Fast-Food Industry

News & Analysis as of

Food Fight: Two Sides to Every Chicken Filler Story

The Canadian Broadcasting Corporation (CBC) recently aired a segment reporting that real chicken content in Subway sandwiches amounted to a lot less than what the average consumer would expect. The network commissioned DNA...more

Restaurant Chain Must Allow Employees to Wear Union Buttons

The National Labor Relations Board recently determined that In-N-Out Burger violated the National Labor Relations Act by maintaining and enforcing a work rule prohibiting employees from wearing any type of unauthorized...more

Federal Court Serves Up Satisfying Seconds For California Franchisors: No Ostensible Agency Liability For Franchisees’ Alleged...

Seyfarth Synopsis: A federal court in California recently held that a franchisor cannot be held liable for labor code claims where it did not exercise control directly, or through an actual agency relationship with the...more

Wendy’s Successful in Trimming Data Breach Class Action Suit But No Dismissal

We have previously discussed the class action case filed against Wendy’s as a result of a data breach. The case was initially dismissed based upon lack of standing, but the plaintiffs were given the opportunity to amend the...more

Monthly Update—Australian Labour & Employment - February 2017

MESSAGE FROM THE EDITOR - In this edition of the Update, we discuss two significant developments that are likely to have far-reaching impacts for employers and employees across Australia. First, we discuss the proposed...more

Wendy’s Executives and Board File Motion to Dismiss

We previously reported that Wendy’s was hit with a putative class action shareholders’ derivative suit in December following its data breach in 2016. Late last week, the executives and Board of Wendy’s filed a Motion to...more

New York City Council Committee Pursues Predictive Scheduling and Other Labor Bills

On Friday, March 3, 2017, the New York City Council’s Committee on Civil Service and Labor considered a package of six bills that could significantly affect the scheduling of fast food and other employees. These measures seek...more

Arby’s Hit with Multiple Class Action Suits over Data Breach

Arby’s has announced that its point-of-sale system had been compromised by intruders over a four month period between October of 2016 and January of 2017, exposing the credit and debit card information of 355,000 customers....more

Texas Workplace Sexual Assaults May Not be Treated as Sexual Harassment

In Texas, some victims of workplace sexual assault may pursue common law assault claims against their employers, following a recent Supreme Court of Texas ruling. B.C. v. Steak N Shake Ops., Inc., — S.W.3d —, Case No. 15-0404...more

2016 New York Employment Law Year In Review

2016 brought big changes for New York State and City employers, including expansive new discrimination protections and substantial increases in the minimum wage and exempt salary thresholds. While New York employers who...more

Food for Thought: A Review of 2016 Litigation

Food for Thought is a review of significant court decisions affecting the food, beverage, dietary supplements and personal care products industry. Although many cases in this edition focus on class certification, others...more

Arby’s Investigating Payment Card Breach

Arby’s has announced that it is investigating its payment card systems after Brian Krebs first reported the incident. According to reports, malware placed on Arby restaurants’ payment card systems allowed attackers to...more

Be Aware of Possible Joint Employer Status with Franchisor

The franchise model is built upon the idea that a franchisee pays for the right to use a franchisor’s brand, marketing and goodwill in launching and operating the franchisee’s business. The franchisee is generally responsible...more

Keeping those New Year's resolutions just got a little easier in Ontario

The Ontario Healthy Menu Choices Act and its Regulations, which became effective January 1, 2017, aims to allow Ontarians to make informed food and beverage choices when eating in a restaurant or purchasing take-away meals. ...more

Retailer - Winter 2017

NEWS & ANALYSIS - Scheduling protection laws for retail workers: A nice-sounding idea that can be a nightmare for employers - EDITOR’S NOTE: The following is adapted from a guest post by Bob that was originally...more

A Family Victory! Victory! Just Not for Little Caesars

The United States Patent and Trademark Office, Trademark Trial and Appeal Board (the “Board”) modified its treatment of the “family of trademarks” doctrine in the recent case In re LC Trademarks, Inc., Serial No. 85890412...more

Ostensible Agency, Hold the Class Certification: Would You Like Franchise With That?

It’s a common business model in the fast-food industry: a massive restaurant company provides the menu, the marketing—including catchy slogans and a universally recognized logo—and the basic operational standards for the...more

Your Daily Dose of Financial News

Lynn Tilton’s very public spat with the SEC over the agency’s in-house court system may be heading to the Supreme Court, thanks in part to a recent 10th Circuit opinion last week that created a Circuit split over the...more

Indiana Court of Appeals Allows Negligent Hiring Claim Despite Admission that Employee Acted Within Scope of Employment

The Indiana Court of Appeals recently determined that a negligent hiring claim against Pizza Hut can continue to move through the trial court after finding that the trial court erred when it granted summary judgment in favor...more

Major Changes to New York Overtime and Minimum Wage Regulations to Take Effect on December 31, 2016

As of December 31, 2016, employers wishing to claim an administrative or executive exemption to New York State’s overtime regulations must raise each exempt employee’s salary threshold to $727.50-$825.00 per week, depending...more

Shareholders Derivative Suit Filed against Wendy’s for Data Breach

Continuing the trend of filing a shareholders derivative suit following a data breach, a Wendy’s shareholder recently filed a derivative suit against Wendy’s executives and board members alleging they did not adequately...more

The Definition of Insanity? Wendy’s Shareholders File Derivative Action Based on 2015-16 Data Breach

An old saw defines insanity as doing the same thing over and over again and expecting a different result. Wendy’s shareholders recently flouted that maxim by filing a derivative action this week against officers and...more

NYC Joins the Pre-Trump Push for Employee Work Schedule Protections

New York City has joined several other cities, including San Francisco and Seattle, introducing legislation that offers more predictable, stable work schedules for employees in low-wage occupations. The legislation generally...more

Jimmy John's Settlement Cautions Employers Over Widespread Non-Compete Use

The Jimmy John’s sandwich chain recently settled state law claims in Illinois relating to its former requirement that hourly restaurant employees sign non-competition agreements that prohibit them from working for a competing...more

Future DOL Secretary has a Lousy 401(k) Plan: So What?

Andy Puzder, CEO of CKE Restaurants Inc., the parent company of fast food chains Hardee’s and Carl’s Jr., will be the next Secretary of Labor if confirmed by the Senate. Apparently, Puzder’s company has a lousy 401(k) plan...more

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