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Restaurants: an easy target for lawsuits

Running a restaurant has always been tough and compliance with ever-changing laws has been challenging. In fact, activities related to compliance are often overshadowed by daily operational challenges – the key to survival. And even when compliance does receive enough attention, the restaurant faces lots of gotchas, ways for employees and lawyers to exploit the system.

This made restaurants an easy target. Employees launch and constantly win class action lawsuits making claims about incorrectly calculated pay. Although some of these claims are unsubstantiated, most restaurants lose these lawsuits due to poor record keeping or simply because they aren’t up to date on all the laws and regulations.

Attorneys make a fortune suing large chains such as Applebee’s, Jimmy Jones, and Cheesecake Factory, just to name a few. It has become so easy and lucrative to sue that restaurant groups with as few as two locations are now a target. When several employees stand in front of the judge and complain that they haven’t been paid correctly for the hours worked, or their company did not comply in other areas, courts often make it the burden of the employer to prove otherwise. Unfortunately, most restaurant employers use systems that do the job when it comes to general restaurant operations, but prove to be useless to help in lawsuits related to certain employment matters.

Thankfully, restaurants can protect themselves. A perfect solution includes a combination of highly flexible software that can accommodate the most complex workflows and people who are familiar with the industry and some of its challenges. As these legal attacks occur, you need the ability to be nimble and protect yourself.

About Workuments. Workuments is a highly distinctive portfolio of HR software products that effectively manage all workforce processes from hire to retire. Workuments includes a unique compliance suite designed specifically for the hospitality industry. For more information, visit www.workuments.com.

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