Restaurant Industry

News & Analysis as of

RIGHT IN THE BREADBASKET: Lessons From Early Cases at the Intersection of Noncompetes and the DTSA

As many TSW readers are aware, 2016 has been a big year for trade secret law, with both the United States and the European Union expanding trade secrets protections and increasing the uniformity of their laws. But as good as...more

City of Seattle Proposes New Ordinance Regulating Employee Scheduling | World of Employment

Seattle restaurants and retail employers may soon face significant restrictions on employee scheduling. The Seattle City Council is currently considering a proposed ordinance with the potential to impact hundreds of...more

Windsor Inn Will Pay $200,000 to Settle EEOC Sexual Harassment and Retaliation Lawsuit

Restaurant Owner Harassed Female Employees, Federal Agency Said - BALTIMORE - A Baltimore restaurant, R.V. Associates Limited, doing business as Windsor Inn, will pay $200,000 and furnish significant equitable relief to...more

NY Attorney General Schneiderman Declares “War” on Non-Compete Agreements That He Perceives as Overbroad

In an initiative that is virtually without precedent in New York, in the past two months (June 15, June 22 and August 4) Attorney General Schneiderman announced agreements with three separate companies in three different...more

Union Organizing at Retail and Food Service Businesses Gets Boost from New York City “Labor Peace” Executive Order

Summary of the Executive Order - New York City retail and food service unions got a boost recently when Mayor Bill de Blasio signed an Executive Order titled “Labor Peace for Retail Establishments at City Development...more

Oracle’s MICROS Point of Sale Division Hacked

KrebsonSecurity has reported that the Russian organized cybercrime group dubbed the Carbanak Gang, which in the past has been suspected of stealing more than $1 billion from banks, retailers and hotels and restaurants...more

Another Federal Court Thinks the DOL Is Out to Lunch On Tip Credit Rule

Seyfarth Synopsis: New decision from Northern District of Georgia rejects the DOL’s interpretation of the FLSA tip credit law. Holds that the FLSA does not regulate tips received by employees who are paid at least minimum...more

Food and Beverage Law Update: August 2016

When food and beverage companies think of their largest risks, data breaches have not historically come to mind, but this is changing because of reports in the past few months of major breaches by companies such as Noodles &...more

Brilliant (but not bedazzled) baristas

A ton of us are drinking coffee. I literally have a paper cup full of “life juice” next to my keyboard as I write this post. Coffee is not the reason I get out bed, but it is certainly a large contributor to me not staying...more

Government Contract Employers Ordered to Pay Over $1M in Back Wages

Restaurant Associates and its subcontractor, Personnel Plus, have been ordered by the Department of Labor to pay 674 workers $1,008,302 in back wages. The two employers contracted with the U.S. Government to food preparation...more

Government Involvement in Noncompetes… Against a Sandwich Maker?! Jimmy John’s Slapped With Another Lawsuit, This Time Brought by...

Jimmy John’s can’t seem to escape the limelight. Last year, the company made headlines when employees hit it with a putative class action lawsuit seeking to invalidate their non-compete agreements. The District Court...more

Seventh Circuit Serves Up Employer-Friendly Recipe For Compensating Tipped Employees

Many employers, particularly in the hospitality industry, pay tipped employees less than the minimum wage. They do so anticipating that tipped employees will receive tips from customers that push employees’ income above...more

What You Need to Know About the New Liquor Law

The law removes certain restrictions on the hours during which Pennsylvania Liquor Stores can sell alcohol, instead giving the Board the discretion to determine the appropriate hours for retail sales. For example,...more

Wendy’s reports over 1,000 restaurants affected by breach announced earlier this year

Back in May of this year, Wendy’s reported “fewer than 300” locations had been hacked by malicious malware that targeted customer credit card information. Last week, Wendy’s released a list of 1,025 restaurant locations that...more

New York Appellate Court Finds “Electronic Data” Exclusion Applies to Data Breach

The computer network of a Five Guys Burger franchise, RVST Holdings, LLC (RVST), was hacked. Customers’ credit card information was stolen and used to make numerous fraudulent charges. Trustco Bank brought an action against...more

Serial Plaintiffs Are Filing Waves of Title III Disability Cases

Hotels, restaurants and retail establishments have been flooded with new lawsuits filed by serial plaintiffs that allege that a property (a place of public accommodation) is in violation of Title III of the Americans with...more

D.C. Council Postpones Vote On Two Controversial Employment Bills

The D.C. Council has postponed votes on the Hours and Scheduling Stability Act (the “Scheduling Act”) and the Universal Paid Leave Act (the “Leave Act”), two controversial bills that would impose significant burdens on D.C....more

HospitalityStaff Sued by EEOC for Religious Discrimination

Orlando Staffing Company Fired Rastafarian Employee Because of His Dreadlocks, Federal Agency Charges - ORLANDO, Fla. - An Orlando staffing company dedicated to Central Florida's massive hospitality industry violated...more

“Churrascos” Is Generic for Restaurant Services

On appeal from the Trademark Trial and Appeal Board (TTAB), the US Court of Appeals for the Federal Circuit affirmed the TTAB’s refusal to register a stylized form of the mark CHURRASCOS for restaurant services, finding that...more

Employers Limited in Service Fees Deductions From Credit Card Tips

Restaurants and some other businesses that use employees partially compensated by tips can claim a tip credit toward the Fair Labor Standards Act’s minimum wage requirements. However, the FLSA strictly regulates the servers’...more

EEOC Sues Bojangles For Sex Harassment and Retaliation

Restaurant Chain Subjected Transgender Employee to Sex Harassment, Then Fired Her for Complaining, Federal Agency Charges - FAYETTEVILLE, N.C. - Bojangles Restaurants, Inc., a North Carolina corporation operating a chain...more

Minnesota Court Creates “Wrongful Discharge” Damages Claim for MFLSA Violations

In an unexpected surprising broadening of employee rights under the Minnesota Fair Labor Standards Act, the Minnesota Court of Appeals held, on June 27, 2016, that an employee who is discharged for refusing to obey an...more

New Changes to Florida Beverage Laws Started July 1st

Changes to Florida’s Beverage Laws have drawn attention and controversy over recent years as groups ranging from small craft breweries to major retail vendors have lobbied for legislative amendments to the State’s...more

Michael’s Law Goes Into Effect Today: Facts vs. Fiction About New Alcohol Law Requirements Under Michael's Law

With Michael’s Law going into effect today, I am getting a lot of calls from hospitality clients in a panic wanting to know what training and insurance requirements are necessary to become compliant with the new statute....more

Fifth Circuit Addresses FLSA Tip Credits Once Again

The Fifth Circuit has had tipping on its mind, as the decision of Steele v. Leasing Enterprises, Ltd., represents its second opinion within ten months addressing this pay practice. On the heels of Montano v. Montrose, the...more

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