from the NEW YORK TIMES:
December 13, 2008
Lawsuit Accuses a Top Chef of Wage and Tip Violations
Tom Colicchio,
the celebrity restaurateur and judge on Bravo’s popular “Top Chef”
television show, was sued in federal court on Thursday by a former
waitress who accused his company of misappropriating employee tips,
withholding some overtime pay and sometimes failing to pay minimum
wage. Mr. Colicchio’s restaurants — including Craft, Craftbar and
Craftsteak — were also named in
the lawsuit.
In the lawsuit, the waitress, Nessa Rapone, who used to work at the
bustling Craftbar restaurant at 900 Broadway, between 19th and 20th
Streets, asserted that Mr. Colicchio’s company,
Craft Worldwide Holdings, imp
roperly shared employee tips with supervisors, did not keep proper time records and fired her when she protested.
The lawyers for Ms. Rapone, a Brooklyn resident who worked at
Craftbar from March to May 2007, are seeking class-action status for
the lawsuit, which was filed in Federal District Court in Manhattan. It
accused management of federal and state wage law violations, including
failing to pay workers time and a half for all hours worked beyond 40 a
week. It also asserts that management shared employee tips with other
workers who were not eligible under federal and state law to share in
the tip pool.
Bravo Media
Tom Colicchio
Ms. Rapone’s lawsuit also accused the company of not compensating
her for the cleaning and care of the uniform that she was required to
wear at Craftbar.
“The Craft restaurants, all upscale establishments designed by
well-known architects and catered by award-winning chefs, have earned
Mr. Colicchio and his partners great success,” one of Ms. Rapone’s
lawyers, Justin M. Swartz, said in a statement on Friday. “This
success, however, has come at the expense of the restaurants’ hourly
service workers to whom the defendants have denied proper minimum
wages, overtime compensation, and tips th
ey earned from customers.”
Reached by telephone on Friday, Tom Colicchio said: “It’s a baseless
lawsuit. We’re confident that a thorough investigation in the courts
will find that Craftbar and Craft Worldwide Holdings have conducted
themselves with the highest integrity and concern for the well-being of
their employees.”
Mr. Colicchio said that his company’s restaurants “pay overtime to
all tipped and nontipped employees according to federal and state labor
law.”
He added: “We collect and distribute 100 percent of all gratuities
received. We never distribute tips to any nontip-eligible employees.”
Mr. Colicchio’s company also runs restaurants in Dallas, Los Angeles, Atlanta, Las Vegas and Mashantucket, Conn.
Some restaurant workers said they turned to lawyers rather than the
federal or state Labor Departments because government officials often
respond more slowly. Also, in New York, the Labor Department usually
seeks just two years of back wages, while lawyers often file claims
covering six years of back pay.
from COUNTERPUNCH:
Weekend Edition
January 2 - 4, 2009
Tom Colicchio and the Restaurant Economy
Top Chef or Top Wage Thief?
By MICHAEL YATES
We have watched hundreds of cooking shows on television. One of our early favorites was Top Chef,
in which a group of talented cooks compete in an elimination format for
a large monetary prize and designation as “Top Chef.” The chief judge
on the show is Tom Colicchio, a noted chef who has won five James Beard
awards. Colicchio has parlayed his cooking prowess into a career as an
entrepreneur and is now the owner of the Craft group of restaurants,
with venues in New York City and around the country.
On
the show, his opinions matter most; if you watch carefully, you soon
see that what he says goes. To the aspiring top chefs, Colicchio is
imperious and demanding, critical to a fault and not accepting of
excuses, no matter how valid they might be. The contestants usually
seem to fear him; it certainly is true that they challenge him at their
peril.
Given
the way he carries himself, it would be reasonable for viewers to think
that he is above reproach in his own restaurant affairs. Thus I am sure
that it came as a shock to fans of his and the show that he and his
restaurants are now defendants in a class action civil suit alleging
wage theft. New York Times labor reporter Steven Greenhouse wrote that,
“The
lawsuit, filed in Federal District Court in Manhattan, accused
management of violations of federal and state wage laws, including
failing to pay workers time and a half for all hours worked over 40. It
also asserts that management shared employee tips with other workers
who are not qualified under federal and state law to share in the tip
pool.”
“On
December 11, 2008, Outten & Golden filed a nationwide class action
against celebrity chef Tom Colicchio and his Craft-brand of restaurants
–
Craft, Craftsteak, and Craftbar. The lawsuit, brought on behalf of the
restaurants’ waiters, bussers, runners, and other hourly service
workers, claims that Colicchio deprived his workers of the tips they
earned, failed to pay them overtime for all of the hours they worked
over forty in a week, did not pay at the proper minimum wage rate, and
made other unlawful deductions from the workers’ pay. The complaint
also alleges that suit’s named plaintiff, Nessa Rapone, was fired in
retaliation for raising concerns with management about the restaurants’
wage and hour policies.”
Serious charges. I don’t know if Colicchio and company are guilty, although given his supercilious demeanor on Top Chef, I would be the first to say, “It figures,” if he is.
On Greenhouse’s blog,
there are several dozens comments, and most of them express little
surprise at the suit and assume that it is very likely true. Many of
the comments are from current or former restaurant workers who have had
their wages stolen. In fact, wage theft seems to be epidemic in the
United States. Kim Bobo, founder and Executive Director of Interfaith Worker Justice, documenting this employer crime. Bobo tells us that,
“Billions
of dollars in wages are being illegally stolen from millions of workers
each and every year. The employers range from small neighborhood
businesses to some of the nation’s largest employers—Wal-Mart, Tyson,
McDonald’s, Target, Pulte Homes, federal, state, and local governments and many more.
Wage
theft occurs when workers are not paid all their wages, workers are
denied overtime when they should be paid it, or workers aren’t paid at
all for work they’ve performed. Wage theft is when an employer violates
the law and deprives a worker of legally mandated wages.
Wage th
eft is widespread and pervasive across all types of companies. Various surveys have found that:
60 percent of nursing homes stole workers’ wages.
89
percent of nonmonitored garment factories in Los Angeles and 67 percent
of nonmonitored garment factories in New York City stole workers’ wages.
25
percent of tomato producers, 35 percent of lettuce producers, 51
percent of cucumber producers, 58 percent of onion producers, and 62
percent of garlic producers hiring farm workers stole workers’ wages.
78 percent of restaurants in New Orleans stole workers’ wages.
Almost half of day laborers, who tend to focus on construction work, have had their wages stolen.
100 percent of poultry plants steal workers’ wages.”
Bobo
goes on to say that, by conservative estimates, many millions of
workers are being re
gularly cheated by their employers—not paid minimum
wage, denied lawful overtime, misclassified as independent contractors
or supervisors and thus illegally denied wages and overtime, denied
mandated breaks, subject to illegal deductions from their pay, and
victimized by arbitrary changes in their time cards.
What
is going on here? Let’s look at this more deeply, using the restaurant
industry as our model. My three sons earn their living in this
industry, and it is from them that I have learned about this
occupation. Working in kitchens is hard and dangerous. Two summers ago,
Karen and I were at a party. A woman I have known for more than thirty
years was going on about fine restaurants and what an art form the
preparation of a good meal was. As she talked, our irritation rose. She
knew little about what went on in “fine dining” kitchens. People
shouting and moving quickly in small spaces, carrying sharp knives, hot
pans, and kettles of boiling liquid. Floors are slippery, and rooms are
hot. Temperatures of 150 degrees are not unknown.
In
a highly regarded Pittsburgh restaurant, the cooks, overcome by the
heat, routinely went outside to vomit. The equipment is often faulty. A
chef we know got his hand mangled in a blender he was trying to repair
on the fly. Missing fingertips and cut and burn scar
s are universal. In
some small establishments, the head chef works the line with everyone
else and the cooks learn and execute the dishes from start to finish.
The menu may change daily, adding to the stress but giving the workers
a sense of accomplishment and pride as they develop their all-round
skills. When one of our sons, who has worked in several such places,
cooks a meal for us, we never want to cook again. His food is good in a
way that ours will never be. The downside is that work hours are
onerous and frequently unpaid. The chef or owner often offers more pay
if the cook agrees to go on salary. But then, the bosses assume that
overtime does not apply, and hours are cranked up beyond belief. Days
off disappear. Even the best of chefs tends to shift work to his most
talented underlings. Given that there are usually many available cooks
in most markets and given that they are unorganized, there is little
that the exploited cook can do except bear the pain or look for another
job and begin the rat race all over again.
In
larger, more corporate kitchens, work is done in assembly-line fashion,
with a strict division of labor and a power hierarchy to match. Each
cook has a station and does the same thing again and again. The jobs
may be Taylorized (cooks must do a job in an exactly specified way) to
enforce maximum labor efficiency. Strict portion control is maintained
through intense su
pervision. If lucky and good, cooks get to change
stations and learn new things and eventually be promoted to a position
in which they get to oversee the labor of others. Until that happens,
cooks can count on low wages and no or limited benefits to complement
their hard work. It is a rare job that pays more than $12 an hour to
start, no matter the skill of the applicant. But when cooks get better
jobs, they will be put on salary, with the aforementioned results:
unconscionable hours, few days off, and no overtime.
A fundamental
law of capitalism is that competition forces businesses to “accumulate
capital,” that is, to make a profit and use it to expand the invested
capital. Talented chefs who manage to get financial backers and good
reviews dream of owning a restaurant. If they manage to do so, their
dreams soon turn to expansion: cloning their restaurants or opening
ones with different themes; starting a line of cooking products;
writing best-selling cookbooks; starring in a television show. There
are also, of course, restaurant entrepreneurs who are not chefs but who
just open or buy restaurants. Danny Meyer and Jeffrey Chodorow are good
examples. We’re more familiar with the chef/owners—notably such
high-fliers as Emeril Lagasse , Bobby Flay, Mario Batali, Rocco
DiSpirito, Jean-Georges Vongerichten, Anthony Bourdain, Paula Dean, Tom
Colicchio, Gordon Ramsey. These chefs are omnipresent on television and
in the dining section of our major newspapers.
Celebrity
chefs serve two functions. First, they glamorize this line of work,
both stimulating the restaurant business and encouraging people to
pursue cooking careers. Thousands of young, and not so young, men and
women shell out thousands of dollars to attend cooking schools, which
have sprung up like weeds in every part of the nation. Second, and
connected to the first, the chef stars help to hide the reality of
kitchen work.
Let
us set up a plausible chain of events. A skilled and imaginative cook
like Mr. Colicchio works his way up the kitchen hierarchy and becomes a
chef. He then takes advantage of an opportunity to become a chef/owner.
His restaurant wins awards and multiple star ratings from Zagat or
Michelin. He still cooks, but he has assigned many of his previous
kitchen duties to subordinates because he has other things to do. He
may yet have a paternal concern for his employees. Many workers who
were employed by Mr. Colicchio have portrayed him as a fair and honest
owner. But now something interesting happens. Rich backers enter the
picture and our chef soon oversees the opening of a new eatery. He
writes a cookbook and makes his first media appearances. The process
repeats itself and before you know it, everyone is clapping when, like
Emeril, he says “Bam!” He is the center of a culinary empire, with a
small army of PR per
sonnel, lawyers, accountants, bankers, and a large
number of intermediaries between him and the workers who staff his
various restaurants and related enterprises.
Once
this happens, the chef has become a capitalist and less an individual
that a representative of the entire class of owners. He is now embedded
in an enterprise whose operations are dictated solely by the logic of
capital accumulation, and he is no longer the more autonomous being he
was when he spent his evenings in the kitchen. If things go awry for a
particular employee, the capitalist can, with some truth, claim that he
is not responsible. Now, the bottom line rules, and nothing else
matters.
What
does the logic of capital accumulation mean to the cooks, waiters, and
bartenders who keep each establishment humming for lunch and dinner
each day? Mr. Colicchio, or any other restauranteur, cannot control the
market. There is too much competition—many good chefs, thousands of
cookbooks, various lines of cookware, hundreds of comparable
restaurants, and new blood always on the prowl for fame and fortune.
However, they can control the workers who make the profits and growth
possible. The pay and security of supervisors down the chain of command
can be tied to their ability to get as much work out of each employee
at as little cost as possible. Jobs can be time a
nd motion studied to
minimize the amount of labor per unit of output (a meal in a
restaurant, for example). Cameras and security staff can reduce theft
and unauthorized breaks. Cooking tasks can be subdivided into details
to convert a kitchen into an assembly line where meals flow off the
stoves like cars on an assembly line. Computer programs can monitor
every aspect of the business so that constant improvements can be made
(what the Japanese call “kaizen”). All of these thing must be done if
capital accumulation is to occur. And they will be done irrespective of
what Mr. Colicchio or Mr. Lagasse might prefer from a human point of
view.
The
restaurant industry has certain features that make more nefarious
cost-cutting measures likely, even certain. Much employment in
restaurants is casual. Workers move from one job to another with
regularity; even skilled cooks routinely quit one job for another.
Waiters might be serving tables until something better comes along.
Immigrants, some without documents, fill urban restaurant kitchens.
Heavy drinking and drug use, often enough tolerated or encouraged by
management (to keep workers loyal and hardworking, as rewards in lieu
of pay and substitutes for needed rest and sleep), are common in
restaurants. Young, transient workers do not always keep track of their
daily hours or save their time slips. Cooks are trained to have a macho
attitude, to handle any challenge, no matter
how physically demanding.
At the same time, their training is feudal, in the sense that they are
taught to obey superiors without question. Cooks really do say, “Yes,
chef,” like they do on the television shows. Finally, kitchen and
dining room workers are seldom organized in unions. This makes it less
likely that they will be cognizant of laws that might offer them
protection against employer abuse.
In
such a setting, managers, who are themselves under constant pressure to
show a profit, soon see that a nearly foolproof way to cut labor costs
is simply to cheat the workers.
At
the well-known restaurant in Portland, Oregon I knew a cook whose time
card was altered. He said that this was common practice. A manager
would visit the place, usually on a weekend, enter the employee hour
database on a computer, log in, and reduce employee hours. This worker
logged in one day with seventy-two hours on his biweekly time card. He
worked nine hours, but he discovered that his total hours had increased
only to seventy-four. He was cheated of seven hours of hard work. He
had his daily time records, so when he confronted the manager, he was
told that a mistake was made. The hours total was corrected. But
another time he didn’t have his slips and he was a victim of wage
theft. I know cooks whose employe
rs refused to pay them for their last
days of work after they quit. I also know restaurant employees who have
not been paid legally mandated overtime. In an interview, Kim Bobo
says, “You talk to any young person who’s worked in the restaurant
industry, in recreation. They all talk about having tips stolen,
working hours they’re not paid for or being clocked out long before
they stop working. Wage theft is all around us.” So multiply what I
know my several million, and you see that the problem is indeed “all
around us.”
What
we have in the restaurant industry and many others as well, is not a
case of a few bad apples or tragic mistakes. It is systemic. All
profits derive from the labor of wage workers. This makes it incumbent
on employers to control the labor process—every aspect of the way in
which the work is done—as much as possible. If the workers are divided
and unorganized, the employer has carte blanche. Put simply,
if wage theft can occur, it probably will. If I were a betting man, I
would wager that Mr. Colicchio and his companies will be forced to make
a settlement of any class action lawsuit. However, even if there is a
settlement, he will escape unscathed, a little poorer perhaps but free
to continue to make money. How has Kathy Lee Gifford suffered from her
admitted connections to Central American garment sweatshops? She is
s
till appearing on television, including a recent appearance on Top Chef, where as a host on the Today Show she rudely and disgustingly spit out the food of a Top Chef
contestant. The reason that it will be business as usual for Tom
Colicchio is because there is at present little systematic organization
of workers, no way to force systemic change. Yes, there will be more
lawsuits. But these must be initiated by workers, who must find lawyers
to bring them, attorneys who will reap millions of dollars in fees.
These lawsuits will not empower workers collectively, the only thing
that has real staying power.
My
dad worked from 1940 to 1984 in a unionized glass factory in my
hometown of Ford City, Pennsylvnia. The union and the company had
negotiated a complicated incentive plan for production workers. Each
pay day, the men and women scrutinized their checks for errors. A check
a few pennies short would lead to an angry demand for immediate
restitution. No one worked unpaid overtime. If the employer violated
the contract, it had to pay, even if it meant paying someone twice,
once for the work he should have done and once for the work he had been
ordered to do. Wage theft was unthinkable. If what happens every day in
restaurants had happened there, the workers would have walked out the
door. And then they would have been paid. What will stop wage theft is
massive working class organi
zation, in workplaces and in the larger
society.
Michael D. Yates is Associate Editor of Monthly Review magazine.He is the author of Cheap Motels and Hot Plates: an Economist's Travelogue and Naming the System: Inequality and Work in the Global Economy. Yates can be reached at miked...@msn.com
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