UPDATE: Bill Requiring Mandatory Training for Alcohol Servers Vetoed by Governor Brown

Update (9.30.16): California Governor Jerry Brown has vetoed AB 2121, a bill that would have required bartenders to complete a course to help them identify customers who may be intoxicated and to intervene. Under the bill, establishments that serve alcoholic beverages would have had to certify that their employees have completed the training when they apply for a license through the Department of Alcoholic Beverage Control (ABC). (Read More)

NYC Mayor to Introduce Fast Food Worker Scheduling Bill

New York City Mayor, Bill de Blasio, plans to introduce a law that would force fast food restaurants to schedule shifts in advance. The legislation, which Mr. de Blasio intends to draft with the City Council, is expected to include the following changes, according to a statement from the administration . . . (Read More)

Wendy’s Data Breach Expands in Scope, Malware Attacks Point-of-Sale System

Fast-food chain, Wendy’s, has disclosed that the number of franchised restaurants hit by a recent cyber-attack was “considerably higher” than the fewer than 300 locations that it had originally suggested were impacted. Wendy’s states that it has discovered an additional strain of malware that affected previously unidentified franchises. As cyber-attacks continue to rise within the retail sector, the particular vulnerability of franchised hospitality establishments comes into focus. (Read More)

Food & Beverage Alert: Compromise Reached on NY Brunch Bill

New York Governor Andrew Cuomo has reached a compromise with state legislators that will allow restaurants and bars to serve alcohol on Sunday mornings, starting at 10 a.m. In addition, restaurants and bars outside New York City will be able to apply for a permit to serve drinks beginning at 8 a.m. (up to 12 permits a year). Establishments within New York City limits will be barred from applying for the special event permits. The “brunch bill” as it has come to be known is part of an effort to eradicate what remains of 80-year old “blue laws” that once banned alcohol sales on Sundays. (Read More)

Crowdfund Your Restaurant: New Equity Financing Option Could be Industry Game Changer 

Have you always dreamed of investing in a restaurant, but never had the capital necessary to make that vision a reality? Or, perhaps you are an aspiring restaurateur looking to engage local food lovers more deeply in the launch of your business. If so, you’re in luck. On May 16, 2016, restaurant ownership will be open to the masses via equity crowdfunding under Title III of the JOBS Act. In October 2015, the Securities and Exchange Commission (SEC) adopted final rules for Title III permitting companies to offer and sell securities to unaccredited investors through web-based crowdfunding portals. For the last couple of years, businesses have been limited to crowdfunding via wealthy, accredited investors. These new rules carry the potential to be a game changer for small businesses, particularly within the restaurant industry. (Read More)

“Side Work” Lawsuits Brought by Restaurant Employees on the Rise

Ruby Tuesday is the latest restaurant chain to face a “side work” class-action lawsuit brought by employees who allege that they are underpaid pursuant to federal regulations. The suit against Ruby Tuesday involves thousands of workers at 658 restaurants nationwide who receive a tip credit wage while performing side work such as sweeping floors, washing dishes, cleaning and setting tables, toasting bread, and making coffee. This case follows similar class actions against Darden Restaurants, Inc. and Applebee’s and signals the escalation of a growing employment litigation trend. (Read More)

Restaurateurs Rush to Review Tip-Sharing in Light of Surprising Ninth Circuit Decision

On February 23, 2016, a divided three judge panel of the Ninth Circuit Court of Appeals validated regulations by the Department of Labor (“DOL”) that significantly limit employers’ ability to maintain tip pools that extend beyond “customarily and regularly tipped” employees. (Read More)

Are Robot-Operated “Smart Restaurants” the Wave of the Future?

In the face of increasing minimum wage laws and shrinking numbers of qualified cooks in the work force, many restaurants are feeling the heat. One Bay area start-up, Momentum Machines (Momentum), is touting a solution that may alleviate these business pressures.  Momentum is banking on the idea that by having machines replace line cooks in the kitchen, a restaurant can obviate the need for a work force entirely. (Read more)

National Restaurant Association Challenges Minimum Wage Law

Earlier in 2015, the New York Legislature rejected a proposal to raise the minimum wage to $11.50 in the Big Apple, and to $10.50 in the rest of the state.  Governor Andrew Cuomo utilized his ability to direct the labor commissioner to convene a panel to consider whether fast-food workers' minimum wage should be raised in an effort to raise all restaurant workers' pay.  The panel ultimately concluded that the minimum wage will gradually increase to $15/hour by 2018. The National Restaurant Association (NRA) appealed this decision to the New York Industrial Board of Appeals. (Read more)

FLSA’s Proposed New Rules Regarding Overtime Exemptions

Article originally appeared in HALA Newsletter

The U.S. Department of Labor has proposed changes to the Fair Labor Standards Act’s (“FLSA”) overtime exemptions, and President Obama recently announced plans that will extend overtime under the FLSA for salaried “white collar” employees who earn an annual salary less than $55,440. These regulations, if finalized, will likely have a major impact on hotels. (Read more)