Articles Tagged with wage and hour lawsuit

The U.S. Department of Labor should investigate alleged wage theft by Chipotle Mexican Grill, says U.S. Congresswoman Rosa DeLauro of Connecticut. restaurant1

The burrito chain, which last year grappled with a host of food safety problems, is now facing down allegations from 10,000 current and former workers who have joined a federal lawsuit alleging the company failed to properly pay them for the hours worked.

If the allegations are true, DeLauro said, this would be a direct violation of federal law, and would fall under the purview of the DOL. If the agency were to launch an investigation, regulators would have the power to impose federal fines.  Continue Reading ›

A wage theft lawsuit filed by former employees of Wahlburgers, a restaurant chain opened by actor Mark Wahlberg and two of his brothers, alleges the chain illegally withheld wages and tips. restaurant1

The restaurant chain was founded by the actor and his brothers, Donnie and Paul, five years ago and is at the center of an A&E reality television series. Paul, who is a chef, oversees day-to-day operations at the restaurant.

A class action lawsuit asserts that management at the New York Coney Island branch, which opened its doors last fall, was the site of “rampant wage theft and violations of federal and state employment laws.” Specifically, it is alleged the restaurant paid workers for fewer hours than they worked. Also, when they worked overtime, they were not paid time-and-a-half, as required by federal law. Finally, the restaurant is accused of unlawfully forcing servers to pool their tips to share with non-tipped staffers in the kitchen. The “back of the house” staff were paid regular wages, while “front of the house” servers received the minimum wages allowable for tipped workers (considerably less), without meeting the strict criteria that would enable an employer to apply that tip credit. The workers also assert that following a private event held for the cast of Blue Bloods, starring Donnie Wahlberg, the restaurant wrongly withheld the $3,000 tip left by the cast.  Continue Reading ›

Anyone who has ever worked in the restaurant service industry is familiar with the term, “side work.” It’s the work that servers are often required to do on top of the normal serving of tables. What many workers may not know is that payment for these duties must be at least the minimum wage. The federal minimum wage is currently set at $7.25. server

A recent wage and hour lawsuit in North Carolina highlights this problem.

A former server at a restaurant chain alleges the company paid her – and hundreds of other workers – just $2.13 an hour (typical for waiters and waitresses), even while requiring her to do side work for which she should have received minimum wage.  Continue Reading ›

Anyone who has worked in the service industry for any amount of time knows that wage theft is rampant in the restaurant business. But allegedly, national pizza chain Domino’s baked a rigged system right into their payroll software. pizza

The New York Attorney General’s office has filed a lawsuit against Domino’s – both the parent company and the franchise, as joint employers – for systematically cheating workers out of money they were owed. The lawsuit follows a years-long investigation that produced a digital paper trail from each franchised pizza shop straight to the corporate headquarters.

The wage theft lawsuit, which names three franchises plus the corporate parent company, alleges workers were underpaid at least $565,000 at 10 stores throughout New York. This case marks the first time that the attorney general in New York has asserted a fast food corporation is liable as a joint employer for labor violations that occur at franchises. It’s a closely watched case because it could mean greater accountability throughout the industry if the attorney general prevails.  Continue Reading ›

When wage-and-hour disputes are investigated by state or federal authorities, there may be a finding of wrongdoing and the company may agree to settle the matter with the government, in an effort to avoid litigation. However, workers may be free to pursue additional litigation, assuming they didn’t sign away their rights by cashing the check offered in the settlement. agreement

That’s what nearly happened in the recent case of Adams v. Action Link, LLC, reviewed recently by the U.S. Court of Appeals for the Eighth Circuit. The case reveals why it’s so imperative for workers in this situation to have the settlement agreement reviewed by a lawyer before signing and/or cashing the check. They may be signing away rights to additional compensation by doing so.

Here, according to court records, the Department of Labor launched an investigation into the labor practices of a marketing company after receiving a complaint alleging the firm was mis-classifying some workers as non-exempt and failing to pay them the overtime they were due.

A U.S. District judge in northern California has not objected to a $415 million settlement, following allegations several large technology firms conspired in a wage-fixing scheme that held salaries down for many workers. managinginformation

Previously, that same judge had rejected a $325 million proposed settlement, saying it was far too low. The settlement still has to be approved, but that seems more likely now with the higher sum.

Plaintiffs had asserted Adobe Systems Inc., Apple Inc., Intel Corp. and Google Inc. together made an agreement that they would not poach employees form the other. The problem with an agreement like this is that, especially when you’re dealing with the major players in a given industry, such action can significantly limit job mobility. As a result, it means employees have little bargaining power when it comes to their salaries.

California has always been a trailblazer. work

The latest new territory involves being the first state to raise hourly minimum wage rates to double digits – $10-an-hour by 2016, per a bill that recently received Gov. Jerry Brown’s signature. In the interim, the rate will graduate to $9 hourly by next summer.

While this is good news, we fully anticipate this change will coincide with a rise in California wage and hour lawsuits.

Historically, large restaurant chains have been one of the top violators of federal and state wage and hour laws in the U.S. drinks

This may have to do with the fact that the restaurant industry is unique in the way it is permitted to structure its pay (on the basis of tips). The hours are usually not the typical 9-to-5, and it is typically lower-level staff (servers, bussers, line-cooks and hosts) who are exploited.

Outback Steakhouse is no exception. Our Costa Mesa wage and hour lawyers have learned the latest claim against the chain is a class action that stems from a group of Nevada employees. They allege the company failed to provide them with breaks to which they were legally entitled, mandated they begin working prior to the start of their shifts and discriminated against nursing mothers by not providing enough break time or private settings for them to pump milk.

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