Hospitality Matters

Microsoft is making it easier for its employees to sue the software giant over sexual harassment (and wants to make it easier for all).

Senators Kirsten Gillibrand and Lindsey Graham recently introduced new legislation – The Ending Forced Arbitration of Sexual Harassment Act of 2017. This bill would ensure that every person facing sexual harassment in the workplace can make their case in a public court, rather than solely behind closed doors in private arbitration.

Deals

Risks to Buyers When Devising Earn-Outs

Earn-outs are a common method of potentially compensating sellers in M&A transactions. Payment of a portion of the (potential) purchase price must be earned in accordance with the agreed terms before it becomes due. Earn-out provisions must be carefully contructed and are typically subject to detailed negotiations so

Laws and Regulations

Carbon Dioxide in Beverage Dispensing Systems

The NYC Fire Department recently updated one of its rules, 3 RCNY Section 3004-01, “Use of Carbon Dioxide in Beverage Dispensing Systems,” to ensure that such systems are being installed and maintained in accordance with modern safety standards. The NYC Hospitality Alliance recently published a helpful FAQ on the new

Deals

Apollo Buys Qdoba Restaurants for $305 Million Cash

Reuters reported that Jack in the Box Inc. is selling its Qdoba Restaurant unit to funds affiliated with Apollo Global Management LLC for about $305 Million in cash. See: https://www.reuters.com/article/us-jack-in-the-box-m-a-apollo-glo-mgmt/jack-in-the-box-to-sell-qdoba-restaurant-unit-for-305-million-cash-idUSKBN1ED1JI Qdoba Restaurant operates and franchises more than 700 Qdoba Mexican Eats restaurants. About Hospitality

Employee Matters

Hospitality Industry Wage Order - Minimum Wage Increasing Effective December 31, 2017

Minimum wages for hospitality industry employees are in the middle of a substantial statewide increase. Minimum Wage In New York City, the minimum wage for hospitality employees (excluding fast food), will be increased to $13 at end of 2017 and $15 at end of 2018 for employers with more than

Laws and Regulations

NYC City Council Fails to Pass Proposal Adding 3000+ New Street Vendors.

NYC City Council fails to pass legislation to increase food vendor licenses by more than 3000.

Crime

What to Do if You Believe You Have Been Harassed at Work

Crime

New York Times Sexual Harassment News Feed

For updated news about workplace sexual harassment, including commentary and archival articles published in The New York Times, see: https://www.nytimes.com/topic/subject/sexual-harassment About Hospitality Matters Law Blog The DD&M Hospitality Matters Law Blog examines topics and developments of interest to food and beverage groups

Crime

Owner of UWS Manhattan Brew & Vine Murdered

Cops told the wife that a man in a hoodie walked up to Ramirez, pulled a gun and fired three shots from close range.

Eating and Drinking

Chef Nobu Matsuhisa on Eating Sushi

Chef Nobu Matsuhisa shows how to properly eat sushi.

ADA

Onslaught of ADA "Drive By" Lawsuits

> The Americans with Disabilities Act was enacted in 1990 to improve access and equality for disabled Americans. However, the law’s integrity is being compromised by an onslaught of abusive “drive-by” lawsuits against small businesses for minor and correctable infractions/violations aimed at extracting settlements consisting mostly of attorneys’

Lawsuits

Palm steakhouse embroiled in family feud

A group of heirs of The Palm restaurant are suing another group for $100 million for being unfairly cheated out of business profits for generations.

Deals

Dean & Deluca Stops its Expansion Plans

The New York Post reports that gourmet grocer Dean & Deluca, which is owned by Thailand-based Pace Development Corp., is putting the brakes on expanding. See: https://nypost.com/2017/11/07/dean-deluca-halts-expansion-plans/ > “The company is investing in the strategic reassessment required to solve legacy issues and the current

Lawsuits

Former “Iron Chef” Cat Cora Sues Fatbird

The operator of Manhattan's Meatpacking District restaurant "Fatbird" was sued by Chef Cora over alleged breach of contract for failing to pay her for the use of her name, likeness and recipes.

Cupcakes

Cupcake (Video) Wars

Food blogger Elizabeth LaBau sued Food Network for copying her cupcake video. In December 2014, Elizabeth LaBau developed and published a recipe on her blog SugarHero for edible “snow globe cupcakes.” The recipe involved using gelatin sheets and water balloons to create edible “globes” to place atop cupcakes. After the

ADA

Is Your Website ADA Compliant?

The LA Times published an op-ed on June 11, 2017, by Mark Pulliam, denouncing the rash of ADA lawsuits filed against websites. See: http://www.latimes.com/opinion/op-ed/la-oe-pulliam-ada-websites-20170611-story.html > In this trend, people sue businesses because their websites aren’t sufficiently accessible to the disabled — because the

Employee Matters

Predictable Schedules and Predictable Paychecks

Predictable schedules and predictable paychecks are now a right, not a privilege, in these low-wage industries Mayor de Blasio, Speaker Mark-Viverito Announce That New York City Is The Largest City To End Abusive Scheduling Practices In The Fast Food And Retail Industries. Posted: May 30, 2017 http://www1.nyc.gov/

Laws and Regulations

Fire Safety Requirements for NYC Sidewalk Cafés

Title 3 § 404-03 of the Rules of the City of New York set forth the fire safety requirements for sidewalk cafés (and similar public gathering places). Here are some highlights: 1. Code Requirements. Sidewalk cafes must be built in accordance with all Building Code and permitting requirements. 2. Operating Permits.

Employee Matters

Restaurants Adopt Service-Included Systems

restaurants are moving to a service-included system (also called gratuity-free or no-tipping) to both better protect themselves from employee wage and hour claims and adjust their business model

Intellectual Property

Protecting Cocktails from Competition

Is it possible to stop others from copying my drinks? An article posted in Daily Beast by Philip Greene ( https://www.thedailybeast.com/can-you-trademark-a-cocktail-recipe) discusses how intellectual property law is applied to cocktails. He writes: > To start at the most basic level, intellectual property comprises trademarks (names, logos, slogans)

Restaurant Investing

The Pain of Investing in New York Restaurants

The agony of investing in Manhattan restaurants.

Lawsuits

Food Fight - Kati Roll vs. Kati Junction

In 2014, Kati Roll (an established restaurant chain) sued Kati Junction (a newcomer) for infringing on its trademark and unfairly appropriating recipes, menu, layout and color scheme, and hiring some former workers, including a former manager, to avail itself of its trade secrets. Kati Roll alleged: > “The Kati Roll

Employee Matters

A long-held standard for determining the “joint-employer” status of franchisors and franchisees is under attack.

> A controversial National Labor Relations Board decision in August 2015 held that two companies could be considered Joint Employers through indirect and potential control of employees. The split 3-2 decision reverses nearly 30 years of labor law, which held that an employer needed to have actual or direct control