IHOP Franchise Pays $95K in Back Wages to 33 Cooks

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The U.S. Department of Labor has recovered $95,095 in back wages for 33 cooks at three IHOP franchise locations in both North and South Carolina that failed to pay overtime as required by federal law. The department found the restaurant franchise violated overtime provisions of the Fair Labor Standards Act by paying cooks straight time for all hours worked instead of time-and-a-half for hours over 40 in a workweek.

Why it matters

Wage violations like these are common in the restaurant industry, where complex scheduling, tipped wages, and payroll calculations can lead to unintentional errors. This case highlights the importance of proper overtime pay, accurate recordkeeping, and full compliance with labor laws to protect both workers and businesses from costly consequences.

The details

The Wage and Hour Division's investigation found the overtime violations at Foothills Hospitality LLC in Easley, South Carolina, as well as Sandhill Hospitality LLC in Southern Pines and Highland Hospitality LLC in Charlotte, North Carolina. The employer, which operated all three establishments as IHOP restaurants, also maintained payroll records that falsely listed the wage payments as bonuses.

• The Department of Labor recovered the $95,095 in back wages in April 2026.

What they’re saying

What’s next

The Department of Labor is encouraging all restaurant employers to review their pay practices and seek compliance assistance to ensure they are meeting federal wage and hour requirements.