Richard Reice Published in Nation's Restaurant News

Richard's article "Class-action employment lawsuits: expensive and often avoidable " in the November 13, 2006 issue of Nation's Restaurant News notes : "Class actions are the "Supersize Me" of employment litigation. Everything about a class action is large. The number of employees involved in the case, the size of the target company, and the impact the litigation can have on operations and the bottom line all can be tremendous. Class actions are something employers should be concerned about and take steps to guard against. Companies should budget for employment practice review audits to catch the misclassification of employees, improper payroll procedures and discriminatory employment practices. Investments in such reviews are less expensive than paying millions in litigation-related costs. The purpose of a class action is to eliminate the need for the repetitious filing of separate lawsuits that involve similarly situated plaintiffs and common complaints. Class action litigation is big business. The restaurant industry has seen several multimillion-dollar settlements to resolve wage and hour disputes and sexual-discrimination lawsuits. Among the companies and the payment they have made in recent years are: Shoney's, $18 million; Pizza Hut Inc., $12 million; Hooters, $2 million; and Cracker Barrel Old Country Store Inc., $2 million. Litigation of a class action is complicated and cannot proceed to trial unless the court first "certifies" a class. The goal is to be as bulletproof as possible. Chain restaurants and their HR staffs face a formidable burden in complying with various workplace laws, particularly in situations in which control of the workforce is decentralized and dependent on local managers. A class-action lawsuit involves a set of circumstances brought to the attention of and acted upon by a plaintiff's attorney. Those same circumstances were visible to the employer long before its employees sought legal counsel. But the employer has to look, know where to look and appreciate what it is seeing. Workplace audits, a vigilant and empowered HR staff and adherence to policy can help employers spot trouble, take corrective action and prevent class-action lawsuits."