Wage and Hour
Assistant managers formerly employed by a local restaurant chain filed a class action lawsuit alleging they should have been given overtime pay. They reasoned that they were required to perform non-managerial tasks on occasion, such as bussing tables running the cash register or serving customers.
Because they performed those tasks, the assistant managers asserted they should not have been classified as salaried employees. The restaurant chain knew it could face steep legal fees and an uncertain outcome if the case went to trial, so they settled. Defense costs amounted to $80,000 with a settlement of $20,000 each for the three managers.