HR Management & Compliance

News Notes: Wage Violations Cost Taco Bell Millions

About 1,300 former Taco Bell workers have won a lawsuit in Oregon that charged that supervisors doctored employee time cards in order to meet productivity goals and earn bonuses. Taco Bell supervisors allegedly admitted that they were pressured by senior managers to shave hours off time cards. Paul Breed, an attorney for the workers, has estimated that damages and penalties—which the court will soon consider—could cost the Irvine-based fast-food chain millions. The company has said it will appeal. Taco Bell recently paid $9 million to settle another lawsuit in Santa Clara County that charged Taco Bell with failing to pay overtime to about 3,000 managers and assistant managers.

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