Recent News Labels Litigation Trend “Shakedown” Lawsuits

In response to a recent uptick in the number of lawsuits – particularly employment law claims against restaurants, the restaurant industry is scrambling to come up with standard advice for owners and managers in the industry. In response to what they are labeling "shakedown" lawsuits, restaurant owners and managers are encouraged to employ precautions and counter strategies to mitigate and avoid lawsuits. Corporations and business owners desperately want to avoid the costs of paying out thousands or even millions in settlements due to class action employment lawsuits.

Common Alleged Violations Cited in Class Action Employment Suits Against Restaurants:

Discrimination Lawsuits: While many businesses have inclusive company policies, diversity standards, clear, supportive LGBTQ policies, etc. this does not guarantee that managers and supervisors will behave in accordance with stated company policy. Many companies with positive, inclusive, and diverse standards supported by written and enforced company policy still face harsh allegations due to other employees, supervisors and managers who are acting against company policy as a representative of the company.

Fair Credit Reporting Act Lawsuits: Employers are required to offer job applicants and employees with notice when information is collected through third party credit reporting agencies including credit reports, background checks, prior history info and ownership asset reports. As the general public becomes more aware of their rights to know prior to having their data accessed, the number of lawsuits citing fair credit reporting violations increases.

Fair Labor Standards Act Lawsuits: Fair Labor Standards Act (FLSA) lawsuits focus on wage and hour violations with the most common being overtime violations and minimum wage violations. One of the main issues that crop up when employees claim FLSA violations is misclassification. Employers seeking to save money and maximize their workforce sometimes willfully deny their workers benefits and pay they have a legal right to by misclassifying them as exempt or as independent contractors.

If you have been misclassified on the job, please get in touch with Blumenthal Nordrehaug Bhowmik De Blouw LLP. Our employment law attorneys have the resources and experience companies fear in litigation.