ABSTRACT
Labor costs include wages paid to hourly employees, salaries paid to management and supervisory staff, and employee benefits for all employees. In the USA, average labor cost is typically 25-40 per cent. Employee benefits represent another significant component of labor costs for a hospitality operation. In addition to wages and salaries paid to employees, companies must pay federal and state taxes on all wages earned by these employees. Also, many employees receive additional benefits, which can include, but are not limited to, health insurance, vacation/sick pay, employee meals, and uniforms.
