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Restaurant Workers Target Diners In Living Wage Campaign

First Posted: 02/22/2012 8:03 am EST Updated: 02/22/2012 12:05 pm EST

WASHINGTON -- It's been a busy few months at Restaurant Opportunities Centers United, a scrappy non-profit that advocates for low-wage restaurant workers. To be more exact, it's been a busy few months trying to shame -- and, in less visible cases, praise -- some of the country's most prominent restaurants.

The New York-based organization released a Zagat-style "Diner's Guide" to the nation's restaurants last fall. But rather than critique the beef carpaccio or lamb rib chops, the guide details working conditions, listing whether workers receive decent pre-tip wages or sick days. Longhorn Steakhouse, among others, received a frowny-face rating, which the group says denotes "alleged illegal practices."

Then, late last month, workers affiliated with the group filed a federal lawsuit against The Capital Grille, accusing the restaurant chain of relegating minority employees to less desirable jobs and shorting workers on wages in New York, Chicago and Washington, D.C. The lawsuit is part of a broader campaign launched by Restaurant Opportunities Centers United against The Capital Grille's parent owner, Darden Restaurants, whose holdings include Olive Garden, Red Lobster and Longhorn Steakhouse.

Restaurant Opportunities Centers United's "Dignity at Darden" campaign accuses the company and its managers of paying "poverty wages," denying employees paid sick days and requiring them to work during breaks. On a website that all but wags a finger in Darden's face, the group urges the company to "have the courage to be a real leader and lift up industry standards." A Darden spokesman denied the charges, adding that Darden management reached out to the group about specific allegations before the lawsuit was filed, only to be rebuffed.

Restaurant Opportunities Centers United "doesn’t seem to be interested in the facts," said Rich Jeffers, a Darden spokesman. "We believe all the allegations are baseless." Darden employs 180,000 people, and roughly 30 percent of its managers are minorities and 41 percent are women, according to Jeffers.

Saru Jayaraman, a co-founder of Restaurant Opportunities Center United, said she stands by the lawsuit and the campaign against Darden. She was quick to add that the problems her group alleges aren't unique to that company.

"It has to do with the industry culture and a lobby that Darden is a big part of, that fights to keep the minimum wage low in an industry of occupational segregation," Jayaraman argued. "Darden is a part of it."

As for the negative publicity her group has been foisting on some restaurants, Jayaraman said it's mostly about raising awareness among consumers rather than employers or workers. The group's members, taking a cue from successful PR campaigns by environmental groups, seem to believe that the best way to change the employment practices inside restaurants is to involve diners.

"The larger campaign is to engage consumers in changing the restaurant industry," Jayaraman said. "Ten years ago, consumers were asking restaurants, 'Is this sustainable food? Is this organically grown?' And the restaurant industry responded. I think the more that consumers ask and require and discuss with restaurants -- What's your lowest paid wage? Do you provide sick days? -- the more they’ll see they need to get ahead of the trend."

The first branch of Restaurant Opportunities Center United was founded after the Sept. 11 attacks to support diaplaced World Trade Center restaurant workers. The group now has branches in eight cities and includes 8,000 workers, having attracted restaurant employees like Kristin Vieira, a former New York server who's named in the lawsuit against The Capital Grille.

"For a server, the money is definitely great, but at a certain point it's not worth the money anymore," Vieira said. "We just felt like they weren’t going to listen to us, and we feel like it could be a great place to work."

Among Restaurant Opportunities Center United's pet issues are the tipped minimum wage and paid sick days. The minimum wage for servers and other workers who receive tips is lower than the normal minimum wage in most states. The current tipped federal rate is $2.13 per hour -- compared with $7.25 for other workers -- although the restaurant is obliged to make up the difference if a server doesn't reach the normal minimum wage after tips. The group has found an ally in Rep. Donna Edwards (D-Md.), who introduced legislation last year that would raise the federal tipped rate.

The National Restaurant Association has been less enthusiastic about the group's campaigns, particularly the diner's guide. "ROC’s purported dining guide is a transparent attempt to disparage many of America’s restaurants, an industry which provides opportunities for millions of Americans to move up the ladder and succeed," Sue Hensley, the group's senior vice president for public affairs, said in a statement. "ROC 'reports' are opinion surveys and not an empirical analysis of the facts.... Even in a challenging economy, the restaurant industry has continued to be one of the country’s leading job creators, and for thousands of individuals -- from all backgrounds -- these jobs lead to management and ownership opportunities."

By winning, say, paid sick days for some workers, Restaurant Opportunities Center United's campaign wouldn’t be the first time public pressure changed workplace policy within the food supply chain. Earlier this month, Trader Joe's signed a "fair food agreement" with the Coalition of Immokalee Workers, a worker advocacy group of mostly immigrant workers who pick tomatoes and other crops in Florida. Trader Joe's had long resisted signing the agreement, but caved after months of protests outside stores. Taco Bell and McDonald's, among others, had already signed the agreement, which requires grocers and restaurants to pay a penny more per pound of tomatoes to help provide better working conditions for pickers.

Worker groups typically encounter strong pushback on these issues from industry lobbies, which often claim that higher wages or paid sick days will raise costs and kill jobs. The restaurant industry in Florida, for instance, is now trying to have the minimum wage for servers lowered there. And the National Restaurant Association poured more than $100,000 into a successful effort to stymie a ballot initiative for paid sick days in Denver.

According to Jayaraman, many of the diners she meets are surprised to learn that the minimum wage for servers is as low as it is, or that some workers can't take a day off when they're sick without losing a day's pay.

"It’s a pervasive argument of the industry, that these are transient jobs and therefore it's OK that people get paid little," Jayaraman said. "We talk to consumers everywhere we go. There's a lack of education. When they find out a large company doesn’t provide paid sick days or pays as little as $2.13, the consumers are outraged."

Of course, plenty of restaurants do offer their workers paid sick days, and plenty also pay more than the bare-legal minimum before tips. Restaurant Opportunities Center United has been trying to draw attention to these eateries, calling them out in their guide as "high-road restaurants." Among them is La Palapa, a casual Mexican joint in New York City whose owner, Barbara Sibley, said she empathizes with the servers, bussers and dishwashers who work for her.

"Restaurant work is hard," Sibley said. "But running a restaurant right is profitable. If I can run a restaurant right and profit, then anyone can."

Flickr photo by gen cartalla.

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12:13 PM on 03/03/2012
I am from California so minimum wage laws apply here. However I traveled to St. Louis about 10 years ago. Striking up a conversation with a Server I learned that the restaurants in Missouri are or were at that time not required to pay minimum wage because the Servers were earning tips. They were being paid at that time in the neighborhood of $2.50 an hour. I don't know how widespread this practice is in the US.
03:54 PM on 02/24/2012
help us fight back against darden. Please sign and pass on this petition. ipetitions/people before profits
02:29 PM on 02/23/2012
I think some are missing the point, it is NOT about tipping, it IS about subminimum wages,discrimination, subpar insurance (thanks to the waiver they got)lack of sick days and having the WORKERS PAY EACH OTHER, INSTEAD of the RESTAURANT. They convinced the dept of labor that what they are doing is within the guidelines, because the national restaurant assoc. lobbied to change the tip out max to other workers from the clear 20% of tips to "usual and customary" without any limit on amounts that can be shared among staff.
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american-dolt
Divide and Conquer
12:53 PM on 02/23/2012
Every Business is going this route.
HUFFPOST SUPER USER
One more Thing
05:03 PM on 02/23/2012
That doesn't make it right!
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american-dolt
Divide and Conquer
05:46 PM on 02/23/2012
Got that right, makes me sick.
10:17 AM on 02/23/2012
Every executive and corporation seems entitled to gov. handouts. The workers loose because they cannot make money and they also have to pay taxes to support this entitlement.
Are people really so dumb?
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HUFFPOST SUPER USER
dirtydog1776
rub my soft, furry, objectivist tummy
01:09 AM on 02/25/2012
How is this related to government handouts?

As a libertarian, I do not believe anybody should get a bailout or handout. Republicans and Democrats believe that anybody who supports them should get a bailout or handout.

Just so you know.
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yeti7
don't need no stink'n badges
10:09 AM on 02/23/2012
people should tip more otherwise the restaurant will go out of business with higher labor costs due to higher and rising food prices restaurant owners are having a hard enough time as it is.
HUFFPOST SUPER USER
One more Thing
04:55 PM on 02/23/2012
If what you say is true, how can restaurants pay those high membership fees in their restaraunt associations, contribute money to politicians and even give to conservative social causes?
03:25 AM on 02/23/2012
The golden dream of every corporation, get either the public or the government to subsidize your labor.
HUFFPOST SUPER USER
One more Thing
04:56 PM on 02/23/2012
In this case it appears the golden dream is to have minimum wage workers subsidize profits!
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Kai-HK
Don't Share My Wealth! Share My Work Ethic!
01:45 AM on 02/23/2012
This is more pro-union propaganda nonsense.

Unions are jobs killers!
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HUFFPOST SUPER USER
zyxwvutsrqpo
08:56 AM on 02/23/2012
Reality conflicts with your ideology.
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Kai-HK
Don't Share My Wealth! Share My Work Ethic!
10:46 PM on 02/23/2012
And what reality is that...the one in your imagination?
HUFFPOST SUPER USER
crazyindc1984
12:49 AM on 02/23/2012
If no one has noticed, the servers at the resteraunts listed in this article probably bring home more money than most people on this board who have traditional jobs! Take red lobster for instance. Average meal for two is around $60. Lets say a server has 8 tables to wait on. At most, it takes an average of one hour from sit down to clean up and reseat. So 8 tables would net roughly $480. Average tip is 15%, some higher, some lower (but not many). The tips off that are $72.00! Resteraunts such as this are busy on Friday and Saturdays for 5 hours. So if they work just those two days, that is $740.00 for two days! Sure it is slower on the other days, but even if they serve two tables an hour, that is still over $15 an hour! Where are the low wages at these resteraunts? It is a farse!
I've known servers at mexican resteraunts, which are one of the cheapest tippable resteraunt jobs out there that brought home over $200 on a decent night. Minimum wage workers only bring home $60!

Raise the cost of food by 10%, and pay all these people $10 an hour, no tips accepted. That would really make them feel like they were getting cheated.
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Kai-HK
Don't Share My Wealth! Share My Work Ethic!
01:46 AM on 02/23/2012
True that!

These gusy shoudl be paying the restaurant for the priveledge to have access to such a great tip-receiving job. Same with bars.

If these cry babies do not like let them work elsehwere for less.
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HUFFPOST SUPER USER
zyxwvutsrqpo
09:04 AM on 02/23/2012
That is not a lot of money.
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gomezrules
Why Don't We Do It In The Road?
10:59 PM on 02/22/2012
Oh geezz, why not? Why shouldn't they agitate for an easy way out? Of course, no one will ever volunteer what amount the proverbial, pie-in-the-sky 'living wage' is supposed to be. You can take to the bank that anyone being paid such a wage will result in several others at that establishment losing their jobs. Restaurant jobs USED to be springboards for better ones, but as we know in the modern whiney Nanny State, that kind of initiative is fast becoming a thing of the past. I have worked in restaurants, and I have worked for tips. In fact, in a couple of such jobs, it was tips only, there was no accompanying wage. I knew that going in, and no one forced me to work at those places!

Anybody, repeat ANYBODY, who tries to bother me with their political agenda while I'm patronizing someplace with my hard earned dollars are going to get a quite loud "F.... off" if they do so. These are no doubt the same dolts who whine that they racked up unaffordable college tuition bills! Life is NOT fair, but it IS what you make of it. if any of these dunderheads can ever learn THAT, them and the country will be the better for it.

Oh, one other thing here. If there's one element in the working force who have some wiggle room when it comes to reporting earnings for tax purposes, it is those who make the bulk of their income from tips! Yes, there are reporting requirements, but virtually no way to verify it (from the govt's perspective). And that is INTENTIONAL (until Obama decides to end that no doubt) precisely BECAUSE of the 'iffy' nature of tips from night to night, and the low accompanying  wage. I guarantee you, absolutely GUARANTEE you, that the vast majority of such workers under report what they earn from tips. I made good money from tips. This, as usual, a typical leftist farce. But, are there ever any other kind?
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Mark Cormier Arizona
2012 has put us on the path to Europe
10:55 PM on 02/22/2012
This is the ugly result of real unemployment being around 15%.......if you count the underemployed and the ones who have run out of benefits or just given up. Supply & demand. We are becoming 3rd world under this "hope and change" platform.
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HUFFPOST SUPER USER
PatrickforO
America needs a Labor Party
10:35 PM on 02/22/2012
Many people on this thread are talking about tipping, but that is not the issue. The issue is that a group called Restaurant Opportunities Center United is attacking the parent company, Darden Restaurants, for paying poverty level, even illegally low wages to its workers. It was a misleading headline. This morning I checked the 10K report for Darden and found the following: in 2011 sales were up 5.4%; labor costs up 2%, and profits up 17.8%. In the meantime, during 2010, Clarence Otis, Darden's CEO, made $8.48 million in salary. What this means to us is that Otis is doing his job - keeping labor costs at 2% while maximizing profit for shareholders is exactly what he should be doing according to his job description at CEO of a publicly held company.

The problem is that an approach that elevates profit above fairness is not sustainable. This is why Occupy Wall Street has arisen - to protest wealth inequities that have gotten so bad that we are all fighting for a lesser share of a shrinking pie and America is in danger of developing a third world style labor market with the many enslaved at subsistance levels to the very few. It tickles me to see a corporation being called on the carpet because labor needs to PUSH BACK.
HUFFPOST SUPER USER
One more Thing
05:00 PM on 02/23/2012
Thank you for pasing on these facts.

Fanned.

Its seems restaurants are replacing coal companies in their ability to exploit workers!
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HUFFPOST SUPER USER
cowman
Politics and Comedy
10:11 PM on 02/22/2012
Looks like I can only eat at In-N-Out Burger :(
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Poster999
A promise made is a debt unpaid.
07:07 PM on 02/22/2012
Sounds like a good idea to me. I'm all for better working conditions and wages for workers.
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09:35 PM on 02/22/2012
Who isn't until you get the jacked up tab and realize its not worth going out to eat there anymore
05:48 PM on 02/22/2012
Darden gives lots n lots n lots of $$ to the republicans. Regardless of their food, which I cannot believe people stand in line for, or go there for a "special" night, I've not visited any of their establishments for many years, nor do I plan on it. Once a a red company, always a red company.