Restaurant Industry

News & Analysis as of

“Side Work” Lawsuits Brought by Restaurant Employees on the Rise

Ruby Tuesday is the latest restaurant chain to face a “side work” class-action lawsuit brought by employees who allege that they are underpaid pursuant to federal regulations. The suit against Ruby Tuesday involves thousands...more

Sign O’ The Times: SCOTUS Denies Cert In Franchise Arbitration Dispute

On Monday of this week, after stringing the parties along for five months, SCOTUS denied cert in a case involving the intersection between arbitration and franchise regulation. The petition was filed in November of 2015,...more

Return of the Food Trucks – New Offerings vs. Old Favorites

It’s that time of year again: flowers are blooming on the Common, the Red Sox had their opening day, and the best parts about Boston summer have started to reappear. This year, however, many of Boston’s beloved food trucks...more

Minimum Wage Increases in New York: What Employers Should Know

On April 4, 2015, New York Governor Andrew Cuomo executed sweeping legislation as part of the 2016-17 state budget, implementing a complicated and staggered set of minimum wage increases, and creating a system of paid family...more

Employment Law Navigator – Week in Review: April 2016 #2

That is SO last week - A couple of months ago, ride sharing app Lyft announced it had reached a settlement with drivers that would keep them classified as independent contractors, but pay them more than $12 million to...more

Court Rules Dissolution of Cooperative Corporation Is A Process, Not A Flash

I don’t see that many cases involving California’s Cooperative Corporation Law and so I was interested in a recent ruling by Magistrate Judge Laurel Beeler in English & Sons, Inc. v. Straw Hat Rests., Inc., 2016 U.S. Dist....more

Recent Ruling Means You May Need To Revise Your Tip-Pooling Plan

In a recent decision by the federal 9th Circuit Court of Appeals, a 2011 U.S. Department of Labor (USDOL) regulation that significantly restricts the common practice of “tip pooling” among wait staff and other service...more

New Jersey Court Makes Class Action Plaintiffs Pay the Price

The Appellate Division’s opinion in Dugan will undoubtedly hinder future plaintiffs who seek certification in New Jersey consumer class action cases. Defending against consumer class actions in New Jersey just got a...more

March 2016 Independent Contractor Misclassification and Compliance News Update

The cases reported in this update continue to reflect the fact that IC misclassification cases cut across virtually all industries. Below are IC misclassification cases from such diverse industries as insurance, ride-sharing,...more

NJ Appellate Division Decertifies Class in Suit Over TGI Friday’s Menus and Drink Prices

New Jersey bar patrons alleging that the chain restaurant, TGI Friday’s, Inc. (TGIF), violated consumer protection laws by omitting drink prices from its menus will have to proceed with their claims as individual plaintiffs...more

Is BETTER BURGER a Done Deal for Chipotle?

When it comes to a big company’s trademark filings, the publicly available and freely searchable Trademark Office database can provide great fodder for the media. But don’t believe everything you read: an intent-to-use...more

TCCWNA Class Action Tanked by Individualized Inquiries

New Jersey restaurant-goers alleging that TGI Friday’s, Inc. (TGIF) violated state consumer protection laws by omitting drink prices from its menus will have to proceed with their claims individually after the New Jersey...more

Keep Your Food on the Plate and Off the Floor: What Every Restaurant Should Do to Prevent Slip-and-Fall Accidents

The average restaurant has between 3 and 9 slip-and-fall accidents every year. In fact, an estimated 3 million foodservice employees and 1 million guests are injured annually from slip-and-fall accidents at restaurants. The...more

Food and Beverage News and Trends - March 2016 #2

This regular publication by DLA Piper lawyers focuses on helping clients navigate the ever-changing business, legal and regulatory landscape....more

FDA Delays Enforcement of Restaurant Menu Labeling Rule

This week, the Food and Drug Administration’s (FDA) Director of the Center for Food Safety and Applied Nutrition (CFSAN) formally announced that the agency will delay enforcement of its final rule entitled “Food Labeling;...more

Proposed CA Legislation Would Mandate Training for Alcohol Servers

California Assemblywoman Lorena Gonzalez, D-San Diego, has proposed a bill that would require alcohol servers to complete a course to help them identify customers who may be intoxicated and to intervene. Under the bill,...more

Menu Labeling Compliance Date Delayed, Again

Restaurants and other retail food establishments covered by the U.S. Food and Drug Administration’s (FDA) menu labeling regulations now have more time to comply with the regulations, according to a statement issued March 9,...more

ADA 'Drive-by' Lawsuits are Targeting Restaurants

An increasing number of plaintiffs’ attorneys are targeting restaurants, bars, and retail establishments in urban areas for “drive-by” lawsuits under Title III of the Americans with Disabilities Act (ADA). Despite its...more

Food and Beverage News and Trends - March 2016

This regular publication by DLA Piper lawyers focuses on helping clients navigate the ever-changing business, legal and regulatory landscape. Senate confirms new FDA commissioner. On February 24, the US Senate confirmed,...more

Menu Labeling: New York’s Salt Disclosures Temporarily Stayed

A day before new sodium labeling regulations were set to take effect in New York City, a New York state appeals court granted a temporary stay, pausing the implementation and enforcement of the new requirements. Under the...more

Ninth Circuit Reverses District Court Decisions, Reviving U.S. Department of Labor Rule Restricting Tip-Pool Distribution

On February 23, 2016, in a surprise ruling, a divided Ninth Circuit Court of Appeals (which covers the states of California, Nevada, Oregon, Washington, Arizona, Alaska, Idaho, Montana and Hawaii) ignored its prior precedent...more

Please Don’t Pass the Salt (Labels): The Fight Over NYC’s Sodium Labeling Rule

After surviving its first go-around in court, New York City’s attempt to require restaurateurs to add sodium warnings to their menus has hit a roadblock in the form of a temporary injunction....more

Ninth Circuit: FLSA's Tip-Pooling Restrictions Apply Regardless of Whether Employers Use Tip Credits

On February 23, 2016, the U.S. Court of Appeals for the Ninth Circuit in a 2-1 panel decision upheld the U.S. Department of Labor’s (DOL) 2011 revisions to 29 C.F.R. § 531.52 applying tip-pooling restrictions to employers...more

Ninth Circuit Holds That DOL May Expand Regulation of Employers’ Tip Pooling Practices

The restaurant and gaming industry lost a battle in the Ninth Circuit over whether employers that pay their workers at least the minimum wage are subject to Department of Labor regulations restricting tip pooling...more

Ninth Circuit Says DOL Tip Pooling Restrictions Apply Even if Employer Does Not Claim Tip Credit

Federal Department of Labor regulations have long prohibited employers from requiring that servers, hostesses and bartenders pool a portion of their tips to share with other restaurant employees such as bussers and cooks. For...more

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