Darden settles 2 class-action lawsuits for $4 million
Class Action News
Darden Restaurants paid $4 million to settle two class-action lawsuits that had been brought by California employees of Red Lobster and Olive Garden, the Orlando-based company reported in a government regulatory filing late last week.
Settlement of the wage dispute, which was paid out during the company's fiscal second quarter that ended in November, trimmed earnings for the quarter by 2 cents a share, the company reported.
In its quarterly earnings report filed with the U.S. Securities and Exchange Commission, Darden said the class-action suits, alleging wage-and-hour violations, were filed in 2004 involving the Red Lobster restaurants and in January 2007 involving the Olive Garden outlets.
In each case, several restaurants were accused of violating a California law that prohibits restaurant managers from requiring servers and bartenders to make up for cash shortages at the end of their shifts.
Darden has a nationwide policy that prohibits the practice, company spokesman Bob McAdam said. The company admitted no wrongdoing in settling the lawsuits, McAdam said, but decided they were too costly to pursue further in court. The allegations, he added, "are almost impossible to prove one way or the other."
Darden has "redoubled" its management training to ensure compliance with the company's policy, he said.
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