Recent revelations suggest that celebrity chef George Calombaris’ restaurant empire has underpaid staff by approximately $2.6 million.
Calombaris’ MAdE Establishment has reportedly underpaid 162 staff, including chefs and waiters across The Press Club, Gazi and Hellenic Republic restaurants. According to the Chief Executive of MAdE Establishment, an independent review in October 2016 revealed the pay discrepancy was due to a mix-up in how overtime was calculated. In addition to 162 staff being underpaid, a number of staff were reportedly overpaid their base salary. The average amount repaid to each staff member who were previously underpaid was more than $16,000. Calombaris, who is the MAdE Establishment Group’s director and founder, said the company had not adequately managed its enormous growth over the past six years.
It is an underlying business fundamental that growth is a key contributing factor to success. But with growth comes an increased level of importance around compliance, especially when it comes to Payroll. This is only one example of how a company can become complacent and rely on existing processes – not modifying or reviewing those processes as growth occurs. An outsourced payroll model shifts responsibilities such as compliance away from the company, meaning business owners can focus their attention on what they do best – operating a successful business. By outsourcing payroll services you not only save time but also save your company the risk of financial penalties and back-payments in the future. As was the case in this scenario, it can take a number of years before problems are identified, at which point the costs to rectify the situation have grown significantly. When was the last time you reviewed your payroll practices?
Contact Easy Payroll today to discuss how we can assist in ensuring compliance with your payroll.