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Monthly Archives: May 2011
New Rules for Paying Tipped Employees
Posted in Employment & ImmigrationOn April 5, 2011, the Wage and Hour Division of the U.S. Department of Labor published its final amendments to regulations interpreting the Fair Labor Standards Act of 1938 (FLSA) and the Portal-to-Portal Act of 1947. Several of the amendments will impact the way restaurants pay tipped employees.
Beware: Payroll Companies May Mishandle Garnishments of Tipped Employees
Posted in Employment & ImmigrationGarnishment is a legal process by which an employer must withhold funds in its possession belonging to an employee and send them to a creditor. However, some direct tips are never in the employer’s possession, and accordingly are not likely subject to garnishment.
Between a Tweet and a Hard Place: The Challenges of Social Networking for Hospitality Employers
Posted in Marketing, Advertising, & Social MediaTo say that the use of social networking tools has exploded in the past several years is an understatement. Some studies suggest that of the millions of Americans who use the Internet, nearly half frequent social networking websites such as Facebook, Twitter, LinkedIn, and MySpace. These social media platforms have become an increasingly popular way… Continue Reading
Understanding Lease Provisions Key to Managing Tenant Risks in Event of Commercial Foreclosures and Bankruptcies
Posted in Real EstateAnyone in the commercial real estate business can tell you that the past couple of years have seen a significant uptick in the number of commercial foreclosures and owner bankruptcies. While it does appear that the market is improving, we’re certainly not out of the woods. We are likely to see headlines declaring the latest… Continue Reading
How Restaurateurs Should Respond to New Round of Social Security No-Match Letters
Posted in Employment & ImmigrationOn April 6, 2011, the Social Security Administration (SSA) resumed sending employers “Social Security no-match letters” advising employers that the Social Security numbers (SSNs) reported for certain employees do not match SSA records. The letters had been on hold since 2007 when a federal judge issued a preliminary injunction preventing the Department of Homeland Security… Continue Reading
Avoiding Common ABC Violations: Help Your Staff Help You
Posted in Government/Regulation/AlcoholSelling alcohol can be profitable for a restaurant, but the privilege of selling alcohol comes with responsibilities. Irresponsible alcohol service by one of your employees can result in violations, license suspensions, civil penalties, and even license cancellation. If selling alcohol is important to your restaurant’s success, take steps to ensure that it is not jeopardized… Continue Reading
Tighter Controls Over Imported Food Under the Food Safety Modernization Act
Posted in Government/Regulation/AlcoholOn Jan. 4, 2011, President Obama signed into law the Food Safety Modernization Act, which mandates a number of new responsibilities on food manufacturers and food producers. The safety of imported food was a major consideration for lawmakers in supporting this legislation. The law requires importers to verify that imported food and food ingredients are… Continue Reading
How to Keep Employees from Stealing Your Restaurant Concept
Posted in Intellectual PropertyImagine spending significant time, money, and energy designing a restaurant concept, working with your head chef to develop a cutting-edge menu, and finally bringing it all to reality only to find out that your new general manager has left to open a competing restaurant with a similar format, menu, and décor. While it is impossible… Continue Reading
Hot Air: 4 Tips for Brands Looking to Grow in the Increasingly Competitive Airport Restaurant Space
Posted in Real EstateTastes on the Fly, a San Francisco-based operator of better restaurant concepts at three major airports around the country, has known for years what the rest of the airport concessions market is finally discovering: Consumers want higher-quality dining experiences at airports and are willing to pay for it. The boutique group that operates such concepts… Continue Reading
Health Care Reform: Strike Two!
Posted in Employment & ImmigrationOn Jan. 31, 2011, yet another federal district court, this one in Virginia, ruled that the individual mandate to purchase health insurance in the Patient Protection and Affordable Care Act of 2010 (the “Act”) is unconstitutional. That makes three for two: three federal courts that have ruled in favor of the constitutionality of the individual… Continue Reading
Update on Los Angeles Food Truck Regulation
Posted in Government/Regulation/AlcoholAs reported in the December issue of Restaurant Reporter, the LA Country Board of Supervisors unanimously passed an ordinance to expand the restaurant letter grade rating program to food trucks. The program took effect in January 2011. The process is reportedly divided into two phases, with the second wave of surprise inspections planned to begin… Continue Reading
California to Require Food Handling Certification
Posted in Government/Regulation/AlcoholEffective July 1, 2011, California restaurants will be required to train and certify employees who engage in food preparation or service. The new law, Senate Bill 602, seeks to reduce the incidence of food-borne illnesses and hospitalizations in California by educating restaurant employees. It requires that employees who handle foods to obtain a food handler… Continue Reading
San Francisco to take the “Happy” out of the “Happy Meal”
Posted in Government/Regulation/AlcoholBy Michelle Morée Beginning in December 2011, fast-food restaurants will no longer be permitted to include toys in children’s meals that do not meet specific nutritional standards. Under the San Francisco Ordinance Health Code, a restaurant may not provide a toy with a meal that includes any of the following: more than 600 calories, excessive… Continue Reading
California Court of Appeal Clarifies Reporting Time Pay
Posted in Employment & ImmigrationCalifornia employers are required to pay employees who report time pay when they show up for work, but don’t work at least half the scheduled shift. The statute requires that employers pay the greater of two hours or half the scheduled shift, to a maximum of 4 hours. It was previously unclear whether an employee… Continue Reading
Litigation Alert for California Restaurants: Employee Seating
Posted in Employment & ImmigrationIn Bright v. 99¢ Only Stores and Home Depot U.S.A. v. Superior Court, two California Courts of Appeal have permitted employees to recover penalties under the Private Attorney General Act (PAGA) because their employers failed to provide seating as required under the applicable IWC Wage Order. The same seating requirement appears in Wage Order 5,… Continue Reading
Revised Standards for an Accredited Investor: A Legislative Update on Dodd-Frank
Posted in Restaurant FinanceRestaurant businesses depend on private investors for capital. Fledgling restaurants need the funds to pay startup costs, while more established restaurants need it to expand, renovate, and maintain adequate working capital. Whether you interpret them as an appropriate correction to protect investors or an unnecessary restriction on the flow of private investment, recent amendments to… Continue Reading