Justice

L.A. Restaurants With New Fair-Pay Practices Stand Accused of Price Fixing

A class-action lawsuit has been filed against businesses that charge an extra 3 percent to cover employee healthcare.  
Flickr/Mike Arney

In Los Angeles, a class-action lawsuit has been filed against a group of high-end restaurants that add an extra 3 percent fee on customers’ bills in order to cover employees’ healthcare. The plaintiff’s allegations arent about the surcharge itself, but rather argue that it’s an example of price-fixing, which does violate the law. CBS Los Angeles reports:

Roxane Polidora is the leader of the Antitrust & Competition Team at the multinational law firm Pillsbury, and advisor to the State Bar of California's Antitrust and Unfair Competition Law Section. She says that the plaintiff will have to prove that there was true conspiratorial action among the restauranteurs, which seems unlikely.