News & Analysis as of

Restaurant Industry

The DOL Serves Up a Major Overhaul of its Tip-Sharing Regulations

by BakerHostetler on

Citing a “significant amount of private litigation,” recent changes in state wage laws, and “independent and serious concerns” of public policy, the U.S. Department of Labor (DOL) is proposing to rescind an Obama-era rule...more

Department of Labor Moves One Step Closer to Allowing Employers More Flexibility in Their Tip Pooling Practices

by Nexsen Pruet, PLLC on

The U.S. Department of Labor (DOL) published a notice of proposed rulemaking (NPRM) in the December 5, 2017 edition of the Federal Register, with a proposal to rescind its 2011 regulations on tip pooling. The NPRM appears to...more

DOL Proposes Repeal of Obama-Era Tip Credit Rule

Last week, the federal Department of Labor’s Wage and Hour Division proposed repealing a controversial regulation affecting employers in the hospitality industry. The regulation interpreted a provision of the Fair Labor...more

Explanation of the DOL's Proposed Rules on Tips

by Franczek Radelet P.C. on

There’s been plenty of press regarding the U.S. Department of Labor’s proposed rules governing employer treatment of tips. Commentators are debating whether the proposed changes are a sensible return to the four corners of...more

Food & Beverage Litigation Update | December 2017#2

by Shook, Hardy & Bacon L.L.P. on

A state senator in Pennsylvania has reportedly announced plans to introduce a bill that would bar any municipality in the state from levying a tax on sugar-sweetened beverages (SSBs). If enacted, the bill could invalidate the...more

Update: Tip Pooling by Restaurant Owners Remains in Flux

by Goulston & Storrs PC on

This past April, we reported on a recent Ninth Circuit ruling which upheld a 2011 Department of Labor (“DOL”) rule that prohibits restaurants from instituting tip-pooling arrangements that include both front-of-house staff...more

DOL Issues Proposed Rule to Rescind 2011 Regulations that Impose Tip-Sharing Restrictions on Employers that Pay the Full Federal...

by Littler on

The U.S. Department of Labor (DOL) has issued a proposed rule to rescind the Department’s position that employers must comply with tip-pooling requirements even when paying the full minimum wage. ...more

The DOL Proposes to Cut Tip-Pooling Restrictions

by Ballard Spahr LLP on

The U.S. Department of Labor (DOL) is proposing new rules that would provide some employers with more flexibility to count tips toward the federal minimum wage—particularly important for hospitality industry businesses such...more

Tip-Pooling Expansion on the Horizon

The U.S. Department of Labor (DOL) has proposed to roll back regulations enacted in 2011 that limited tip-pooling arrangements under the Fair Labor Standards Act (FLSA). The proposed rule was published December 5 in the...more

DOL Issues Proposed Rule to Rescind 2011 Regulations that Impose Tip-Sharing Restrictions on Employers that Pay the Full Federal...

by Littler on

The U.S. Department of Labor (DOL) has issued a proposed rule to rescind the Department’s position that employers must comply with tip-pooling requirements even when paying the full minimum wage. ...more

Department Of Labor’s Wage And Hour Division Proposes To Nix Unpopular Tip Pooling Rule

by Seyfarth Shaw LLP on

Seyfarth Synopsis: On Monday, the DOL issued a Notice of Proposed Rulemaking announcing rescission of a rule that regulates tip pooling by employers who do not take the tip credit. The DOL has issued a Notice of Proposed...more

DOL Proposing New Tip Credit Regulations

by Sherman & Howard L.L.C. on

On December 4, 2017, the U. S. Department of Labor (“DOL”) issued a Notice of Proposed Rulemaking regarding the tip credit regulations under the Fair Labor Standards Act. The proposed new regulation will be published today,...more

Extra Credit: Franchise Restaurant Workers Clear Path To Massive Payout On Technicality Under New York Law

by Seyfarth Shaw LLP on

Seyfarth Synopsis: Tipped workers who didn’t receive notice of the tip credit get a win under New York state minimum wage law in a case that echoes technical traps we have seen in FLSA decisions. ...more

Menu Labeling Update: Plans On-Track for Implementation in May 2018

On November 7, 2017, the U.S. Food and Drug Administration (FDA or the Agency) released the much-anticipated draft supplemental guidance, “Menu Labeling: Supplemental Guidance for Industry” (Draft Guidance). The Draft...more

Food & Beverage Litigation Update | December 2017

Subway Sweepstakes Ads Lacked Adequate Disclosures, CARU Finds - After reviewing an ad for Subway’s “Fresh Fit for Kid’s Meal” featuring premium toys and offering a sweepstakes for a tablet, the Children’s Advertising...more

Another Restaurant And Its Owners Nabbed For Using Zapper Software

by Fox Rothschild LLP on

Earlier this week Michigan Attorney General Bill Schuette announced that a sushi restaurant outside Detroit has been ordered to pay nearly $1 million in restitution and to serve a five-year sentence of probation for...more

FRANCHISOR 101: Injunction Bottleneck

by Lewitt Hackman on

A restaurant franchisor, World of Beer Franchising ("WOB"), recently lost an appeal to enforce a post-termination restriction against a franchisee launching a competing business. Both the trial and appellate court ruled...more

New York City Issues Final Regulations, Notices, Forms, FAQs For Fast Food, Retail Workers Scheduling Law

by Jackson Lewis P.C. on

The New York City Department of Consumer Affairs (DCA) on November 27, 2017, announced in a press release that the Fair Workweek Law applicable to fast food and retail employers became effective on November 26. The Law is...more

New York Employers – Minimum Wage Increases And Other Reminders For The New Year

by Fox Rothschild LLP on

As we approach the end of the year, it is critical to remember and implement new legal requirements that go into effect on December 31, 2017. Failure to comply with these requirements could subject an uninformed employer to...more

Predictive Scheduling Laws: Guide To Avoid Becoming A Cotton-Headed Ninnymuggins

by Seyfarth Shaw LLP on

Seyfarth Synopsis: Since the days of Buddy the Elf’s short stint as a retail employee, New York City and many other municipalities have adopted predictive scheduling laws. Though California does not yet have a such a law, San...more

Restaurants vs. Apparel: A Different Recipe for Restructuring A Retail Footprint

by Bryan Cave on

With the holiday season now upon us, analysts are closely watching the restaurant industry, particularly the casual dining segment. Reminiscent of the conditions in 2008-2009, many are speculating whether the increase in...more

FDA Publishes Supplemental Guidance on Menu Labeling for Chain Restaurants

by McDermott Will & Emery on

On November 7, the US Food and Drug Administration (FDA) published the latest in a series of industry draft guidance documents to help implement menu labeling and nutrient disclosure regulations applicable to chain...more

Restaurant Industry Gets Another Chance To Chime In On Menu Labeling

by Lewitt Hackman on

Franchisors in the food service industry have until January 18, 2018 to comment on the latest version of the Food & Drug Administration’s Menu Labeling Guidance. The FDA released the draft November 7th. This version includes...more

FDA Releases New Guidance On Menu Labeling Rule

by Fox Rothschild LLP on

The Trump administration is moving forward with an Obama-era initiative requiring certain food establishments to list calorie information on menus and menu boards, including food on display and self-service food. The FDA...more

How the EEOC is Cracking Down on Equal Pay Act Violations in the Food Service Industry

With the prevalence of gender discrimination lawsuits in the media and the increasing number of equal pay laws nationwide, employers in the food services industry would be wise to review their hiring and payroll practices as...more

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