Restaurant Industry

News & Analysis as of

BREAKING: Connecticut Supreme Court Rules Restaurant Cannot Apply Tip Credit to Pizza Delivery Drivers

The Connecticut Supreme Court, in a unanimous decision that will be officially released April 4, 2017, has ruled that employers may not use the “tip credit” for pizza delivery drivers and therefore, the employees must be paid...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

Food and Beverage Law Update: March 2017

Legalized Drug Use Impacts the Food and Beverage Industry - In the November 2016 general election, voters in Arkansas, Florida and North Dakota amended their state constitutions to authorize the use of marijuana for...more

Trump Administration Immigration Actions’ Disproportionate Impact on Certain Industries

The food, construction, and healthcare sectors are concerned about fallout from the crackdown on immigration called for in Secretary John Kelly’s Implementation Memos, President Donald Trump’s travel ban, and possible new...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

Food and Beverage News and Trends - February 2017

This regular publication by DLA Piper lawyers focuses on helping clients navigate the ever-changing business, legal and regulatory landscape. California judge finds Roundup to be a possible cause of cancer. On January...more

The Top Ten Laws That Did Not Pass in 2016 (…But May Pass in 2017)

Each year hundreds of laws are introduced in California’s House of Representatives or Senate, only a fraction of which are ever signed into law. Many laws that are passed, such as last year’s Senate Bill 3 which will increase...more

Scaling The Wall Of Conflicting "Tip Credit" Provisions

We've all struggled with what to do when we're given conflicting orders. Grandma says "have some pudding," and Pink Floyd's Roger Waters responds, "how can you have any pudding if you don't eat your meat?!" Employers are...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

HR, Payroll, Finance Department Beware: Renewed IRS W-2 Phishing Scam Alert

The Internal Revenue Service and other agencies recently issued an urgent reminder Alert warning of a sophisticated scam to obtain confidential information and in some cases, fraudulent cash wire transfer payments. Scammers...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

NY State Supreme Court Upholds New York City’s Sodium Warning Rule

On February 10, 2017, the New York State Supreme Court, Appellate Division (the court), upheld New York City’s (the City) sodium warning rule (the Rule). The Rule requires covered establishments (i.e., chain food service...more

ICSC Mid-Atlantic Conference & Deal Making Recap

With seemingly all of the country’s attention focused on Washington DC lately, we snuck out of the District and across the Potomac River to National Harbor last week for ICSC’s 2017 Mid-Atlantic Conference and Deal Making....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

Germany: Unlicensed Hard Rock Cafe in Heidelberg Germany ceases operation

After years of litigation Hogan Lovells achieved a ground-breaking settlement for the Hard Rock Group. A restaurant with the same name which operated without a license in Heidelberg will cease to operate at the end of...more

BoozeLaw: Automated Service of Beer and Wine Available to Michigan Licensees

Fifty years in the future, historians will likely consider this decade (incidentally, there should be a more a creative moniker for this period than the "20-10s" or "10s") as the advent of true automation. Following...more

Innovative Salad Restaurant Agrees to Make Website and Mobile App Accessible

Seyfarth Synopsis: New website and mobile app accessibility settlement agreement requires WCAG 2.0 AA conformance, training, and feedback mechanism. Being named one of the most innovative companies of 2016 doesn’t make...more

National Restaurant Association Seeks Review Of Tip Pooling Rule

On January 19, the National Restaurant Association (“the Association”) asked the U.S. Supreme Court to review a Department of Labor (“DOL”) rule that prohibits “tip pools,” the sharing of tips among “front of the house” staff...more

Upscale Food Halls—On Trend and On The Rise

The growth of high-end food halls is taking off around the country as consumers seek fast, fresh, high-quality, chef-driven meals with a local touch, and as landlords seek to cash in on the continued growth of fast-casual...more

Seventh Circuit Affirms Denial of Class Certification for Failure to Show Commonality under Dukes in Vacation Pay Suit

Last week, in McCaster et al. v. Darden Restaurants, Inc. et al., No. 15-3258 (7th Cir. Jan. 5, 2017), the Seventh Circuit relied on Wal-Mart Stores, Inc. v. Dukes, 564 U.S. 338 (2011) and affirmed the district court’s denial...more

Pa.L.C.B. Announces Second Restaurant Liquor License Auction Under Act 39 of 2016

The Pennsylvania Liquor Control Board has announced the second restaurant liquor license auction, which is permitted under Act 39 of 2016. These auctions are for “zombie licenses” which have been expired and in possession of...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

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