Tag Archives: Overtime

Denny’s Restaurants Cheated Assistant Managers out of Overtime Wages According to New York lawsuit

Denny's overtime New York assistant managers

Denny’s restaurants paid Assistant Managers on a salary to avoid paying them overtime, according to a lawsuit filed in New York federal court. An Assistant Manager in Horseheads, New York alleges he worked 50 to 70 hours per week on average, but was not paid overtime compensation at time- and-a-half his regular hourly rate for all hours worked over 40 each week.  Instead, he says Denny’s paid Assistant Managers an annual salary regardless of the number of hours worked.

The lawsuit is directed at franchise FEAST American Diners LLC, which operates 17 Denny’s restaurants in New York.  Attorneys for the Assistant Manager claim that Assistant Managers at Denny’s had primary job duties that included preparing food, helping customers, bussing tables, cleaning the restaurant, labelling and rotating food product, and checking inventory.  The lawsuit alleges that the Assistant Managers did not exercise the responsibilities of a manager or use independent judgment and discretion in running the restaurants, as they did not hire, fire, discipline, or direct the work of other Denny’s employees.

The lawsuit claims that Denny’s restaurants did not provide labor budgets with enough money to cover all hours needed to complete the necessary manual labor tasks.  As a result, they contend Denny’s had knowledge that this underfunding led to Assistant Managers working more than 40 hours per week while mainly performing the overtime-eligible work tasks described above.  The lawsuit also alleges Denny’s failed to keep accurate time records, does not record all hours worked by Assistant Managers, and failed to post a notice explaining the minimum wage and overtime wage requirements anywhere in the restaurants.

This lawsuit continues a recent trend of restaurant workers alleging misclassification as Assistant Managers so they would be “exempt” from the FLSA requirement to receive overtime pay at time and a half for hours worked over forty in a workweek.  Other restaurants hit with lawsuits claiming Assistant Managers were paid a salary to avoid overtime pay include Cracker Barrel, Dunkin Donuts, Chipotle, Jack in the Box, and Jimmy John’s.

 

10 Domino’s Franchise Locations Will Pay $480K For Violating Workers’ Rights

dominos pizza logo

New York Attorney General Eric T. Schneiderman announced settlements with three Domino’s Pizza franchisees, totaling $480,000 in restitution to hundreds of workers subject to wage and labor violations at ten different franchise locations.  The Attorney General filed a lawsuit in May 2016 against these three franchisees and their franchisor Domino’s Pizza, Inc., Domino’s Pizza LLC, and Domino’s Pizza Franchising LLC (collectively, “Domino’s”) seeking restitution from Domino’s and its franchisees for a number of alleged violations, including violations against minimum wage, overtime, and other basic labor law protections.

As part of the settlement agreements for the wage theft violations, the three franchisees will be dismissed from the lawsuit, and only the franchise Domino’s remains as a defendant.  The Attorney General has now settled investigations into labor law violations at 71 Domino’s franchise locations in New York State, owned by fifteen individual franchisees.  These locations comprise more than half of the franchise stores and over a third of the total number of Domino’s stores in New York.  The Attorney General’s office has secured nearly $2 million in total restitution for Domino’s workers statewide through these settlements.

“In the past three years, my office’s investigations have revealed a consistent and outrageous record of disregard for workers’ rights by franchisees, and as we allege, with the full knowledge of Domino’s Pizza,” Attorney General Schneiderman said. “My office will continue with our lawsuit against Domino’s Pizza to end the systemic violations of workers’ rights that have occurred in franchises across the State.  We will not allow businesses to turn a blind eye to blatant violations that are cheating hard working New Yorkers out of a fair day’s pay.”

Eight of the stores involved in the settlements announced today were owned jointly by Shueb Ahmed and Anthony Maestri, with locations in New York, Nassau and Westchester Counties.  Two of the stores were owned by Matthew Denman and located in Montgomery County.  Shueb Ahmed will pay $150,000 in restitution to workers, Matthew Denman will pay $90,000 and Anthony Maestri will pay $240,000.

In the continuing lawsuit against Domino’s, the Attorney General has asserted that Domino’s was heavily involved in the employment practices of the three franchisees and, as a result, is a joint employer of the workers at the franchisees’ stores and is responsible for underpaid wages to these workers.  The Attorney General has also alleged that Domino’s encouraged franchisees to use payroll reports from the company’s computer system (called “PULSE”), even though Domino’s knew for years that PULSE under-calculated gross wages.  Domino’s typically made multiple updates to PULSE each year, but decided not to fix the flaws that caused underpayments to workers or tell franchisees about the flaws, deeming it a “low priority.”

Golden Corral Sued By Assistant Managers For Overtime Pay

Golden Corral logo

Golden Corral restaurants throughout the United States misclassified “Kitchen Associate Managers,” and “Hospitality Managers,” as employees exempt from overtime, failing to pay them any overtime wages for hours they worked over forty in a given workweek. According to the restaurant workers, Golden Corral refused to pay them overtime in spite of the fact that they spent the majority of their time performing the same duties that non-exempt restaurant employees performed, including cooking and preparing food, taking out trash, washing dishware and glassware, refilling food on the buffet line, unpacking products and supplies, cleaning the restaurant, and serving customers. The lawsuit claims that Golden Corral applied the same compensation and employment policies to Assistant Managers at 94 restaurants across the country.

The workers also claim that Golden Corral willfully misclassified them as exempt workers ineligible for overtime pay, and was aware that Associate Managers across the country worked more than 40 hours a week without overtime compensation. The lawsuit alleges that Golden Corral failed to record all of the time that its employees worked and purposefully did not require workers to clock in or out or otherwise record their time in any way. Further, the Assistant Managers’ work hours were not recorded on their paystubs.

NY Diner Found Guilty of Retaliation Against Workers

Waverly Diner Restaurant front

Waverly Restaurant, a diner in New York City’s West Village, was found guilty of retaliation against former workers in a decision by Judge Steven Davis of the National Labor Relations Board. After a three-day trial, Judge Davis found that the restaurant reduced worker hours because they had filed a federal court wage theft lawsuit against the restaurant for overtime, minimum wage, and other violations. The Judge also found that management had pressured waiters, delivery workers and bussers involved in the FLSA lawsuit to drop the suit. The restaurant workers were represented at the trial by Vivianna Morales and Louis Pechman, founder of waiterpay.com.

Benares and Baluchi’s NYC Restaurants Sued for Stiffling Delivery Workers out of Minimum Wage and Overtime Pay

Benares Indian Restaurant logo

Delivery workers at Benares and Baluchi’s Indian restaurants in New York City were not paid minimum and overtime wages, and also were cheated out of the hours that they worked, according to a wage theft lawsuit filed in Manhattan federal court. The lawsuit claims that Benares and Baluchi’s purposefully failed to keep track of the delivery workers’ hours, and that the delivery workers were paid a fixed daily salary ranging from $16 per day to $50 per day, regardless of the number of hours they actually worked.

The delivery workers claim that the restaurant failed to provide them with any notice that tips they earned would count towards their wages. In addition, the restaurants unlawfully required their delivery workers use their own money to purchase “tools of the trade,” such as bikes, helmets, lights, and bike chains. The lawsuit also claims the restaurants regularly required delivery workers to continue working without pay for at least an hour after their scheduled stop time.

 

 

 

 

 

 

 

Jack in the Box Allegedly Misclassifies Managers To Avoid Overtime Pay

jack in the Box Logo

Jack in the Box has misclassified its store managers as overtime ineligible in order to cut its overtime pay obligations, according to a lawsuit filed in California federal court. The lawsuit claims that Jack in the Box, through a central business policy, requires its store managers to cover many work tasks of their subordinate employees. These assignments include working the drive-thru and the fryer, preparing food, cleaning up, and unloading products, as well as other like jobs. The store managers claim that despite performing these overtime pay eligible tasks, Jack in the Box mischaracterized them as ineligible for OT pay and has not paid them what they are owed. The lawsuit alleges that as result of this system, store managers were also regularly prevented from taking meal and rest breaks because they were assigned too much work and given no relief.

Jack in the Box allegedly paid its store managers a fixed salary amount that ultimately ended up being less than the minimum wage. Further, the store managers claim they were denied overtime pay although they “regularly” worked more than eight hours in a day or 40 hours in a workweek. They also claim that Jack in the Box did not reimburse them expenses for necessary travel costs in moving products between restaurants, and that they are not paid their fully owed wages upon the termination of their employment.

Cracker Barrel Associate Managers Sue for Overtime Pay

cracker barrel

Associate Managers of Cracker Barrel restaurants have been misclassified as “exempt” employees under the Fair Labor Standards Act (“FLSA”), according to an overtime lawsuit filed on August 7 in Florida federal court.

The lawsuit claims that Associate Managers at Cracker Barrel locations across the United States are misclassified as “exempt” even though their primary work duties included, among other things, preparing food, cooking, cashiering, making sales, and completing reports.  Attorneys for the workers claim that despite their primary job duties being non-exempt in nature, Cracker Barrel did not pay one and one-half times their regular hourly rate for all hours the Associate Managers worked over forty per week.

The Associate Managers are seeking damages for unpaid overtime, liquidated damages, attorneys’ fees and costs, and other damages.

Waiterpay Founder Featured on Brooklyn TV

Louis Pechman, the founder of Waiterpay, was a featured guest on BK Live’s June 2, 2014 segment on Tipped Wages.  The segment focused on pay issues in New York City restaurants, including concerns about the increase in lawsuits for illegal pay practices.  Among the topics discussed were the differences between minimum wage and tipped minimum wage, the complicated set of laws involving the tip credit, spread of hours, and other worker rights issues.

Food Network Celebrity Willie Degel Agrees to Pay $900,000 to Settle Wage and Hour Lawsuit

uncle jacks steakhouse logo

Uncle Jack’s Steakhouse and its owner, Food Network Celebrity Willie Degel, will pay $900,000 to settle a wage theft lawsuit filed against its restaurants located in Bayside, Queens and Midtown, New York City.  Ironically, Degel was featured on Food Network’s Restaurant Stakeout, a show which followed Degel as he visited restaurants across the country with hidden cameras to capture their food service problems and attempted to fix them.

On May 22, 2014, Judge Loretta Preska, Chief United States District Court Judge in the Southern District of New York, approved a $900,000 settlement between the restaurants and its workers, who alleged that their worker rights were violated by the restaurant.  Approximately 239 restaurant workers who worked between September 2002 and September 2008 at the New York City and Queens restaurants are expected to benefit from the settlement.

The lawsuit, which was filed in 2008 by captains, waiters, runners, bussers, and bartenders, alleged that the restaurants failed to pay them at the legally required minimum wage, routinely shaved their hours when they worked over 40 hours and refused to pay them overtime wages for hours worked over 40, misappropriated gratuities belonging to the waitstaff, failed to pay spread of hours pay when the employees’ workdays exceeded ten hours, and refused to pay for employee uniforms or laundering of such uniforms.

Peter Luger’s Steakhouse Settles Wage Lawsuit for $250,000

peter luger steak house logo

Workers at Peter Luger’s, recognized by Zagat’s as the best steakhouse in New York, has agreed to a $250,000 settlement to resolve claims made against the Long Island location of the steakhouse for Fair Labor Standards Act (FLSA) and New York labor law violations, according to papers filed with the court.

Restaurant employees initially filed a complaint against the steakhouse in March 2013, alleging that the restaurant failed to pay them for all hours worked, specifically that the restaurant violated its workers’ rights by failing to pay proper overtime and minimum wages and spread-of-hours pay, and by maintaining an illegal tip pool.  The Complaint alleged that the management deducted $20.00 from the tip pool every day, which would then be given to the kitchen staff at the end of the year.

The workers have asked the Judge Wexler to approve the settlement and certify the proposed class, which would cover 62 employees who worked at the restaurant’s Great Neck location as servers, waitstaff, waiters, and bartenders.