Panera Bread restaurants are common throughout New Jersey, but a string of stores run by a particular franchisee in nearby states has recently been the subject of an employment discrimination lawsuit. Earlier this week, the two sides reached a settlement in the case, although the exact amount of the damages is unknown at present.

The case involved allegations of racial discrimination against African-American employees. According to the plaintiff’s claims, management precluded black employees from operating cash registers or serving customers, forcing them instead to work in the kitchen preparing food, where they would be out of public view.

The terms of the settlement require the franchisee to pay affected workers compensation representing the additional wages they would have received–70 cents per hour–if they had been promoted after working at the restaurant for over one year. Affected workers include black employees who held positions in excess of one year at any of the franchisee’s stores from Jan. 2008 to Jan. 2012. According to the plaintiff’s attorney, approximately 200 to 300 people may be eligible for compensation.

In order to alert workers who may have been the victims of workplace discrimination, the federal judge in the case has ordered the franchisee to take out space in local newspapers where it runs Panera Bread restaurants. The franchisee has its operations primarily in the Ohio River valley, with stores in Ohio, Pennsylvania, Kentucky and West Virginia.

Racial discrimination in the workplace is barred by both federal and state laws. Employees should know what rights they have and what options they have for recourse if they believe they have been unfairly discriminated against in the workplace.

Source: Associated Press, “Ohio franchisee who runs Pa. Panera stores agrees to settle black worker’s discrimination suit,” Sept. 18, 2012

• It is important to remember, however, that some of an employer’s unfair actions may not provide a cause of action in court. You can learn more by visiting our Mercer County employment discrimination page.