On Friday, July 19, 2024 the Federal Trade Commission (FTC) made several announcements targeting franchisors, including warning against the use of broad non-disparagement clauses and “hidden fees” within franchisor-franchisee contracts. These actions include:
The National Restaurant Association and Restaurant Law Center submitted comments to this RFI in June 2023. In comments, the Association urged the FTC to refrain from creating new sweeping regulations regarding the franchise model. The Association and RLC also expressed concerns regarding the RFI process wherein unreliable anonymous anecdotal accounts could be used to inform formal rulemaking. Importantly, the FTC did not revise or update the Franchise Rule, which governs what franchisors must disclose to prospective franchisees. However, these latest actions underscore the FTC’s continued scrutiny of franchising.
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The NLRB withdrew its appeal to the 5th Circut decision vacating the 2023 Joint Employer Rule, putting a “direct and immediate” standard back in place.
Washington, D.C. – Friday, July 19, 2024, the National Labor Relations Board (NLRB) was granted a request to withdraw its appeal of the United States District Court in the Eastern District of Texas decision vacating the 2023 Joint Employer Rule. This means that the long-established “direct and immediate” joint employer standard will again be in place, providing clear and stable guidance for foodservice employers and employees. “This is a major victory in the long fight that franchise operators, the restaurant industry, and the Restaurant Law Center have been waging with the NLRB over the Joint Employer Rule,” said Sean Kennedy, executive vice president of Public Affairs for the National Restaurant Association. “Today, restaurant operators have clarity and certainty on how to determine joint employer status now and in the future. This means operators can once again confidently focus on growing their businesses and feeding their communities.” “The Restaurant Law Center welcomes the dismissal of the NLRB’s appeal,” said Angelo I. Amador, executive director of the Restaurant Law Center, a leading co-plaintiff in the legal challenge. “If the new Joint Employer rule had been allowed to stand, it would have imposed joint-and-several liability on virtually every entity that hires contractors subject to routine parameters or on any employer that collaborates with a third party of any kind in achieving common goals that have an incidental or indirect effect on the third party’s employees. In other words, it was an unmanageable standard. Nothing in the National Labor Relations Act or common law compelled such an approach.” The vacated 2023 NLRB Joint Employer rule attempted to establish a joint-employer relationship even if there was only indirect or potential/reserve control over another employer’s workers. For decades, the NLRB had found that the essential element of a joint-employer relationship is whether a presumed joint employer’s control over employment matters is “direct and immediate.” Calling All Bartenders!
Are you ready to shake things up and win $1,000? Join us for the Four Roses Bourbon Smash Showdown at the LRA Showcase 2024 on Sunday, August 4 at 3 p.m. to show off your skills in crafting the ultimate Four Roses Bourbon Smash! Participants receive a $200 stipend to cover ingredients, transportation, and parking. Don’t miss your chance to shine and compete for the grand prize! Sign Up Here Your National Association Needs Your Feedback - Influence National Restaurant Association Strategy7/8/2024 The National Restaurant Association is seeking your feedback through an important membership survey, regardless of your level of engagement with the National Association. This is your chance to influence our strategy and ensure that our programs and services are tailored to benefit your restaurant. Vault Consulting will be sending an email with your survey link soon (safelist [email protected] to guarantee you receive it). Your honest responses are vital to our success. Participate today and help us better serve you!
As promised, our membership survey launched today. Please give the email from Vault Consulting (sender [email protected]) your full attention. Your open and honest feedback is critical to ensuring your National Restaurant Association can best meet your needs and the needs of your industry. Thank you in advance for helping us advance our mission to serve our industry and impact its success! What Just Happened: Earlier today, the Occupational Safety and Health Administration (OSHA) issued a proposed rule outlining steps employers would be required to take to protect indoor and outdoor workers from the risk of heat illness.
Overview of the Proposed Rule: The Association is analyzing the rule. Employer requirements include:
Next Steps:
For More Information: OSHA: Heat Injury and Illness Prevention Rulemaking Overview On Friday, we learned that the US District Court in Texas issued a limited temporary restraining order regarding the first phase of the DOL Overtime Rule that takes effect today, July 1, 2024. This decision temporarily exempts ONLY the State of Texas from the rule's implementation. However, businesses in Louisiana (and nationwide) will still need to comply with the new mandate. The first phase of the DOL Overtime Rule – will raise the standard salary threshold to be exempt from overtime pay to $43,888 annually.
The Restaurant Law Center (RLC) is part of a coalition challenging the rule, and we are analyzing the options on behalf of LRA members given the Friday ruling. More updates will follow. ________ What LRA members Should Do Now: ·Review job duties: Ensure employees are correctly classified as exempt or non-exempt based on their job duties. Refer to this DOL fact sheet for guidance on determining exempt status. ·Review payroll records: Identify salaried exempt employees with wages below the new threshold. For these employees, you might consider 1) raising their salary above the new limit or 2) changing their status to non-exempt and properly tracking hours to pay overtime when appropriate. ·Consult legal counsel: Consult with an employment attorney that is familiar with DOL policy to determine how best to comply with the rule and all applicable state and local mandates. For More Information: Check out these resources:
On Thursday, July 4, 2024, the law allowing constitutional carry of concealed firearms for Louisiana residents 18 and older will take effect. Those locations that previously prohibited concealed carry remain in effect that include public buildings, courthouses, libraries and other locations.
Permitted concealed or constitutional carry of a firearm or other weapon continues to be strictly prohibited in bars (Class A - General license). This prohibition does not apply to restaurants (Class A - Restaurant), unless the tenant/lessee/owner of a business chooses to prohibit them and provides the appropriate notice to the public near the entrance to their premises. Private property rights extend to owners, lessees or tenants (including restaurants, hotels or other retail businesses) that can prohibit the concealed or carrying of any weapons on their property. You may utilize this download (or something similar), which also includes the Louisiana statutory reference, to clearly communicate your choice to prohibit weapons on your premises should you decide to do so. Download Placard The LRA Education Foundation recently honored six exceptional young men who have successfully completed their line cook apprenticeship, officially graduating from the program. The celebratory event was hosted by Conrad Churra, owner of Wakin' Bakin' in the French Quarter. Churra is the founder of the Bridge Program, which provides a crucial stepping stone for individuals who have completed a pre-apprenticeship but are not yet fully prepared for an apprenticeship.
Each graduating apprentice was recognized for their unwavering dedication and hard work throughout the rigorous 18-month program. The ceremony highlighted their journey and celebrated their achievements, acknowledging the significant effort they put into mastering the skills required for a successful career in the culinary arts. The Line Cook Apprentice Graduates completed their apprenticeships at the following locations:
Apprenticeship Program Overview Apprenticeships play a vital role in expanding the pipeline of qualified employees in the restaurant industry. Through the Restaurant Youth Registered Apprenticeship (RYRA), restaurants have access to established pre-apprenticeship programs like ProStart and Restaurant Ready. These programs help employers identify suitable apprentices, ensuring a steady influx of trained professionals. Moreover, funding is available to support the cost of apprentices attaining industry-based credentials such as ServSafe®. The RYRA staff maintain strong relationships with Louisiana’s technical and community college programs, providing a seamless link for apprentices to further their education. Employers benefit from the NRAEF’s support with a comprehensive training curriculum, ensuring apprentices receive top-notch education and practical experience. Criteria for the Line Cook Apprenticeship
Several of the apprentices also attended Nunez Community College, where they received comprehensive foodservice manager training. This additional education complemented their workplace training and mentorship, equipping them with the knowledge and skills necessary to excel in their roles. Support and Development Opportunities Beyond the core apprenticeship training, there are additional support services available. Apprenticeship programs can be coupled with support services from local workforce development agencies, potentially offering wage reimbursement subject to local eligibility requirements. This holistic approach ensures that apprentices not only gain valuable skills but also receive the financial and educational support needed to succeed. The ceremony at Wakin' Bakin' was not just a celebration of their achievements but also a testament to the impact of the LRA Education Foundation's programs. The apprentices' success stories are a source of inspiration and a demonstration of how the right training and support can transform lives. We extend our heartfelt congratulations to these six remarkable individuals and look forward to seeing their continued success in the culinary world. Their journey is a shining example of what can be accomplished with determination, support, and high-quality training. A group of young women from two ProStart programs in New Orleans are headed to Walt Disney World for an exclusive, all-expenses-paid culinary journey in honor of Chef Leah Chase, who inspired the animated motion picture The Princess and the Frog. Tiana’s Bayou Adventure, the newest attraction at Magic Kingdom Park, honors not only the legacy of the late Chef Leah Chase, but also serves as a love letter to New Orleans, complete with musicians, the scent of fresh beignets, and nods to cultural and Chase family references.
Twenty-five young women in total were selected from culinary arts programs in New Orleans, such as ProStart at Warren Easton High School, the New Orleans Career Center, NOCHI, NOCCA, and Café Reconcile. The group will spend three days and four nights exploring all four theme parks, indulging in culinary explorations at the resort's most high-profile restaurants, and, of course, experiencing Tiana’s Bayou Adventure. On June 20, four U.S. Senators introduced the “No Taxes on Tips Act” to prevent federal income taxation on employee tips in any industry. While the proposal would eliminate the federal income tax for tips, these tips would still be subject to the federal payroll tax (“FICA”) paid by employees and employers to contribute to Social Security and Medicare. The FICA contribution ensures a tipped employee can demonstrate his or her total income as they build credit or access benefits, while ensuring restaurant employers continue access to the FICA 45B credit. The legislation was introduced by Sen. Ted Cruz (R-TX) and cosponsored by Sens. Steve Daines (R-MT), Rick Scott (R-FL), and Kevin Cramer (R-ND). Former President Trump proposed this idea during a campaign event this month and said it would be a priority for his administration should he return to the White House in 2025. The current Senate Finance Committee chairman did not signal that he wanted to advance this bill in 2024. The Association and the Texas Restaurant Association worked closely with Senator Cruz’s office to ensure that the restaurant workforce would be able to collect Social Security benefits and show income inclusive of earned tips. Other proposals offered in Congress to remove the federal income tax on tips may upend the federal tip credit model, endanger benefits for tipped employees, and cause further disruption to full-service restaurants. In 2025, the Association will work closely with Congress on many tax priorities which clearly have a major impact to a restaurant operator’s ability to earn a profit, advance employees, and grow their business. The impact of this new legislation is less clear for restaurants and the broader economy, but we will remain engaged to support our industry’s model. “Tipped employees are a critical part of the restaurant industry, and anything that strengthens their economic condition is a positive for them. The ‘No Tax on Tips Act’ would provide immediate tax relief for more than 2.2 million restaurant employees and their families, putting more money in their pockets at a time when we're all feeling the squeeze of higher prices. We thank Senator Ted Cruz and Senator Steve Daines for their leadership, and look forward to working with them on this and other common-sense tax proposals that will support restaurant vitality in every community in America.” -- Sean Kennedy, Executive Vice President of Public Affairs, National Restaurant Association “The Texas Restaurant Association is grateful to Sen. Cruz for working with us to develop the ‘No Tax on Tips Act.’ Restaurant servers, bartenders, and other tip-earning employees give so much to the local businesses and communities they serve—delivering the essential service of food with hospitality that creates lasting memories. It’s wonderful to create an opportunity to give back to them by helping them keep more of their hard-earned tips that they can invest in their families and our local economy.” -- Emily Williams Knight, President and CEO, Texas Restaurant Association |