2011 John Wiley and Sons, Inc. All Rights Reserved

14. Compensation and Benefits • Methods of Compensation and Rates of Pay • Federal Minimum-Wage Requirements • A special provision of the FSLA concerns wages of tipped employees. • The employer may consider the tips part of that person’s salary, allowing for a tip credit. However,if an individual’s tips plus wages amount to less than the minimum wage in any workweek, the employer must make up the difference. © 2011 John Wiley and Sons, Inc. All Rights Reserved

15. Federal Minimum-Wage Requirements • The FLSA was amended to add a lower, subminimum wage for employees under age 20 during their first 90 consecutive calendar days on the job. • The subminimum wage may also apply to full-time students in the workplace, some apprentice and trainee jobs, and individuals whose productivity is limited by a physical or mental disability. © 2011 John Wiley and Sons, Inc. All Rights Reserved

16. Defining the Workweek • The FLSA also requires that minimum wage be computed on the basis of a workweek, whether the employee is paid weekly, biweekly, monthly, or at some other interval. • A workweek is defined as a fixed and regularly recurring period of 168 hours: seven consecutive 24-hour periods, beginning any day of the week at any hour of the day. © 2011 John Wiley and Sons, Inc. All Rights Reserved

17. Tip Pooling • The FLSA specifies that all tips belong to employees. • The employer cannot claim any part of the tip money for the business. • However the employer may require tip pooling. • This is when servers or bartenders “tip out,” or share a percentage of their tips with barbacks, busboys, and other service staff who have direct contact with guest they are part of the “team” but generally do not receive tips. © 2011 John Wiley and Sons, Inc. All Rights Reserved

18. Other Charges • Supervisors as Exempt Employees • The FLSA exempts supervisors, managers, administrators, and executives from minimum-wage requirements. • They are called exempt employees, while those covered by the act are called nonexempt employees. © 2011 John Wiley and Sons, Inc. All Rights Reserved

19. Calculating Regular and Overtime Pay • The FLSA requires that employees receive overtime pay for any time over 40 hours worked in one workweek. • The regular rate for figuring overtime is always an hourly rate. • A week’s pay includes all remuneration: wages or salary, commissions, attendance bonuses, production bonuses, shift differentials, and tips credited as part of a worker’s wages (the tip credit). © 2011 John Wiley and Sons, Inc. All Rights Reserved

20. Contract Labor • Sometimes people are hired seasonally, on a part-time basis, or as consultants to help with a particular project. • They will not be covered by the standard employee benefits and no taxes or Social Security will be deducted from their paychecks. • These people may refer to themselves as contract labor, freelancers, consultants, or independent contractors. © 2011 John Wiley and Sons, Inc. All Rights Reserved

21. Payroll Taxes, Benefits, and Perquisites • In addition to wages and salaries two other forms of compensation add to labor costs: payroll taxes and fringe benefits. • Some enterprises reimburse their management employees for job-related expenses. • Benefits that are related to specific jobs or job levels are known as perquisites, orperks for short. • The term fringe benefit refers to any tangible or significant compensation other than wages. © 2011 John Wiley and Sons, Inc. All Rights Reserved

22. Other Types of Records • Employers also keep information and withholding records or state insurance and tax programs, and must file state returns and make the required payments. • Each employee must be given a year-end statement, which is called a W-2 form, of the total wages or salary paid, deductions for the year, and tips reported. © 2011 John Wiley and Sons, Inc. All Rights Reserved

23. Summing Up • This chapter offers an overview of labor laws, federal wage and hour laws and payroll taxes, and a summary of the most common benefits offered by bars and restaurants. • This chapter introduces sales per labor hour (S/LH), a measurement of how much labor cost is being expended to achieve the sales for a particular time period. © 2011 John Wiley and Sons, Inc. All Rights Reserved