That is pretty standard at a couple of the burger joints.
They are legitimately a pendant so it will be a tough fight for the AHJ. The argument from the management is it prevents the employees from having to use ladders to disconnect the equipment. They fear falls (maybe into hot grease or griddles) more than electrical problems and OSHA will back them up.
I saw a kid slip and stick his hand into a fryer once, It was not pretty. We got it in ice as fast as we could but the kid's hand was never the same.
