Landmark Settlement Reached in Racial Pay Disparity Case at Applebee’s

This article was originally published in Workers World Today. Read it here.

The National Center for Law and Economic Justice (NCLEJ) announced its settlement in a case against Applebee’s. 

The case involved a violation of the National Labor Relations Act. Applebee’s owners, Apple-Metro, Inc., agreed to settle with the NCLEJ. The suit was initially brought to the NCLEJ in the spring of 2023 when Justin Onwenu, a black server who worked in the Bronx location of Applebee’s, was wrongfully fired for organizing his coworkers to stand up for their wages. 

“This settlement is so meaningful because it reinforces what the law already makes clear and asserts that workers, even those not protected by a union, are protected by the law when engaging in Protected Concerted Activity, that workers have the right to speak up about equity and fairness,” said Attorney Marcela Jimenez Rodriguez.

Onwenu’s complaint began when he learned through inquiries that there was a wage disparity between the restaurant’s branches in Manhattan and the Bronx, where he worked.

Onwenu recalls that at the time, the South Bronx location earned $10, while the Manhattan location paid $15. 

“I was frustrated by this,” said Onwenu. Onwenu suspected the reason for this disparity was race.

Wage discrimination based on race remains a persistent issue in the United States. Despite progress made during the Civil Rights Movement and the implementation of anti-discrimination legislation such as the Civil Rights Act of 1964, significant disparities in earnings continue to exist between racial groups, particularly between white workers and Black or Hispanic workers.

According to data from the U.S. Bureau of Labor Statistics (BLS) and the Pew Research Center, in 2023, Black men earned approximately 75 cents for every dollar earned by white men, while Hispanic men earned about 73 cents. 

The gap is even wider when comparing Black or Hispanic women to white men, with Black women earning about 66 cents and Hispanic women earning roughly 58 cents to the dollar. 

These disparities are not solely attributable to differences in education, experience, or industry; studies controlling for these variables still find significant racial wage gaps, pointing to discrimination as a key contributing factor.

“People of color, and the tipped minimum wage exacerbates existing economic inequalities and makes it more likely that these workers will live in poverty,” said Anjana Malhotra, the senior attorney at the National Center for Law and Economic Justice who represented Onwenu.

When Onwenu began to organize his coworkers to pursue a wage adjustment, the company fired him. His firing was a violation of the NLRA. Onwenu brought this complaint to the NCLEJ, which then filed a legal complaint against Apple-Metro, the owners of various Applebee locations across New York.

The NLRA grants workers the right to organize, form, or join labor unions without fear of retaliation. Section 7 of the Act states that workers have the right to “self-organization, to form, join, or assist labor organizations, to bargain collectively through representatives of their choosing, and to engage in other concerted activities for collective bargaining or other mutual aid or protection.” 

“This case underscores that all workers have the right to organize under the National Labor Relations Act,” said Onwenu.

Addressing wage discrimination requires multifaceted solutions. Stronger enforcement of anti-discrimination laws, increased transparency in pay data, and corporate accountability in diversity, equity, and inclusion (DEI) efforts are critical. 

The National Labor Relations Board settlement confirms that Apple-Metro must notify former workers of their organizing rights under federal law after Onwenu was fired just hours after filing a discrimination complaint.

“We need workers to have the right to organize in their workspaces without fear of retaliation,” said Saru Jayaraman, President of One Fair Wage.

“Proves that workers do have the right to organize against discrimination,” said Jayaraman about the meaning of this settlement.

“I am hopeful that all workers in New York and around the country will have the right to one fair wage for everyone so that people can really meet the standard of living and see the cost increases that everyone is seeing,” said Onwenu.