Service charges: A hidden trap for employees (and customers)

You just wrapped up a great meal at your favorite restaurant. The server drops off the check, and there's a surprise—your $100 tab is now $120, thanks to a $20 "service charge" added at the bottom. But here's the kicker: under the Fair Labor Standards Act (FLSA), that service charge isn't considered wages for your server. The restaurant can legally keep it all without sharing a dime.

When employees just can't get along

Dan and Todd? They used to be best friends. But things got messy, and now they can't stand each other. Dan's ready to move on, but Todd? Not so much. Problem is, they work on the same team you manage, and now Dan's knocking on your door, hoping you'll step in and fix things.

Sure, you could tell them, "Just avoid each other and carry on." Sounds easy, right? Why make two people who aren't friends anymore work together if they don't want to? But here's the catch: avoiding this issue might be an easy short-term fix, but it's not a long-term solution that actually works. In most workplaces, people can't just steer clear of each other, especially if they need to interact on the daily.

So instead of hoping it all blows over, try these steps to get Dan and Todd back on the same page professionally—even if the friendship ship has sailed.

Harassment by "comedy" is anything but a laughing matter

A CEO hires a stand-up comedian to warm up employees before delivering the keynote at the company's annual all-hands meeting. But the comedian's set is anything but workplace appropriate. His "jokes" insult and offend everyone — Blacks, Hispanics, Jews, Muslims, women, LGBTQ+ individuals. Everyone, that is, except white men.

It's clear your employees aren't amused. Some look angry and offended. Others walk out in protest.

Now imagine you're the CEO. What do you do?

WIRTW #736: the 'vote' edition

On the latest episode of The Norah and Dad Show, my daughter and I discussed voting. Specifically, we discussed Norah's experience voting, which she did for the very first time when she was home for fall break a couple of weeks ago.

My wife and I accompanied Norah to early vote in the Presidential Election. It was quite the party at the County Board of Elections, with a massive crowd, along with bells and cheers for first-time voters.

Voting is an act that might appear small, but it's actually monumental. It is a right that I've always taken seriously, and it's one of those moments that makes you reflect on the values you've tried to instill as a parent. Standing alongside Norah at the polls, I thought about the conversations we've had over the years—about fairness, democracy, and the importance of using your voice. She now gets to make her voice heard in a new, impactful way.

Watching your child become an active participant in our democracy is a proud moment. It's not just about the issues or the candidates on the ballot (although with this election it kind of is); it's about her stepping into adulthood with a sense of responsibility and purpose. I hope it's an experience that she'll carry with her every time she goes to the polls in the future.

👉 Listen on Apple Podcasts, Spotify, YouTube, Amazon Music, Overcast, the web, and anywhere else you get your podcasts. 

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In other news, the Lake Ridge Academy soccer team ... lost, in heartbreaking fashion. A 0-0 draw through 80 minutes of regulation, 30 minutes of scoreless overtime, and penalties that did not go our way. Congrats for a great season, even though it did not end the way they (and I) wanted.

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Here's what I read and listened to this week that you should, too.

The 12th nominee for the Worst Employer of 2024 is … the hurricane haranguer

What's worse than keeping employees on the job during a natural disaster? How about doing that, knowing full well how dangerous the situation is—and sneaking out yourself before things hit the fan? Impact Plastics and its CEO, Gerald O'Connor, seem to have written the playbook on reckless disregard for human life.

The company and its fearless leader have now been sued by the family of Johnny Peterson, one of their employees tragically killed during the floods caused by Hurricane Helene. According to the lawsuit, management allegedly forced workers to stay at the plant, ignoring the increasingly dangerous conditions. While businesses around them shut down and sent employees home, Impact Plastics thought it was a great time to keep their team on the clock.

And when did they finally decide to send workers home? After the parking lot flooded, power was lost, and the full brunt of the storm was bearing down on them. Too little, too late.

"Why would you want to do a man's job?"

"Why would you want to do a man's job?" That's one of the sexist questions the EEOC alleges Waste Industries—a solid waste removal, recycling, and landfill service provider—repeatedly asked female job applicants.

As a result, the company agreed to pay $3.1 million to settle the agency’s pattern-or-practice sex discrimination claim.

WIRTW #735: the 'client' edition

Being a party in a lawsuit is a humbling experience for any lawyer. After decades of representing clients, I recently found myself on the other side—this time as a plaintiff. I can't dive into specifics, but the experience left me with several important lessons to share.

First, the emotional weight of litigation is real. No matter how rational or well-prepared you are, being a party in a lawsuit brings an element of personal stress that's hard to fully understand until you've lived it. It's a good reminder that when clients seem frustrated or overwhelmed, it's not just the legal process—they're feeling the impact of uncertainty on their life or business.

One surprising lesson I learned is the importance of patience. As lawyers, we often forget how slow litigation can feel from the client's perspective. Every delay, motion, or rescheduled meeting drags out the process. Experiencing those delays firsthand gave me a deeper understanding of how frustrating it can be to wait for answers. Moving forward, I'll be more mindful of this in my practice and do what I can to streamline things for my clients whenever possible.

Lastly, I learned how valuable a settlement can be. It's easy to get wrapped up in "winning," but the truth is, not every battle is worth dragging out. Compromise, when approached strategically, isn't a defeat—it's a way to bring closure, minimize risk, and move on to what matters most.

This experience gave me new perspective to carry into my practice. Sometimes the best insights come from walking a mile in someone else's shoes, or this case my own shoes from the other side of the street.

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In other news, Lake Ridge Academy won their opening round playoff game last night versus Shaw, 8 – 0. They are now into the District Semifinal next Thursday against an opponent tbd. 

Donovan had a ball on his foot in the box, but did not think he could get the shot off before the defender closed on him, so he made the unselfish play and passed to a teammate. 

Stay tuned for further updates next week.

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Here's what I read this week that you should read, too.

Keeping politics civil at work

With the 2024 election right around the corner, it's inevitable that political talk will creep into your workplace. And let's be honest—politics today isn't exactly a calm or respectful topic of conversation. As a result, political discussions can quickly escalate into political conflicts and HR nightmares.
Just because the world outside may feel divided and hostile, however, doesn't mean your workplace has to be.

Here are 5 tips to keep your workplace civil during these most uncivil of times.

One headache of an FMLA case

SEPTA fired Ephriam Rodriquez from his job as a bus driver for excessive absences. Rodriguez sued, claiming that the termination violated his rights under the FMLA because a migraine headache caused his final absence (a fact of which he advised SEPTA prior to his termination). 

The 3rd Circuit concluded that the FMLA did not protect Rodriquez's absence because his migraines did not qualify as a "serious health condition."

The 11th nominee for the Worst Employer of 2024 is … the high-risk terminator

"There might be something wrong with my daughter's heart." 

That's the message Chelsey Beck sent to her manager the morning she was supposed to start new-hire training at Victra, a Verizon retailer. She needed to go to her doctor immediately and would need to miss training that day.

The manager's response? "I'm so sorry to hear about that and I hope everything is okay. Please let me know if you need anything. I'll send positive vibes your way and hope it was a mistake."

So far so good.

But he continued.

WIRTW #734: the 'working for the parents' weekend' edition

It's a rite of passage for all moms and all dads of college students — Parents' Weekend. We spent last weekend at Ohio Wesleyan's Parents' Weekend with Norah. We ate, we shopped, we ate some more, and we shared a cup of coffee with her French professor. It was a great weekend, and you can hear all about it on the most recent episode of the Norah and Dad Show, which you can find on Apple Podcasts, Spotify, YouTube, Amazon Music, Overcast, the web, and anywhere else you get your podcasts.

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Here's what I read this week that you should read, too.

SCOTUS to weigh in on the burden of proof in "reverse" discrimination cases

The purpose of our workplace discrimination laws is to ensure that all employees are treated equally, right? Maybe … but maybe not.

Next term, the Supreme Court will hear the appeal of Marlean Ames, a straight woman who sued the Department of Youth Services for sex discrimination under Title VII. She claimed she was discriminated against her because of her sexual orientation, alleging that she was passed over for a promotion, demoted, and that a gay man was then promoted into her former position.

Ames claimed sex discrimination, but the 6th Circuit disagreed, citing her failure to establish the necessary "background circumstances."

What are the "background circumstances" needed to show that an employer is among the small subset that discriminates against the majority? According to the 6th Circuit, "Plaintiffs typically make that showing with evidence that a member of the relevant minority group (here, gay people) made the employment decision at issue, or with statistical evidence showing a pattern of discrimination by the employer against members of the majority group." Ames lost because she showed neither.

Tipped wages and sexual harassment

"Are you on the dessert menu? Because you look yummy."

First, ick!

 
Secondly, these are the types of comments to which customers expose servers in the hospitality industry on the regular. In fact, the restaurant industry has more sexual harassment claims than any other industry, with as many as 90% of women report experiencing some form of sexual harassment. In large part, I blame tipped wages.

WIRTW #733: the 'truth is out there' edition

I think I saw an UFO yesterday morning.

 
Like most workdays, I let the dog out at 6:30 AM. When I went to let him back in, something in the dark, pre-dawn sky caught my attention. I saw two brightly lit orbs hovering at an altitude similar to an airplane. I say "hovering" because they weren't still like stars, nor were they flying across the sky like airplanes. There was movement, but it was different—almost as if they were floating. Then, they started to move, oddly and unnaturally, yet in perfect sync. I rushed to grab my phone to record it, but by the time I returned, they were gone.

I have no idea what I saw. It definitely wasn't stars or airplanes—they don't move like that. Could it have been drones? Maybe, but they seemed too high up. Plus, who flies drones at 6:30 AM?

I'm not arrogant enough to believe we're the only intelligent life in the vastness of our galaxy, let alone the universe. But to witness something like that in my little corner of the Earth? I'm not sure what to make of it. I'm not prepared to say I saw a UFO for certain, but I'd like to think I did.

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Here's what I read this week that you should read, too.

Why?

"Jon, why do you post all this stuff about awful things employers do? Aren't you a management-side lawyer and advocate?"

Here's why:

Spying on your sick employees is a recipe for disaster

Do you remember the episode of The Office where Dwight stakes out Oscar's house to see if he's faking a medical condition and committing insurance fraud?

Believe it or not, something similar is happening in real life at Tesla. The managing director and human resources director of one of its foreign gigafactories recently targeted 30 employees on sick leave for home visits. While the HR director claims the visits had "nothing to do with general suspicion," the managing director has a documented history of intolerance toward factory workers who "couldn't get out of bed."

Needless to say, the employees did not appreciate the visits. "You could just tell by the aggression," the HR director said. Employees slammed doors, threatened to call the police, and questioned why the visits weren't scheduled in advance.

Use caution when poaching competing employees

Here are 25 million reasons to be careful when poaching your competitor's key employees.

In a recent federal case, medical device company Cynosure snagged a $25M jury verdict after its rival, Reveal Lasers, and two former sales managers were found to have violated noncompete, nonsolicitation, and nondisclosure agreements.

The result? A hefty price tag for raiding Cynosure's sales and marketing teams.

WIRTW #732: the 'day in the life' edition

How does a college student spend her day these days? Tl;dl: sleep and classes. 

On this week's episode of The Norah and Dad Show, Norah gives us a peak into a day in her life as a college student. We also discuss our brief visit with her last weekend at her brother's victorious soccer game. You can listen via Apple Podcasts, Spotify, YouTube, Amazon Music, Overcast, the web, and everywhere else you get your podcasts. While you're there, hit the "subscribe" button to make sure you get each new episode automatically delivered to you as soon as it drops.

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Here's what I read this week that you should read, too:

A second Apple Store just ratified a union contract — via The Verge

Cleveland Institute of Music's Tumultuous Era Continues With Contentious Union Vote This Week — via Scene Magazine

How the Next Generation of Managers Is Using Gen AI — via Harvard Business Review

Growth and Impacts of AI Use in the Workplace — via EntertainHR

Why AI is Here to Stay in Legal Blogging — via Real Lawyers Have Blogs

No, not all companies are abandoning diversity, equity and inclusion. Here's why. — via HR Dive

Be Reasonable, People! AI's Impact on Legal Fees — via Attorney at Work 

Is it OK to have sex while working from home? — via Ask a Manager

Working from home is the great social experiment of our age – it's too soon for the state to wade in — via The Guardian

Why would an employee sue his employer for offering him 100% telework as a disability accommodation? — via Eric Meyer's Employer Handbook Blog

FMLA abuse: 5 things this employer did right — via Employment & Labor Insider

What's the Difference Between Internal and External Employee Investigations? — via Workology

Who Is Suing Elon Musk Today? Cards Against Humanity, COME ON DOWN! — via Above the Law

Johnny Cash Becomes First Musician to Receive Statue at US Capitol — via Consequence

BA Report: Midwest Records Production Declines Across All Classes — via Brewbound

Anti-Alcohol Activists Set to Cripple the Beer Industry in 2025 — via Beervana

The 10th nominee for the Worst Employer of 2024 is … the desecrated discriminator

"We were forced to work with 'Nazi sympathizers' who — despite their open and obvious beliefs and frequent racist, antisemitic, xenophobic, and anti-LGBTQ+ comments and discriminatory acts — were retained and even promoted to management."

Those are the claims of 7 current and former employees of a rehab center owned by Executive Recovery Group.

Harassing text messages doom employee's discrimination lawsuit

Derek Blockhus, a United Airlines flight attendant, was fired after sending threatening texts and voicemails to a coworker and former romantic partner. 

His messages included threats like, "You do realize, your dad and all his friends are going to get nudes of you?" and "The situation will get ugly" if she didn't respond. Blockhus sued, claiming his firing must have been because of his disability, age, and FMLA leave.

The 7th Circuit disagreed, affirming that United terminated him for violating its harassment policies, not discrimination or leave interference.