Behind the Kitchen Door: Inequality, Instability, and Opportunity in the Greater New Orleans Restaurant Industry

8/4/2019 Behind the Kitchen Door: Inequality, Instability, and Opportunity in the Greater New Orleans Restaurant Industry

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Primary Research Support Provided byLaNysha Adams, Restaurant Opportunities Centers United

Editorial Support Provided by Nirupama Jayaraman

Design by Christopher Chaput

Funding Provided By:The Ford FoundationFoundation for the Mid SouthThe Gulf Coast FundThe Hill-Snowdon FoundationThe Kellogg FoundationThe Louisiana Disaster Recovery FoundationTwenty-First Century Foundation

Oxfam America

February 9, 2010

By the Restaurant Opportunities Center of New Orleans, Restaurant OpportunitiesCenters United, and the New Orleans Restaurant Industry Coalition

Behind the Kitchen Door:Inequality, Instability, and Opportunity in theGreater New Orleans Restaurant Industry


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Ddid o h n ok ho o hi i in Hin Kin,n ok ho h no hd h opponi o n o h N On h Hin, nd n ok in h G N On gion.


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By the Restaurant Opportunities Center of New Orleans, Restaurant OpportunitiesCenters United, and the New Orleans Restaurant Industry Coalition

Primary Research Support Provided byLaNysha Adams, Restaurant Opportunities Centers United

Editorial Support Provided by Nirupama Jayaraman

Design by Christopher Chaput

Funding Provided By:The Ford FoundationFoundation for the Mid SouthThe Gulf Coast FundThe Hill-Snowdon Foundation

The Kellogg FoundationThe Louisiana Disaster Recovery FoundationTwenty-First Century Foundation

Oxfam America

February 9, 2010


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Executive Summary

Behind the Kitchen Door: Inequality, Instability, and Opportunity in the Greater New Orleans Restaurant Industry

was conceived o and designed by the New Orleans Restaurant Industry Coalition - a broad gathering o academics,policy analysts, worker advocates, worker organizers, unions, restaurant workers and restaurant industry employers.Tis report represents one o the most comprehensive research analyses o the restaurant industry in New Orleans.

Te report uses data rom 530 worker surveys, interviews and ocus groups with 28 restaurant workers, and 29 one-hour interviews with restaurant employers in New Orleans. Te results o this primary research are supplemented byanalysis o industry and government data, such as the Census, as well as a review o existing academic literature.

Our study was inspired by the need or examination and analysis o the restaurant industry, which is undamental tothe New Orleans economy and critical to the lives o thousands o restaurant workers and employers. Te restaurantindustry is an important and growing source o locally based jobs, and provides considerable opportunity or thedevelopment o successul businesses. It is thereore essential to make inormation about the industry rom the per-spectives o both workers and employers available to all stakeholders to ensure the industrys sustainable growth.

A Resilient and Growing IndustryNew Orleans is home to a vibrant, resilient, and growing restaurant industry. Te industry includes over 2,500 oodservice and drinking places that make signicant contributions to the regions tourism, hospitality and entertain-ment sectors and to its economy as a whole. In 2008, the gross domestic product by the New Orleans metropolitanarea rom the accommodations and ood services sector was $2.6 billion.

Perhaps the industrys most important contribution to the regions economy is the thousands o job opportunitiesand career options it provides. Since 2001, employment growth in the ood services sector has outpaced that o theNew Orleans regional economy overall (see Chapter II, Figure 1). New Orleans metropolitan area restaurants employover 44,000 workers 8.6% o the regions total employment. Since ormal credentials are not a requirement or themajority o restaurant jobs, the industry provides employment opportunities or new immigrants, whose skills and

prior experience outside the United States may not be recognized by other employers, workers who have no ormalqualications, and young people just starting out in the workorce.

Many Bad Jobs, A Few Good OnesTere are two roads to protability in the New Orleans restaurant industry the high road and the low road.Restaurant employers who take the high road are the source o the best jobs in the industry those that provideliving wages, access to health benets, and advancement in the industry. aking the low road to protability, onthe other hand, creates low-wage jobs with long hours, ew benets and exposure to dangerous and oten-unlawul

workplace conditions. Many restaurant employers in the New Orleans metropolitan area appear to be taking thelow road, creating a predominantly low-wage industry in which violations o employment and health and saety lawsare commonplace.

While there are a ew good restaurant jobs in the restaurant industry, and opportunities to earn a living wage, themajority are bad jobs, characterized by very low wages, ew benets, and limited opportunities or upward mobilityor increased income. According to the U.S. Bureau o Labor, the median wage or restaurant workers is only $7.76.

In our own survey o restaurant workers, the vast majority (84.5%) reported that their employers do not oer healthinsurance (see urther Chapter III: Workers Perspectives). Earnings in the restaurant industry have also laggedbehind that o the entire private sector. In terms o annual earnings, restaurant workers on average made only$16,870.79 in 2008 compared to $44, 272.49 or the total private sector.


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A majority o workers in our study reported overtime and minimum wage violations, lack o health and saety train-ing and ailure to implement other health and saety measures in restaurant workplaces. Almost 40% o the workerssurveyed in our study (38.1%) experienced overtime violations and more than one-quarter (27%) reported workingo the clock without being paid.

One major nding o this report is that New Orleans restaurant workers suer rom a particular orm o instabilitydue to the repeated hurricanes in the region. 56% o all workers surveyed reported having their employment aectedby a recent hurricane, and many workers in interviews repeated the common experience o returning rom a manda-tory evacuation during any o the recent hurricanes Katrina, Rita, or Gustav to nd that they had been replacedat their restaurant workplace, and had thus lost their jobs. Workers reported that this phenomenon led to instability,including housing instability, and sometimes orced them to leave the region.

It is largely workers o color who are concentrated in the industrys bad jobs, while white workers tend to dispropor-tionately hold the ew good jobs. Workers also reported discriminatory hiring, promotion and disciplinary practices,as well as verbal abuse motivated by race, national origin or English language acility. Almost one third (29.4%) o

workers that we surveyed reported experiencing verbal abuse, and o these workers, 33.6% said that this abuse wasmade on the basis o race (see urther Chapter V: Segregation & Discrimination).

The Social Costs o Low-Wage JobsOur research also reveals the hidden costs to customers and taxpayers o low-wage jobs and low road workplacepractices. Violations o employment and health and saety laws place customers at risk and endanger the public. Forexample, restaurant employers who violate labor laws are also more likely to violate health and saety standards inthe workplace such as ailing to provide health and saety training, or orcing workers to cut corners that harm thehealth and saety o customers (see urther Chapter VI: Te Social Cost o Low-Wage Jobs).

Te pervasiveness o accidents coupled with the act that so ew restaurant workers have health insurance can lead toescalating uncompensated care costs incurred by public hospitals. For example, 32.3% o surveyed workers reportedthat they or a amily member had visited the emergency room without being able to pay or their treatment.

Finally, low wages and lack o job security among restaurant workers lead to increased reliance on social assistance

programs resulting in an indirect subsidy to employers engaging in low road practices and ewer such public resourcesavailable to all those in need. A key nding o our research is that whenever restaurant workers and high road em-ployers are hurt by low road practices, so is the rest o society.

The High Road Is PossibleIt is possible to create good jobs while maintaining a successul business in the restaurant industry. Our interviews

with employers revealed that as long as there is an enduring commitment to do so, it is possible to run a successulrestaurant business while paying living wages, providing benets, ensuring adequate levels o stafng, providingnecessary training, and creating career advancement opportunities.

In act, over 12% o the workers we surveyed reported earning a living wage, and similar numbers reported receivingbenets, thereby demonstrating both the existence o good jobs and the potential o the industry to serve as a posi-

tive orce or job creation. Workers who earn better wages are also more likely to receive benets, ongoing trainingand promotion and less likely to be exposed to poor and illegal workplace practices. For example, workers earning$18.31 per hour were also much more likely to have health insurance than workers earning less than the minimum

wage o $6.55 per hour. Workers earning less than $6.55 were also almost much more likely to experience overtimeviolations in their current workplace.


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Our RecommendationsTe New Orleans Restaurant Industry Coalition recommends the ollowing steps to address the workplace problemsdocumented in our study:

1. Workers should have a grace period to return to their jobs after a mandatory hurricane evacuation. o increase stability among this low-wage workorce, local legislative bodies should require employers toprovide workers with a grace period ater a mandatory evacuation beore being replaced permanently.

2. Labor, employment and health and safety standards should be strictly enforced, and legislators shouldconsider an employers compliance with such legal standards in granting government licenses, which bystatute are intended to be granted only to responsible employers. Employers must be educated about theirlegal responsibilities towards their employees concerning health and saety standards. Agencies shouldprovide employers with the necessary support to observe their obligations to their workers and to thepublic. It is in the interest o both workers and the public at large that existing standards be observed andenorced.

3. Initiatives and incentives should be considered to assist and encourage employers to provide livingwages, basic health care benets, and advancement opportunities to restaurant workers. Such initiatives

could include rent and property tax incentives or employers who implement exceptional workplacepractices, and subsidies to employment-based health insurance or support o collective health insuranceprovisions across the industry.

4. Workers should have access to paid sick days and a higher tipped hourly minimum wage than $2.13.Policymakers should level the playing eld by requiring all employers to provide paid sick days to theiremployers, and raise the minimum wage or tipped workers to be closer to the minimum wage or allother workers. Te lack o paid sick days can result in public health challenges or the entire region.

5. Workers should have equality of opportunity. Policytmakers should explore initiatives that encourageinternal promotion and discourage discrimination on the basis o race and immigration status in therestaurant industry.

6. Model employer practices should be publicized to provide much-needed guidance to other employersin the industry. Te vast majority o employers we interviewed agreed in theory that high road workplacepractices were better. However, many did not appear to implement them in practice.

7. Workers should have the right to organize. Barriers to organizing restaurant workers should beaddressed. Te public benets o unionization in this and other industries should be publicized assignicant benets to workers and employers.

8. Further study and dialogue should be undertaken that includes the perspectives o restaurant workers,employers, and decision-makers. Such dialogue can help ensure eective and sustainable solutions to theissues identied in our study especially race-based discrimination, and the impacts o the industryspractices on health care and public program costs.

Te inormation collected here rom workers, employers, and industry experts is critical to ensuring that the Greater

New Orleans restaurant industry truly shines as not only an important contributor to the regions job market andeconomy, but also to the well-being o its workers and communities.


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ExEcutivE Summary

chaptEr i: INtrODuctION & MetHODOlOGy 1

chaptEr ii: OvervIew O tHe Greater New OrleaNs restauraNt INDustry 4

chaptEr iii: wOrKers PersPectIves 12

chaptEr iv: eMPlOyers PersPectIves 27

chaptEr v: seGreGatION & DIscrIMINatION 39

chaptEr vi: tHe sOcIal cOst O lOw-waGe JObs 52

chaptEr vii: cONclusIONs & POlIcy recOMMeNDatIONs 59

appEndix & EndnotES 61

conn copigh 2010 rn Opponii cn unid (rOc-unid)

tble ces



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c H a P t e r I

Introduction and Methodology

I am a strong supporter o the restaurant industry in this state an industry made up largely o smallbusiness owners, who are the backbone o Louisianas economy. Indeed, the restaurant industry is a key

player in our eorts to continue to expand our economy and create opportunity or our people. Not onlyhas Louisianas restaurant industry made signicant contributions to our economy and workers, butalso our distinctive culture that is renowned throughout the country. Governor Bobby Jindal1

Te New Orleans restaurant industry has enormous potential, both as an employer and as an engine of econom-ic growth. Over the past twenty years, the ood and beverage service sector has expanded, and despite the recenteconomic downturn, it continues to outpace other industries.2 Unlike many jobs in the manuacturing and technol-ogy sectors, restaurant jobs cannot be outsourced. For this reason, they are anticipated to occupy an ever larger shareo the regions economy in the near uture.

Te regions restaurants are an important source o jobs particularly or people o color, new immigrants and young people just starting in the workorce.3 Tou-sands o New Orleans metro restaurant workers earnliving wages and receive health care benets. Te in-dustry also oers opportunities or joining the rankso the many entrepreneurs who have ullled theirdream o opening their own restaurants. Most jobs inthe industry, however, are characterized by low wages- sometimes below poverty level - no health insurance,no sick and vacation days, ew advancement oppor-tunities, and exposure to poor and illegal workplaceconditions.

Our primary research and analysis o government andindustry data reveal that there are two roads to prot-ability in the New Orleans restaurant industry thehigh road and the low road. Restaurant employers whotake the high road are the source o the best jobs in theindustry those that enable restaurant workers to earnliving wages, access health benets, and advance in theindustry. aking the low road to protability, on theother hand, creates low-wage jobs with long hours andew benets. It ultimately harms workers, other restaurant employers, consumers, public health, and taxpayers.

Our research and existing government and industry statistics indicate that the majority o employers in the NewOrleans restaurant industry, like employers in other parts o the country, are employing low road workplace prac-tices, contributing to the creation and perpetuation o a predominantly low-wage industry where ew workers enjoybasic workplace benets and sae and healthy working conditions. Tese practices oten lead to violations o work-ers basic rights, as well as ederal and state wage and hour laws and health and saety regulations. As a result, asthe restaurant industry creates jobs, it has the potential to create jobs that allow workers to support their amilies,but oten instead ends up contributing to the prolieration o bad jobs in the current economy jobs that cannotsustain workers, their amilies, and our communities. Our worker surveys and interviews illustrate the impacts suchbad jobs have on peoples lives.

ABOUT THIS STUDY

thi udy w onivd nd dignd by h NwOn run Induy coiion - bod ghingo dmi, poiy ny, wok dvo, wokogniz, union, un wok nd mpoy. Ipn on o h mo omphni h no h n ind in N On hio.

D w od om 530 wok uvy, on-houini nd o gop ih 28 n ok, nd29 inviw wih un induy mpoy in NwOn od o on- piod. th o hipimy h uppmnd by nyi o induyd nd i o xiing dmi i.

thi poj w inpid by h nd o xminion ndnyi o h ov hh o n induy iningyimpon o N On onom nd ii o h io hound o un wok nd mpoy. thun induy i n impon nd gowing ou oo d jo nd poid onid opponi odopmn o in. I i ho nio mk inomion o h ind om h ppio oh ok nd mpo i o khodo n h ind in goh.


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Our interviews with employers highlight many o the actors that drive them to take the low road to protability,oten against the principles o good business practice they espouse. It is possible to achieve success in the restaurantbusiness by pursuing the high road, but employers ability to do so is undermined by pervasive use o low road

workplace practices, creating an unlevel playing eld. Our research also demonstrates the importance to publichealth and public coers o encouraging and supporting the majority o restaurant employers to improve prac-tices.

In our research, we also ound a high degree o separa-tion and racial disparity in wages and working con-ditions between white workers and workers o color inGreater New Orleans. Our research suggests at least twokey actors contributing to these disparities: (1) racialsegregation by occupation or position; and (2) racial seg-regation by industry segment. High levels o racial segre-gation by occupation are demonstrated by the divide be-tween the ront o the house workers such as serversand bartenders with whom diners interact and those

who remain hidden in the back o the house. Restau-rant workers in the ront o the house generally receivehigher wages better working conditions, training, andadvancement opportunities than those behind kitch-en doors. Te majority o white workers in the GreaterNew Orleans restaurant industry are employed in ronto the house positions. Workers o color are largely con-centrated in the back o the house in the lowest paid

jobs requiring the longest hours, with the greatest health and saety hazards, and oering the ewest advancementopportunities. In addition to these disparities, restaurant workers we spoke with reported experiencing high levelso verbal abuse, excessive discipline, and barriers to promotion that they believed to be based on race and immigra-tion status. Patterns o segregation that resulted in dierences in wages and employment opportunities were also

apparent in the industry segments which employ Greater New Orleans restaurant workers. White restaurant work-ers were signicantly more likely to be employed in ne dining establishments, whose price points oer the highestconcentration o living wage jobs in the industry. By contrast, Arican-American workers were much more likelyto be employed in the lower-paying quick-service segment o the industry. Finally, Greater New Orleans complexhistory o racial inequality combined with the inevitable hurricane season casts an ongoing shadow over this largeand growing service industry. We recognize that many o the restaurant workers o color who were orced to leavethe region because o Hurricane Katrina are not part o this survey sample, because they are no longer in the region.Even in their absence, however, workers in our survey sample described the negative impact repeated hurricanes,combined with their lack o power in the industry, have had on their jobs and lives.

Tis report includes the perspectives o both high road and low road employers, government and industry data, theexperiences o workers, and academic research. In eect, we have created a unique and rich source o inormationon the metropolitan areas restaurant industry to help guide eorts to end discriminatory workplace practices, and

promote the high road business model to serve as a positive engine o economic growth in Greater New Orleans.

TERMS USED IN THIS REPORT

ront of the House nd Back of the House on ind m o h pmn nd nion ook in n ing. on o h ho okgn ind ho ining ih om h i , nd nn. bk o h ho okgn o kihn inding h, ook, oodppion , dihh nd n.

In hi po, high road i ud o dno mpoypi h ino ining in ok ping iing

wg, poviding omphniv bnf, oppouniio dnmn, nd okp ondiion mn o mximiz podii. th o h highod pi on dd no qiood nd i. Low road o gi hinvov honi undfng, iing o povid bnf,puhing wok o u on, nd vioing bo w,nd hh ndd.


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c H a P t e r II

Overview o the Greater NewOrleans Restaurant Industry


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c H a P t e r II

Overview o the Greater New

Orleans Restaurant IndustryA. A Signifcant and Growing Industry

Te restaurant industry is increasingly signicant or Greater New Orleans, and is one o Louisianas largest employ-ers. Te tourism industry, which includes the restaurant industry, is now considered one o the states largest andastest-growing industries.4 Te Greater New Orleans metro area is home to over 2,500 ood service and drinkingplaces, a number that grew substantially in the 1990s, and is expected to keep growing. 5 Te City o New Orleansis also home to a growing number o exclusive, ne-dining restaurants. 6

Te restaurant industry makes up over hal o the Greater New Orleans tourism and hospitality sectors, and con-tributes greatly to the states economy. State sales tax revenue generated by the Louisiana restaurant industry is more

than $134 million annually.7

In Greater New Orleans alone, the gross domestic product by metropolitan area romthe accommodations and ood services sector was $2.6 billion in 2008.8 As the City o New Orleans undergoes re-construction rom the devastating eects o Hurricane Katrina, tourists are expected to generate more than $5 bil-lion in spending and up to $300 million in tax revenues.9

Although considerable skills are needed to work in this industry, no ormal credentials are generally required, mak-ing restaurants a particularly viable source o employment or workers who have not had the opportunity to pursueormal training. Restaurant employment is also an important entry point into the job market or new immigrants tothe United States, whose credentials and experience abroad, are oten not recognized by other employers.

B. How Many Jobs?As indicated in able 1, the Food Services and Drinking Places sector provides over 44,000 jobs per year in the

New Orleans metro area (hereater ood services sector), and is the largest private sector industry in all o Orleansparish. In act, the ood services sector contributed to 65% o employment in the Leisure and Hospitality super-sector.10 Te restaurant industry has been one o the largest and astest-growing sectors o the Greater New Orleanseconomy, even despite the current economic crisis.11 Te ood services sector currently employs more people than a

wide variety o both old and new economy industries such as nance, securities, and manuacturing.12

taBLE 1. Ele e F Sees Se oe Sele ises,Gee new oles, 2009

is Ele ( 1000s) Se tl Ele

tl Gee new oles Ele 519.5 100%

Lese hsl 68.6 13.2%

hel ce 58.1 11.2%

F Sees dkg ples 44.8 8.6%

mg 35.5 6.8%

cs 31.2 6%

hsls 15.9 3%

Source: Bureau o Labor Statistics, Current Employment Statistics, July 2009In this table, Greater New Orleans reers to the New Orleans metropolitan statistical area (MSA), which includes Jeerson, Orleans,Plaquemines, St. Bernard, St. Charles, St. John the Baptist, and St. Tammany parishesNote: Industry Categories are not mutually exclusie


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Te restaurant industry has potential or providing low-wage workers with access to advancement to jobs that will al-low them to support their amilies. Tis is evidenced by the act that the industry is growing and that there are someliving wage jobs. From our survey data 12.3% o all workers surveyed reported an hourly wage o $18.31 or higher.

Since 1992, employment growth in the ood services sector has outpaced that o the New Orleans metro area over-

all.13 Figure 1 depicts employment growth in the ood services sector rom 1990 to 2008, compared to job growth inthe overall metro area. Ater Hurricane Katrina, the Greater New Orleans real GDP underwent a serious decline,as evidenced by a sharp decrease in employment (see Figure 1). Te Department o Labors Bureau o Labor Statis-tics ndings on the economic impact o the Hurricane Season demonstrates that the decline in overal l employment

was due to the displacement o 1 million people (including documented and undocumented immigrants).14 Hun-dreds o thousands still have not returned, yet the post-Katrina population increase adds numbers to the workorcein Greater New Orleans. While job growth in all industries continues to lag compared to their pre-Katrina levels,the restaurant industry has not nearly suered the kind o job losses locally or nationally experienced by the econ-omy as a whole. Even while the rest o the regional economy was experiencing serious decline in December 2007,the restaurant industry continued to experience growth.15 Since the beginning o the recession in December 2007,manuacturing job losses have accounted or the overwhelming majority o the job loss in the entire state.16 From

January 2008 until December 2008, the economy as a whole experienced a 3.5% job loss, while the restaurant in-

dustry experienced 2.3% job loss.17

0.5

1.0

1.5

2.0

Food Services & Drinking Places

Total MSA Employment

2008

2007

2006

2005

2004

2003

2002

2001

2000

1999

1998

1997

1996

1995

1994

1993

1992

1991

1990

1990=1.0

0

Year

FiGurE 1: Jb Gw e F Sees Se tl Ele, Gee new oles, 1990-2008.

Source: Bureau o Labor Statistics, Current Employment StatisticsNote: Greater New Orleans reers to the New Orleans metropolitan statistical area (MSA), which includes Jeerson, Orleans, Plaque-mines, St. Bernard, St. Charles, St. John the Baptist, and St. Tammany parishes.

C. What Kind o Restaurant?Te ood services sector includes our industries: ull-service restaurants, limited-service eating places, special oodservices, and drinking places.18 Te restaurant industry generally includes the rst two o these categories; namely,ull-service restaurants and limited-service eating places. Although the Census does not distinguish between dier-ent types o ull-service restaurants, we consider both ne dining restaurants and amily-style or ranchise res-taurants alling within this category. Limited service restaurants are also known as quick serve restaurants thatdo not oer waiter service.


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wihin -i n nd imid-i ing p, h idnid h gn -gmn o h nind hih pn no pid in gonmn d, mo o ndnding h ing pind gi d indiid in.

Fine dining, or what is commonly reerred to as table-cloth restaurants;1.

Family-style restaurants, also described as casual dining, including both ranchise or chain restaurants such as Olie2.Garden or Applebees, and smaller establishments, requently neighborhood-based and/or ethnic restaurants;

Fast-ood or quick-sere restaurants.3.

w o ond hogh h ini ih mpo h okp pi din o h hh ni p o ho, g opoion, hin o gop nd ho mn oh n h on h, i n. w ond h hmjoi o h n dining n p o n gop o on o mip (h o mo) n nd hm on. Non-nhi, mi- n ohming ing-ond o on o o n ond hm p. th nd hd poond imp in m o mpo po, o k ho, o dn ndd nd poii h hi in nd ing po, hih i k omponn o hi ompiin nd poii in h ind.

D. Where are the Jobs?

Te regional restaurant industry tends to be centrally located in Orleans and Jeerson Parishes. As indicated by thedata contained in able 2, the Orleans Parish accounts or more than one third (39%) o the Greater New Orleansarea employment in ull-service restaurants, and a quarter (26%) o the areas limited-service eating places. Nearlyhal (43%) o employment in limited-service restaurants are concentrated in Jeerson Parish.

taBLE 2. Ele b ps e res is, Gee new oles, 2007

tl oles JeesS.

clesS.

tS. J

S.Be

plqee

Fll-See res-s

100% 39% 37% 1% 20% 2% 1% 0%

Le-Seeress

100% 26% 43% 3% 20% 3% 4% 1%

Source: U.S. Bureau o the Census, County Business Patterns, 2007.

E. Who Gets the Jobs?Most jobs in the restaurant industry do not require ormal education, and, with the exception o ches and somme-liers (wine stewards), employers generally do not require workers to have educational degrees or vocational certica-tion. Tis is not to say that restaurant workers do not have skills or that restaurant work is not demanding. Back othe house workers, oten working in hot, cramped spaces must be able to complete the tasks required to accuratelyll orders in a timely and quality ashion in a high pressure environment. Front o house sta and other employ-ees who interact with customers need strong interpersonal skills, time and task management skills, and a workingknowledge o ood preparation and presentation.

Te industry is consequently an important source o jobs and income or large numbers o new workers who do nothave ormal training or are new to the workorce. Te industry is also a source o employment or women, youth,people o color and immigrants particularly new immigrants, whose prior education and experience abroad is o-ten not recognized by employers in the U.S. Te Bureau o Labor Statistics reports that the restaurant industry isthe single largest employer o immigrants in the nation. In 2005, immigrants represented more than 1.4 million othe industrys employees nationwide, a number that has likely increased since then.19 Post-Katrina, population es-timates o the immigrant population have been based on rough headcounts, making it impossible to determine thedemographic characteristics o the population. In 2000, the U.S. Census Bureau estimated 4% immigrants in NewOrleans o whom 3.1% o whom were Latino.20 Tis percentage increased rom 3.1% beore the storm to 4.9% in the

year ater the storm and 6.6% the ollowing year. 21 Given the diculty in determining accounting or the most accuratenumber o this population, we assume that the immigrant contribution to the restaurant workorce is much higher. 22


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F. What are the Characteristics o the Workorce?Te New Orleans restaurant industry is largely young and emale. Slightly more than 50% o restaurant workersin the region are under the age o 24. Although people o color comprised the majority o the population o themetropolitan area prior to the devastation o Hurricane Katrina, workers o color comprise less than hal o the

industry post-Katrina. Te industry is also airly well-educated; more than 43% o all restaurant workers in theregion have had some college education.

taBLE 3: a deg ple Gee new oles res Wkes, 2000-2008(l eeges)

res Wkes 2008 ol

2000 2008deee*

(2008 - 2000)all new oles

Wkesdeee* (resWkes - all Wkes)

Gee M 42.8 43.7 0.9 51.3 -7.6

m 57.2 56.3 -0.9 48.7 7.6

age 16-24 47.0 42.8 -4.2 16.5 26.3

25-44 38.1 35.0 -3.1 38.1 -3.1

45-64 13.3 20.3 7 39.6 -19.3

65 nd od 1.6 1.9 0.3 5.8 -3.9

re/E Non-Hipni whi 48.3 48.8 0.5 60.3 -11.5

Non-Hipni bk 40.9 37.5 -3.4 29.7 7.8

ain 3.4 6.6 3.2 2.5 4.1

Hipni/lino n 5.3 5.3 0 6.2 -0.9

2 o mo nd Oh 2.1 1.8 -0.3 1.3 0.5

n ciizn bih 93.0 90.5 -2.5 93.3 -2.8

oign bon 7.0 9.5 2.5 6.7 2.8

Wl ae B us 92.3 90.5 -1.8 92.9 -2.4

lin ami 3.1 1.4 -1.7 3.9 -2.5

ai 3.2 6.5 3.3 2.2 4.3

eop 1.0 .6 -0.4 .8 -0.2

ai .1 1.0 0.9 .2 .8

yes uS bon in h u.s. 92.1 90.5 -1.6 92.7 0

0-5 1.6 .3 -1.3 1.0 -2.2

6-10 .7 2.6 1.9 1.0 -0.7

11-15 1.0 .6 -.4 .9 1.6

16-20 1.8 1.9 0.1 1.0 -0.3

21 o mo 2.7 4.1 1.4 3.3 0.9

abl SekEgls

spk 58.3 47.8 -10.5 56.8 0.8

spk 21.0 15.5 -5.5 18.9 -9

spk, no 20.5 20.4 -.1 19.4 -3.4

Do no pk engih .1 16.3 16.2 5.0 1


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res Wkes 2008 ol

2000 2008deee*

(2008 - 2000)all new oles

Wkesdeee* (resWkes - all Wkes)

E l hn High shoo 39.1 32.2 -6.9 13.7 11.3

High shoo Dg 26.4 31.9 5.5 30.5 18.5

som cog 26.9 30.7 3.8 31.9 1.4

bho Dg ndHigh

7.5 5.3 -2.2 23.8 -1.2

*Dierence is percentage point dierenceSource: U.S. Bureau o the Census, Public Use Micro Sample rom US Census (2000) and American Community Surey (2008).Note: Greater New Orleans reers to the New Orleans metropolitan statistical area (MSA), which includes Jeerson, Orleans, Plaque-mines, St. Bernard, St. Charles, St. John the Baptist, and St. Tammany parishes.

G. What do the Jobs look like?Jobs in the restaurant industry generally all into one o three categories, each corresponding to dierent levels o com-pensation, potential or mobility, access to training, workplace conditions, and other important indicators o job quality:

Managers and supervisors, including ches1.

Front o the house positions,2.

Back o the house positions, such as dishwashers and cooks3.

H. What do the Jobs Pay?Te data in able 5 shows that the restaurant industry oers mostly low-wage jobs . According to the Bureau oLabor Statistics, the median wage or all restaurant occupations in Greater New Orleans is $7.76 an hour. Eighty-three percent (83.42%) o workers in the industry are employed in jobs or which the hourly median wage is below$10.00.23 People o color hold the majority o the lowest paid jobs in the restaurant industry, which is discussed in

detail in Chapters III: Workers Perspectives and Chapter V: Segregation & Discrimination.


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taBLE 4. Ele me Wges F pe Segrele os Gee new oles, 2008

o Ele se me l wge

all wkes $7.76

ces e ks 1.43% $15.72

Fs-le sess/ges e segwkes

7.51% $13.66

cks, s 5.66% $7.53

cks, s ee 3.86% $8.57

cks, es 7.65% $10.11

cks, s e 1.79% $9.28

cks, ll e 0.44% $9.95

F e wkes 20.14% $7.62

Bees 8.84% $7.02

cbe e seg wkes, lg s 4.08% $7.55

ce es, ee, ess, ee s 3.05% $7.95

Wes wesses 22.47% $7.27

F sees, es 2.21% $8.53

dg ee es bee eles 2.25% $7.53

dswses 5.02% $7.22

hss sesses, es, lge, ee s 3.05% $7.44

F e seg ele wkes, ll e 0.56% $8.80

ue $10.00 e 83.42%

Footnotes:(1) Estimates or detailed occupations do not sum to the totals because the totals include occupations not shown separately. Esti-mates do not include sel-employed workers.(2) Annual wages hae been calculated by multiplying the hourly mean wage by 2080 hours; where an hourly mean wage is not pub-lished the annual wage has been directly calculated rom OES reported surey data.(3) Wages or the OES surey include base rate, cost-o-liing allowances, guaranteed pay, hazardous-duty pay, incentie pay includ-ing commissions and production bonuses, tips, and on-call pay.

Source: U.S. Bureau o Labor Statistics, Occupational Employment Statistics Surey or New OrleansMetairieKenner MSA, 2008

While the number o jobs in the Greater New Orleans restaurant industry has grown, restaurant workers earningsover the past decade have not. As Figure 2 illustrates, average annual earnings in the restaurant industry have laggedbehind that o the entire private sector in New Orleans. While all average annual earnings in the region have de-clined, restaurant workers earnings have declined at an even more rapid rate. In 2009 dollars, 2001 private sectorannual earnings averaged $37,469, but only $15,435 in the restaurant industry. By 2008, private sector earnings hadincreased to $44,272 a year, while wages in the restaurant industry increased to only $16,870 over the same period.

Tus, private sector wages increased 100% aster than real earnings in other economic sectors, despite growth in therestaurant industry during the same period.


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Food Services & Drinking Places

Total All Industries

Year

AverageAnnualEarnings

10000

20000

30000

40000

50000

2001 2002 2003 2004 2005 2006 2007 2008

FiGurE 2: aege al Egs b is, Geenew oles, 2001-2008

Source: Bureau o Labor Statistics, Quarterly Census o Employment and Wages24

Earnings are deated using the CPI-U or the Southeast.In this fgure, Greater New Orleans reers to Jeerson, Orleans, St. Charles, St. John the Baptist, and St. Tammany parishes.

In sum, while the Greater New Orleans restaurant industry is an important and growing source o income and em-ployment, restaurant workers earnings lag ar behind those o other private sector workers in the city. Te restau-rant industry contributes over 44,000 jobs to the local economy,25 but 83% o those jobs pay less than $10 per hour.Given the industrys growing reliance on immigrants and people o color, it is already marginalized communitiesthat occupy these low-wage jobs.


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Workers Perspectives


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c H a P t e r III

Workers Perspectives

Te information summarized in this chapter represents a compilation of the results of 530 surveys betweenMarch and December 2008, and subsequent interviews and ocus groups with 28 restaurant workers in the begin-ning o 2009. By speaking directly with Greater New Orleans restaurant workers, we gained more insight on thedaily experiences o workers in the metropolitan regions eateries. We were also able to collect new data regardingthe overall quality o their workplace experiences.

Where earnings are concerned, our research results are consistent with existing data the major-ity o restaurant workers we spoke with reported very low wages.

Most restaurant workers do not receive benets such as employer-provided health coverage, paidsick days, or vacation days.

Most restaurant workers we spoke with do not receive regular raises, promotions, or ongoing job

training.

More than hal the restaurant workers in our study are not paid overtime in contravention o gov-erning laws. We also received reports rom some workers that they were not being paid at all orany hours they worked beyond 40 despite routinely being required to do so.

A majority o workers reported health and saety hazards at their workplace, compounded by apervasive lack o health and saety training. In addition, on the job injuries were reported by manyo the workers we spoke with.

Workers reported that assertions o their rights were met with verbal abuse and threats o retaliation.

Workers earning low wages are less likely to receive benets, more likely to be exposed to poor

health and saety conditions, less likely to be provided with job or health and saety training, andless likely to benet rom advancement opportunities. Conversely, workers earning living wagesare more likely to receive health insurance and benets, and work in saer environments.


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A. Introduction and MethodologyAt least one tenth o the workers we surveyed reported earning living wages, and similar numbers reported enjoy-ing comprehensive benets, opportunities or career advancement, and better workplace conditions. While these

workers are in the minority, their experiences refect the reality that some restaurant employers in the industry are

pursuing the high road to protability. Te employer perspectives summarized in the next chapter oer importantinsight as to how the conditions described in this chapter can be addressed.

Tis study was motivated in part by the current dearth o qualitative data documenting the experiences o restaurantworkers in the New Orleans metro area. In an eort to pick up where ocial and industry statistics leave o, the Great-er New Orleans Restaurant Industry Coalition, a gathering o local academics, attorneys, community organizations,unions, and others designed a survey to capture detailed inormation regarding individual workers experiences beyondhour and wage data. Te survey instrument explored the availability o benets, working conditions, hiring and promo-tion practices, the existence o job-specic training opportunities, employer discrimination, and the nature o workingconditions in the industry. Stratied random sampling methods were chosen to provide an accurate proportional repre-sentation o restaurant workers in the New Orleans metropolitan area. Stratication was used as a sampling techniqueto ensure that our sample was truly representative.26 o add to the rigor o the survey design and administration, we

weighted the data according to ront and back o the house in ull-service and limited-service restaurants to improvethe precision o our estimates. Weighting was used to compensate or over- or under-sampling and or disproportionatestratication, and to ensure unbiased estimates o restaurant worker population totals.

Te survey was administered rom March and December 2008 by sta, members, and volunteers rom the Res-taurant Opportunities Center o New Orleans a community-based organization with contacts among restaurant

workers and access to workplaces in the industry. A total o 530 surveys were conducted ace-to-ace with workersthroughout the New Orleans Metropolitan Statistical Area,27 including Jeerson, Orleans, and St. ammany Par-ishes. Surveys were conducted ater workers shits were completed or during breaks. We sought to capture experi-ences in all types o restaurants, and surveyed workers in each o the three main segments o the industry.28 Fur-thermore, our sampling rame, or set o participants rom which the sample was drawn, consisted only o workersemployed in the industry.29

Additionally, in order to obtain a holistic picture o the daily lives o individual restaurant workers, qualitative in-terviews and ocus groups were conducted with a total o 28 workers to gain in-depth inormation about the nature o

working conditions. A general interview guide approach was used to conduct the one-on-one in person interviews. Teguide, developed by Dr. Manny Ness, a Brooklyn College proessor with expertise in low-wage industries, containedstandardized open-ended questions to ensure that the same general areas o inormation were collected rom each in-terviewee. Interviewers were trained how to use the guide to conduct semi-structured, conversational interviews.30

B. EarningsI could not work as much as I would like to but because I dont work a salaried job. I have to go to

work every day to make money. I I dont go to work I dont get paid. What I put in is what I get out.I I work 20 hours, thats like $200. I try to go to work as much as I can because it pays o in the longrun. Because its a small business they try not to let us have overtime because that drains them in a

weird way because its...$5 more so $16.50 every hour over 40. When you put more people in less peo-ple get paid. In my situation I try to work as much as I can. Manager, 3.5 years in the industry,Quick Service

Our survey data is consistent with government and industry statistics demonstrating that restaurant work isprimarily low-wage work.

Eighty-seven percent (87%) o workers surveyed in our study reported earnings o less than $18.31 an hour. Ninepercent (9%) o this group did not earn minimum wage even when tips were accounted or. Only 13.2% o

workers surveyed reported making a living wage. A living wage aords the earner and her or his amily the mostbasic costs o living without need or government support or poverty programs31 and was calculated using theEconomic Policy Institutes Basic Family Budget Calculator. (See side box or wage group denitions).


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METHODOLOGY FOR DEFINITION OF WAGE GROUPS FOR SURvEY DATA ANALYSIS:

r g dmind ih ing ok g k ning inding ip nd diiding h gnm o ho okd p k o, o n-ippd ok, ing hi ho g. wg gop hn d ingh louiin s minimum wg h im h uvy w ondud ($6.55), h Dpmn o Hh nd Humnsi (HHs) 2008 d po in ning o mi o h o $17,600 p , nd h eonomi Poi Ini(ePI) bi mi bdg co. th ooing ix o hon o iing g: ) Hoing, ) ood, )tnpoion, d) Hh, ) tx nd ) Oh i nii. Dniion o g gop nd di iion o h mppopion o gop n n in t 5.

taBLE 5: Wges Ee b res Wkes

Less t Feel m Wge (< $6.55) 3%

Belw pe Le ($6.55 $8.45) 28.1%

Lw Wge ($8.46 - $18.30) 55.6%

Lg Wge ($18.31 ge) 13.2%

Source: New Orleans Restaurant Industry Coalition surey data

Te vast majority o workers in our sample (87%) reported earning low wages, and almost one-third (31%) reportedearning wages below the poverty line. Te impact o occupational segregation, which will be discussed urtherin Chapter V: Segregation & Discrimination, is substantial: even though the median wage o our entire surveypopulation was $10.25 an hour, when workers o color earnings were taken out o our sample, the median wage roseto $12.33 an hour.

louiin do no hv minimum wg, bumpoy in louiin ubj o d minimumwg w. th ning piu i ighy din on ok hn ompd o oh ok do h h n xpion o d minimum wgw i md o wok who guy iv ip. a u, un mpoy in h s o louiin pmid o p h d minimm g o $2.13p ho o ippd ok, ong ip mk p hdin n $2.13 nd h d minimm hog. I h do no, h mpo m p ok hdin.32 In louiin, howv, ippd wok no gnd h minimm g o h indiidhou o hi h hy wok. d guion owmpoy o vg ou hi wok ip ov uwokwk, ompiing h ip king ym ndmking i n o mpomn ioion ndh i lo sndd a (lsa).33

65 o h ok d in o d pod h h on in noh on, nd 15% o h okpod h did no h g o ok in h unids. thi popoion in h n okoi iky vn high givn h poib un owok o po hi immigion u o o hbook mpoymn. Dpi h g impiion oh 1986 Immigion rom nd cono a (Irca),34

whih md i ig o mpoy o knowingy hio ui immign who do no po wu wokuhoizion nd quid mpoy o o himpoy immigion u, mny mpoy wihhom pok d h ndomnd immign id mpod in h ind. vio po ndn oi onm h h n ind poidn ny-poin o undoumnd wok, piuybu o h oppounii o n h by h hou vn whn ning bow dy mnddminimm g.35 cn d i nik o p hning o h ok.


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WHAT DOES IT MEAN TO LIvE ON A RESTAURANT WORKERS EARNINGS?

aoding o h amin chm o comm rh aoiion (accra) co o liing Indx, hih i d onh ompoi pi o goi, hoing, iii, npoion, hh , ohing, nd ninmn, h N Ongion o o iing i on p ih h nion g, mking i n hd o o-inom ok o mk nd m. 36

aoding o h Nion lo Inom Hoing coiion (NlIHc) , hi h i Mk rn o o-doom ni in hG N On mo i $1,030, n xm o-inom hohod (ning $17,940 o 30% o h a MdinInom o $59,800) n od monh n o no mo hn $431.37 On g, n ok ning $10.25 p ho nod monh n o no mo hn $533 o o-doom ni. o ok o od i Mk o n nd iii,iho ping mo hn 30% o hi inom on hoing, hi hohod m n $3433 monh o $41,200 nn. thpi n ok od h o ok ppoxim 82 ho p k in od o od o-doom ni h i Mk n. NlIHc dmind h h Hoing wg h mon im ok m n p ho in odo od o-doom ni h i Mk n in h N On .

C. BeneftsTats interesting that even i I had an option to get health benets, I wouldnt be making enough

to aord the health benets. Its kind o like thanks, but what am I supposed to do? It would be easi-er or me to pay [ or] that one visit than a monthly premium that maybe I would cash in on its niceto have that option but i people cant aord it then whats the point? Female, 20 years in the in-dustry, Bartender

Benets like health insurance? No, they oered me health insurance but I would have to use hal o mypaycheck to pay or it; thats really too expensive or a simple cook that only earns 10 dollars an hour.Male, 1 year in the industry, Line Cook

My benet is me working and getting tips Male, 3 years in the industry, Busser

Te majority o restaurant workers surveyed reported that they do not receive basic workplace benets. Te datain able 6 reveals that the vast majority o workers surveyed do not have health insurance through their employers

(84.5%), over hal (53.2%) reported not having any type o health insurance coverage at all, and a third (32.2%) wentto the emergency room without being able to pay. An overwhelming majority reported that they do not get paid sickdays (88.6%) or paid vacation days (74.2%).

taBLE 6: Jb hel Bees ree b res Wkes

Ele es e el se 84.5%

d e el se ege 53.2%

Ge Er w beg ble 32.3%

d ge sk s 88.6%

d ge s 74.2%

he wke we sk 72.3%


Teres a lot o things actually, I mean Ive seen broke down servers, bartenders, who just keep work-ing because they cant aord not to and they got a sprain or whatever or pulling their back....Tey havesome condition o some kind and they just work through it. Male, 10 years in the industry, Server

Te majority o the workers we interviewed reported that they were unable to get unpaid time o when they neededit, particularly when they were sick. One waiter working in the industry or over ve years reported that I you call


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in sick, you lose your $40 guarantee or that week, reerring to the unique guarantee his restaurant oers servers inthe case that they are not able to make a sucient amount in tips during a shit. Another server who has worked inthe ne dining segment or 10 years explained that people are more likely to try and work through contagious ill-nesses rather than stay at home. As a result, 72.3% o the workers we surveyed reported working while sick. Tesenumbers should be o concern to the general public because ood is one o the major avenues through which com-municable diseases are spread. Tereore, i workers are coming in to the job sick, it endangers the health o theirco-workers, customers and the general public.

I dont get vacation or sick time, unless I got hurt on the jobTere was an incidenta guy got hishand in a mixer and had to go [to the] hospital... so no sick time or real...Every day I work is a day Iearn in dollars and i you leave or a month you really hurt the job, [and] they might nd somebodyelse to take your position.-- Male, 4 years in the industry, Cook

Tere [are] times when I call in and tell them Im sick and they still say you cant come in or a ewhours? Tey dont care! You gonna be sneezing, over peoples ood and stu like that and i you wan-na put a mask on or try to cover yoursel up or whatever then its bad or the business. Tats why youshould have allowed me to stay home, I told yall I was sick! Tats how it is right now [though], they

just dont care. Female, 23 years in the industry, Server

Te signicant lack o health care available to restaurant workers presents a real problem, particularly when 26.3%o workers surveyed with health care pay or it out o their own pocket. One back o the house worker reported be-ing orced to resort to ood stamps because he had to pay or a knee surgery exacerbated by working or a long period

without treatment. Additional inormation on the impact o the industrys lack o benets on workers, taxpayers, andthe public at large can be ound in the Public Cost section o Chapter VI: Te Social Cost o Low-Wage Jobs.

D. Dead end jobsReally aint even no raises and promotions, your job is your set job where you work. I you come in thereand you want to be a bartender, you always going to be a bartender, always. Until you done, until you

get red or you quit. You gonna be a bartender. I you a doorman, thats what you gonna be, you aintgonna be nothing else. Tere aint no promotions in that job, them managers is keeping they managerpositions, they aint going nowhere. Female, 2 years in the industry, Server

Restaurant workers have ew opportunities to advance in the industry (see able 7). Regardless o occupation, restau-rant type, or length o service at a restaurant, workers reported that opportunities to increase their earnings throughseniority or by working their way up the industry ladder are ew and ar between. Sixty-nine percent (69%) o surveyrespondents reported that they do not receive regular raises, and 73.6% o workers responded that they had not beenpromoted since starting at their current place o employment. Tese trends held whether a worker remained in thesame place o employment or sought other opportunities 72.9% o workers surveyed said they had not moved uprom their last job when they took their current one. Moreover, hal (53%) o workers surveyed reported that theydid not receive on-the-job training needed to be promoted.

taBLE 7: rses ps ree b res Wkesd eee egl ses 68.8%

he ee bee e e jb 73.6%

d e s ls jb e e jb 72.9%

d eee -gg jb g eee be e ele 53%



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I just took this job to pay the bills, and now Im trying to get out. [My boss] mentioned that I couldbe promoted, except I dont have transportation. She[another server] got here two years ago and gotthis job as a side job and she is still doing this 2 years later. Shes 18 credits shy o a B.A. in Educationwhich would be great or her, Here in the city [they] cant nd enough qualied workers to ll the jobs

available,[but] she has a kid, no benets, shes on WIC, clearly not meeting her own nancial needs.Her husband is a bartender. So or whatever reason shes stuck in this situation. My biggest ear is get-ting stuck here, so my motivation to stay is because I need to pay bills. Female, 3 years in the indus-try, Host & Server

Te lack o movement between ront and back o the house workers emerged as a recurring theme in the interviews.One host in a ne dining establishment explained that even or ront o the house workers, there exists a hierarchythat locks people into certain positions: [o become a captain], there is a little bit o a glass ceiling there. I am notquite sure that I would be chosen as a captain, just because Im a emale. Its rare or a woman to be a captain, andits even rarer or emales to work in the main dining room. [Even though] Ive seen it happen a couple o times,thats my goal. For immigrant workers and workers o color in the back o the house, a lack o mobility is bene-cial or employers taking the low road and applying it to business. A back o the house worker who has been in theindustry or ve years shared the advice he has received: Speaking English is not very important. Cooking skills

are more important as long as you know the names o the dishes. Tere are so many Latinos that it doesnt matteri you speak English.

Most o the workers with whom we spoke with who had been in the industry or three years or more reported hav-ing no choice but to leave an employer in search o better opportunities at other restaurants. Not only does the con-stant search or a better job deny workers job stability and economic security or themselves and their amilies, but italso ends up costing employers in turnover-related costs. 38 Tese two actors lead to a no-win scenario, and greatlythreaten what could be a shared economic prosperity, as discussed in greater detail in the ollowing chapter.

I was there or a month. Tere were some payroll disputes. Tey promised me $8 per hour when I start-ed, then cut me down to $5. I was a busser, ood runner, backwaiter, and a dishwasher. Ater that, Ihad to leave Male, 6 months in the industry, Busser

Tere was a lack o opportunity [at ne dining establishment] in moving up into another position. Ithought [the way I was being treated] was very wrong and very unair at the time and I just quit. Iwas bussing tables or over a year ater I had been running ood or six months. I worked there or along time and nothing was happening. Ten all o a sudden some Anglo that was less qualied than Iwas got a job as a waiter and I thought what is going on here? I went up to the [manager] one nightater I ound out and said Im gonna quit okay, ater tonight Im quitting. And I quit. Male, 33

years in the industry, Busser, Runner, Server & Bartender

E. Employment and Labor Violations

a mniond in sion b o, h no minimm g in loiin. rn mpo in h s o

loiin pmi d o p g o $2.13 p ho o ippd ok, g h h d h m in 1991.39

In pingok $2.13, mpo on ip om om o p h din n ok ippd ho o $2.13 ndh d minimm o $6.55 p ho ( h im h ondd). Ho, i ip do no ing h ok p ominimm g, mpo poni o mking p h din. whi ip-pooing nd ipping-o ommonpi in mo n, i i n o mpo o k ip om n ok.40 Ining, 69.2% o nok d no o h o d minimm ho g o ippd ok nd 88.6% did no kno h$6.55 h d minimm ho g h im h ondd. b loiin do no minimmg pi o h , mpo m oo d gion mndd h Dpmn o lo. On J 24, 2009h d ho minimm g ind om $6.55 o $7.25.41 c, mo pi dion, o ok nd mpoik, i ndd ih p o goning in h n ind.


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Tis is one o the places where the guy goes to the store or goes to another restaurant and gets ood theyneed at the other one that day..takes money out o the register to pay you, i you dont like it you can just

go home...I got tired o hearing too bad i you dont like it, so Im doing less shits there now. Over halo us get our money when were done working, and i we dont get it when were done working, too bad

theyll get it to you when they can. Male, 17 years in the industry, ServertaBLE 8: Ele Lw vls ree b res Wkes

Eeee ee wge ls 38.1%

Wke e lk w 27.8%

mgee k se s 5.6%

Eeee wge ls 3%


As illustrated by able 8, many workers reported being paid less than minimum wage and receiving no overt ime paywhen they worked more than 40 hours per week, in violation o both ederal and state wage and hour laws. Tirty-eight percent (38%) o all workers surveyed told us they were not paid overtime or hours worked beyond the stan-dard 40-hour workweek. As one worker working in a ne dining establishment explained, were all required to goin at 4 pm but not clock in at 4 because the restaurant doesnt open until 6pm. We got to clock in ater the meetingand do other work, so I always worked 1.5 hours extra. While workers rom ne dining reported a higher propor-tion o management stealing tips (18.8%) and minimum wage violations (4.6%) than the general survey population,employment violations occurred in every segment o the industry.

When theres a lot o work, or rather, when it s really busy it doesnt matter i you work 10 to 20 hoursand i its busy still and you are there you cant leave; this is now your schedule. Tis is to say it was5-10pm but because its busy you [now] have to stay until 2 or 3 in the morning. Male, 2 years inthe industry, Line Cook

Tis [one ne dining establishment] would adjust the hours so that they didnt have to pay me. For

every hour that you dont make [enough tips to make up the dierence between the regular minimumwage and the tipped] minimum wage they are supposed to supplement your income so that you make[the regular] minimum wage, but what this restaurant would do is change my hours so that it lookedlike I worked less so they wouldnt have to pay me the extra money. So they would give me my tips, butthey wouldnt pay me or all the hours I worked. Female, 7 years in the industry, Server

Some workers we interviewed reported being paid a fat rate no matter how many hours they worked, a practice com-monly reerred to as shit pay. However, the Fair Labor Standards Act mandates that i workers are scheduled ora shorter shit and they end up working more than eight hours or more than 40 hours per week, employers must payovertime.42 A server with three years o experience in ne dining establishments in the French Quarter explained apractice that over hal o all workers we interviewed also reported: when working in more than one position, an em-ployer will split the number o hours worked into dierent days and weeks, in order to avoid paying overtime.


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wh h do i h gi o hi , ik hn o oking h. whn o go in o ining o d, o dong pid no mon o h, o don g pid ho g, o don g non o o ip, o don g nohing. tho ining d, o d o ok, h ho h o. and h h do i mk o ok on h i nigh hh n hink o. and hn h h p o pop, h in giing o no nh, o in ging no nh no m ho

ong o oking. and o n i don, o go on o nd h migh hi o o 14-15 ho, nd o gond p, o nno i don, n on nohing. th h o nning o h p ik diing. and hn hoh do o i h i ok o x ho, h i ok o o im, h h do i [in] [ihmn] hp o, o o go [on ihmn] h, [on] h, nd h pi o p nd h gi o din im d o [ihmn in h m ompn] h o ok , nd h on i p o h o n ok oim o n ok in h m p oim. I mo o h h do. and hn o ip-o go, ,ho mn ok o migh h, o pop o h in pizz, h pop o h oking diqii nd o go omng iing on hi igh h, nd h nd o h nigh h on pon ho n oh h mon i h mng, ndh on h mon nd h pi h ip n od h oking h nd him, h g ip poion oo.H piing h ip n 1,2,3,4, 5, 6, [o ] o in ging nohing!- m, 2 in h ind, s

Several workers told us they were paid a xed rate on a bi-weekly basis, regardless how many hours they worked, andas a result, their average earnings were always less than minimum wage. A cook who has been in the industry or

13 years explains that at a previous ne dining establishment he would get paid $100 a day, which would be brokendown into 12-hour shits even though he would work up to 18 hours or that day. Based on the hours worked perday, his hourly wage equaled $5.55 and even though as a busser and barback he was entitled to one to ten percent othe bartenders tips, it depended on what they made and how they elt. Te bartenders decided to tip us out as they

wanted. A bartender who has been in the industry or 5 years explains that she was promised a weekly $250 salaryin cash and is still owed the money: I mean, Ive been [there] 60 hours a week average since they opened. And heowes me or last week, [yet] we wants me to continue working and he said hes not gonna pay me til next Tursday

when he get the checks. Now hes gonna start paying people payroll checks, but the payroll people havent come byyet or him to start that. Tese experiences illustrate the importance o qualitative studies in industries such as therestaurant industry, which are not closely regulated and rely heavily on inormal employment arrangements, as many

workplace practices are not reported to government agencies or industry associations.

Sometimes when we work overtime they dont pay us regularly, but rather they pay us outside o thecheck. Another thing is called the F; sometimes we go to work and we are not paid and we are giv-en a policy. For example one time I earned $250 and they gave me $50. I led a complaint and thenwaited. And then went to get my money rom my boss who gave it to me in a check. Tis all took abouta month that I kept going back or my check but now he has paid me all my money. Male, 2 yearsin the industry, Line Cook

But i you do a party, it doesnt show up on anything and they cut you a check whenever. Tey hadpeople in April still waiting to get paid or Mardi Gras parties! [Employer] said Well give it to youwhen we give it to you and i you dont like it go somewhere else. I you dont make a big deal out o it,

you may not even get it. Male, 17 years in the industry, Bartender

Tree percent (3%) o workers reported being paid less than the ederal minimum wage, in violation o the law. In theState o Louisiana, employers may pay as little as $2.13 an hour to tipped employees, as long as they receive enoughin tips to make up the dierence between the tipped wage and the ederal minimum wage o $6.55 per hour at thetime our survey was conducted. On July 24, 2009, the ederal minimum wage increased rom $6.55 to $7.25 per hour,

while the ederal minimum wage or tipped workers was let unchanged at $2.13 per hour.43 I tips are insucient tobring workers up to the ederal minimum wage o $6.55, however, employers are obliged to make up the dierence,as it is their responsibility to make sure that all tipped employees earn at least the ederal minimum wage ater tipshave been accounted or.44 Nevertheless, o the workers we interviewed, several reported being paid no hourly wageat all and subsisting on tips alone, oten averaging out to an hourly rate ar below the legal minimum.

More than a quarter (27.8%) o the workers we surveyed reported working o the clock without pay. One worker


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with a 23 year career reported that working two shits created an error where she ended up working or ree: Iworked a double shit last week and when I came up in there and put my time in when I went out or lunch my timecame back out, but when I came back in no receipt came out. [I didnt clock back in and worked ve hours unpaid].So Im like look wheres my ve hours? I was working, I was on the schedule. I aint crazy. Ive been in this businessa long time and I need to pay my bills. Other workers reported having to end their shit early and still work, oten-times receiving no pay. When asked why they had to end their shit early and still work, these workers explainedthey were too close to earning overtime, yet decided to work o the clock because they needed the opportunity toearn more in tips. Finally, 5.6% o tipped workers reported that management was unlawully taking a share o theirdaily tips a burden to workers who are already being paid very low wages.

So Ive asked, i theres only these two people why does this percentage still hold? Shouldnt I be givingout less money? So who gets that money? Tats been my question, where is that money going? Andthen sometimes you dont even get to see [your tips]. I I m working the door, I might not see the serv-er report until the next day. I that happens, youre not going to get the report youre just going to getwhatever money they give you.-- Male, 17 years in the industry, Host & Server

A busser will be paid a higher hourly wage because theyre not going to be tipped as well [Tey] are de-

pending on i they are being tipped out by servers. And then the servers in New Orleans, up untilrecently, were getting maybe still $2.13, and then as you said some bartenders are getting $5 or $6, sotheres this like who [keeps track]?. So you get all this unkiness about tip out stu, and then people aretrying to hold onto their jobs, so they got to pick their battles, right? Tey cant get a new job and thenstart arguing about money because they want to stay on, try to keep the money owing. Male, 10

years in the industry, Server

F. Health and Saety ViolationsIn some restaurants people are doing a lot o physical labor, like I work at a three story restaurant

where I haul trash cans o ice up three ights cause during business you cant use the elevator. --- Sothere is this go, go go! type o attitude and people wind up doing crazy stu like pulling things or slip-

ping on the stairs. Broken glass, people getting their hands cut, [etc]. You know, youre in a ne din-ing restaurant with the crispy bread and the knie slides along the bread into your nger. Ive seen thatseveral times. Grease res and burns in the kitchen, Ive seen a lot o those kinds o health concerns.

And I think its just, people are generally in a high risk health situation. I think I have seen a mini-mum o stu that... I have seen a lot o just not healthy stu or the worker. Male, 13 years in theindustry, Server

Our survey data also revealed that restaurant workplaces commonly do not employ or enorce regulations designed toensure the health and saety o workers, in violation o the ederal Occupational Saety and Health Act (OSHA). 45

taBLE 9: hel Se vls ree b res Wkes

usel e ke 23.8%

Fe zs e es 25.8%mssg s e f ee slg 36.8%

mssg gs g es 24%

de seg w se sk 29.3%

d eee s g b wkle se 28.1%


As shown in able 9, twenty-our percent (23.8%) o workers surveyed reported that it gets unsaely hot in the kitch-en where they work. Signicant numbers o workers reported re hazards such as blocked doors or non-unctioning


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re extinguishers in the restaurant where they worked (25.8%), as well as an absence o guards on the cutting ma-chines (24%) and mats on the foor to prevent slippage (36.8%). wenty-nine percent (29.3%) reported having donesomething at work that put their own saety at risk. Despite the prevalence o health and saety hazards in restau-rant workplaces, more than a quarter o the workers (28.1%) told us they did not receive health and saety trainingrom their employers.

taBLE 10: Wkle ijes ree b res Wkes

Be wle e jb 43.5%

c wle e jb 42.4%

Sle je wle e jb 15.4%

ce w els wle e jb 39.9%

he se wsee b e jb 16.4%


able 10 demonstrates that workplace injuries are pervasive in Greater New Orleans area restaurants. 43.5% of allworkers surveyed or 225 workers out of the 516 workers eligible to answer the question - had been burned onthe job. Forty-two percent (42.4%) o workers surveyed had suered work-related cuts on at least one occasion, and39.9% had come into contact with toxic chemicals. Fiteen percent (15.4%) reported that they had slipped and injuredthemselves while at work. Additionally, 16.4% reported chronic pain that was caused or worsened by their job.

My legs hurt at the end o the evening. Beore I got this job I bought a nice pair o shoes and inserts.Tats the only thing. In the past year Ive started having wrist pain. Sometimes when I grab some-thing I cant hold it, my wrist hurts but [its] better lately. Not a lot o heavy trays to carry or anything. Female, 3 years in the industry, Host

Te stairs at [ ne dining employer] are hell. I dont know i all o you have been in there, its all thoselittle spiral staircases, thats a lot o steps; have to carry trays o ood up and down, bus tubs o dish-es and I have arthritis in my knees and I couldnt aord to take time o. You have to work through the

pain or take the time o. Male, 6 months in the industry, Busser

things happen, things break down but there is a point to where it can hurt business when you havecertain things put out there. Our ventilation system went out in our kitchen in the middle o July, itshot its evening time, I mean it was over 90 degrees outside and they had shut the ront doors becauseits open air seating, I mean smoke is just piling into the dining room. I mean its smoke rom cookedmeat, its probably not gonna kill you but it s probably not great or you in excessive amounts, especiallyi you are working in a hot kitchen. Id go back there and Id see cooks that have towels on their headsbecause theyre so hot. Ive come to nd walking into the kitchen ater 10 oclock is really an art, to notbust your ass just because everyone wants to pull mats and rinse them out so they can go home. And Ihave seen people all and it hurts, Im sure. Female, 8 months in the industry, Bartender

taBLE 11: Wkle pes ree b res WkesWke we e es ws ese 86.3%

pee seel jbs e 86.1%

Eeee ebl bse sess 29.4%

pee jb e 41.8%

de seg e e esse s w el se sk 29.3%

de seg e e esse g e e e el se ses

14.4%



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Final ly, able 11 reveals that understang, which places inordinate pressure on workers, is a common industry prac-tice. An overwhelming majority o respondents reported working when their restaurant was understaed (86.3%),and a similar number said they have perormed several jobs at once (86.1%). Forty-two percent (41.8%) respondedthat they have been required to perorm jobs or which they had not been trained, and 29.3% o workers reporteddoing something that put their own saety at risk. And, as previously discussed, nearly three ourths o the workers

we surveyed reported working while sick (72.3%). Such low road workplace practices not only aect workers, butcan also have serious consequences or consumers. Fourteen percent (14%) o workers reported doing something thatmight have put the health and saety o the customer at risk as a result o time pressure. In act, as urther discussedin Chapter VI: Te Social Cost o Low-Wage Jobs, survey data indicated a correlation between health and saety

violations and impact on consumers.

[Ive experienced] just the usual burns or cuts every now and then. Other than that nothing much. Iate something that wasnt good. Te other day I was making baked potatoes at [French Quarter res-taurant], and I stopped and had a steak with the potato at a dierent restaurant, and I elt terrible a-terwards. Broke out in sweats, thought I would throw up. I think the sour cream was bad. I dont geta meal at [another French Quarter restaurant] because its a steak and lobster house and he cant aordto eed me there. Male, 17 years in the industry, Barback, Busser, & Bartender

th d Occupational Saety and Health Act (OsHa) impo ndd o hh nd in h okp, qiingmpoy o povid poion o wok in hzdou nvionmn nd o kp od o wokp injui ndidn. OsHa o oxi hmi h qi go, o xmp, o dihh nd kihn nho h oxi hmi nd mp o ok nionmn, inding xi ho kihn. whi hi no mndo qimn h mpo poidd ih pi hh nd ining, h ining i in o n ompin ih OsHa nd ok ompnion . OsHa in G N On i pnding hn pn o i o on hh poion, nd om poin o hi on o h h h gnhigh o idn nd inji in h N On gion hn in oh OsHa gion. 46

In ddiion, mpo in h s o loiin m ok ompnion inn o mpo. loiinwok compnion o ip h, poidd h mpo i inomd o n okp idn ihin 30 d,ok d mdi xpn i od. wok o n o ok d o okp inj, nd xdompnion o n pmnn diii.47

H. Hurricane Impact on Restaurant WorkersI nd its worse ater Katrina, like beore Katrina I was pretty much well, just was working, I wasokay, stability was there, everything was good, management was great. Now its like everybodys justlike dogs, get in where its at you knowlike look, you want a job, people struggle, either you gonnawork this place or not; you in or are you out? Female, 23 years in the industry, Server

In 2005, Hurricane Katrina severely damaged the New Orleans area, fooded 80% o New Orleans, devastated thelocal economy and displaced more than one million people, most o whom were low-wage workers o color.48 Ac-cording to the Louisiana Department o Health, 1,464 people died, and hundreds o thousands o residents wereeither unable to return or missing.49 Perhaps the most devastating eect rom Katrina on New Orleans was thechange immediately ater the storm hit, as shown in able 12. While the metropolitan region was always majority

white, it still experienced tremendous change; perhaps the most notable changes were the declines in the Arican-American population rom 36.6% o the population to 21.7% o the population, while whites increased rom 59.3%o the population to 73% o the population.


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taBLE 12: ple Geel deg ces Gee new olesJs Bee ae he K

Geel deg cess J g ags 2005 Seebe g deebe 2005

tl l 1,190,615 723,830

re

We 59.30% 73.00%

Blk a ae 36.60% 21.70%

hs L ( e) 5.80% 6.20%

Source: U.S. Bureau o the Census, American Community Surey Gul Coast Area Data Profles, 2005.

Pre-Katrina, accommodation and ood services was the third largest industry in one o the regions hardest hit by thestorm, the Lower 9th Ward, second only to the health care and retail trade industries.50 Te French Quarter had thelargest concentration o restaurant employees and nearly one out o our (23.7%) jobs available were in the New Orleanstourism and restaurant industry sectors. Since Hurricane Katrina, the New Orleans economy has recovered dramati-cally, and the restaurant industry in particular claims more establishments post-Hurricane than pre-Hurricane.51

Numerous studies have shown that socio-economic status plays an important role during the recovery rom a disas-ter.52 Limited access to income and transportation are signicant barriers to a residents ability to respond to impend-ing hurricane threats and to recover ater disaster strikes. Interviews with restaurant workers indicate that duringKatrina, many o them could not leave and had to stay in New Orleans due to, as one back o the house worker said,a lack o unds. Even though more than 200,000 residents evacuated or Hurricane Gustav in 2008 making it thelargest evacuation in Louisiana history, several restaurant workers we interviewed stayed. A busser rom Mexico

who has been in the industry or eight years explained that when an evacuation order is issued, he preers to staybecause I can [easily] nd work. In act, several employers that we interviewed explained that they oten had di-culty nding experienced workers to hire during and ater mandatory evacuations post-Katrina, even though theyremained open or business.

Despite the signicant decline in economic activity throughout the country, the New Orleans economy has done

relatively well, particularly because o its high service-industry composition. Low oreclosure rates and ongoing re-building activities are attracting more people, jobs, and investments.53 Te New Orleanss economy is growing, ac-ing an increase in the cost o living and a decline in the rate o returning residents. Unortunately, restaurant workers

wages and working conditions have not similarly improved.

Results rom our survey data indicate that 56% o all workers surveyed reported being aected by Hurricane Katrina.However, since we were only able to survey restaurant workers in 2008, we were only able to survey those who re-turned to the region ater Katrina. Tereore, the number o restaurant workers actually impacted is probably muchhigher. Unortunately, many good jobs were lost in the storm. O the workers we surveyed, 68.4% that made a living

wage ($18.30 per hour) reported that their jobs were aected by having to evacuate or Katrina. One o the majorissues that emerged in worker interviews was the act that workers would return rom a mandatory evacuation dur-ing any o the recent hurricanes Katrina, Gustav, or Rita to nd that they had been replaced at their restaurant

workplace, and had thus lost their job.

With Gustav I was working oshore, I was actually home at that moment. [When] we evacuated Ihad to call in every day to a guy that I couldnt reach because he lived in Houma, so when everybodystarted coming back we all went back to work, took 3 weeks. It took that long because [the] Houma guywas unreachable. [I] didnt get any pay at all or these 3 weeks. No compensation. [I] went to Arkansasand [had] about $1000 in evacuation expenses. We were out 3-4 days then migrated back. [I] lostabout $5,000 in this experience. [It took me] about a month [to recover my nancial loss]. We got oodstamps. Tat was it I think - $600 more or less between 2 months. Manager, 13 years in the in-dustry, Quick Service


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Many Bad Jobs, Few Good Jobs[Fine dining establishment] was great. I was a server there. Everything went exactly how I thoughtin my mind how a restaurant should go. I loved working there. I started as a bartender and then be-came a server because I could make more money. Te company was great as well. But when I worked

or them we were part o a union. Male, 18 years in the industry, Server

Analysis o our data revealed the existence o not only the low road practices described above, but also o signicantassociations between workers earnings, benets and workplace conditions. Unortunately, since many o the jobsin the restaurant industry are long-term, these conditions cannot be dismissed. Workers surveyed reported work-ing in one restaurant or an average o two years, and one out o our workers surveyed worked in the one restaurantor three years or more. Hal (53.3%) o the workers that reported working in the same restaurant or six or more

years were workers o color. Additionally, there was a signicant relationship between workers that reported receiv-ing promotions and the length o time they stayed working in one restaurant. Fity-six percent (56%) o workers

who stayed in their restaurant or six or more years received a promotion, while only 25.2% o workers who workedbetween one and three years in the same restaurant received a promotion. When combined with ndings rom theinterviews, these statistics indicate that many o the workers are quitting their jobs to nd others that provide better

opportunities and higher wages. Te median hourly wage reported by workers in one restaurant or three or moreyears was $11.54, compared to $8.50 or workers in the same location or only one year or less.

O the 530 workers we surveyed, the vast majority reported working 40-hours per week (74.1%), year-round (97.1%),and or more than one year in one restaurant (72.7%). Clearly, most workers make a career out o the restaurant in-dustry, and several workers explained that turnover rates are high because they are constantly seeking better jobs.One worker who has worked ront o the house positions in the French Quarter or 17 years suggests that the in-dustry should oer incentive [promotions] right o the bat, [then] they would get quality, longer term people. Telonger [people] would stay, the more serious they would be. Tey wouldnt be getting people that are just coming inand out [o dierent restaurants].

So I let there in 1997, and I have been at [amily style establishment] since then. Ater jumpingaround the city I ound my niche. Here is a guy that actually gives a damn about his employees, he takes

care o them. Tis guy, hes not perect but he puts his money where his mouth is. He has a good 401kplan, hes got a good insurance program or people whove been there the longest. He takes care o peoplewho dont want to be on his insurance plan, he ll set you up on another one that is ree (higher deduct-ibles but is ree)Youve also got dental...You can talk to the managers and dont eel like you are go-ing to go in ront o the tribunal....Every place its not perect, but compared to my experience in other

places in this town. I have to say that or better or or worse Ive been there or over 12 years. Male,33 years in the industry, Busser, Runner, Server & Bartender

Our research shows that when workers receive low wages and experience a lack o promotions and benets, theyrequently encounter a large number o additional poor workplace practices, creating an industry o many bad jobsand ew good jobs. Specically, our data demonstrates that workers in low wage positions are:

Less likely to receive regular raises and training needed to advance. Conversely, workers in living

wage jobs are more likely to be promoted when they move rom one job to another than workersearning wages below the poverty line.

Less likely to receive important workplace benets, such as health insurance, paid sick and vacation days.

More vulnerable to violations o employment laws, especially overtime pay violations.

More likely to have been orced to do something that has put their own saety at risk. Workerswith living wage jobs were less likely to be subjected to working conditions that put them or theconsumer at risk than workers earning lower wages.

More likely to have done something under time pressure that might have harmed the health andsaety o the consumer.


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While the number o jobs available in the restaurant industry is growing, our survey data and interviews with work-ers demonstrate that the industry is plagued by a number o serious problems. Presently, most o the jobs being gen-erated by the industry are bad jobs characterized by low wages, ew benets, ew options or upward mobility andillegal workplace cond

Documents

Behind the Kitchen Door: Inequality, Instability, and Opportunity in the Greater New Orleans Restaurant Industry