That’s one pricey cheesecake!

October 29, 2004

When employees at publicly traded companies charge that the company violated wage and hour laws, investors invariably wind up footing the bill for the back pay, penalties, and (of course) the legal fees. And that bill is invariably more expensive than whatever it would have cost to pay the employees in the first place. That’s exactly the situation at The Cheesecake Factory (CAKE) a fast-growing casual restaurant chain. In its recent Q, the company notes that in September and October it had mediation discussions with plaintiffs attorneys representing several employees who have filed suits against the company. Based on those discussions, the company disclosed that it has set aside $4.5 million, but adds that the figure may change over time

P.S. Don’t forget to keep those contest entries coming.

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