Tag Archives: Restaurant Employees

by | April 21, 2013 · 12:27 pm

Hospitality Industry Legal Risks: California Restaurant Franchisee Settles EEOC “Disability Discrimination Lawsuit” For $100,000; Former Floor Supervisor With “Intellectual Disability” Demoted To Janitorial Position

“…The EEOC contends that once Alia took over,  Alia management demoted Morgan to a janitorial position, cut his hours and reduced  his hourly EEOCwages, thereby forcing him to find other employment and resign by  June 2009.   The EEOC’s lawsuit argued  that Alia Corporation thus engaged in disability discrimination that violated  the Americans with Disabilities Act  (ADA)…”

Alia Corporation, a franchisee  with over 20 fast-food chain restaurants throughout Central California, agreed  to pay $100,000 to settle a disability discrimination lawsuit filed by the U.S.  Equal Employment Opportunity Commission (EEOC), the federal agency announced  today.

The EEOC originally filed suit against the Merced,  Calif.-based company in 2011 on behalf of Derrick Morgan, a former floor  supervisor with an intellectual disability (EEOC v. Alia Corporation, Case  No. 1:11-cv-01549-LJO-BAM, U.S. District Court, Eastern District of  California).  Morgan was known to be a good employee and  promoted by previous management from crew member to super­visor in 2008.

As  part of the settlement announced today, the parties entered into a three-year  consent decree requiring Alia to hire an equal employment opportunity (EEO) monitor  to create anti-discrimination policies and procedures; a complaint process and  impartial investigations; a centralized tracking system for discrimination  complaints; a system to hold employees accountable for discrimination; and,  annual live disability discrimination training for all management and human  resources employees.  The $100,000 in  monetary relief shall be paid entirely to Morgan.  The EEOC will monitor compliance with the agreement.

“Employers cannot allow biases and stereotypes to factor  into employment decisions,” said Anna Y. Park, regional attorney for the EEOC’s  Los Angeles District Office, which includes Fresno in its jurisdiction.  “The EEOC commends Alia Corporation for  today’s settlement, as it marks a new path for Alia — one which includes equal  employment opportunity for all of their employees, regardless of disabilities.”

Melissa  Barrios, director of the EEOC’s Fresno Local Office, said, “Disability discrimination  charges are on the rise in California, comprising 30% of all charges  filed.  Workers who are unjustly  penalized due to their disabilities have protections under federal law, and the  EEOC is here to help.”

For more:  http://www.eeoc.gov/eeoc/newsroom/release/4-18-13.cfm

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by | April 18, 2013 · 7:11 am

Hospitality Industry Theft Risks: Illinois Restaurant Employees Plead Guilty To “Skimming Credit Card Information Of Paying Customers”; Over $200,000 In Fraudulent Purchases Made By Ring Leaders

“…(the ring leader) organized the scheme by paying the defendants, who were employees at the various establishments, to skim credit card information of paying customers using a small credit card reader provided to them by Woods and Washington. The employees swiped identity theftapproximately 175 cards through the readers, enabling Woods to reproduce counterfeit credit cards and allowing Woods, Washington and Alex Houston to rack up thousands of dollars in charges…”

Sentences were handed down against seven defendants who illegally obtained personal banking information from patrons visiting Chicago area restaurants and attractions, including Wrigley Field and the Magnificent Mile’s RL Restaurant, according to Illinois Attorney General Lisa Madigan.

Defendants Joseph Woods, Britain E. Woods, Alex Houston, Jenette Farrar, Essence S. Houston, Kenyetta Davis and William Washington pled guilty and were sentenced for “skimming” personal banking information, which was used to make purchases of more than $200,000. The banking and credit card account information was stolen from customers who patronized Chicago area establishments, including Wrigley Field, RL Restaurant, a Chicago Taco Bell location and a McDonald’s restaurant in Berwyn.

Madigan said financial institutions with accounts that were compromised in the scheme include Chase, U.S. Bank, Citibank, Harris Bank, American Express, Bank of America and Fifth Third Bank. The banks assisted in the investigation and notified victims to secure their personal information.

Madigan said identity theft is a significant threat to Illinois consumers. Last year, more than 2,500 identity theft complaints were filed with her office’s Consumer Fraud Bureau. Consumers reported incidents of fraudulent charges on their existing accounts, thieves opening new accounts in their names (including credit card, utility and cell phone accounts) and instances of bank fraud, such as stolen checks or fraudulent withdrawals made to a victim’s bank account.

For more:  http://www.claimsjournal.com/news/midwest/2013/04/18/227236.htm

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by | April 11, 2013 · 6:34 am

Hospitality Industry Legal Risks: New York Restaurant And Caterer Sued For “Retaining 20% Service Personnel Charge”; Seeking Class-Action Status For More Than $1 Million In Tips

“…(the complaint states) a ‘reasonable customer’ would have believed the surcharge to be a gratuity…if customers asked if the waiters and waitresses got tips, they were ordered ‘to respond, as instructed by defendants, that they did receive tips’…(the Hospitality Industry Wage Violation Lawsuitsdefendants) knowing or intentional demand for, acceptance of, and/or retention of the mandatory charges paid by customers when contracting with defendants, when such customers were led to believe that such mandatory charges would be paid to plaintiff, defendants have willfully violated New York law…(plaintiffs) seek class certification, restitution of the tips, and costs…”

A class action claims an upstate New York restaurant and caterer cheated its workers out of more than $1 million in tips.

The defendants added a 20 percent “service personnel charge” to all its banquet hall bills, but servers never saw dime one of it, lead plaintiff Ryan Picard claims in Albany County Supreme Court.

Picard claims the family-owned businesses ran the game for 6 years, at the expense of more than 100 workers.  Named as defendants are six entities associated with the Mallozzi family of suburban Schenectady, who operate bakery, restaurant, hotel and catering businesses in Albany and Schenectady counties.

For more:  http://www.courthousenews.com/2013/04/11/56574.htm

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by | April 6, 2013 · 6:23 am

Hospitality Industry Legal Risks: North Carolina Restaurant Operator Sued By EEOC For “Religious Discrimination”; Muslim Food Prep Worker Fired For Refusing To Cut Off Beard

“…(plaintiff) applied for a job with a Bojangles’ restaurant in Charlotte and was interviewed for a food prep position…the manager informed Charles that he might need to cut his beard, to which Charles responded that he could not cut his beard for religious reasons, informing her that EEOChe was a Muslim. Charles was hired and worked at the restaurant on May 18 without incident…Charles reminded the manager that he could not cut his beard because of his religion, and requested an accommodation of wearing a beard net, similar to a hair net, which the restaurant manager refused. The restaurant manager told Charles to leave the restaurant, and to not return to work until he shaved off his beard. Charles refused to shave his beard and was consequently fired…”

Bo-Cherry, Inc., a North Carolina corporation that operates several Bojangles’ restaurants in the Charlotte metro area, violated federal law when it failed to accommodate an employee’s religious beliefs and then fired him because of his religion, the U.S. Equal Employment Opportunity Commission (EEOC) charged in a lawsuit filed today.

According to the EEOC’s complaint, Devin Charles has been a practicing Muslim for the past 14 years. As a male Muslim member of his sect of the Sunni branch of the Islamic faith, Charles is required to grow and maintain a beard and is not allowed to trim or cut his beard unless it exceeds the length of his fist when holding his beard in his closed hand under his chin, commonly referred to as “fist length.” In accordance with his sincerely held religious beliefs, Charles has not trimmed or cut his beard unless it exceeded a fist length

The manager instructed Charles that her supervisor, the district manager, had come to the restaurant, seen Charles’ beard and instructed her to tell Charles that he needed to shave off his beard to continue working for Bojangles’.

Title VII of the Civil Rights Act of 1964 requires employers to make reasonable accommodations for the sincerely held religious beliefs of employees as long as doing so does not pose an undue hardship on the employer. The EEOC filed suit in U.S. District Court for the Western District of North Carolina, Charlotte Division (EEOC v. Bo-Cherry, Inc. d/b/a Bojangles, Civil Action No. 3:13-cv-00210) only after first attempting to reach a pre-litigation settlement through its conciliation process. The EEOC seeks back pay, compensatory damages, punitive damages and reinstatement or front pay. The complaint also seeks injunctive relief.

“Under federal law, employers have an obligation to attempt a fair balance between an employee’s right to practice his or her religion and the operation of their business,” said Lynette A. Barnes, regional attorney for the EEOC’s Charlotte District Office. “This case demonstrates the EEOC’s commitment to fighting religious discrimination in the workplace.”

For more:  http://www.eeoc.gov/eeoc/newsroom/release/4-4-13.cfm

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by | April 3, 2013 · 5:34 am

Hospitality Industry Employment Risks: Wisconsin Restaurant Servers File “Wage Violation Class-Action Lawsuit”; Claims Owners “Transferred Cost Of Doing Business” To Workers

“…the complaint says servers were forced to pay for their uniforms, aprons, hot pads to serve fajitas, order pads and name tags — and that’s not Hospitality Industry Wage Violation Lawsuitsall…anytime a customer walked out without paying the bill, the servers had to pay. Anytime a customer said, this is not what I ordered, food or alcohol drink, the server had to pay for that…the owners were essentially transferring the cost of doing business on to the servers, who were only being paid $2.33 an hour…”

A group of servers at La Fuente restaurant have filed a class action lawsuit against the restaurant — saying they are sick of footing the bill for food sent back to the kitchen. The claim says servers were expected to work and not get paid — and that they were stuck with the bill when customers would skip out. Larry Johnson is a labor attorney representing servers at two La Fuente locations. Johnson says it was written policy to have the servers start shifts early and prepare the restaurant, but they weren’t allowed to clock in until customers arrived, and so now, a server has served the owners with a class action lawsuit.

“Setting up tables, putting rolling silverware, filling salt shakers, working, making coffee, all that kind of stuff to get the restaurant ready,” Johnson said.

The suit now requests those unpaid wages and if they win the case, the court could double it, along with attorneys fees. Johnson says it is too early to know how much money that could be, but he says it’s the price companies pay when they don’t follow the law.

For more:  http://fox6now.com/2013/04/02/group-of-la-fuente-servers-file-class-action-suit-against-owners/

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by | April 1, 2013 · 1:02 am

Hospitality Industry Legal Risks: Arizona Restaurant Settles “Disability Discrimination Lawsuit” For $65,000; Server With Traumatic Brain Injury Was Fired By New Manager

“…(the plaintiff) worked tirelessly to be a good server after suffering a traumatic brain injury. The ADA prohibits EEOCemployers like Outback from firing individuals like John who add so much to the workplace…”

Outback Steakhouse will pay $65,000 and furnish other relief to settle a disability discrimination lawsuit filed by the U.S. Equal Employment Opportunity Commission (EEOC), the agency announced today.

The EEOC’s lawsuit, EEOC v. OSI Restaurant Partners, LLC d/b/a Outback Steakhouse and OS Restaurant Services, Inc., Civil Action No. 2:11-cv-01754-NVW, charged Outback with firing server John Woods days after a new manager took over at Outback’s Phoenix Metrocenter location. According to the EEOC’s suit, John Woods had worked successfully under Outback’s prior manager, but a new manager terminated Woods because of his disability, traumatic brain injury.

Disability discrimination violates the Americans with Disabilities Act (ADA). The EEOC filed suit in U.S. District Court of Arizona after first attempting to reach a pre-litigation settlement through its conciliation process.

After the court denied Outback’s motion for summary judgment, Outback agreed to a 24-month consent decree that requires the company to pay Woods $65,000; revise its policies concerning disability discrimination; train its Arizona managers on the laws prohibiting disability discrimination; and post notices in Arizona Outback Steakhouses regarding employees’ rights under the ADA.

“Managers cannot fire employees because of their mistaken beliefs about what individuals with disabilities can accomplish,” EEOC Phoenix District Director Rayford Irvin said. “We are pleased with the resolution of this case, and we are hopeful that this agreement will help prevent discrimination in the workplace going forward.”

For more:  http://www.natlawreview.com/article/outback-steakhouse-to-pay-65000-to-settle-eeoc-disability-discrimination-lawsuit

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by | March 23, 2013 · 12:10 pm

Hospitality Industry Theft Risks: South Dakota Restaurant Account Manager Charged With Stealing More Than $100,000; Deposited Checks Into Personal Account Over 7 Month Period

“…(the defendant) is accused of depositing money into her own bank account on 12 occasions, mostly through checks, with the thefts targeting Minervas of Bismarck, N.D. and the Phillips Avenue Diner in Sioux Falls totaling $97,477…(she) also reportedly deposited hospitality industry employee theftmoney electronically three other times, for a total loss to the business of $101,600. All the thefts took place between February and September last year…”

A former account manager for Minervas and the Phillips Avenue Diner has been charged with stealing more than $100,000 from the company last year. Bobbie Sue Davis, 28, worked for WR Restaurants Management when the thefts began, according to court paperwork. The company manages restaurants across North and South Dakota.

During an interview with an SFPD detective on Nov. 19, Davis allegedly admitted to stealing the money, saying she’d been having “personal financial issues” that year.

Davis was arrested on a charge of aggravated grand theft by embezzlement of $100,000 or more on Feb. 5 and released on bond. A grand jury indicted Davis this week. If convicted, she could spend up to 15 years in prison.

For more:  http://www.argusleader.com/article/20130322/UPDATES/130322021/Woman-accused-embezzling-more-than-100K-from-area-restaurant-chain

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by | March 19, 2013 · 5:52 am

Hospitality Industry Employment Risks: Maine Restaurant Owners Convicted Of “Harboring Undocumented Aliens For Profit” And “Aiding Document Fraud”; 10 Years In Prison And $250,000 Fine Per Count

“…(the defendants) helped illegal  workers obtain green cards and Social Security cards…several workers testified that they worked six to seven days a week, from 9 a.m. to 10 p.m. with only one two-hour break. Kitchen staff said they were paid in cash. Waiters were not paid but allowed to U.S. Immigration and Customs Enforcementkeep their tips…they face up to 10 years in prison and a $250,000 fine on each  count and may have to give up the profits they earned from the scheme…”

Two brothers who own a popular chain of Mexican restaurants in Maine  were convicted Monday of harboring undocumented aliens for profit and  aiding and abetting document fraud. Following an eight-day trial,  Guillermo Fuentes, 37, of Westbrook and Hector Fuentes, 39, of  Waterville were found guilty in U.S. District Court.

The charges  stem from practices at the Fajita Grill in Westbrook, the Cancun Mexican  Restaurant in Waterville and the Cancun Mexican Restaurant II in  Biddeford, between 2006 and 2011.

The  investigation was conducted by the U.S. Immigration Customs  Enforcement’s Homeland Security Investigations division and the U.S.  Department of Labor, Office of Inspector General and the Office of Labor  Racketeering and Fraud Investigations.

The documents said Roth informed  the federal agency that in routine traffic stops in April 2008,  Westbrook police officers had pulled over Hispanic men who appeared to  work at Fajita Grill, claimed to be from Mexico and could not provide  any U.S. identification. During the investigation, James Bell, a  special agent with the Department of Homeland Security interviewed four  illegal workers, all of whom had worked for the Fuentes brothers at a  Mexican restaurant in Atlanta called El Potrillo.

For more:  http://www.pressherald.com/news/Brothers-guilty-of-profiting-off-illegal-workers-at-Maine-Mexican-restaurants.html

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by | March 15, 2013 · 6:41 am

Hospitality Industry Legal Risks: California Restaurant Sued By Woman “Sexually Assaulted” By Employee Near Restroom; Failed To Perform Background And Reference Check

“…the lawsuit filed in San Mateo Superior Court alleges that Straits owners failed to provide a background or Hospitality Industry Criminal Background Checks (2)reference check for Guicoy that could have shed light on his “mental instability and propensity toward sexual assault…”

A Foster City woman is suing a restaurant where a dishwasher attempted to rape her as she waited to use the restroom on New Years Eve 2011. Now Mary Hagan, 35, has filed a $1 million lawsuit against Straits in Burlingame, claiming it could have performed a background or reference check on Jose Mauricio Guicoy before hiring him.

Guicoy allegedly grabbed Hagan and began pulling her into a closet with his pants unzipped, reported the San Mateo County Times. She was able to fight him off.

Guicoy pleaded no contest to sexual battery, and was sentenced a month later to two years in prison.

For more:  http://sanmateo.patch.com/articles/foster-city-woman-sexually-assaulted-by-dishwasher-files-lawsuit-against-restaurant

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by | March 13, 2013 · 6:31 am

Hospitality Industry Legal Risks: Hotel And Restaurant Employees Subjected To “Conditions Or Actions Intended To Humiliate, Harass Or Destroy Career” File “Constructive Discharge Lawsuits”

“…the intolerable or aggravated category (of constructive discharge) are actions intended to humiliate (e.g., demoting a vice president to janitor overnight); actions intended to harass (e.g., requiring a black employee to Hospitality Industry Termination Lawsuitswork extra hours for the same pay as white co-workers and punch a clock while others do not); actions intended to destroy the employee’s career or guarantee job loss (e.g., sudden, unexplained drops in performance ratings, skipped promotions, forced demotions, pay cuts)…”

Here’s how one state supreme court defined constructive discharge: “An employee who is forced to resign due to actions and conditions so intolerable or aggravated at the time of his resignation that a reasonable person in the employee’s position would have resigned, and whose employer had actual or constructive knowledge of the intolerable actions and conditions and of their impact on the employee and could have remedied the situation, but did not, is constructively discharged.”

Factors that may contribute to a constructive discharge claim—either singly or in combination—include whether an employee suffered:

  • a demotion
  • reduction in salary
  • reduction in job responsibilities
  • reassignment to menial or degrading work
  • reassignment to work under a younger supervisor
  • involuntary transfer to a less desirable position
  • badgering, harassment or humiliation by the employer
  • offers of early retirement or encouragement to retire
  • offers of continued employment on terms less favorable than the employee’s former status
  • a threat of violence or actual physical assault
  • a threat of termination

For more:  http://www.businessmanagementdaily.com/glp/43084/Termination-Guidelines.html

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