In a recent ruling that may serve as a warning shot to employers citywide, former workers at the iconic Signature Room at the 95th have been awarded a hefty $1.5 million in back pay and benefits. According to the Chicago Sun-Times, the establishment, which previously commanded panoramic views of the city's skyline from the former Hancock Building, was shuttered last September without providing the mandated 60 days' notice, violating state law and leaving employees scrambling.
The lawsuit, brought forth by Unite Here Local 1 on behalf of the 132 impacted workers, argued that the sudden email notification sent at the dawn of the closure was insufficient under the WARN Act's requirements. Moreover, the unforeseen shutdown sent a ripple of financial insecurity among the staff. Chicago Eater details that on top of severance, the federation claims the former Signature Room employees were owed pension payments and continued healthcare coverage during what would have been the notice period.
Hailing the resolution of the case, U.S. District Judge Harry Leinenweber ordered Infusion Management Group, the former operator of the Signature Room, to cough up the $1.5 million sum along with $22,725 in attorney fees. Celebrated by the union whose members include predominantly individuals of color and a significant number of long-term employees, the decision acknowledged the decades of contributions by staff, some of whom marked thirty years of service just last year.
Despite the celebration slated for Thursday outside the towering beacon at North Michigan Avenue and East Delaware Place, the case highlights the vulnerability of hospitality workers in a still-recovering post-pandemic economy. The reasons behind the Signature Room's closure are disputed, with some pointing to failed lease negotiations while, according to a report by Chicago Eater, others blame a downturn in business attributed to the pandemic's lingering effects. The landscape is further complicated by legislative changes to tipped minimum wage practices, a matter that has restaurant owners on edge with respect to future operations.
For the former employees of the Signature Room, the legal victory is bittersweet. It underscores the challenges faced by unionized labor in the hospitality industry, which is increasingly vocal in asserting its rights. Rick Roman and Nick Pyknis, owners of the defunct restaurant, have yet to publicly address the lawsuit's outcome or the allegations that led to it.
