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January 12, 2010 Portlandbiz

Front Room focus of labor battle

In just a few days, the fight between restaurant employees and restaurateur Harding Lee Smith has escalated from sidewalk picketing to a civil lawsuit and angry denouncements in the media.

Last week, six employees filed a suit against Smith and his restaurant, The Front Room, at the U.S. District Court in Portland, claiming Smith failed to pay workers minimum wage and overtime as required by state and federal laws, made them share tips with other workers and did not allow his workers legally mandated breaks during their shifts.

Smith says the lawsuit is frivolous and the claims are "unsubstantiated and completely false." "It's about personal vendettas by disgruntled employees," he says.

Prior to filing the lawsuit, and with assistance from a workers' rights group called The Restaurant Opportunities Center of Maine, workers had protested outside Smith's Portland restaurants. He also owns The Corner Room and The Grill Room.

Eva Ramirez-Wisiackas, one of the plaintiffs and a former server at The Front Room, says she first approached The Restaurant Opportunities Center of Maine after she saw problems at the restaurant and was not able to communicate with management about them.

"There were quite a bit of issues with people not getting paid the right amount," she says. "Many people weren't receiving overtime." She adds that when she first started working at the restaurant about a year ago, she also received checks that gave no indication of hours worked or tax deductions.

Sean Slaughter, another plaintiff and a former waiter, says, "The owners broke the law, and we have evidence to prove it." He continues, "Employees were not paid what they were owed and were not treated well." He explains that he had to keep records of his tips because his paychecks would at times contain discrepancies.

But Smith says his restaurants "have always complied with state and federal law regarding tipped employees and have had no reason to deviate from that practice." He points out, too, that he is one of the few restaurant owners to offer his employees dental and medical benefits after 90 days of employment, as well as a matched retirement savings plan after they have worked at least two years.

Recently, 22 current and former employees of Smith wrote a letter to the Portland Press Herald in support of their boss. "We've never been shorted money. In fact, we don't know of a single case where that has happened," the letter reads. "It's a shame that customers are going to be nervous about leaving their tips for us. We do get our money, otherwise we would have all quit long ago."

Smith says that the labor group that has assisted the restaurant workers is pursuing its own agenda. "The ROC is starting with me," he says. "They say they're out to represent workers' rights but are really trying to stuff their coffers."

The Restaurant Opportunities Center of Maine was formed about a year and a half ago to improve working conditions in restaurants, according to director Steven Emmons. The national group began after 9/11 to help workers displaced by the Twin Towers tragedy. When Windows on the World, the restaurant that had occupied the top floor of one of the towers, reopened in Manhattan and did not hire back its former staff, ROC organized and managed to win back jobs, Emmons says.

The New York group has made news for its "rowdy protests outside of restaurants," where "activists have used megaphones to carry their message -- sometimes crude and profanity-laden," according to the New York Times.

The ROC in Maine started by conducting 500 restaurant surveys of restaurant workers and owners, identifying problems as well as restaurants that were doing a good job, Emmons says. When it does find violations of wage laws or other laws, the group starts "workplace justice campaigns." So far, the group has only organized one such campaign at The Front Room.

Slaughter says the campaign could have a ripple effect. "If this restaurant steps up and does the right thing," he says, "maybe others will do the right thing."

Smith says that the lawsuit and resulting media attention have not hurt business at his restaurants. In fact, he says since the lawsuit was filed, he has received many supportive e-mails from customers. Last weekend, he says some patrons at his restaurant even told him they were eating out to give him business to help with his legal battle.

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