When a California business faces a lawsuit filed for former or current employees, they must do everything possible to defend the reputation of the company. Lawsuits, even when filed without merit, can negatively impact the perception of the company, leading to loss of business. Lawsuits related to wages and employee benefits can cause a business to lose quality employees and may influence potential future employees to look elsewhere for jobs. A company must choose whether it’s best to fight the allegations or choose to settle as The Cheesecake Factory did in their recent lawsuit.
Details of the lawsuit
The Cheesecake Factory recently settled with some employees over wage disputes and those in charge may now find themselves doing damage control to prevent the business’s reputation from being tarnished. Janitors from eight different restaurants located in Orange and San Diego Counties brought about the lawsuit. The employees claimed that they were not paid properly for overtime and were not given rest breaks while working.
The Cheesecake Factory, along with some of its contractors, has settled with the employees. The contracting companies who employed the janitors were responsible for 25% of the settlement. The rest was covered by The Cheesecake Factory. The $1 million settlement was distributed among the hundreds of janitors who filed suit against the company.
Seek advice when facing a lawsuit
Reputation is everything for many California businesses. When faced with a lawsuit, a business must do what’s needed to protect that reputation. By working with a legal team that knows the state’s employment laws, businesses can know their rights and make informed decisions on whether to settle the case or fight against the allegations in court.
