by Stephen D. Hans | Jan 19, 2017 | Employment Defense Attorney, Vacation Pay Issues
Many business owners offer vacation pay as a job benefit. Sometimes issues arise as to whether employees are being treated fairly when receiving their vacation pay. Vacation Pay Issues in McCaster, Clark v. Darden Restaurants A recent case heard by the U.S. Court of Appeals for the Seventh Circuit rendered a decision that favored employers in the case DEMIKO MCCASTER and JENNIFER CLARK, Plaintiffs-Appellants, v. DARDEN RESTAURANTS, INC. Popular brand name restaurants operated by Darden Restaurants include Olive Garden, Red Lobster and Longhorn Steakhouse. When full-time employees reached the anniversary of their hiring date, Darden paid them an “anniversary payment, which functioned as a paid vacation for employees. When an employee left the restaurant, Darden included accrued vacation pay (pro rata) in the final check. Prior to 2008, all employees were eligible for vacation pay. After June 1, 2008, only full time employees were eligible for vacation pay. In the recent case, McCaster alleged that Darden failed to pay him his accrued vacation pay when he left his job at the Red Lobster. Clark alleged that Darden failed to pay the vacation pay owed her after June 1, 2008. Clark argued that denying part-time employees the equal right to vacation pay was unfair. How the Case Ruling Benefited Employers The litigants sought to establish the case as a class action lawsuit. However, the judge ruled that the group did not qualify as a fail-safe class. Darden won its partial summary judgment against Clark’s allegation of unpaid vacation benefits for part-time workers. Darden’s company policy did not grant part time workers vacation pay, and it was the company’s right to...
