Custom Restaurant Employment Agreement

What a good one includes

• A precise breakdown of the employee's role, duties, and whether they are classified as exempt, non-exempt, part-time, or seasonal.
• A detailed explanation of hourly wages, overtime rates, and a legally compliant tip pooling or distribution policy.
• Clear guidelines on shift availability, call-out procedures, tardiness, and how schedule changes are communicated.
• Explicit rules regarding required attire, safety footwear, hygiene, and who covers the cost of branded uniforms.
• A defined schedule for paid and unpaid breaks that strictly complies with local and state labor laws.
• Clear policies on food consumption, phone usage on the floor, alcohol service laws, and guest interaction standards.
• A clear statement of the employment-at-will relationship and the specific protocol for resignations or terminations.

Common mistakes to avoid

• Copying a standard office contract ignores hospitality-specific realities like shift-swapping, tipping regulations, and food safety standards.
• Failing to explicitly define who participates in the tip pool can lead to severe federal and state wage violation claims.
• Neglecting to write local meal and rest break mandates directly into the agreement often results in costly class-action disputes.
• Failing to specify non-tipped side-work expectations can violate federal tipping rules and trigger back-pay audits.

Frequently asked questions