Wage Violations on the Rise: Technology to the Rescue

Rapper, actor, and entrepreneur T.I. faces a lawsuit from former employees at Scales 925, his downtown Atlanta restaurant, regarding wage violations. Though his case may be more publicized than others, trust that he is not the only restaurant owner dealing with this issue. Employee wage litigation is prevalent in the restaurant industry but luckily there is existing technology that can help prevent this occurrence from happening.

Nationwide, the number of wage-violation lawsuits has steadily risen for years, doubling in the last decade. This trend is expected to continue following recent labor regulations.

The Department of Labor announced its "Final Rule" on overtime compensation in May, making it easier for employees to qualify for overtime pay.

Accurately depicting the number of hours worked has always been difficult to gauge and has never been more important. The classic "punch-in / punch-out" system has been the standard in most industries for over a century, despite its flaws and inefficiencies. New employee tracking technologies are closing the gaps in this outdated system.

Current systems lack the ability to track employees going to the break room, stepping outside of the office, or even leaving to run an errand on the clock. With an unprecedented number of wage and labor disputes arising, finding affordable and user-friendly solutions to this problem has become a priority. Technology advancements and the rise of the "internet of things" has presented a tremendous opportunity to monitor daily employee operations.

Modern technology has allowed smart devices to evolve into objects no larger than the size of a keychain and to last for years on a single battery charge. These connected devices can interact with each other allowing important information, such as when an employee enters and exits the building to be transmitted in real time. This has opened the doors for IT devices in terms of usability and functionality.

Previously, many types of metrics were being tracked by manual data input, whereas this new technology allows for information to be communicated in an automated and hassle-free manner.

To learn about a technological solution that can assist in preventing these types of disputes and lawsuits, please check out a solution called VeriTrack here.


If you would like to learn more about creating an effective employee workplace for your employees check out Split, an innovative solution for restaurants that helps track and set goals for staff.

Writer Bio: Avery McGregor writes about the restaurant industry and the technology and innovation movements reshaping it. She writes for VeriSolutions - a company specializing in making restaurants more intelligent utilizing modern technology.