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When running a business — whether it’s a restaurant, retail shop, or professional service — ensuring compliance with labor laws, such as overtime, is not just a legal responsibility but a reflection of your values as an employer. A recent federal case involving the owner of several Albany-area pizza restaurants, as reported by the Times Union, serves as a stark reminder of the serious consequences of failing to uphold those obligations.
A Costly Lesson in Noncompliance
According to the Times Union article, Zafer Ak, owner of Golden Grain Pizza and Pizza Bella, agreed to a settlement exceeding $1 million with the U.S. Department of Labor after admitting to willfully violating overtime and recordkeeping provisions of the Fair Labor Standards Act (FLSA). His company, Pizza Capital, failed to pay overtime wages to employees who worked over 40 hours a week — some logging as many as 90 hours — and falsified records in an attempt to conceal it.
The investigation revealed that Ak kept inaccurate electronic payroll and paper timecards while the restaurants’ point-of-sale system and handwritten logs told a more honest story. The result: a costly legal settlement, a damaged reputation, and potential long-term impacts on employee trust and business operations.
Why Overtime Compliance Should Be a Top Priority
It’s the Law
The FLSA requires most employees to be paid time-and-a-half for any hours worked over 40 in a workweek. Willfully ignoring this rule exposes employers to back pay, penalties, and even liquidated damages — all of which can compound rapidly over time.
Accurate Recordkeeping is Essential
Employers are legally obligated to maintain complete and accurate payroll records. Manipulating or failing to preserve this data — as seen in this case — can be used as evidence of willful misconduct, leading to stiffer penalties and scrutiny from regulators.
Reputation and Employee Morale Are at Stake
Beyond the legal ramifications, failing to pay employees fairly can devastate your workforce’s morale and your standing in the community. Workers talk — and news travels fast, especially in the age of online reviews and social media.
Noncompliance Is Expensive
What may start as an attempt to cut labor costs can easily snowball into a seven-figure settlement. It’s far less expensive — and far more ethical — to comply from the start.
How to Stay Compliant
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Conduct regular payroll audits to ensure overtime is calculated and paid properly.
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Use reliable time and attendance systems that track hours worked accurately and integrate with your payroll system
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Train managers and supervisors on overtime rules and classification standards.
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Work with a trusted HR or payroll provider to stay current with labor laws and minimize risk.
Final Thoughts
The Golden Grain Pizza case is a powerful example of how ignoring labor laws can backfire in the most public — and expensive — way. Overtime compliance isn’t optional. It’s a fundamental part of responsible business management. Employers who make it a priority not only protect themselves from legal trouble but also foster a fairer, more sustainable workplace for everyone.
How GTM Helps with Overtime Compliance
If you’re unsure whether your business is fully compliant with overtime laws, now is the time to act. GTM can help you avoid risk, reduce errors, and stay focused on growing your business — not fighting lawsuits. Our HR Audit service provides an unbiased, objective assessment of your current policies and practices, with recommendations to identify improvement areas and ensure compliance with legal and regulatory requirements.
Plus, GTM’s payroll platform integrates with POS systems and can help solve compliance issues and avoid costly mistakes.
Fill out the brief form below to learn more.