Understanding the Wingstop Settlement: Why Compliance and Worker Rights Matter

The recent settlement reached by the Seattle Office of Labor Standards (OLS) with Wingstop  offers valuable insights for businesses and workers about the importance of adhering to labor laws and standards.

However, when I spoke with Brandon Business-Owner about the case, the first thing he said was:

“Yes–Wingstop should be more diligent and pay their workers properly. However, constantly chasing, forever-changing employee regulations is such a chore. It starts to feel like business owners never have time to actually focus on their actual business.”

I completely understand his point.

Sadly, this frustration shared among business owners continues to manifest itself as misclassification and violation of labor laws–much like the Wingstop settlement case.

As we take a look at the case, there are some key lessons that you should be aware of as a business owner.

Wingstop’s Wage Violations and Labor Standards

Wingstop was alleged to have failed to pay their employees the Seattle minimum wage, among other labor standard violations.

This included violations in their Seattle branches, such as:

• Failure to provide employees with rest and meal breaks
• Failure to provide employees with written notice of employment information
• Failure to post work schedules at least 14 days in advance

This highlights the importance of remaining diligent in your compliance with wage laws and labor standards.

In the case of Barbara Business-Owner, she must ensure that she pays Emily-Employee at least the local minimum wage and adhere to labor standards in the state she operates in, that’s the state and locality of Emily, by the way, not Barbara – ah, the additional complexities of the remote worker.

Compliance not only avoids legal repercussions but also promotes a healthy work environment which can boost productivity.

Financial Implications: The Heavy Price of Non-compliance

As the saying goes – “actions have consequences”.

In this case, due to Wingstop’s labor violations, the former owners agreed to a settlement of nearly $400,000 to be paid to affected workers and the City of Seattle.

Paying nearly $400,000 is a huge sum of money that I’m sure no business owner wants to pay as a result of a labor violation. The money could have been reinvested into other areas of the business that need it.

However, this just serves as a stark reminder of the financial implications of non-compliance with labor laws.

I know for a fact that you would like to avoid such a costly legal repercussion. Frankly, the only way to do this is to prioritize compliance and stay on the right side of state regulations and the Department of Labor.

The Role of Business Owners: Protecting Worker Rights and Ensuring Compliance

The Wingstop case hammers home the importance that workers are aware of their rights.

The OLS director encourages workers to be aware of their rights and contact them if they have questions.

That’s great and dandy, but as a business owner, you must also ensure that you have these conversations with your workers as well. Avoid confusion by having proactive, open conversations with your employees and ensure that they are aware of their rights.

And as a business owner, the gauntlet falls to you to understand and comply with labor laws and standards.

Wingstop is currently suffering from financial penalties and a hit to its reputation.

You really don’t want the same thing happening to your business.

The Wingstop case serves as an example to show what can happen when a business has not prioritized proper employment standards.

Here’s the thing though, keeping up with all of these labor laws, state regulations, and classification guidelines can be overwhelming. You may even be feeling blindsided by these forever-changing laws.

As Barbara Business-Owner said, you would rather focus on acquiring more clients and expanding your business operations.

Luckily, we are here to help you!

Navigating the Complexities of Labor Laws with ClearPath

ClearPath operates as an employment of record service. This means that you can delegate all of your HR and employee issues to us so you can get back to what’s really important–growing your business.

If you’d like to learn more about our employment of record services and how we can ensure that you are staying compliant, contact us today to make an appointment.

ClearPath is a leading Human Resources Outsourcing company focusing on assisting employers to leverage the independent contractor labor market. We’re committed to helping business owners stay compliant and minimize the risks associated with their contingent labor requirements.

No Legal Advice Intended. This article includes general information about legal issues and developments in the law. Such materials are for informational purposes only and may not reflect the most current legal developments. These informational materials are not intended, and must not be taken, as legal advice on any particular set of facts or circumstances. You need to contact a lawyer licensed in your jurisdiction for advice on specific legal issues.