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. 

WIRTW #619: the “update” edition

To wrap things up this week, I thought I'd update two stories.

1/ UCLA Unpaid Job Posting

In addition to taking down the offensive job posting, UCLA tweeted this update.

Had UCLA included some of this reasonable explanation as part of its job posting, it could have avoided being excoriated online.

2/ Brienne Allan

Brienne, now of Brave Noise Beer, recently appeared on the Good Beer Hunting podcast to discuss what her year has been like since her Instagram post asking for stories about sexual harassment and gender discrimination in craft breweries went viral. It's a great listen. My takeaway (which will be fodder for a future post): Is your business an ally, or are you just afraid of being canceled?

I'm taking a much-needed vacation next week. I'll be back on April 4 with fresh content for y'all. Try not to miss me too much.

Here's what I read this past week that I think you should be reading, too.

Starbucks employees are trying to “kick down the door” across the entire food and beverage service industry

Less than one and one-half miles away from the flagship Starbucks that launched a global coffee empire five decades ago, employees unanimously voted for their shop to unionize. It became the seventh such store to vote to unionize, joining five stores in Buffalo, New York, and one in Mesa, Arizona. Of the 157 (and rising) Starbucks currently organizing or planning to organize, only one thus far (also in Buffalo) has sided with management.

Pay careful attention to what the employees of the Seattle store that just went union told The Seattle Times in speaking about what this vote means for employees in the food and beverage service industry generally.

The nuts and bolts of your company code of conduct

Yesterday I explained why your company needs a code of conduct separate from or adjunct to your already-existing anti-harassment policy. 

Today, I'm back to explain what it should contain, to whom it should apply, how violations are addressed, and how it should be disseminated.

Does your craft brewery or other company have a code of conduct?

Meet Brienne Allan, a brewer at Notch Brewing in Salem, Mass. In May 2021 she asked a simple question in an Instagram Story— "What sexist comments have you experienced?"

What followed were hundreds upon hundreds of stories of sex-based discrimination, harassment, and other abuse.

WIRTW #617: the “drive-thru” edition

Earlier this week I had the pleasure of guesting on DriveThruHR, one of the oldest and (in my opinion) best HR radio shows/podcasts. We discussed the end of my pandemic practice, the start of my craft beer practice, how alcohol is in my blood (and not in the way you might think), the sudden and successful rise of the labor movement, and some worst employers. Thanks to Mike VanDervort for the invite, and Mike and Robin Schooling for the discussion. 

You can listen here, or wherever you get your podcasts.

Here's what I read this past week that I think you should be reading, too.

THIS is why craft breweries need to pay very close attention to labor unions

It was a simple question posed in the Craft Beef Professionals Facebook group: "Conversations on fair compensation are extremely important in our industry. What is a brewery that impresses you with the way they treat their team?" 

Out of the dozens of responses, this one should scare the hell out of any craft brewery owner: 

The IWW is looking into this and the other plethora of issues we face as workers in this industry. Reach out to brewing@iww.org if you're interested in creating a better work environment near you.

When I scream at the top of my lungs to craft breweries that they need to pay attention to union organizing, this is why.