Restaurants: What Could Go Wrong?

A former employee filed an EEOC charge of discrimination alleging age discrimination and later filed a lawsuit alleging age discrimination and unpaid overtime. The parties settled for $72,500, with an additional $40,000 in defense costs.


A lawsuit was brought by a class of service workers against a restaurant franchise alleging the employees were not paid overtime wages in violation of state wage and hour laws. $100,000 was paid in defense of the claim.


A former employee brought claims of religious discrimination and hostile work environment. An independent investigation found some merit to hostile work claim. The claim settled for approximately $75,000.


A number of restaurant servers filed a collective action against the company and several affiliated restaurants for wage and hour violations. The matter was ultimately resolved without the company being required to pay any settlement monies since they were improperly named. However, it did cost approximately $33,000 to obtain the dismissal.


A former employee filed suit for constructive termination following alleged complaint of sexual harassment by the owner. The parties settled with a payment of $17,500, with an additional $10,700 in defense costs.


Our team of experienced underwriters, dedicated claims handling unit and technical support staff understands the unique management lability exposures depicted above and can help tailor a policy to find acceptable coverage and claim solutions for your clients!