NY Post: Lawsuits/State Regulation Threaten Another Industry

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This is beginning to be a refrain that is heard far too frequently. A top restaurateur is throwing in the apron, saying he’s done with New York City because a wave of vicious lawsuits, coupled with draconian state regulations, threatens to cripple the industry.

The New York Post published an article about numerous high-end New York City restaurants that have been sued over wage and tip complaints in the last few years — most by Manhattan lawyer Daniel Maimon Kirschenbaum. He has collected $30 million in settlements (with a 30% fee for himself) from a number of eateries. At the end who suffers? Those workers when the the business closes and those New Yorkers who enjoyed dining at these restaurants!

The final sentences of the article sum up the sad reality:

The settlements, which usually come with no admission of wrongdoing, often don’t end up enriching waiters and busboys much.

In the case of the $2.5 million Nobu settlement, $833,333 went to Kirschenbaum’s and other firms. The 200 or so workers who sued got an average payment of $3,300 each.

This lawsuits and that fact that they are allowed are now affecting not only large corporations, but also small mom-and-pop operations. Albany and New York State had better wake up or the flight from New York will only continue.

Read the full story here: http://www.nypost.com/p/news/local/the_lawyer_who_ate_new_york_SO9DZBVJ4hxnr7jY8rDb2J/0

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