Tag Archives: Class-Action Lawsuit

by | May 17, 2012 · 6:38 am

Hospitality Industry Legal Risks: Nevada Hotel Sued For "Pregnancy Discrimination" By Room Service Sales Employee; Additional "Class-Action" Allegations For Unpaid Wages

In the same filing to sue the hotel for unspecified damages for pregnancy discrimination, Megia also made class-action allegations for unpaid wages on behalf of the hotel’s employees.

“…employees were not permitted to wear their uniforms outside work and had to pick up and drop off their uniforms before and after their shifts, often leading to additional overtime for which they were not paid, the suit claimed…”

Melodee Megia, a former employee at The Cosmopolitan Resort and Casino in Las Vegas, claims she was told she was fired from her job for saying “bye bye” on the telephone instead of “goodbye” while eight-months pregnant.

She has filed a lawsuit against the hotel for pregnancy discrimination and a class-action suit for workers’ wages, saying employees were not paid for the time they had to wait for and change into their uniforms on a daily basis.

Megia worked at the hotel from November 2010 until September 2011, when she said she was fired “based on her pregnancy,” according to court papers filed with the Clark County District Court in Nevada last week.

Megia was a “room service sales” employee answering the telephone when hotel guests called for room service, occasionally assisting in room delivery, her lawyers said.

For more:  http://abcnews.go.com/Business/fired-las-vegas-hotel-worker-sues-pregnancy-discrimination/story?id=16361237

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by | April 11, 2012 · 11:03 am

Hospitality Industry Legal Risks: Hotel And Restaurant Owners Should Consider Requiring Employees To Sign Arbitration Agreements Containing "Class Action Waivers"

“….conducting a wage and hour audit and educating management on wage and hour best practices…(and) requiring employees to sign arbitration agreements containing class action waivers…(can help) prevent employees from asserting wage and hour claims in the form of a class action lawsuit…”

Class action waivers received a boost by the U.S. Supreme Court last year in a widely publicized consumer class action case in which the court found them to be legally enforceable in a mandatory arbitration agreement. The AT&T Mobility v. Concepcion decision has caused some employers to consider including class action waiver language in employee arbitration agreements to prevent class/collective wage and hour lawsuits. However, courts are still struggling with the issue of whether the right to proceed as a class/collective action can be waived under the Fair Labor Standards Act.

Waivers will be more likely to be upheld where they contain provisions providing fair relief for the employee, such as:

  • Employee chooses the venue for dispute resolution;
  • Employee is entitled to injunctive relief and punitive damages, if applicable; or
  • Employer pays some or all of the costs of the dispute resolution and/or waives claims for its own costs and fees.

For more:  http://www.lexology.com/library/detail.aspx?g=0345c278-07bc-4308-bdf2-7c7b16f0ba84

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by | · 11:03 am

Hospitality Industry Legal Risks: Hotel And Restaurant Owners Should Consider Requiring Employees To Sign Arbitration Agreements Containing "Class Action Waivers"

“….conducting a wage and hour audit and educating management on wage and hour best practices…(and) requiring employees to sign arbitration agreements containing class action waivers…(can help) prevent employees from asserting wage and hour claims in the form of a class action lawsuit…”

Class action waivers received a boost by the U.S. Supreme Court last year in a widely publicized consumer class action case in which the court found them to be legally enforceable in a mandatory arbitration agreement. The AT&T Mobility v. Concepcion decision has caused some employers to consider including class action waiver language in employee arbitration agreements to prevent class/collective wage and hour lawsuits. However, courts are still struggling with the issue of whether the right to proceed as a class/collective action can be waived under the Fair Labor Standards Act.

Waivers will be more likely to be upheld where they contain provisions providing fair relief for the employee, such as:

  • Employee chooses the venue for dispute resolution;
  • Employee is entitled to injunctive relief and punitive damages, if applicable; or
  • Employer pays some or all of the costs of the dispute resolution and/or waives claims for its own costs and fees.

For more:  http://www.lexology.com/library/detail.aspx?g=0345c278-07bc-4308-bdf2-7c7b16f0ba84

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by | February 24, 2012 · 1:01 am

Hospitality Industry Employment Risks: Tennessee Restaurant Chain Faces "Class Action Lawsuit" Over Classifying Security Guards As "Tipped Employees"

“…employers who rely on the tip credit are advised to determine how much time each tipped employee spends on “non-tipped” activities, and if these “non-tipped” activities constitute more than 20% of the total working time for any shift, the employer must pay the employee the federal minimum wage ($7.25/hour) for all time spent on non-tipped tasks…” 

The issue in Stewart v. CUS Nashville, LLC is whether security guards at Coyote Ugly are “tipped employees” who can lawfully participate in a tip pool. Stewart was a Coyote Ugly bartender, a non-salaried tipped employee. She claims that Coyote Ugly violated the FLSA by requiring employees in her category to contribute their tips to a tip pool so the tips could be shared with, among others, security guards.

 Stewart argues that the security guards are akin to dishwashers or prep cooks and thus do not meet the definition of “tipped employees” who “customarily and regularly receive tips” under 29 U.S.C. § 203(m), (t).

Coyote Ugly argues that, based on their level of customer interaction, including “hollering” to encourage people to enter, checking identification of those who do enter, being stationed in the front of the house with patrons, assisting female patrons onto and off of the bar to dance, picking up glasses and bottles, and otherwise ensuring a safe customer experience, security guards are more akin to bus boys, maître d’s, silverware rollers, sushi chefs, and other front of the house employees who courts have held may properly share in tips.

Although premature to address the merits, the court granted conditional certification to a class of bartenders, barbacks, or waitresses at company-owned Coyote Ugly saloons who were required to share tips with security guards.

 For more:   http://www.jdsupra.com/post/documentViewer.aspx?fid=5a62a28c-b81a-4014-8c9d-025b758ee10f

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by | February 14, 2012 · 1:23 am

Hospitality Industry Legal Risks: Massachussetts Hotel Settles Class-Action Lawsuit Over "Withholding Portion Of The 20 Percent Service Charge" Billed To Banquet Patrons

One-third of the 20 percent service charges billed to patrons at banquets was withheld, said Anthony Chavarry of Dalton, who was the whistleblower and leading plaintiff on behalf of the workers.

“…only employees directly involved in service to customers are entitled to share tips — waitpersons, bartenders and buspersons are included. But food and beverage service managers, sales staff and others are not entitled to any portion of gratuities…”

The Crowne Plaza Hotel, owned by the Berkshire Common Corp., has agreed to settle a class-action lawsuit filed at Berkshire Superior Court in November 2009 on behalf of 150 current and former employees who served customers at banquets between November 2006 and June 2010 at the city’s largest lodging establishment.

The $1.3 million settlement, which awaits expected final approval at a fairness hearing May 1, includes legal fees. The workers will share about $850,000, depending upon the amount of time they were employed at the hotel during the period covered by the lawsuit, said attorney Paul Holtzman of the Boston firm Krokidas and Bluestein, which specializes in employment law.

Some employees may see payouts in the tens of thousands of dollars, he said. After the settlement gains the final green light from Berkshire Superior Court, Berkshire Common is required to send out settlement checks by Oct. 17, according to court documents. Copies of the settlement documents are in the mail to the employees affected.

The hotel does not admit any liability, according to the class-action settlement documents.

For more:  http://www.berkshireeagle.com/ci_19954538

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