The restaurant owner’s guide to employee management software
A restaurant runs on a schedule that changes every week, staff who are paid by the hour and often by the tip, and a kitchen where phones do not belong. This guide covers what restaurant employee management software has to handle, the federal rules behind tipped pay and overtime, the scheduling and break laws that reach restaurants, and how to choose a system for one location or ten.
What restaurant employee management software needs to do
Four jobs, in order. Schedule the week by station and publish it where staff will see it. Record hours from a phone or a shared tablet, with breaks and overtime worked out. Handle time off and swaps without a manager in the middle of every text. Then pay for exactly the hours that were approved. Scheduling, the time clock kiosk, PTO and payroll in Workzenly are those four jobs on one record.
Tools built only for scheduling, such as the ones compared in our list of the best restaurant scheduling apps, stop at the schedule. The hours then get retyped into a payroll service, which is where most Friday corrections start.
Tipped wages and overtime
Under the Fair Labor Standards Act, an employer may pay a tipped employee a cash wage of $2.13 an hour and take a tip credit of up to $5.12, as long as tips bring the employee to at least the $7.25 federal minimum wage; the employer must make up any shortfall and must tell employees about the tip credit in advance, according to the U.S. Department of Labor. Many states set a higher cash wage, and some, including California, Washington and Oregon, allow no tip credit at all. Our Texas minimum wage guide walks through the federal rule as Texas applies it.
Overtime for tipped staff is figured on the full minimum wage, not the cash wage: time and a half on $7.25 is $10.88, minus the tip credit, so the employer pays at least $5.76 cash for each overtime hour at the federal rates. Managers and supervisors may not keep any part of a tip pool. See how to calculate overtime for the regular-rate math when a server also earns a shift differential.
| Rule | Federal | What to check in your state |
| Tipped cash wage | $2.13 an hour | Higher cash wage, or no tip credit (CA, WA, OR and others) |
| Tip credit | Up to $5.12, with notice to employees | Smaller or no credit; tip pool rules |
| Overtime | 1.5 × regular rate after 40 hours a week | Daily overtime in California and a few other states |
| Meal breaks | Not required; unpaid only if 30+ minutes and fully relieved | Required breaks and premiums in CA, WA, OR and others |
Scheduling and break laws that reach restaurants
Fair workweek laws in Oregon and in cities including New York City, San Francisco, Seattle, Chicago, Philadelphia and Los Angeles require some food-service employers to post schedules in advance, usually 14 days, and to pay a premium for late changes. New York City’s fast-food law covers chains with 30 or more locations nationally. Our scheduling page has the verified table of who is covered and the notice each law requires.
Break rules are set by states, not federal law. California requires a 30-minute meal break when a shift runs more than 5 hours and a paid 10-minute rest break for every 4 hours or major fraction, and charges one extra hour of pay when a break is missed. Set your break rule during setup and read the time card calculator guide for how breaks come off the day’s hours.
Scheduling minors
Federal child labor rules let 14- and 15-year-olds work only outside school hours: no more than 3 hours on a school day, 18 in a school week, 8 on a non-school day and 40 in a non-school week, between 7 a.m. and 7 p.m. (9 p.m. from June 1 through Labor Day), according to the Department of Labor. They may not cook over an open flame or operate most power equipment. Federal law sets no hour limits for 16- and 17-year-olds, but many states do, and no one under 18 may run a power-driven meat slicer. Workzenly shows each person’s weekly hours as you build the schedule; checking the hours against your state’s rules for minors is yours to do.
This guide is general information, not legal advice. Wage and scheduling rules change every year, so check your state labor department or a restaurant employment lawyer for your situation.
Labor hours and labor cost
Most restaurant owners watch labor as a share of sales. The software side of that is hours: scheduled hours per day and per station, clocked hours against them, and the overtime that creeps in when a Saturday pickup takes a cook from 36 hours to 46. A worked example: Emily Carter earns $19.00 an hour; 46 hours in a week is 40 × $19.00 = $760.00 plus 6 × $28.50 = $171.00, so $931.00. Offering that Saturday shift to Tyler at 24 hours instead costs 8 × $17.75 = $142.00 and no overtime. Workzenly shows the hours and the overtime risk while you build; sales forecasting is not something it does, so keep your POS reports beside it.
How to choose
- Run last week through it. Take your real schedule, the swaps that happened and one missed clock-out, and see which tool turns them into a correct pay run with the fewest manual steps.
- Check the kitchen. If phones stay in lockers, the tablet kiosk is not optional. Ask how PINs, breaks and missed punches work on it.
- Ask about tipped pay for your state. Cash wage, tip credit and tip-pool rules differ, and the system has to carry the right ones into payroll.
- Look at the employee side. Staff who avoid the app produce the same bad data as paper. Open the app as a server would.
- Count the hand-offs. Every time hours are retyped between tools, someone fixes a pay stub later. Read our payroll process guide for the full set of steps a pay run involves.
If you want to see your own week in Workzenly, book a demo and we will set up a workspace with your restaurant’s name before the call. Plans and prices are on the pricing page.