Court backs Islands chain in wage, hour class denial

Nation's Restaurant News,  Nov 27, 2006  

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SANTA ANA, CALIF. -- Islands Restaurants, operator of 59 casual-dining outlets in five Western states, said the state Superior Court here had denied a motion by four former employees to gain class certification for a wage and hour lawsuit on behalf of more than 28,500 workers.

The ruling in favor of Carlsbad, Calif.-based Islands was believed to be one of the first such class-action denials in California involving the restaurant industry, the privately held company said.

The plaintiffs had sought to include as co-claimants more than 500 current and former assistant managers, for back overtime pay, and 28,000 hourly workers, for claims involving meal and rest period penalties. Islands said it demonstrated in court that the back-overtime claimants "could not provide reliable testimony about how much time they spent doing hourly tasks, and that its managers were indeed properly classified [as overtime-exempt]," and that the company "has a comprehensive meal and rest period policy that is rigorously enforced by managers at all levels."

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