Tag Archives: Restaurant Employees

Hospitality Industry Employment Risks: Hotels And Restaurants Providing “Paid Sick Leave” Benefits Reduce Employee Illnesses, Work-Related Injuries And Turnover According To Latest Studies

“…it (is) better for an employee to call in sick, take care of their illness and not contaminate the other staff. The number of employees struggling to work while sick was drastically reduced. The H1N1 virus in 2009 Paid Sick Leave In Hospitality Industrydemonstrated the value of keeping sick employees out of the workplace…And best of all, according to the Centers for Disease Control, workers with paid sick leave are 28 percent less likely to suffer work-related injuries. People in construction, restaurants or hospitals who do physically demanding jobs are more likely to injure themselves (or someone else) if they are working while sick, weak and fatigued…”

The Bureau of Labor Statistics tells us that 39 percent of people employed in private industry do not have paid sick leave as a benefit.

And 81 percent of service workers earning $10.50 or less have no paid sick leave. These are the people behind the cash register, serving you food in a restaurant, cleaning offices and hotel rooms and handing you your ticket when you go out to see a movie.

The information comes from studies conducted by the Centers for Disease Control, the Bureau of Labor Statistics and the Women’s Institute of Policy Research study of San Francisco’s paid sick leave ordinance. Before San Francisco enacted its ordinance in 2007, the restaurants and mom-and-pop businesses fought hard to prevent it. They predicted the cost of paid sick days would put them out of business. In 2011 a detailed study was done and employers are happy their fears were not realized. There was no discernible increase in payroll costs.

Turnover decreased because employees didn’t need to change jobs to get paid sick leave. The city ordinance requiring paid sick leave leveled the field for all employers, and good employees stayed in place longer.

For more:  http://union-bulletin.com/news/2013/jan/19/sick-pay-benefits-employers-bottom-lines/

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Filed under Food Illnesses, Guest Issues, Health, Labor Issues, Liability, Management And Ownership, Risk Management

Hospitality Industry Employment Risks: Wisconsin Restaurant Settles EEOC “Sexual Harassment And Retaliation Lawsuit” For $41,000; Companies Must Take “Immediate And Effective Action To Stop It”

“The Supreme Court has held that when an employer learns of sexual harassment, it must take immediate and effective action to stop it…Employers who don’t protect their workers should know that the federal EEOCgovernment will enforce the national policy against sexual abuse in the workplace…retaliation complaints have been the fastest-increasing type of complaint filed with the EEOC over the past 10 years…”

A Merrill, Wis., restaurant will pay $41,000 and furnish other relief  under a consent decree entered by the federal court in a sexual harassment and retaliation lawsuit brought by the U.S. Equal Employment Opportunity Commission (EEOC), the agency announced today.

According to the EEOC’s suit (EEOC and Sherry L. Brown v. Merrill Pine Ridge LLC, et al., No. 3:11-cv-589), one of the cooks at New Pine Ridge restaurant, Shahi N. Selmani, created a sexually hostile work environment when he repeatedly made crude remarks to waitresses and grabbed their breasts.  The EEOC alleged that, despite the women’s complaints, restaurant owner Qemal Alimi did not stop Selmani’s harassment and instead fired some of the waitresses in retaliation for their complaints.

Sexual harassment and retaliation for complaining about it violate Title VII of the Civil Rights Act of 1964.  The EEOC filed suit in August 2011 after first attempting to reach a pre-litigation settlement through its conciliation process.

Selmani did not stop working for the restaurant until months after criminal charges were filed against him.  Eventually he pled no contest on Dec. 9, 2010 in Lincoln County Circuit Court (Case Nos. 2009CM25 and 2009CM101) to having committed Class A misdemeanor battery against three waitresses.  Charges of fourth-degree sexual assault, bail jumping and disorderly conduct were dismissed but “read into” the record of his conviction.

For more:  http://www.eeoc.gov/eeoc/newsroom/release/1-17-13a.cfm

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Filed under Insurance, Labor Issues, Management And Ownership, Risk Management, Training

Hospitality Industry Legal Risks: Restaurant Franchisee Settles EEOC “Sexual Harassment And Retaliation Lawsuit” For $2.5 Million; Managers Made Working Conditions Intolerable

The EEOC’s suit charged that Carrols subjected a class of women – including many teenagers – to egregious sexual harassment at Burger King locations throughout the Midwest, Southeast, and Northeast. EEOC alleged that the harassment, which ranged from obscene comments, jokes, and propositions to unwanted touching, EEOCexposure of genitalia, strip searches, stalking, and even rape, was perpetrated by managers in the majority of cases. According to the EEOC, Carrols also retaliated against some of the women by cutting their hours, manufacturing discipline against them, and even firing them, while it forced more women to quit because the harassment made their working conditions intolerable.

Carrols Corporation, the world’s largest Burger King franchisee, will pay $2.5 million and take significant remedial steps to settle a sexual harassment and retaliation lawsuit brought by the U.S. Equal Employment Opportunity Commission (EEOC), the agency announced today. The lawsuit alleged discrimination against 89 female employees around the country, many of whom were teenagers when they worked for Carrols.

Sexual harassment and retaliation for complaining about it violate Title VII of the Civil Rights Act of 1964. The EEOC filed suit (Civil Action No. 98-cv-01772 FWS/TWD in U.S. District Court for the Northern District of New York) after first attempting to reach a voluntary settlement.

Under the terms of the publicly-filed consent decree resolving the case, Carrols will pay $2.5 million in compensatory damages and lost wages to the 89 victims. It also will implement a number of measures to increase employees’ awareness of Carrols’ anti-harassment policies and to improve Carrols’ response to complaints brought forward under those policies. Those measures include enhanced training for Carrols’ managers in preventing and responding to harassment; improved mechanisms for tracking harassment complaints; notices posted in all domestic Carrols Burger King locations informing employees about the lawsuit’s resolution and their rights under federal anti-discrimination laws; and an injunction prohibiting further harassment and retaliation.

For more: http://www.eeoc.gov/eeoc/newsroom/release/1-9-13.cfm

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Filed under Employment Practices Liability, Insurance, Labor Issues, Liability, Management And Ownership, Risk Management

Hospitality Industry Legal Risks: Oregon Restaurant Employee Awarded $70,000 In "Unlawful Employment Practices" Lawsuit; Woman Claimed Discrimination After Filing For Workers' Compensation

“…the (plaintiff) was placed in a position to work near heat, which caused a re-blistering of the wound, according to the lawsuit…(her) physician contacted the worker’s compensation carrier again to say she was to Hospitality Industry Lawsuitwork on modified duties without exposure to heat, the lawsuit states KFC continued to expose Vargas to heat in the workplace…”

“…her physician instructed her not to return to work because KFC was not able to follow the modified duty requirement. Vargas then told her employer she could not return to work until her burn healed…two days later, KFC terminated her employment, stating that Vargas had resigned…”

A Salem woman was awarded more than $70,000 after a lawsuit she filed against Chick Inc., the Salem company that owns three KFC franchises, for unlawful employment practices. Jurors unanimously found in favor of plaintiff Sarai Vargas, who claimed she was wrongfully discharged and that she experienced discrimination after filing for workers compensation because of a workplace burn. A four-day trial ended Dec. 14.

While wearing protective gloves, Vargas suffered second-degree burns after grease splattered on her right arm as she pulled chicken from the grill oven May 9, 2010, Vargas’ lawyer Larry Linder said.

Vargas was treated by a doctor for the burn and was cleared to return to work on a modified duty, which included light activity with no exposure to heat, Linder said.

For more:  http://www.statesmanjournal.com/article/20121225/NEWS/312250021/Woman-who-took-KFC-court-wins-70-000

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Filed under Claims, Employment Practices Liability, Injuries, Insurance, Labor Issues, Management And Ownership, Training

Hospitality Industry Employment Risks: South Carolina Restaurants Ordered To Pay $391,000 In Back Wages To Workers; Servers Paid Below Mandated $2.13 Per Hour And Received Tips Only

“…the restaurants agreed to maintain future compliance with the FLSA by keeping accurate records of employees’ work hours, wages and other required employment information; paying all employees at least the Hospitality Industry Wage and Hour Litigationfederal minimum wage; and providing overtime compensation and informing employees in advance that the tip credit will be used…”

Three restaurants in South Carolina have been ordered to pay $391,000 in back wages to workers, as the result of a Department of Labor investigation. The restaurants, all individually owned branches of the San Jose Mexican restaurant chain, owe 37 employees wages for overtime and minimum wages. The DOL’s Wage and Hour Division also found violations in record-keeping provisions.

Following widespread noncompliance in the state’s restaurant industry, the Wage and Hour Division began a multiyear enforcement initiative. Since 2009, more than $2.5 million has been paid to workers, following 2,500 investigations.

All three of the restaurants failed to properly compensate employees. Servers were paid below the mandated $2.13 per hour and made to rely on tips for pay. Other employees were paid flat salaries below the minimum wage requirements, with no regard to hours worked.

For more:  http://ohsonline.com/articles/2012/12/21/three-restaurants-must-pay-391000-in-employee-back-wages.aspx?admgarea=news

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Filed under Labor Issues, Liability, Management And Ownership, Training

Hospitality Industry Legal Risks: Restaurant Owners Should Provide Comprehensive Employee Handbooks That Describe Employees' Rights, Expectations And Company Obligations

Small Business AdministrationAn employee handbook is an important communication tool between you and your employees. A well-written handbook sets forth your expectations for your employees, and describes what they can expect from your company. It also should describe your legal obligations as an employer, and your employees’ rights. This guide will help you write an employee handbook, which typically includes the topics below.

Anti-Discrimination Policies

Compensation

Work Schedules

  • Work hours and schedules
  • Attendance, punctuality and reporting absences
  • Guidelines for flexible schedules and telecommuting.

Standards of Conduct

  • Dress code and ethics
  • Legal obligations

General Employment Information

Safety and Security

For more: http://www.sba.gov/content/employee-handbooks

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Filed under Employment Practices Liability, Labor Issues, Liability, Maintenance, Management And Ownership, Risk Management, Training

Hospitality Industry Employment Risks: California Restaurants In "Well-Known Tourist Areas" Investigated By U.S. Dept. Of Labor Agree To Pay $670,000 In "Unpaid Minimum Wages And Overtime"

“…(Wage and Hour Division investigators)…found widespread labor violations among restaurants in well-known tourist areas in San Francisco and throughout Los Angeles County…culture of noncompliance Hospitality Industry Wage and Hour Litigationadversely impacts the wages and working conditions of many low-wage, vulnerable workers…”

Wage and Hour Division investigators with the U.S. Department of Labor conducted comprehensive reviews of payroll records and employment practices in both San Francisco and Los Angeles, in addition to employee interviews, and found that restaurants were violating minimum wage, overtime and record-keeping provisions.

As a result, 273 restaurant workers will divvy up $672,333 in unpaid minimum wages and overtime compensation, according to the feds.

The Fair Labor Standards Act requires that covered employees be paid at least the federal minimum wage of $7.25 per hour, as well as time-and-a-half of their regular rates for hours worked over 40 per week. The law also says employers must keep accurate records of employees’ wages, hours and other conditions of employment, and prohibits employers from retaliating against employees who exercise their rights under the law. If employers don’t abide by these rules, they are liable to pay back wages and an equal amount in liquidated damages to employees.

For more:  http://blogs.sfweekly.com/thesnitch/2012/12/restuarant_workers_wage_and_hour_division.php

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Filed under Employment Practices Liability, Labor Issues, Liability, Management And Ownership

Hospitality Industry Theft Risks: Illinois Restaurant Manager Charged With Stealing Over $10,000 In Employee Paycheck Scam; Forged Names On Bogus Paychecks

“…she allegedly used information records of at least four former workers to pull off the scam, which came to light only after one of those former workers took concerns to the restaurant’s owner…created the accounts, employee theft“clocked in” workers to show they worked certain hours and then forged their names on the resulting paychecks…”

The manager of the Jerseyville McDonald’s restaurant was charged this week, accused of theft for allegedly using former workers’ information to create bogus paychecks that she cashed for herself.

The amount of money involved is likely in the tens of thousands of dollars, although Jersey County State’s Attorney Ben Goetten said the case still is being investigated.

“This should be a wake-up call to other business owners out there,” he told The Telegraph.

Officially, the amount of money taken is listed in the charge as between $10,000 and $100,000.

The alleged victim, Lora Dover of Carrollton, said she became alarmed after being told by Medicaid that she was not eligible for her latest disability check because of unreported income from 2012. Turns out, she had not worked at the McDonald’s in 2012.

For more:  http://www.thetelegraph.com/news/local/article_8692a192-43e5-11e2-b4f6-001a4bcf6878.html

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Filed under Crime, Labor Issues, Liability, Management And Ownership

Hospitality Industry Health Risks: Restaurant Dishes And Silverware Cleaning And Sanitation Methods "Fall Short Of Eliminating Norovirus" According To Research Study

“Norovirus is the leading cause of epidemic gastroenteritis and the major cause of foodborne illness in the United States…proper sanitation and handling remain the single biggest factor that can prevent cross-norovirus outbreak hotelscontamination of food and dishware at food service establishments…better agents or methods (are needed) to significantly reduce the presence of norovirus…”

Restaurant dishes and silverware may be an overlooked place where people can catch stomach viruses, according to a new study published December 5, 2012 on the PLOS One website.

While the current industry guidelines for cleaning dishware used in public settings are effective at neutralizing bacteria, researchers at The Ohio State University found that they appear to fall short of eliminating norovirus.

Norovirus is the leading cause of epidemic gastroenteritis and the major cause of foodborne illness worldwide, responsible for at least 50% of all gastroenteritis outbreaks in the United States.

For more:  http://www.plosone.org/article/info%3Adoi%2F10.1371%2Fjournal.pone.0050273#s5

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Filed under Food Illnesses, Guest Issues, Health, Insurance, Labor Issues, Liability, Maintenance, Training

Hospitality Industry Employment Risks: Arizona Restaurant Settles EEOC "Pregnancy Discrimination" Lawsuit For $15,000; Servers Removed From "Sunday Football Schedule"

“…The EEOC’s lawsuit…charged that Sandbar instituted a policy of removing pregnant women from its Sunday schedule at its Peoria restaurant in an attempt to allegedly satisfy its male Sunday football EEOCcustomers… it believed its male customers did not wish to see pregnant women while they watched Sunday football games. Working on Sundays during football season was the most or one of the most lucrative shifts during the week for the pregnant employee…”

A Peoria, Ariz., restaurant will pay $15,000 and furnish other relief to settle a pregnancy discrimination lawsuit filed by the U.S. Equal Employment Opportunity Commission (EEOC), the agency announced today. The EEOC had alleged that West Sand, LLC, doing business as Sandbar Mexican Grill, unlawfully removed a pregnant employee from working on Sundays during football season because she was pregnant.

According to the EEOC, pursuant to this policy, Sandbar removed a pregnant woman from its lucrative Sunday schedule, causing her a significant loss of income. Sandbar denied the discrimination.

Sandbar Mexican Grill will pay $15,000 to the female employee to resolve this EEOC case. Under the consent decree settling the suit, Sandbar also must also (1) provide anti-discrimination training for all employees who work at its Peoria location; (2) review and revise, if necessary, its policies to ensure they prohibit sex and pregnancy discrimination as well as retaliation and ensure a strong and clear commitment to a workplace free of such bias; (3) investigate allegations of sex discrimination, pregnancy discrimination and retaliation promptly, fairly, reasonably, and effectively and ensure that appropriate corrective action is taken; and (4) post a notice that sex and pregnancy discrimination -or retaliation for complaining about it – is unlawful.

“Pregnancy discrimination remains a persistent problem in the 21st-century workplace,” said Mary Jo O’Neill, regional attorney of the EEOC’s Phoenix District Office. “Employers cannot disadvantage the terms and conditions of a pregnant employee’s work to satisfy an assumed customer preference about the physical appearance of employees, which is likely untrue in any event.”

EEOC District Director Rayford Irvin added, “The EEOC will continue to be vigilant in rooting out pregnancy discrimination. This type of unlawful exclusion is never a winning game plan.”

For more:  http://www.eeoc.gov/eeoc/newsroom/release/11-28-12a.cfm

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Filed under Employment Practices Liability, Insurance, Labor Issues, Liability, Management And Ownership, Risk Management