Service charges: A hidden trap for employees (and customers)

You just wrapped up a great meal at your favorite restaurant. The server drops off the check, and there's a surprise—your $100 tab is now $120, thanks to a $20 "service charge" added at the bottom. But here's the kicker: under the Fair Labor Standards Act (FLSA), that service charge isn't considered wages for your server. The restaurant can legally keep it all without sharing a dime.

When employees just can't get along

Dan and Todd? They used to be best friends. But things got messy, and now they can't stand each other. Dan's ready to move on, but Todd? Not so much. Problem is, they work on the same team you manage, and now Dan's knocking on your door, hoping you'll step in and fix things.

Sure, you could tell them, "Just avoid each other and carry on." Sounds easy, right? Why make two people who aren't friends anymore work together if they don't want to? But here's the catch: avoiding this issue might be an easy short-term fix, but it's not a long-term solution that actually works. In most workplaces, people can't just steer clear of each other, especially if they need to interact on the daily.

So instead of hoping it all blows over, try these steps to get Dan and Todd back on the same page professionally—even if the friendship ship has sailed.

Harassment by "comedy" is anything but a laughing matter

A CEO hires a stand-up comedian to warm up employees before delivering the keynote at the company's annual all-hands meeting. But the comedian's set is anything but workplace appropriate. His "jokes" insult and offend everyone — Blacks, Hispanics, Jews, Muslims, women, LGBTQ+ individuals. Everyone, that is, except white men.

It's clear your employees aren't amused. Some look angry and offended. Others walk out in protest.

Now imagine you're the CEO. What do you do?

WIRTW #736: the 'vote' edition

On the latest episode of The Norah and Dad Show, my daughter and I discussed voting. Specifically, we discussed Norah's experience voting, which she did for the very first time when she was home for fall break a couple of weeks ago.

My wife and I accompanied Norah to early vote in the Presidential Election. It was quite the party at the County Board of Elections, with a massive crowd, along with bells and cheers for first-time voters.

Voting is an act that might appear small, but it's actually monumental. It is a right that I've always taken seriously, and it's one of those moments that makes you reflect on the values you've tried to instill as a parent. Standing alongside Norah at the polls, I thought about the conversations we've had over the years—about fairness, democracy, and the importance of using your voice. She now gets to make her voice heard in a new, impactful way.

Watching your child become an active participant in our democracy is a proud moment. It's not just about the issues or the candidates on the ballot (although with this election it kind of is); it's about her stepping into adulthood with a sense of responsibility and purpose. I hope it's an experience that she'll carry with her every time she goes to the polls in the future.

👉 Listen on Apple Podcasts, Spotify, YouTube, Amazon Music, Overcast, the web, and anywhere else you get your podcasts. 

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In other news, the Lake Ridge Academy soccer team ... lost, in heartbreaking fashion. A 0-0 draw through 80 minutes of regulation, 30 minutes of scoreless overtime, and penalties that did not go our way. Congrats for a great season, even though it did not end the way they (and I) wanted.

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Here's what I read and listened to this week that you should, too.

The 12th nominee for the Worst Employer of 2024 is … the hurricane haranguer

What's worse than keeping employees on the job during a natural disaster? How about doing that, knowing full well how dangerous the situation is—and sneaking out yourself before things hit the fan? Impact Plastics and its CEO, Gerald O'Connor, seem to have written the playbook on reckless disregard for human life.

The company and its fearless leader have now been sued by the family of Johnny Peterson, one of their employees tragically killed during the floods caused by Hurricane Helene. According to the lawsuit, management allegedly forced workers to stay at the plant, ignoring the increasingly dangerous conditions. While businesses around them shut down and sent employees home, Impact Plastics thought it was a great time to keep their team on the clock.

And when did they finally decide to send workers home? After the parking lot flooded, power was lost, and the full brunt of the storm was bearing down on them. Too little, too late.

"Why would you want to do a man's job?"

"Why would you want to do a man's job?" That's one of the sexist questions the EEOC alleges Waste Industries—a solid waste removal, recycling, and landfill service provider—repeatedly asked female job applicants.

As a result, the company agreed to pay $3.1 million to settle the agency’s pattern-or-practice sex discrimination claim.

WIRTW #735: the 'client' edition

Being a party in a lawsuit is a humbling experience for any lawyer. After decades of representing clients, I recently found myself on the other side—this time as a plaintiff. I can't dive into specifics, but the experience left me with several important lessons to share.

First, the emotional weight of litigation is real. No matter how rational or well-prepared you are, being a party in a lawsuit brings an element of personal stress that's hard to fully understand until you've lived it. It's a good reminder that when clients seem frustrated or overwhelmed, it's not just the legal process—they're feeling the impact of uncertainty on their life or business.

One surprising lesson I learned is the importance of patience. As lawyers, we often forget how slow litigation can feel from the client's perspective. Every delay, motion, or rescheduled meeting drags out the process. Experiencing those delays firsthand gave me a deeper understanding of how frustrating it can be to wait for answers. Moving forward, I'll be more mindful of this in my practice and do what I can to streamline things for my clients whenever possible.

Lastly, I learned how valuable a settlement can be. It's easy to get wrapped up in "winning," but the truth is, not every battle is worth dragging out. Compromise, when approached strategically, isn't a defeat—it's a way to bring closure, minimize risk, and move on to what matters most.

This experience gave me new perspective to carry into my practice. Sometimes the best insights come from walking a mile in someone else's shoes, or this case my own shoes from the other side of the street.

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In other news, Lake Ridge Academy won their opening round playoff game last night versus Shaw, 8 – 0. They are now into the District Semifinal next Thursday against an opponent tbd. 

Donovan had a ball on his foot in the box, but did not think he could get the shot off before the defender closed on him, so he made the unselfish play and passed to a teammate. 

Stay tuned for further updates next week.

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Here's what I read this week that you should read, too.