A tip on tipped workers: pay them correctly or else

The Department of Labor has sued the owner of two restaurants claiming that servers were not properly paid overtime. 

El Toro Loco Legends LLC in Kansas City and El Toro Loco Lenexa LLC in Lenexa, Kansas, paid their tipped wait staff a minimum wage of $2.30 per hour, but did not properly calculate the overtime premium owed to those employees.

They calculated the overtime premium based off of the $2.30 tipped minimum wage instead of the greater of the full minimum wage of $7.25 per hour or the employee's effective weekly hourly rate including all tips received by the employee, less the employer's statutory tip credit against wages paid directly to the employee.

Do your business’s philosophy, values, and vision match your mission statement

On this week's episode of The Start A Brewery Podcast, I join hosts Laura Lodge and Candace Moon, along with guests Ren Navarro (the owner/operator of Beer. Diversity., and my co-presenter at the upcoming Craft Brewers Conference) and Jason Gladfelter (of Vombuds, LLC) to discuss how a business's mission statement should align with and reflect its philosophy, values, and vision. 

We discuss the important questions of "Who are you?" and "What do you collectively as a team and a business represent?" While we answer these questions in the context of starting a brewery, the issues we discuss and the lessons we teach are applicable to any business of any size, startup or established, small or big.

Union avoidance vs. union busting

"A company that opposes a union organizing and presents both sides of this complex issue is 'union busting.'" This is what one commenter wrote in response to my recent post about union organizing at Creature Comforts Brewing Co.

I could not disagree more. 

There is vast, substantive, and significant difference between union avoidance and union busting.

Update on Creature Comfort Brewing’s union organizing

Last week I reported that the employees of Creature Comforts Brewing Co. formed their own independent labor union, the Brewing Union of Georgia (aka BUG) and announced their intent to unionize their workplace.

A lot can happen in a week.

What does Creature Comfort’s union announcement mean for your craft brewery?

The employees of Creature Comforts Brewing Co. recently held a rally to announce their intent to form a labor union. They also announced the formation of the Brewing Union of Georgia, an independent union created by the brewery's employees with the stated goal of spreading their movement across their state. Despite the union's "independence," it has received assistance and guidance from assistance from the United Campus Workers of Georgia and the Workers Center at the Economic Justice Coalition.

This is HUGE news for the craft beer industry.

Employers, for the love of God, please stop banning employees from discussing their wages

I came across the following recent post on the legaladvice subreddit.

Work for a brewery. GM and owner … informed everyone that we needed to sign a contract essentially stating that if ANY employee was found to be discussing wages, they would be terminated immediately.… As of last week, GM let everyone know that any employee who hasn't signed the paper will be looked at as a voluntary resignation. I should probably add that, of course, we have no union.

This is what we labor and employment lawyers call … what's the term … ILLEGAL. 

Employers, repeat after me: “Tips belong to employees, not employers.”

$1,351,253.34. That's the amount a federal judge has ordered the Empire Diner, its owner, Ihsan Gunaydin, and its manager Engin Gunaydin to pay a group of 107 servers and kitchen workers based on an illegal tip scheme.

What rendered the restaurant's tip scheme illegal? It required servers to turn over 10 to 15 percent of their total tips received on any given shift to pay the bussers' wages. That's a clear violation of the Fair Labor Standards Act.

Does craft beer have a labor problem?

Does craft beer have a labor problem? Julie Rhodes, writing at PorchDrinking, sure thinks so. 

She cites low wages and labor conditions as the two main drivers of her conclusion. 

Having a disability is NOT an excuse for mistreating others

I've written before about BrewDog (here and here), the multinational Scottish craft brewery accused by hundreds of former employees of systemic mistreatment through its sexist and misogynist work environment. The brewery's founder and CEO, James Watt, stands at the center of much of controversy and most point to him as the root cause of most of the allegation.

Earlier this week, Watt appeared as a guest on The Diary of CEO podcast. During the interview, Watt blamed his pattern of mistreatment of employees him possibly being autistic.

Explaining the “Golden Age of Union Organizing”

Unions aren't just having a moment, they are having their best moment in at least 50 years.

• What has caused the "perfect storm" of union organizing that employers are currently experiencing?
• How have the White House's policies impacted unionization and collective bargaining?
• What explains the trend of smaller, "in-house" unions, such as those seen at Starbucks and Amazon?
• How should employers assess their labor strategies in response to these changes?

This week, I joined the ProjectHR Podcast to discuss The Golden Age of Union Organizing, the forces that are helping to cause it, and how employers should be responding and reacting.

Here's a preview of what you'll hear in the episode.

You can listen to the entire episode here, or wherever you get your podcasts.

Breaches of confidentiality during internal investigations chill future reports of workplace misconduct

"Nothing you share will be attributed to you and your feedback will remain anonymous."

That's what an HR consultant advised employees of BrewDog prior to their participation in an anonymous workplace culture review of the international brewing company.

Kate Bernot reports at Good Beer Hunting, however, that at least one former employee who participated discovered that her personal information was provided to company leadership.

Charlotte Cook says her name and details of conversations about her time at BrewDog—which focused on workplace safety, problems with human resources, and the circumstances under which she left the company—were provided by [HR consultant] Wiser to BrewDog without her knowledge or consent.

Employers, your awful stereotypes in job ads aren’t cute or clever, they’re offensive and illegal

"Meet H&N's newest assistant brewer," the Instagram post began. How nice, a brewery advertising its female-friendly work environment. 

"She always has a smile on her face and never talks back!"

Uh oh! That took quite the turn, and not for the better.

If it feels like labor unions are having their moment, it’s because they absolutely are

Union representation petitions are surging. According to the National Labor Relations Board, they have increased a whopping 57% over the past six months.

Even more astounding is just how many of these petitions are in hospitality and food service industry. According to an NPR analysis, 27.5% of all union election petitions filed thus far this year come from that market segment. Compare that to just a decade ago when the number was a scant 3.8%. That's nearly a 625% increase. 

Series of promotions dooms gay brewery employee’s sex discrimination claim

Midland Brewing Company hired Ryan Boshaw to work as a server. Over the span of nine months, it promoted him three times, to an hourly managerial position, to floor leader, and ultimately to front-of-house operations manager (the second highest ranking position in the business). 

Shortly after Boshaw's final promotion, however, Midland terminated him following a series of performance-related issues and concerns. The brewery had issue with how he handled an issue with customers who found hair in their food. He deviated from his job assignments and interfered with how others performed their jobs. He brough the wrong resume to an interview of a prospective employee. The final straw for the brewery was Boshaw missing a mandatory meeting after texting a co-worker that the meetings were "such a waste of time," and then being no-call/no-show for his shift that evening. The brewery fired him the next day because of his "absence and failure to notify management" in addition to "other issues."

Where's the claim that supports Boshaw's federal lawsuit? 

Restaurant learns the hard way what an illegal tip pool looks like

Hard Eight BBQ says it misunderstood its obligations under the Fair Labor Standards Act by paying managers a share of tips earned by servers across the restaurant's five locations. As a result, following a Department of Labor investigation it reached a settlement with its managers totaling $867,572. 

Matt Perry, COO of Hard Eight BBQ, told 5 NBCDFW that "managers were part of the tip pool at their five restaurants because they do the same jobs as other hourly employees on any given shift and that because of that they felt like managers should also receive a small portion of the tip share."

Your office might be open, but the bar should remain closed

According to The Wall Street Journal, some businesses are using alcohol to entice their employees to return to the office.

As businesses work to settle employees into offices, some are pulling out the stops—literally, on kegs, casks and wine bottles—in an attempt to make workplaces seem cool. Sure, executives could simply order people to return to their cubicles, and some have, but many want their workers to come back and like it.

Protected concerted activity is an opportunity to engage with your employees, not to retaliate against them

"Due to the 6.8% inflation rate, all US workers are entitled to at least a 6.8% pay adjustment. We have received reports of some ABUSIVE EMPLOYERS not providing these adjustments. If you have not received such a raise, please ask your employer why your PAY WAS CUT."

"WHAT TO DO ON A BREAK TODAY: (1) Talk about your PAY. (2) Talk about your RIGHTS. (3) Begin ORGANIZING A UNION. GOOD employers are not afraid of these, but ABUSIVE ones are."

"You have a protected LEGAL RIGHT to discuss your pay with your coworkers. This should be done on a regular basis to ensure that everyone is being paid fairly. It is ILLEGAL for your employer to punish your for doing this."  

These comments, shared in the antiwork subreddit, appeared on sales receipts at an unknown and unnamed brewery.

Why I’m anti-union

“Jon, why are you anti-union?”

I’ve received this question a lot lately. Between all of my posts about the need for all employers (including craft breweries) to pay attention to the recent wave of union organizing, and my philosophy of workplace management that focuses on positive culture and positive treatment of workers, many have asked why I oppose labor unions.

Let me explain.

Don’t confuse “tips” and “service charges” for hospitality employees

How often have you looked at you bill at a restaurant and have seen an added service fee? Do you think to yourself, "No need to tip; it's already been added to the bill." 

Think again, at least according to the 11th Circuit in Compere v. Nurset Miami, LLC, which held that restaurant service charges are not considered tips under the Fair Labor Standards Act.

Are you an ally, or are you just afraid of being canceled?

I tell my students, "When you get these jobs that you have been so brilliantly trained for, just remember that your real job is that if you are free, you need to free somebody else. If you have some power, then your job is to empower somebody else. This is not just a grab-bag candy game."

– Toni Morrison

I think of this quote often when I think about what it means to be an ally at work.