When you’re opening a restaurant, most operators focus on what guests will see: the design, the menu, the lighting, the vibe. But according to Alden Parker, Regional Managing Partner of Fisher Phillips and Co-Chair of the firm’s Hospitality Industry Group, one of the most important things a new restaurateur can do happens long before service begins: get wage and hour compliance right from day one. “The moment you open your doors, that’s where I’d start first and foremost,” Parker says. “Understand the payroll system and timekeeping software you’re going to use, because that’s where liability begins to multiply by the minute.”
Start with Compliance, Not Decor
Parker has represented restaurants for more than 25 years and has seen how small operational oversights can become major legal risks. Daily attestations, accurate rounding, and integrated POS timekeeping aren’t glamorous details, but they are the backbone of a compliant operation. California, in particular, offers no grace for “de minimis” time. Every minute worked counts. “It’s not sexy work. It’s not the creation of this amazing space for people to come, and it’s not the creation of a fantastic menu, and that’s what a lot of restaurateurs want to do. But before they go ahead and do that, they’ve got to lock down their wage and hour compliance because that is the thing that can undo all of it.”
Hire Intentionally
Many operators make their first mistakes before opening day in the rush to staff up. Over-hiring and hurried screening often create problems that show up weeks later. Parker advises slowing down and taking early interviews seriously. “The best an employee is ever going to be is during the interview,” he says. “If they can’t show up on time or communicate professionally, that’s a red flag. Don’t ignore it.” He also debunks the myth of a 90-day probationary period. It may sound practical, but it doesn’t protect you legally. “That period doesn’t mean anything if something illegal happens on day one,” Parker explains. “The idea that you can wait and see with a hire isn’t real protection.”
Build Your Foundation
Two things every restaurant needs, according to Parker, are an up-to-date employee handbook (Something EyeSpy can help you with) and a trusted legal resource to call when questions arise. “It sets the baseline or the foundation for your relationship with the employee, and it’s something that managers can use in their daily interactions to point to with employees about what the company’s policies or procedures are going to be. And the absence of one will lose you an employment lawsuit.” That handbook should be more than a file in a drawer. It should serve as a daily reference for managers to communicate expectations and handle issues consistently. Parker recommends reviewing and updating it each year to reflect both legal changes and operational realities.
Use Technology Wisely
Modern restaurant tech brings opportunity and risk. Parker cautions against casual manager group chats and unrecorded communication outside approved systems. Documentation should live in structured, traceable platforms. “If you’re going to let people use phones for scheduling or shift swaps, fine, but make sure the documentation backs it up.” Want help with your team communication system? We can create it for you. Learn more here.
Lead with Humanity
Beyond policies and systems, Parker believes a restaurant’s strongest protection comes from relationships. “Every interaction with an employee is a deposit in a bank,” he says. “When you need to make a withdrawal during discipline or termination, you want to have built up enough capital.” He emphasizes that terminations should never come as a surprise. A conversation-based approach strengthens culture and reduces the risk of litigation. Our system allows for ongoing employee sign offs of performance reviews and feedback so that there is a paper trail of any issue that recurs. Learn more here.
Plan Ahead, Always
As Parker puts it, proper prior planning prevents poor performance. That principle applies as much to employment practices as it does to menu design. Investing early in compliance and clear communication sets the stage for a restaurant that thrives and scales without legal distractions.
About the Expert
Alden Parker is the Regional Managing Partner at Fisher Phillips Sacramento and Central Valley and Co-Chair of the firm’s Hospitality Industry Group. With over 25 years representing restaurant employers, he specializes in employment law strategy, compliance, and litigation defense.
Watch the full interview here:
