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Ruby Tuesday Ethical Issues

In: Business and Management

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STRAYER UNIVERSITY

Ruby Tuesday Ethical Issues

Multiple lawsuits

[Type the author name]

6/8/2016

Ruby Tuesday is a successful national restaurant chain specializing in “American” type cuisine, enjoyed by many on a daily basis. While they are able to thrive in a very tough industry, they have been in the news for some possible ethic conduct violations, one regarding employee wages and another regarding gender bias hiring.

In 2012 a law suit was filed against Ruby Tuesday Inc. (RTI), by what the industry refers to as “front of house” employees, which covers waiters/waitresses/food runners and bartenders. These type of employees are paid on a different type pay scale, as a good part of their wages are made from tips from the customers they serve. Since these “tipped” employees focus on customer service, the las states they are only allowed to spend no more than 20% of their work day performing “side work”. (ROC n.d.) The suit claims that RTI would have employees punch out and continue to work or perform tasks before they punched into work. The suit was settled out of court, with RTI paying about 3 million dollars to workers for lost wages.

In another suit, Ruby Tuesday, Inc has been accused of discriminatory hiring against men. The company placed an ad in a Utah newspaper looking for seasonal bartenders and servers, actually indicating a preference for women (Phillip 2015). The company was providing housing for the employees and apparently did not want to have to deal with separate housing for different genders and therefore hired 7 females and no males for the season. The lawsuit does not cover just Utah but six other states as well, with men seeking damages for potential lost wages.

In these cases, it was certainly poor judgement on the company side of things. Knowing the law and understanding wage and hiring practices…...

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