Fourth Circuit Shuts Down Overly Broad Class Definition in Wage and Hour Litigation
As most operators know, wage and hour disputes always seem to loom on the horizon, with the specter of wage and hour class actions being particularly anxiety-inducing. In one small piece of good news for employers on the class action front, on December 17, 2024, in Stafford v. Bojangles’ Restaurants, Inc., 2024 WL 5131108 (4th Cir. 2024), the Fourth Circuit struck down an overly-general class definition for a class of employees who attempted to sue Bojangles for alleged wage and hour violations.
In the Bojangles suit, plaintiff, an hourly employee who served as a shift manager, sued on behalf of himself and all others similarly situated for violations of the North Carolina Wage and Hour Act and the Fair Labor Standards Act when the restaurant allegedly failed to pay him overtime to clean the restaurant and drive between Bojangles locations. He filed suit on behalf of all others similarly situated, but some of the other allegedly similarly situated plaintiffs had claims that were distinct from his own, such as working during unpaid breaks, other off-the-clock work, and unlawfully-edited time clock entries.
The lower court ruled that all employees could sue Bojangles together as one class action. On appeal to the Fourth Circuit, though, the Fourth Circuit ruled that they could not sue as a class because their allegations were not sufficiently common to one another and because the class definition was too broad and ill-defined.
The Bojangles case serves as a good reminder for all operators to have their time-keeping and other wage and hour policies carefully reviewed. Moreover, in the unhappy event employees do bring suit, any such class claims should be carefully scrutinized by legal counsel for potential challenge.
Top DC Restaurant Employees Move to Unionize
Employees at well-known D.C. eateries Le Diplomate and Rasika have recently moved to unionize. This comes after workers at The Bazaar earlier moved to unionize, and were granted recognition without a vote on unionization. There is no word yet on whether Knightsbridge Restaurant Group (Rasika) or Starr Restaurants (Le Diplomate) will recognize the union without a vote or whether, if a vote is held, employees will win the vote. But, the fact that two top D.C. restaurants have received unionization demands highlights the urgent need for restaurant owners to take notice and implement proactive management strategies to prevent unionization.
Unionization is fueled by unhappy workers. When your team feels valued, fairly compensated, and engaged, the desire for collective bargaining diminishes. Prioritizing employee satisfaction boosts morale and helps increase productivity and retention, which can have a positive ripple effect throughout any restaurant. Proactive management, that recognizes the signs and symptoms of serious employee unhappiness is key. Training your managers to recognize and address signs of employee discontent is essential.
Operators with unionization concerns should proactively reach out to legal counsel for union avoidance tips, tricks, and management training sessions.
