Workforce

Settlement set in Dave & Buster’s healthcare lawsuit

Photograph: Shutterstock

A federal court judge has tentatively approved a settlement of a legal dispute between Dave & Buster’s and employees who claim their hours were cut to spare the company from having to provide them with healthcare insurance. 

Court documents do not specify the amount of the settlement, but Bloomberg pegged it at $7.4 million. 

The class-action suit filed by employees alleges that Dave & Buster’s sufficiently cut the plaintiffs’ hours to reclassify them as part-timers, who would then be exempted from federal obligations on the chain to provide health insurance or pay a penalty. A review of the court documents does not include an admission of guilt by Dave & Buster’s.

The settlement would affect any Dave & Buster’s employees whose hours were reduced between May 8, 2013, and Dec. 7, 2018, the date of the tentative settlement approval by Judge Alvin Hellerstein of the U.S. District Court of the Southern District of New York. Hellerstein had rejected an earlier settlement accepted by the plaintiffs, saying he wasn’t convinced the deal was fair and reasonable.

A hearing that will determine whether the settlement is formally approved is scheduled for May 9.

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

With CosMc's, McDonald's shows its risk-taking side

The Bottom Line: The first unit of McDonald’s opened to long lines in its first two days. The concept proves that the company can get attention. And it’s willing to take some chances.

Financing

Big restaurant chains get aggressive on unit growth

The Bottom Line: Yum Brands, McDonald’s and Domino’s are all making a big push to accelerate growth. Most of it will come outside the U.S. But they have domestic plans, too.

Financing

Chris Kempczinski changes his tune on restaurant automation

The Bottom Line: While noting that humans will continue to drive restaurants, the McDonald’s CEO notes that the calculus on automation gets closer as labor costs soar.

Trending

More from our partners