Cash Shortage

Orlando, FL: (Jan-09-08) Two class action lawsuits were brought against Darden Restaurants by California employees of Red Lobster and Olive Garden, alleging wage and hour violations. Records stated that the class action lawsuits were brought in 2004 involving the Red Lobster restaurants and in January 2007 involving the Olive Garden outlets. The suits claimed that several restaurants violated a California law that prohibits restaurant managers from requiring servers and bartenders to make up for cash shortages at the end of their shifts.

As per a report filed with the US Securities and Exchange Commission, Darden officials stated that the company had paid $4 million to settle the dispute. Company sources stated that the settlement of the wage dispute, which was paid out during the company's fiscal second quarter that ended in November, trimmed earnings for the quarter by 2 cents a share. [ORLANDO SENTINEL: EMPLOYEE CASH]

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