Fast-Food Industry

News & Analysis as of

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

New York City Council Seeks Major Workplace Reforms for Fast Food, Retail Workers

The New York City Council has introduced six bills as part of a legislative package intended to reform scheduling and workplace practices for fast food and retail workers in New York City. The legislation, introduced on...more

New York City Employers, Beware: Worker Protection Bills On Tap For 2017

New York City lawmakers have introduced a suite of legislation aimed at penalizing retail and fast food employers for making last-minute changes to employee schedules, while also providing protection for all New York City...more

Another Hit to the Overtime Regulations

In a move that looks to be one of the final nails in the coffin of the overtime regulation amendments, Donald Trump has tabbed fast-food honcho Andrew Puzder to head the labor department. Mr. Puzder was vocally opposed to the...more

DOL Worm About to Turn

President-Elect Trump continued on his streak of appointing controversial cabinet members today when he announced Andrew Puzder as his choice to head the DOL. Mr. Puzder’s name may be familiar to those of you who crave...more

NYC Council Introduces Suite of Worker Protection Bills, In Likely Sign of Things to Come

As we noted in an earlier post, the election of Donald J. Trump likely means that states and municipalities—and not the federal government—will lead the charge on worker-protection issues for the next four years. In this...more

New York’s Nonexempt Wage and Salary Requirements Still in Play

While the media has been focused on the stay of the new federal overtime exemption classification rules in Nevada v. U.S. Department of Labor, U.S. District Court for the Eastern District of Texas, No. 16-cv-741, and the...more

Seattle Becomes Second City to Pass “Secure Scheduling” Ordinance

Seattle, known for its employee-friendly ordinances, has passed a law regulating how large retailers, full-service restaurants, fast food restaurants, and coffee shops schedule and pay their hourly, non-exempt workers. ...more

THANKSGIVING EDITION [FROM THE ARCHIVES]: Court Protects Quizno’s Franchise Turkey Trade Secrets

This Thanksgiving, Trade Secrets Watch is serving a delicious tale about protecting trade secrets in a franchising relationship. In 1994, Quizno’s entered into a franchise agreement with Robert Kampendahl, an...more

The Minimum Wage in 2017: A Coast-to-Coast Compliance Challenge

Minimum-wage-related actions in 2016 will create challenges for employers starting in 2017. Although 2016 was not necessarily a record year for passage of state minimum wage laws in general, it did break ground concerning the...more

Mandatory Use of Payroll Debit Cards Violates Pennsylvania's Wage Payment and Collection Law

Over 2,300 current and former employees of 16 McDonald’s franchisee locations in Pennsylvania claimed that mandatory use of payroll debit cards violates the Pennsylvania Wage Payment and Collection Law (“WPCL”), and the...more

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