Tuesday, September 23, 2014

Applebee's franchiser sued for blocking discrimination charges

The U.S. Equal Employment Opportunity Commission has sued Doherty Enterprises Inc. for blocking new hires from filing discrimination charges. The New Jersey-based restaurant franchiser owns and operates 12 Applebee's in Palm Beach County.

A complaint from the federal agency said the company has made workers sign a mandatory arbitration agreement as a condition of employment since May 2013. The agreement, which the EEOC said could not have been enforced by the business, meant discrimination charges would have to be settled outside of court.

"When an employer forces all complaints about employment discrimination into confidential arbitration, it shields itself from federal oversight of its employment practices. This practice violates the law …" EEOC Regional Attorney Robert E. Weisberg said in a news release.

The arbitration agreement from Doherty Enterprises includes, according to the complaint:
I and Doherty Enterprises both agree that any claim, dispute and/or controversy (including but not limited to any claims of employment discrimination, harassment and/or retaliation) … shall be submitted and determined exclusively by binding arbitration … I understand that by agreeing to this binding arbitration provision, both I and Doherty Enterprises waive our rights to a trial by jury. I further understand that this binding arbitration agreement is a contract. However, it does not constitute a contract of employment as it does not cover any other terms and conditions of my employment.

The EEOC said the agreement was used for all hourly and managerial positions for its Applebee's locations in Florida.

In total, the company operates more than 140 franchise restaurants including Applebee's and Panera Bread throughout Florida, Georgia, New Jersey and New York.

The suit was filed last week in the U.S. District Court of Florida and was assigned to U.S. District Judge Kenneth Marra.

Doherty Enterprises did not respond to our request for comment.

Source: South Florida Business Journal

This information is intended to be educational and should not be considered legal advice on any specific matter.