Tag Archives: Lawsuits

by | December 11, 2013 · 9:24 am

Hospitality Industry Employment Risks: New York Restaurants Settle Federal “Wage Violation” Lawsuit For $288,000; Failed To Pay Workers Overtime, Operated “Illegal Tip Pool”

“…The restaurants’ failure to pay them overtime dropped their pay below the federal minimum of $7.25 an hour, the department said. Employees Hospitality Industry Wage Violation Lawsuitscovered by federal minimum-wage and overtime laws must be paid at least 11/2 times their regular hourly wage they when they work more than 40 hours a week…the restaurants operated an “illegal tip pool” in which tipped employees were forced to share their tips with the kitchen staff…”

Two Nassau sushi restaurants and an executive have agreed to pay more than $288,000 to settle federal charges that they “willfully” failed to pay 70 workers minimum wage and overtime, the U.S. Labor Department said.

Xaga Sushi in Merrick and Hewlett, and their president, Mei Yu Zhang, agreed to pay $261,887 in back wages and $26,322 in penalties, the Labor Department announced Monday.

The department contends the restaurants failed to pay the servers, busboys and kitchen staff overtime, even when some employees regularly worked as many as 50 hours a week. Instead, they were paid a flat monthly rate no matter how many hours they worked, the department said.

For more: http://www.newsday.com/classifieds/jobs/2-nassau-sushi-restaurants-to-pay-288g-to-settle-wage-charges-1.6581960

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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 2, 2013 · 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 26, 2013 · 9:20 am

Hospitality Industry Legal Risks: Louisiana Restaurant Sued By Disabled Customer Injured By Heavy Door; “No Assisted Open Device, Proper Signage”

“..(the plaintiff) went to open the heavy door leading to the restroom (and) when it swung back, (it) scraped her left leg, knocked her walker out Hospitality Industry Injury Lawsuitsfrom under her and caused her to fall to the ground. The plaintiff asserts she was injured in the fall…The defendant is accused of not providing an assisted open device on the door, failing to provide signage notifying her the door was heavy and failing to act as a reasonable person…”

A disabled customer who alleges she was injured in a fall while trying to open a door at a local restaurant is suing. Rosalie Miller filed suit against Johnny Trauth’s Seafood Bistro LLC in the 24th Judicial District Court on Nov. 4.

Miller claims she was a customer at Johnny Trauth’s Seafood Bistro located at 2121 25th St. in Kenner.  An unspecified amount in damages is sought for severe injuries, pain and suffering and permanent disability.

For more:  http://citizensvoice.com/news/lawsuit-edwardsville-man-finds-cockroach-inside-chicken-mcnugget-1.1591419

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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 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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by | November 18, 2013 · 10:24 am

Hospitality Industry Employment Risks: New Mexico Hotel Settles EEOC “Religious Discrimination” Lawsuit For $100,000; Housekeeper Fired After Refusing To Remove Head Covering

 “…The EEOC lawsuit charged the employer with failing to allow Abdullah to work unless she removed her religious head covering, and fired her Equal Employment Opportunity Commissionwhen she declined to do so…the consent decree includes: an injunction prohibiting future discriminatory practices; institution of policies and procedures to address religious discrimination and retaliation; training for employees of MCM, and managers and human resource officials of both defendants on religious discrimination; and posting a notice advising employees of their rights under Title VII…”

704 HTL Operating LLC and Investment Corporation of America, doing business as MCM Elegante Hotel in Albuquerque, has agreed to settle a religious discrimination lawsuit filed by the U.S. Equal Employment Opportunity Commission for $100,000 and other relief.

The EEOC, in a news release, said the settlement resolves an EEOC lawsuit filed in September for alleged religious discrimination against Safia Abdullah, who was hired for a housekeeping position at the hotel. The hotel owners denied the allegations in the EEOC’s lawsuit and said in court papers they settled the case to avoid the risks and expenses of continued litigation.

For more: http://www.eeoc.gov/eeoc/newsroom/release/11-18-13.cfm

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by | November 17, 2013 · 10:21 am

Hospitality Industry Legal Risks: Florida Restaurant Faces Federal “Sexual Harassment Lawsuit”; Manager Created “Hostile Work Environment”, Retaliated Against Two Female Workers

“…(one plaintiff) worked at the restaurant from 1999 to February of 2012 and she complained to the restaurant’s owner about the manager’s Hospitality Industry Sexual Harassment Lawsuitsuse of “racial slurs in the workplace”…The manager also directed racist “pet names” of his own creation toward her…The lawsuit charges the manager used derogatory terms and slurs as part of a “vicious regime of racial and sexual harassment” at the restaurant on Canal Street, and it says “no effective action was taken to stop it.”

Two former employees of a McDonald’s restaurant in Mulberry have filed a federal lawsuit, accusing a manager of creating a hostile work environment. The women allege they were retaliated against after making complaints known to the restaurant’s owner. Cowles’ hours were drastically reduced, and she was left with “no choice” but to quit her job when the manager’s behavior continued, the lawsuit states.

Potts went on maternity leave, and when she attempted to return to work, she was informed “there was no job for her, despite the nearly perpetual turnover of employees at the restaurant,” according to the lawsuit.

For more: http://www.theledger.com/article/20131116/NEWS/131119396/1374?Title=Ex-McDonald-s-Employees-File-Lawsuit

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by | November 13, 2013 · 9:28 am

Hospitality Industry Legal Risks: New York Restaurant Settles Federal “ADA Disabilities Compliance” Lawsuit For $10,000 Civil Penalty, Fix Structural Issues Including Takeout Counter, Pathways And Accessible Toilets

“…the U.S. Attorney for the Southern District of New York, announced  the filing and settlement of the lawsuit, which was part of the Hospitality Industry ADA LawsuitsManhattan Restaurants ADA Compliance Initiative. The Initiative uses the 2011 Zagat  Guide’s “most popular” list to probe busy hubs for ADA compliance…The Upper West Side restaurant’s shortcomings include doors that  are too tough to open, narrow pathways between tables, and too high a takeout  counter. The Theatre District got slammed for its high coat check counter and  lack of a raised-character sign near the restroom door. Neither restaurant had a  fully accessible toilet…”

The entrances (of Carmine’s Italian Restaurant) top a long list of tweaks that will be made by the chain’s two  Manhattan locations as the result of a settlement in a lawsuit filed today by  the U.S. Attorney’s office. The suit cited several violations of the Americans  With Disabilities Act, which also comes with a $10,000 civil penalty.

According to the suit filed by Preet Bharara, U.S. Attorney for the Southern  District of New York, each Carmine’s has to shape up to comply with ADA  regulations. Most small changes must be made within 90 days. Larger structural issues –  like the Upper West Side location’s tight bathroom hallway – aren’t due until  November 1, 2014.

Read more at http://observer.com/2013/11/prego-carmines-settles-suit-over-accessibility-issues/#ixzz2kXxcgZK1

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by | November 7, 2013 · 7:23 am

Hospitality Industry Employment Risks: Georgia Restaurant Sued By EEOC For “Sexual Harassment”; Female Workers Forced To Resign After Not Tolerating The Abuse By Manager

“…According to the EEOC’s suit, the employer allowed six women to be subjected to repeated acts of sexual harassment by a manager.  The Equal Employment Opportunity Commissionsexual harassment occurred throughout the servers’ employment, occurring daily for some…When some of the servers rejected the sexual advances, they were assigned to less profitable sections of the restaurant or had their work schedules negatively changed, which resulted in lower earning opportunities. Although the employees complained to other management officials about the harassment, nothing was done to stop it from recurring…” 

A popular Atlanta-area restaurant/nightclub violated federal law by subjecting female servers to a pattern of sexual harassment by a manager, the U.S. Equal Employment Opportunity Commission (EEOC) charged in a lawsuit filed recently against Sirdah Enterprises, Inc., which owns and operates Taboo 2 Bar and Bistro in Roswell, Ga. The agency also alleged that the working conditions were so intolerable that five of the women were forced to resign when they could no longer tolerate the abuse.

It included groping their breasts and buttocks, indecent exposures, explicit sex related comments, requests for sexual favors, and promises of better working assignments and other benefits if they engaged in sexual acts.

Sexual harassment violates Title VII of the Civil Rights Act of 1964.  The EEOC filed the suit in U.S. District Court for the Northern District of Georgia (EEOC v. Sirdah Enterprises, Inc. d/b/a Taboo 2 Bar & Bistro, No. 1:13-cv-03657) after first attempting to reach a voluntary settlement.  The federal agency seeks back pay, compensatory and punitive damages for the servers, as well as injunctive relief designed to prevent such misconduct in the future.

“This case involves charges of gross sexual harassment where a manager, an individual normally entrusted with ensuring that the rights of employees are protected, took advantage of these women by abusing his position of power,” said Bernice Kimbrough, district director for the EEOC’s Atlanta District Office.

Robert Dawkins, regional attorney for the Atlanta District Office, said, “Taboo 2 was aware of the sexually hostile work environment to which these young women were being subjected, but failed to take remedial measures as required under the law.  In addition to vindicating the rights of these seven women, this lawsuit is for the purpose of protecting the rights of current and future female employees.”

The EEOC enforces federal laws prohibiting employment discrimination.  Further information about the EEOC is available on the agency’s web site at www.eeoc.gov.

For more: http://www.eeoc.gov/eeoc/newsroom/release/11-6-13a.cfm

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