STATE-BY-STATE ROUNDUP - New York – Restaurant Group’s Settlement With the EEOC – Not on the Usual Menu
October 8, 2007
In July 2007, the Boulud group settled the charges with the EEOC, agreeing to several unusually progressive policies that are likely to set a new standard for the restaurant world. The terms of the settlement include the payment of $80,000 to the workers who filed charges with the Commission. The restaurant group also agreed to a formal promotions policy, which allows for the involvement of the EEOC and the state attorney general. This policy gives the government the right to monitor promotions, as well as the right to review résumés and interview applicants. Further, the policy requires that job vacancies be posted for at least five days and any worker who submits an application must be interviewed by the group’s general manager. Internal applicants will be considered before outside hires, but workers will not receive promotions based upon their seniority alone. The settlement also requires the restaurant group to conduct annual evaluations of its employees. In addition, the restaurant must distribute its non-discrimination policy to all employees. Any written discrimination complaints received by the restaurant group must be forwarded to the EEOC every six months. The settlement also provides for an educational component: managers must receive eight hours of managerial training on the federal discrimination laws at the Cornell School of Industrial and Labor Relations.
Not only are the parameters of the settlement unusual, but the duration is as well. Unlike most EEOC settlement agreements, which last two to three years, the agreement with the Boulud group obligates the restaurant to operate under the settlement provisions for seven years. The progressive promotions policy, reporting obligations and management training requirement, combined with the length of the settlement compliance period, make this agreement big news in the restaurant industry, especially in New York City.
The other outcome of this settlement agreement was the dismissal of related suits between the Boulud group and the Restaurant Opportunities Center (ROC), an advocacy group for restaurant workers. While ROC is not a union, its purpose is to organize restaurant workers to improve their working conditions, with particular programming efforts focused on the immigrant population, without whom New York City restaurants probably could not function. Boulud filed suit against the ROC group bringing claims for defamation, nuisance and harassment, and claiming that ROC caused damage to his business. Boulud’s first interaction with ROC reportedly occurred when approximately 40 protesters marched inside the restaurant in the middle of the busy dinner service and handed the managers a demand letter. After that, ROC organized pickets in front of Daniel, during which they chanted and sang under the protection of an inflatable 12-foot cockroach that sat on the sidewalk outside the Upper East Side restaurant.
The restaurant business is known for its cutthroat competitiveness – a concept or menu that does not work will result in a restaurant going out of business. But even in hectic work environments with late-night schedules, demanding clientele and expensive fare, managers must ensure they apply their exacting standards in a non-discriminatory manner. The parameters of the settlement agreement reached by the Boulud group and the EEOC serve as a warning to restaurateurs, and may cause the restaurant industry to stand up and affirm its commitment to equal employment opportunity practices.
For more information, email Colleen A. Sorrell at colleen.sorrell@hklaw.com or call toll free, 1-888-688-8500.
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