Mineola, NY – New Allegations: Former Employees Bring $10M Suit Against Kosher Caterer

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    William Cataldo, center left, in black, with attorneys and other former employees of Morrell Caterers. Credit StephenJ.BronnerMineola, NY – The management of Morrell Caterers, which is currently facing allegations that it tainted kosher food with non-kosher food, allegedly pocketed about $10 million in tips over the past six years that were supposed to go to as many as 500 employees, according to a class-action lawsuit filed Thursday.

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    “The greed has to stop,” said William Cataldo, a former maitre d’ at Morrell that is part of the suit. “We were forced to give over our gratuities. We were being deceitful to the clients,” who believed an extra “service charge” listed in contracts would be going to employees.

    The suit, filed by Carle Place’s Leeds Morelli & Brown, P.C., in Nassau County Supreme Court on behalf of former employees, alleges that Morrell Caterers’ violated New York labor law by withholding tips and gratuities totaling as much as $10 million that were required to be given to waiters, bussers, bartenders and others. Morrell runs out of three synagogues on Long Island: Temple Israel of Lawrence, Woodbury Jewish Center and Temple Beth Torah of Melville. The service charge was in catering contracts instead of cash tips that customers would give during or after an affair.

    “The public would think twice about 18 percent gratuity if he or she knew the truth,” said Jeffrey Brown, partner at Leeds Morelli & Brown. “It was the ultimate deception.”

    Brown said at a press conference at the law firm’s office that employees of Morrell would lose their jobs if they received cash tips. All envelopes containing cash tips were required by the caterer to be delivered to management, according to testimony from sales managers in documents filed in another lawsuit.

    “This was a dictatorship,” said Lenard Leeds, managing partner at Leeds Morelli & Brown, P.C. “They’ve been defrauding the staff and the public.”

    Owner Scott Morrell’s attorney, Steven Schlesinger, said both suits are without merit.

    “Everyone got every penny that they were entitled to, period,” he said. “I don’t know where these guys are coming from, but it’s just 100 percent not true.”

    Former Morrell hostess Megan Johnson, of Great Neck, who recently quit, estimates that she is out about $100,000 over six years from missing tips.

    “We were scared if we took something,” she said. “As a person, [owner Scott Morrell] didn’t have any acknowledgement or respect for the staff. The tips were never discussed.”

    Morrell also faces allegations from the company’s former chef, Michael Savitsky, and general manager, Tom Cataldo, who own 20 percent of the company, that he had his employees prepare non-kosher food in the kosher kitchens and transported all the food in the same truck.

    Two former employees, Michael Goldstein and Tracy Rubenstein, swore in affidavits that they witnessed the preparation of dairy and non-kosher foods at Temple Beth Torah’s kitchen. They also allege that Morrell posed lower-quality liquor as top-shelf liquor.

    A rabbi with the Vaad of Flatbush, which supervises Morrell, said the company’s locations were handled appropriately for kosher food.


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    33 Comments
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    MosheM
    MosheM
    12 years ago

    Okay, until now I had a doubt, but now it’s clear this is one big extortion plot.

    bklyn
    bklyn
    12 years ago

    Uh oh..,does not smell good

    yankle
    yankle
    12 years ago

    “Kosher caterer”?? more like Jewish themed caterer.

    Butterfly
    Butterfly
    12 years ago

    We do not have all the facts, but where there is smoke, there is fire!! I would not eat there until this place was checked out 200%!! (By Rabbanim whom we trusted!!)

    LEEAVE
    LEEAVE
    12 years ago

    this whole thing is puzzling to me,

    no idea Y a ruv would give a hashgucha to a caterer who is not shomer shaboss, and no idea Y real jews would order their simch from a caterer thats not shomer shabos?

    i wouldnt eat anything from any1 thats not an observant jew, let alont eat steak he prepared in some kitchen!

    CountryYossi
    CountryYossi
    12 years ago

    I made 4 chasenes un all heimishe halls…Allmof the tapped on at least $700.00 for tips and after the bentching the head waiter asked me for a tip..I told him i paid it in the bill so why are you asking me now for more..He said they do not get that money..I asked the caterer and he told me that this they call x-tra fee and its NOT a tip…
    So i believe the same happened in this case..Bottom line when you get billed for a TIP and its not going for tips so when they billed me $350.00 for Mashgiach i wonder if there was ever a nashgiach there..I understand caterers are getting very narrow margins those days due to competition from the low cost halls but what dosent belong to you should be given to those hard working people…Most waiters are college students who ned this money to pay their college and after studying 8 hours a day they work 6-8 hours waiters…

    PMOinFL
    PMOinFL
    12 years ago

    Restaurants, catering establishments and the like are allowed to add “gratuities” to the bill so long as it is disclosed in advance. However, they never tell you how that money is distributed or what it is for.

    Owners of restaurants and catering establishments are required to make sure that all of their staff makes at least minimum wage. If they were never promised “tips” above that wage, then they have no complaint. The “gratuity” line item on the bill could be strictly for the planners at the catering hall. They don’t tell you what it is for.

    This is a frivolous lawsuit. Unless the workers were promised those tips, they are entitled to NOTHING. Those who paid the gratuities COULD be entitled to the money back IF they were specifically told that the money goes directly to the waiters on top of their regular salary. It they were not promised that SPECIFICALLY, there is no problem here.

    This poor family is being shaken down by criminals and thieves.

    Is Mr. Morrell shomer Torah umitzvos? No. But, 75% of his kosher catering is for non-frum. Frei yidden who don’t care about kosher didn’t eat treif that one night because of Mr. Morrell. That’s SOMETHING.

    thechef88
    thechef88
    12 years ago

    Reply to #13 . You are living a dream Most caterers keep the tip money to cover labor expense. Anyone would be happy to receive something extra to help cover living expenses. I have yet to see anyone work lshem shamayim. Unfortunately you stil have to pay the bills. Doing kiddushim in the same shul, I was asked numerous times if I appreciated the tip they gave the boss for me. I always thanked them even tgough I never received it. Stupid me!!!

    5towns
    5towns
    12 years ago

    According to a letter in the local paper from Rabbi Billet who I think is the Rabbi of the YI of Woodmere, the Vaad of Flatbush has only mashgiachim tmidim at all the glatt kosher events that this caterer does. All the supplies are locked and only the mashgiach has the key. I am not sure why you think a chassidish hechsher would be better. When they cater non glatt that is where the monkey business can happen, but it is altogether possible that the employees have a grudge and know that if you accuse him of not serving kosher he will be out of business. Since I only eat glatt, I am not worried, that is why we have hashgacha and I trust the mashgichim. Also the glatt portion of the business has closed circuit camera running to make sure no one is accessing anything they aren’t supposed to.

    Insider
    Insider
    12 years ago

    Who are you going to believe? The paid kashrus certifies who comes aroung every so often to collect his check? Or the ones that actually have the keys, have 24/7 access, and now swear in a legal affidavit that the foods are NOT kosher? The presumption of being kosher, unfortunately, has been lost.

    bigwheeel
    bigwheeel
    12 years ago

    It’s beginning to smell more like “Shevach” every day. I’m afraid some Choshuve people are going to be left with egg on their face.

    Respect
    Respect
    12 years ago

    Please remember that the Vaad of Flatbush ONLY certifies the “glatt kosher” affairs and these are at the Woodbury location. These are still completely reliable and glatt kosher, with mashgichim temidim who have the only keys and access.

    The allegations being made are about non-glatt kosher affairs where there was no mashgaich on premises, and were being hosted in non-Orthodox shuls. If you wouldn’t eat non-glatt, or you wouldn’t eat from a non-Orthodox hashgacha, this “news’ wouldn’t affect you.

    Insider
    Insider
    12 years ago

    With all due respect to the Vaad of Flatbush, this kashrus certification has been compromised. There is no such thing as not being able to secure duplicate keys. The mashgiach temidi is only there, supposedly, during food preparation and during the affair. The mashgiach temidi, according to all accounts, is not there 24/7. The accusations are viable. Everyone here readily agrees that the “reform” locations are unquestionably invalidated. The issue of the entreprise having non-Jewish (let alone non-observant Jews) is troubling. Their producing and serving kosher and non-kosher foods, no matter however separated, disqualifies any kosher certification. Would such “kosher” food business be accepted in Williamsburg, Boro Park, or even Flatbush ? I, for one, am sorely disappointed with the Flatbush Vaad. I have wrongly assumed that their standards were much higher. Hebrew National, in comparison, is much more acceptable. No question of treifos or sheratzim were ever ascribed to Hebrew National. Yet, Hebrew National is not accepted in the aforementioned observant neighborhoods. With all due apologies, Morrell’s, with or without the Flatbush Vaad’s certification, is absolutely unwelcome.