Category Archives: Labor Issues

by | December 10, 2013 · 6:47 am

Hospitality Industry Legal Risks: National Restaurant Chain Settles “Age Discrimination” Lawsuit With EEOC For $575,000; “Discriminatory Barriers To Hiring” For Applicants Over 40

Ruby Tuesday, Inc. will pay $575,000 and provide significant equitable relief to settle a class age discrimination lawsuit filed by the U.S Equal Equal Employment Opportunity CommissionEmployment Opportunity Commission (EEOC), the agency announced today. The EEOC alleged that Ruby Tuesday engaged in a pattern or practice of age discrimination against job applicants who were 40 years of age or older at six of the chain’s restaurants located in West Mifflin, Greensburg, Altoona, Du Bois, and Indiana, Pa., and in Beachwood, Ohio, in violation of the Age Discrimination in Employment Act of 1967 (ADEA).

The restaurant chain also failed to preserve employment records, including employment applications, as required by the ADEA and EEOC regulations, the EEOC charged in its lawsuit filed in U.S. District Court of the Western District of Pennsylvania (EEOC v. Ruby Tuesday, Inc., Civil Action No. 09-1330).

“This case demonstrates the agency’s ongoing commitment to challenge discriminatory barriers to hiring,” said EEOC General Counsel David Lopez.  “Vigorous law enforcement efforts on behalf of older workers are critical to the EEOC’s mission to eradicate barriers to employment.”

EEOC District Director Spencer H. Lewis, Jr. said, “The EEOC is committed to combatting unlawful age discrimination in the workplace and will hold employers responsible if they make hiring decisions based on age rather than the applicant’s ability to do the job.”

In addition to the $575,000 in monetary relief, the three-and-one-half-year consent decree resolving the lawsuit enjoins Ruby Tuesday from engaging in future age discrimination or retaliation and provides substantial non-monetary relief at the affected Ruby Tuesday locations.

Among other things, Ruby Tuesday, Inc. will:

  • Implement numerical goals for hiring and recruitment of job applicants age 40 and older at the affected locations;
  • Review its job advertisements to make certain they do not violate the ADEA’s prohibitions against age discrimination;
  • Conduct audits, including random reviews of hiring decisions, to ensure non-discrimination and compliance with the terms of the consent decree;
  • Evaluate the job performance of people with hiring authority for the six stores named in the consent decree and set their compensation (including bonuses), in part, based on their degree of success in helping Ruby Tuesday achieve its goals of ensuring that its recruitment and hiring practices provide equal employment opportunities for people who are 40 or older;
  • Designate a decree compliance monitor for oversight of compliance with the requirements of the ADEA and the terms of the consent decree;
  • Provide extensive training on the requirements of the ADEA and the consent decree to the decree compliance monitor, human resources personnel and hiring authorities of the six stores named in the consent decree; and
  • Report to the EEOC and keep records about its hiring practices and compliance with the consent decree.

Philadelphia Regional Attorney Debra M. Lawrence added, “We are pleased that Ruby Tuesday worked with us to craft a comprehensive settlement that will benefit all employees and applicants.  In addition to the monetary compensation for the class members, the extensive training and equitable measures are designed to improve recruitment and hiring of older workers and protect all applicants from age discrimination.”

According to its website, www.rubytuesday.com, Ruby Tuesday, Inc. has nearly 800 company-owned and franchised restaurants and more than 40,000 corporate and franchise team members.

Eliminating barriers in recruitment and hiring, especially class-based recruitment and hiring practices that discriminate against racial, ethnic and religious groups, older workers, women, and people with disabilities, is one of six national priorities identified by the EEOC’s Strategic Enforcement Plan.

The Philadelphia District Office of the EEOC oversees Pennsylvania, Maryland, Delaware, West Virginia and parts of New Jersey and Ohio.  The EEOC enforces federal laws prohibiting employment discrimination.  Further information about the agency is available at its website, www.eeoc.gov.

For more: http://www.eeoc.gov/eeoc/newsroom/release/12-9-13.cfm

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by | December 7, 2013 · 2:35 pm

Hospitality Industry Risk Solutions: Hotels Benefit From Online “Digital Suggestion Boxes” Allowing Workers To Upload “Great Ideas” That “Manifest Their Visions” Of A Better Workplace

“…Last year, hotel company Kimpton, which operates 50 boutique hotels nationwide, launched a “Great Ideas Board” website where employees Hospitality Employee Solutionscan upload suggestions and brainstorms at any time, from anywhere. Co-workers are able to log on and build on those suggestions. Steve Pinetti, Kimpton’s senior vice president of inspiration and creativity, started the concept to get employees brainstorming together. Either he or the appropriate division head provides a response to every post within 48 hours…”

The physical suggestion box has gone digital, creating new opportunity for workplace communication. From phone applications to websites to intranet portals and blogs, businesses are replacing paper communication with an online format where employees can manifest their visions and ideas.

“Companies have discovered that the ability to let their employees give ideas and share information is critical,” said Leslie Caccamese, director of strategic marketing and research with Great Place to Work. With employees often dispersed in multiple locations, leaders are turning to technology to encourage innovative ideas and help transmit them to the key decision-makers within the company. The companies that land on the Best Places to Work lists are those that have a foundation of communication, and increasingly, electronic suggestion boxes are part of their programs, she said.

Research shows employees want to have their say on issues or problems that arise in the workplace. On an informal basis, some 54 percent of employees make suggestions to their bosses at least 20 times a year, according to a recent survey by Right Management, an international career and outplacement consultancy. But without a formal system to submit ideas and respond, only a small number of those suggestions turn into results.

Read more here: http://www.charlotteobserver.com/2013/12/06/4524967/employee-suggestion-boxes-move.html#storylink=cpy

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by | December 4, 2013 · 7:26 am

Hospitality Industry Health Risks: Restaurant Study By CDC Finds “Widespread Risky Food Handling Practices” In Over 50% Of Kitchens; Failure To Follow FDA Guidance On Preventing Cross-Contamination

“…For the chicken study, EHS-Net researchers interviewed 448 restaurant managers. They found that many were not following FDA guidance Restaurant Kitchen Health Risksabout preventing cross-contamination and cooking chicken properly and that managers “lacked basic food safety knowledge about chicken”…40% of managers said they never, rarely, or only occasionally designated certain cutting boards exclusively for raw meat, and more than 50% said that thermometers were not used to determine the final cooking temperature of chicken. Further, only 43% of managers knew the recommended final cooking temperature…”

A set of studies released this week by the Centers for Disease Control and Prevention (CDC) and its partners points to widespread holes in restaurant food safety systems, such as risky handling of ground beef and chicken and too-warm shipping temperatures for leafy greens.

Among the key findings, according to the study and a CDC summary:

  • Eighty-one percent of restaurants used subjective measures of hamburger doneness, and 49% said they never checked the final cooking temperature
  • At least two risky handling practices were seen in 53% of restaurants
  • In 62% of restaurants in which workers used bare hands to handle raw ground beef, they did not wash their hands after handling it.
  • Only 1% of restaurants reported buying irradiated ground beef, and 29% were unfamiliar with the product
  • Chain restaurants and those with managers certified in food safety had safer practices than others.

At the same time, the CDC announced plans for a new surveillance system designed to help state and local health departments identify underlying factors that contribute to foodborne disease outbreaks in restaurants and other food service venues.

The research findings, published this week in the Journal of Food Protection, deal with the handling of ground beef, chicken, and leafy greens and with sick food workers.

For more:  http://www.cidrap.umn.edu/news-perspective/2013/12/cdc-finds-holes-restaurant-food-safety-systems

http://www.cdc.gov/media/releases/2013/p1202-food-safety-tools.html

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by | December 2, 2013 · 12:02 pm

Hospitality Law Insider: Managing The Risks Of “Bedbugs” By Stephen Barth Of HospitalityLawyer.com (Video)

HospitalityLawyer.com Education Partner II

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by | · 9:44 am

Hospitality Industry Legal Risks: Pennsylvania Restaurant Sued By Worker For “Religious Discrimination”; Claims New Manager Reduced Hours, Created Hostile Work Environment

“…At the start of her employment, (the plaintiff) informed the defendant that she could not work on Thursdays and Sundays due to her religious Hospitality Industry Discrimination Lawsuitsbeliefs…In June 2011, after a woman identified as Aretha Foster became the plaintiff’s store manager, Matthews had her hours reduced to 15 a week from 35…The complaint alleges that Foster also subjected the plaintiff to an increasingly hostile work environment, that the supervisor would deny Matthews her breaks, and that the woman would verbally abuse the plaintiff in front of other staff members…”

A Jehovah’s Witness from southeastern Pennsylvania is suing a Louisiana-based restaurant over allegations that the company discriminated against her because of her religion. Jonna Matthews, who currently resides in Pottstown, Montgomery County, filed suit at the U.S. District Court in Philadelphia on Nov. 26 against America’s Pizza Co. over the allegedly discriminatory treatment she received at the hands of the defendant while she was employed as a customer service representative beginning in early February 2011.

The plaintiff, however, maintains that she never asked for the reduction in hours and was still available to work Mondays, Tuesdays, Wednesdays, Fridays and Saturdays. The defendant stands accused of violating Title VII of the Civil Rights Act, which bars discrimination on the basis of religion.

“Plaintiff suffered adverse job actions, including, but not limited to, disciplines, denials of various opportunities, and termination,” the suit states.

For more:  http://pennrecord.com/news/12247-montco-woman-sues-louisiana-restaurant-over-religious-discrimination

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by | November 29, 2013 · 8:57 am

Hospitality Industry Legal Risks: “How To Serve Alcohol At A Company Party Without Getting Sued” By Tom Posey

HospitalityLawyer.com Education Partner II

How to Serve Alcohol at a Company Party Without Getting Sued

By Tom Posey, Partner, Faegre Baker Daniels

With the holidays right around the corner, many businesses will host festive company outings and events for their employees, including parties at the office—and often these celebrations include alcohol.

Employers need to understand the legal parameters of having alcohol in the workplace in order to establish a safe, responsible and enjoyable work environment for their employees. A few common questions from employers at this time of year are:

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Some states have laws that govern “social host liability.”  Through these laws, bartenders or social hosts can be held liable for events that result from over-serving someone (e.g. accidents, injuries, etc.).  These laws would make the organization responsible for monitoring consumption and cutting off drinking by anyone who becomes intoxicated, so be aware of the laws in your jurisdiction.

If some of our employees are under the legal drinking age, can we still serve alcohol?

Employers must ensure that no one underage has access to alcohol. If alcohol is served to a minor, the employer can be subject to the same stiff fines and penalties that a store or bar that serves a minor would face.  Accordingly, if underage employees will be attending the party, employers must be vigilant in making sure that they are not served or allowed access to alcoholic beverages.

If an employee has too much to drink and has an accident, it is still covered by our insurance, right?

Employers who provide alcohol to their employees may unwittingly negate coverage under their general liability insurance policies and be on the hook for costs associated with alcohol-related incidents or injuries, so be aware of the limitations and exceptions applicable to your organization’s employee-related policies.

Any other legal risks the organization might face if alcohol will be served at holiday functions?

There is an increased risk of sexual harassment-related complaints that result from company events where alcohol is present (e.g. the stereotypical office holiday party HospitalityLawyer Converge Solutionsthat is always satirized in movies and TV shows).  Remember that even though the function might be held outside normal working hours, employees are still afforded protection from harassment or other inappropriate conduct that might be directed at them by their colleagues.

For more:  http://hlconverge.com/index.php/component/k2/item/696-how-to-serve-alcohol-at-a-company-party-without-getting-sued

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Hospitality Industry Employment Solutions: “Gratuity Guide” Released By American Hotel & Lodging Association

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http://www.ahla.com/

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by | November 27, 2013 · 9:36 am
by | November 23, 2013 · 6:58 am

Hospitality Industry Employment Risks: Hawaii Restaurant Settles EEOC “Sexual Harassment And Retaliation” Lawsuit For $350,000; Young Female Workers Assigned Less Favorable Shifts

“…The federal agency filed suit in 2011, later amending its complaint to charge that at least 10 female staffers were sexually harassed by several male employees, Equal Employment Opportunity Commissionincluding managers…The agency further alleged that some employees were subjected to retaliation after complaining about the alleged harassment. The EEOC also alleged that the women were also treated less favorably than men in the workplace: they were passed over for promotions, assigned less favorable shifts and earned less than their male counterparts…”

La Rana Hawaii, LLC, doing business as Señor Frog’s, a popular Mexican-themed restaurant and bar in Honolulu, will pay $350,000 to settle a lawsuit filed by the U.S. Equal Employment Opportunity Commission (EEOC) on behalf of 13 female employees who were allegedly sexually harassed or retaliated against between 2007 and 2012, the federal agency announced today.

The EEOC alleged that the managers subjected employees to sexual comments, language and advances, and unwelcome physical contact. The alleged behavior violated Title VII of the Civil Rights Act of 1964. The EEOC filed suit (EEOC v. La Rana Hawaii, LLC dba Señor Frog’s & Altres, Inc., Case No. CV-11-00799 LEK BMK) after first attempting to resolve the matter through its conciliation process.

As part of the settlement announced today, the parties entered into a three-year consent decree requiring La Rana Hawaii, LLC to pay $350,000 to 13 female claimants. The company closed its Honolulu establishment in August 2012. Notwithstanding, if La Rana chooses to open another restaurant or chooses to reopen the Señor Frog’s in Hawaii, the consent decree requires substantial injunctive relief including the creation and distribution of an anti-harassment policy along with annual training for all restaurant employees to prevent future instances of sexual harassment, discrimination and retaliation. The EEOC will monitor compliance with the agreement.

Altres Inc., a Hawaii staffing company, was contracted by La Rana Hawaii to provide human resources services and oversee the company’s non-management staff during the time in question. The EEOC also named Altres in its lawsuit; Altres previously settled with the EEOC for $150,000 and injunctive relief, including EEO training for its employees.

“Our young workers are all too often the targets of the most insidious forms of sexual harassment, which can spread like wildfire at work,” said Anna Y. Park, regional attorney for the EEOC’s Los Angeles District Office, which includes Hawaii in its jurisdiction. “Employers who fail to fulfill their moral and legal obligation to prevent and immediately stop the sexual abuse of its young workers will answer to the EEOC.”

Timothy Riera, local director for the EEOC’s Honolulu Local Office, added, “The EEOC takes workplace harassment against young workers very seriously. Through our Youth@Work outreach, we aim to educate America’s next generation of workers on their right to work in an environment free of harassment and discrimination and their right to report such abuses without retaliation.”

For more:  http://www.eeoc.gov/eeoc/newsroom/release/11-21-13.cfm

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by | November 22, 2013 · 6:47 am

Hospitality Law Insider: “Duty Of Care” That Businesses Owe To Mobile Employees From Stephen Barth Of HospitalityLawyer.com (Video)

HospitalityLawyer.com Education Partner IIIn the second episode of Hospitality Law Insider, Stephen Barth covers some essential items to consider when adapting your travel risk plan to meet duty of care obligations. Learn more about how to deal with medical issues, evacuation considerations, and civil unrest.

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by | November 21, 2013 · 7:20 am

Hospitality Industry Legal Risks: California Hotel Employee Files “Racial Discrimination And Harassment” Lawsuit; Painter “Unjustly Fired”, Exposed To Unsafe Working Conditions

“…The suit claims (the plaintiff) was unjustly fired from his position after he was instructed to complete tasks typically subcontracted to outside vendors. The Hospitality Industry Discrimination Lawsuitscourt filing also claims two of the hotel’s buildings had serious water damage and mold issues, but management failed to properly train employees or equip them with the right safety equipment, exposing Tobin to unsafe working conditions…”

Ronald Tobin, a former employee at Fess Parker DoubleTree Hilton, is suing the joint resort company and three of its supervisors for alleged discrimination and unfair business practices while he worked there as a painter for nearly three years.

Tobin, who’s African-American, claims he was subjected to discrimination and harassment at the DoubleTree because of his race, and that the human resources department neglected to investigate or address his complaints. During an event at the hotel, the lawsuit reads, one of Tobin’s supervisors talked about the chicken and watermelon being served, and used the phrases “you people” and “your food.” “[The supervisor] continued to state that he does not know why African-Americans refer to themselves that way when white people do not say ‘Caucasian-Americans,’” the filing reads. The lawsuit also states another employee regularly used the “n-word” without being reprimanded.

For more:  http://independent.com/news/2013/nov/21/discrimination-doubletree/

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