Per Se pays servers $500K to right catering lapses

Per Se, one of the nation’s most successful fine-dining restaurants, has agreed to pay current and former catering servers $500,000 to settle charges by the New York attorney general that it violated wage and hour laws four years ago.

The restaurant called the infractions unintentional. It explained in a statement to the media that the servers had received their full payments, at a rate that can top $116,000 per year. However, a portion of a fee levied on catering charges had been used to defray operating expenses. New York state law specifies that a service charge be channeled in full to servers unless the restaurant alerts the customer otherwise.

The alleged violations were committed in 2011, after the service charge law went into effect. Per Se did not update its disclosures in catering contracts for a year, a technical violation. 

Members help make our journalism possible. Become a Restaurant Business member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.

Multimedia

Exclusive Content

Financing

Why are so many restaurant chains filing for bankruptcy?

The Bottom Line: A combination of rising costs and weakening sales, and more expensive debt, has caused real problems for restaurant chains. But the industry is also really difficult.

Financing

Despite their complaints, customers keep flocking to Chipotle

The Bottom Line: The chain continued to be a juggernaut last quarter, with strong sales and traffic growth, despite frequent social media complaints about shrinkflation or other challenges.

Operations

Hitting resistance elsewhere, ghost kitchens and virtual concepts find a happy home in family dining

Reality Check: Old-guard chains are finding the alternative operations to be persistently effective side hustles.

Trending

More from our partners