LAX’s Largest Concessionaire HMS Host Faces Class Action Wage Lawsuit

Press Contact: Maria Hernandez | 623-340-8047 | mhernandez@unitehere11.org

Contact for Lawsuit: Lauren Teukolsky | 626-522-8982 x 101 | lauren@teuklaw.com

Copy of complaint here

Los Angeles, CA. Laid off airport workers announced a class action lawsuit on the steps of Los Angeles City Hall Thursday alleging that corporate giant HMS Host failed to pay wages owed its workers under the City’s Living Wage Ordinance and California law.

“Unemployed workers needed their earned wages in the middle of a global pandemic to pay for rent, groceries, medical bills and the other necessities of life. If our claims are successful, we estimate that Host could owe several millions of dollars in back wages and penalties. We hope that justice will prevail and these workers will be made whole,” said Lauren Teukolsky, an attorney representing the plaintiffs.

Lawyers and plaintiffs confer over class action lawsuit against HMS Host

The suit alleges that HMS Host has failed to pay the plaintiffs Debra Lewis, Marlene Mendoza, and Lotus Perez-Silva and other workers the minimum living wages for airport workers required by the Living Wage Ordinance and that the company failed to rectify the problem even in the face of multiple complaints from employees. The suit also alleges that HMS Host failed to pay workers their vacation time when it carried out a mass layoff in March and April 2020. California law requires employers pay employees all wages and accrued vacation time immediately upon layoff.

“Fifty cents per hour may not sound like a lot. Unused vacation pay may not sound like a lot. But to all of us who were laid off back in March, it means food, it means gas, it means shelter. That money can mean the difference between hope and hopelessness,” said Debra Lewis, a plaintiff in the case and HMS Host worker at LAX for 34 years. “I am proud to be standing up for myself and my coworkers and have filed this lawsuit to ensure we are paid everything we are owed under the law.”

Debbie Lewis, HMS Host worker and lawsuit plaintiff

HMS Host is the largest operator of airport concessions in North America and at LAX. Its parent company, Autogrill, is owned by a family of Italian multi-billionaires whose holding corporation had assets valued at $13.8 billion last year and increased its cash balance by an estimated 60% in the first six months of this year.

“Throughout this pandemic, we have watched in horror as huge, wealthy companies have tried to cash in on programs meant to help small businesses and working families. And now HMS Host wants the same kind of benefit. It’s such a shame,” said Michelle Saylor, executive director of Clergy and Laity United for Economic Justice. 

HMS Host is presently seeking a relief package from the City of Los Angeles which UNITE HERE Local 11 estimates is worth more a $100 million in lease extension-related revenue and rent relief. HMS Host’s contract with the City and the terms of the proposed relief package require that it comply with wage laws. Workers are asking the City Council to reject the relief package for HMS Host, which may be voted on next week.

HMS Host LAX workers and Ron Herrera outside Los Angeles City Hall

“Airport workers like Debbie make LAX run, and the City of Los Angeles has a responsibility to them, not multi-billion-dollar companies like HMS Host. These workers have the full support of the LA Labor movement and we ask the City of Los Angeles to reject a lease and rent deduction package for HMS Host,” said Ron Herrera International Vice President of the International Brotherhood of Teamsters and the President of the Los Angeles County Federation of Labor.

The press conference comes the same day that HMS Host has announced what it has called a “permanent layoff” of hundreds of workers at airports in Orange County, CA, and elsewhere across the country. As of today, they will lose recall rights and the security of knowing they will be able to return to their jobs once the COVID-19 crisis subsides.

LAX airport workers rally as HMS Host workers announce class action lawsuit

The class action lawsuit was filed on behalf of the plaintiff workers by Lauren Teukolsky of Teukolsky Law, APC; Josh Young of Gilbert & Sackman, ALC; and Jeremy Blasi.

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UNITE HERE Local 11 is the union of more than 32,000 workers in hotels, restaurants, airports, sports arenas & convention centers in So. California & Arizona.

While Laid-off Workers Struggle to Survive, Corporate Giant HMS Host Seeks Millions in Extra COVID-19 Aid

Los Angeles, CA: Dozens of laid off airport workers protested outside the offices of concessions giant HMS Host Friday, claiming the company is past due on money it owes to its workers.

After delivering a “past due notice,” workers caravanned to the district offices of all fifteen L.A city councilmembers to urge them to reject a lease and rent reduction package for HMS Host currently awaiting the council’s vote.

Workers filed complaints with the City in 2019, alleging a failure to pay the applicable minimum wage to HMS Host workers. Workers have not received any payments to compensate them for the alleged minimum wage violations which are estimated to total more than $100,000.

Last week, the airport’s governing board, LAWA, approved a financial package for HMS Host and other companies worth millions of dollars. To be eligible for relief, concessionaires must be in compliance with all City ordinances. Workers assert that HMS Host’s failure to pay the unpaid wages as alleged in the workers’ complaints—despite reportedly being sent notices from the City to address the issue—makes them ineligible for relief.

HMS Host is the largest operator of airport concessions in North America and at LAX. Its parent company, Autogrill, is owned by a family of Italian multi-billionaires whose holding corporation had assets valued at $13.8 billion last year.  Autogrill is reportedly negotiating an aid package with the Italian government worth over $350 million.

 The majority of HMS Host workers at LAX have been laid off since March; the workers are over 90% people of color, over 20% Black, and primarily live in the communities hardest hit by the COVID-19 pandemic.

LAX Workers Protest Alleged Violation of LAX Minimum Wage Law

Activists claim HMS Host is Ineligible for Rent Relief

Los Angeles, CA: Laid-off concessions workers spoke outside Terminal 4 on Thursday claiming that multibillion-dollar concessionaire HMS Host is ineligible for rent relief due to an outstanding violation of the LAX living wage law. Workers filed complaints with the City in 2019, alleging a failure to pay the minimum wage to HMS Host workers. Workers have not received any payments to compensate them for the alleged minimum wage violation.

This comes on a day when LAWA is considering an extensive second relief package for concessions companies. To be eligible for relief, concessionaires must be in compliance with all City ordinances.

“No company can get away with paying below the minimum wage here at the airport, especially not the big rich ones like HMS Host,” said Marlene Mendoza who was worked at HMS Host at LAX for 32 years. “If the airport keeps giving them money even if they don’t follow the rules, why would they ever follow the rules? No more relief for HMS Host!”

Marlene Mendoza.jpeg

HMS Host is the largest operator of airport concessions in the United States. It is owned by Italian giant Autogrill, which is controlled by the billionaire Benetton family and their global holding firm Edizione. Edizione assets were valued at $13.8 billion at the end of 2019. Autogrill is reportedly negotiating an aid package with the Italian government worth over $350 million dollars.

“For many workers, this back pay is worth hundreds of dollars. Right now, when we are laid-off indefinitely, this money is more important than ever. It means food, it means gas, it means shelter. I can’t believe Host still hasn’t paid us” said Debra Lewis who has worked at HMS Host at LAX for 34 years.

Hundreds of laid-off HMS Host are struggling to stay fed, pay rent, and keep their families safe and healthy during the pandemic. Over 90% of LAX concessions workers are people of color and over 20% are Black.

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UNITE HERE Local 11 is the union of more than 32,000 workers in hotels, restaurants, airports, sports arenas & convention centers in So. California & Arizona.