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Managing staff tips in a restaurant can be a delicate balancing act. Evaluate Legal Considerations Tipping laws vary widely by region. Research the following before implementing your policy: Tip Pooling Laws : Some regions allow mandatory tip pooling, while others restrict it. Mediation : Use a neutral party (e.g.,
Navigating the bustling world of the restaurant industry comes with its own set of challenges, and one critical area that often flies under the radar is worker classification. Key considerations include: Wage and Hour Laws The Fair Labor Standards Act (FLSA) sets standards for minimum wage, overtime pay and recordkeeping.
Whether in favor of or against these new marijuana laws, restaurant businesses that operate in multiple states need to be especially careful about how they approach marijuana in workplace situations. This is becoming especially tricky for restaurant businesses or chains that operate across multiple states. New Safety Issues.
Immigration and Customs Enforcement (ICE) has intensified its focus on industries that employ large numbers of undocumented workers, and restaurants remain a top target. Let’s explore past ICE enforcements against restaurants and, most importantly, what you can do now to protect your business.
A new year is creeping up on us again, bringing fresh opportunities—and challenges—for restaurant operators. From updating policies to gearing up for tax season, these steps will enhance your compliance and position your restaurant for sustained growth.
The pandemic has changed the physical and economic environment in which restaurants operate. Food delivery can be done either through the restaurant itself or through unrelated third-party online food delivery services. Marketplace Collection Laws. Today, all but three states with a state sales tax have enacted such laws.
For restaurants, this means dine-in service will begin again — or will be soon — and more employees will be returning to work. This is great news for an industry that has seen countless restaurants limited to takeout or delivery orders, if they were even able to remain open at all during the COVID-19 crisis.
On January 1, 2023, Assembly Bill (“AB”) 676 went into effect, significantly amending the California Franchise Relations Act and Franchise Investment Law. franchise disclosure documents. Restaurant franchisees should review their existing franchise agreements and disclosure documents for these types of provisions.
Let’s start with an uncontroversial premise: California’s complex, ever-changing gauntlet of employment laws is difficult for any company to navigate. Yet you may still be wondering why, aside from the headache, does it matter for my restaurant? California employment law isn’t intuitive. Why Compliance Matters.
Legal and other matters referred to in this article are based on 7shifts' interpretation of laws existing at the time and should not be relied on in place of professional legal advice. With labor laws on age, wage, overtime, and time off–many of which vary between New York State and New York City–it’s easy to overlook a law or two.
Some of the biggest restaurant businesses on the planet are franchises. They employ thousands of people and have served billions, and with so many people affected, it's understandable why there are franchise-specific laws and regulations in place. Who Regulates Franchise Compliance Laws? Federal Law Compliance.
As the COVID-19 pandemic continues, restaurant workers of all types need time off to rest, recharge, and hopefully return reinvigorated to serve your customers. Employers are encouraged to review applicable federal, state and local leave law provisions. Employers generally have leeway to approve or deny requests for time off.
The Freelance Isn’t Free Act (FIFA) represents a significant shift in labor law, providing new protections for freelance workers across New York state. This law requires written contracts for freelance engagements worth $800 or more or lasting longer than 120 days. Anti-retaliation protections. T – Timely payments.
Nearly 6 weeks after the American Rescue Plan was signed into law, the Restaurant Revitalization Fund is a reality. billion in grants for restaurants to use to cover everything from payroll to rent. Get your documents ready (more below). This includes: Restaurants. The fund sets aside $28.6 How do I apply?
Controlling the variables in the restaurant industry can feel like a game of whack-a-mole if you don’t have the right tools at your fingertips. Modern restaurant technology can provide peace of mind to operators worried about food safety violations, labor law mistakes, falsified data and more.
Massachusetts has a unique mix of labor laws and employee protections that apply to restaurants in the state. Between their relatively high minimum wage and tip credit, wide-ranging state law on tips, and detailed guidelines on employing minors, it can be hard for restaurants to navigate.
This is the restaurant back office in its natural state – but not at all at its finest. Even though the practice of restaurant management continues to move digital, the physical space of your restaurant back office still needs to be organized.
Running a restaurant comes with a unique set of risks, especially when serving alcohol. For example, if your establishment serves alcohol to an intoxicated patron who subsequently drives and causes an accident, your business could be held liable for any resulting property damage, personal injury, or even fatalities, depending on local laws.
During a pandemic, drone delivery may also enable restaurants to serve customers who feel uncomfortable picking up food from a restaurant or having a delivery drivers come to their homes. However, restaurants seeking to capitalize on this new technology must navigate the aviation and privacy laws governing commercial drone operations.
Food and Drug Administration (FDA) has issued two temporary food labeling guidance documents that attempt to balance industry supply and demand during the novel coronavirus pandemic. Labeling on Packaged Food Sold by Restaurants and Food Manufacturing Facilities.
Massachusetts has a unique mix of labor laws and employee protections that apply to restaurants in the state. Between their relatively high minimum wage and tip credit, wide-ranging state law on tips, and detailed guidelines on employing minors, it can be hard for restaurants to navigate.
Massachusetts has a unique mix of labor laws and employee protections that apply to restaurants in the state. Between their relatively high minimum wage and tip credit, wide-ranging state law on tips, and detailed guidelines on employing minors, it can be hard for restaurants to navigate.
For restaurants, however, the PPP caused confusion in terms of who could apply and how the loans would be handled. Are restaurants eligible for PPP loans? In the food service industry, this raises a question as restaurants may, when combined within one company, have more than 500 employees. Businesses may borrow up to 2.5
New York restaurant owners must maintain compliance with laws and regulations on multiple levels: statewide regulations, federal guidance, and local ordinances. The result is a complex patchwork of laws that varies from place to place. The restaurant then retaliated against the staff member who reported the violation.
Did you know that more sexual harassment claims are filed in the restaurant industry than in any other industry? Sexual Assault Awareness Month (SAAM) in April is an opportunity for restaurant and bar owners to review existing policies and develop new ones. What if an incident occurs outside of the restaurant or bar?
New York restaurant owners must maintain compliance with laws and regulations on multiple levels: statewide regulations, federal guidance, and local ordinances. The result is a complex patchwork of laws that varies from place to place. The restaurant then retaliated against the staff member who reported the violation.
What are ways that restaurants can build business safely and reopen their doors as the future emerges — even while COVID cases continue and vaccine distribution is happening? Customers and restaurants are opting for contactless payment – tap cards, phone payments, and QR code-driven billing. Florida is the first U.S.
Particularly for operators in the restaurant industry, who face high-volume hiring as a result of toxic turnover, it’s critically important to be diligent regarding employment eligibility to avoid penalties. Incompletion and Errors Put Restaurants at Risk. There’s a lot more to the Form I-9 than it would appear.
As many states and localities prepare to reopen restaurants and other businesses that were shuttered in response to the COVID-19 pandemic, employers face a minefield of potential legal pitfalls. Recalling Furloughed or Laid Off Workers. Recalling Furloughed or Laid Off Workers. Wage and Hour Issues.
Operating a successful restaurant, let alone a portfolio of restaurants, is one of the most challenging businesses in the market. A restaurant’s legal counsel can be a key advisor and ally in positioning the business for growth while helping minimize risk. Date around.
As restaurants begin the process of reopening, some with an extended period of nonoperation, there are safety precautions that must be considered beyond simply ordering supplies, rehiring staff and opening the doors. Documentation is key here noting training dates, times and attendance. Train Employees to the Written Plan.
Today’s modern restaurant operators face challenges that no other generation has faced, thanks to COVID-19 closures, supply chain disruptions, labor shortages, menu labeling, and food safety challenges. These are just a few of Chipotle's many efforts to revive its damaged brand image and increase safety in their restaurants.
Overtime, clocking in, rounding hours, and local regulations can make restaurant payroll a nightmare. Labor is one of the largest expenses in the industry, and mistakes can irreparably damage a restaurant's reputation and bottom line. State-Specific Time Clock Rules & Laws. Table of Contents. Salaried vs. Hourly Employees.
From infamous chicken sandwich wars to on-trend plant-based burgers and acai bowls, it’s safe to say that 2019 was a trademark year for restaurants. With all of 2019’s success, restaurant operators are also facing challenges that can be addressed with the help of technology in the New Year. trillion in sales by 2030.
This world-altering development—part of a rational and effective public health strategy to slow the spread of disease and help our health care system cope with the devastating illness—has also been a widespread and immediate economic disaster for the nation’s restaurant and food service sector. Document Everything.
As the restaurant industry continues to evolve in 2025, effective legal strategies are more important than ever for operators aiming to grow and scale their businesses properly. From franchise compliance to mergers and acquisitions (M&A) terms, the right legal frameworks can guide a restaurant company to long-term, sustained success.
Managing multiple restaurant locations is a good challenge to have. But to be clear, multi-location restaurant management is challenging. Whether you’re managing multiple restaurants right now or are thinking about expanding your current business , this guide has everything you need to run more than one restaurant at once with success.
In the case of a restaurant business owned by a corporation or LLC, one of those reasons is the shareholders’ or members’ failure to have a plan to replace the key decision-maker(s). It can also impact the choice of formation state—as state laws that affect succession differ. Businesses fail for a variety of reasons.
Did you know that payroll/labor makes up almost one-third of a restaurant's operating costs ? Understanding the ins and outs of paying employees, observing labor laws, and complying with the tax code is critical to running a business. This restaurant payroll guide will teach you: What payroll is. How to solve payroll tax issues.
An audit can also be a powerful tool that can help you improve the financial health and profitabilit y of your restaurant. How to Conduct a Successful Restaurant Audit First, take stock of the following areas of your restaurant business: Cleaning and Sanitation It’s difficult to overstate the importance of sanitation for restaurants.
It’s been five years since you opened your first restaurant. One day someone approaches you about buying the right to open one of your restaurants in a nearby city. What does it really mean to franchise your restaurant? Business is great and customers keep coming back for more. It sounds intriguing, but where do you begin?
Aside from the usual laws, like not selling liquor to minors or visibly intoxicated customers, the candidate must be aware of other regulations in your state. As such, knowledge of the law and how to train staff to comply is crucial. Training is a crucial restaurant management skill. What did you do?
2 hours per week When Mattenga’s bought the restaurant in 2014, they had been using spreadsheets to keep track of their weekly schedules. Optimizing & reducing labor costs Mattenga’s kept their labor costs steady at 22% - 27% A restaurateur’s labor costs are one of the largest—yet most flexible—of all the restaurant costs.
Cities and states across the US are responding to a movement known as “ fair workweek ,” with many enacting new laws to shield restaurant employees’ personal lives and finances from the notoriously unpredictable world of restaurant scheduling. What is “Fair Workweek?”
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