Translation:You are not washing dishes where the new waiter is standing.
How do we know it is present continuous? I translated as "You don't wash the dishes where the new waiter is standing"... could this be correct?
doesn't make sense in English, who washes dishes where someone is standing?
What is the role of "ott" in this Hungarian sentence if we're not allowed to use "there" in the English version?
The English version does not require the "there". It is unnecessary. It is already covered by "where" which could be thought of as "at the/that place where". "At the/that place" being "there".
But the Hungarian version wants to emphasize the "that place" part. It specifically wants to negate that part. "NOT at that place", that is, not there: "Nem ott".
And, in general, this "ott" part of the construction is usually necessary in Hungarian. Sometimes it can be omitted but usually it is not. In English it can usually be omitted. It may even sound weird if it is not.