News & Analysis as of

Restaurant Industry Enforcement Actions

Husch Blackwell LLP

Burger King Corp.’s Motion to Dismiss Denied in Deceptive Advertising Class Action Lawsuit

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In Walter Coleman, et al. v. Burger King Corp., No. 22-20925 (S.D. Fla.), a putative class of consumers from thirteen states alleges that Burger King’s advertising for items such as the Whopper materially exaggerates portion...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

California Law Strengthens Enforcement of Tip Theft

On July 30, 2025, California Governor Gavin Newsom signed into law a bill (Senate Bill 648) that authorizes the state’s labor commissioner to investigate tip theft and levy fines for violations. The new law is particularly...more

Cozen O'Connor

Massachusetts AG Cites Restaurant for Alleged Tip Pooling Violations

Cozen O'Connor on

Massachusetts AG Andrea Campbell issued citations against restaurant Azumi LLC (Azumi), and its manager for allegedly requiring service employees to share tips with managers in violation of state wage and hour laws....more

Holland & Knight LLP

New York Curbs Scalping of Restaurant Reservations

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Legislation aimed at the unauthorized sale of restaurant reservations, described as the first of its kind in the United States, takes effect in New York on February 17, 2025. Titled the Restaurant Reservation Anti-Piracy Act,...more

Troutman Pepper Locke

FTC and Illinois AG Settle Matter Against Grubhub for $140M

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On December 17, 2024, the Federal Trade Commission (FTC) and Illinois Attorney General (AG) Kwame Raoul settled their lawsuit against Grubhub for $140 million (Grubhub will only have to pay $25 million, with the balance...more

Parker Poe Adams & Bernstein LLP

Labor Department Continues to Pursue Restaurant Owners for Illegal Tip Pools

Under the Fair Labor Standards Act (FLSA), business owners and managers may not share in their servers’ tips. In recent weeks, the U.S. Department of Labor’s Wage and Hour Division announced recoveries against two restaurants...more

WilmerHale

Weekly COVID-19 Oversight & Enforcement Report - May 2021

WilmerHale on

The Congressional Oversight Commission released its 12th report on April 30. The report focuses on a $700 million loan to trucking company Yellow Corporation (formerly known as YRC Worldwide) under the CARES Act loan program...more

Snell & Wilmer

New COVID-19 Relief Bill Includes Targeted Relief for Restaurants and Other Hard-Hit Small Businesses and Nonprofits

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Yesterday, President Joe Biden signed the $1.9 trillion American Rescue Plan Act of 2021 (Act), which includes new pandemic-relief grants for small and mid-sized restaurants and bars; expansion of the Paycheck Protection...more

Fox Rothschild LLP

Outdoor Restaurant Dining In Los Angeles County Comes At A Price: New Requirements

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Although restaurants may now resume outdoor dining in Los Angeles County, the devil, as they say, is in the details. Along with giving restaurants the go ahead for outdoor dining service as of last Friday, the County Public...more

Pierce Atwood LLP

As COVID-19 Rates Spike in the Cold, Enforcement is Taking Off the Gloves

Pierce Atwood LLP on

With COVID-19 cases continuing to rise throughout New England, state officials in the region are turning from education to enforcement with respect to the executive orders and sector guidance currently in effect....more

Polsinelli

The Cheesecake Factory has settled charges with the SEC for Misleading COVID-19 Disclosures

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The SEC has just announced settled charges against The Cheesecake Factory Incorporated for making misleading disclosures about the impact of the COVID-19 pandemic on its business operations and financial condition. The SEC...more

BakerHostetler

Blockchain Food Tracing Initiatives Add Members, Report Addresses Central Bank Digital Currencies, NY DFS Publishes Crypto...

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Seafood Association, Restaurant Chain Announce Blockchain Supply Chain Partnerships - This week, a major global technology firm and the Norwegian Seafood Association announced a new collaboration using the Food Trust...more

Bilzin Sumberg

Liquor License Risks in Light of COVID-19 Rules

Bilzin Sumberg on

With positive cases of the novel coronavirus on the rise, the State of Florida is cracking down on violations of COVID-19 rules through its Department of Business and Professional Regulation (DBPR). The DBPR is going after...more

White & Case LLP

Leisure sector M&A awaits delayed reaction - COVID-19 is hammering leisure sector M&A—but not so much that opportunities have...

White & Case LLP on

Leisure M&A deal value totaled US$13.5 billion in Q1 2020, which, although higher than figures recorded for Q1 2019, was more than 50% below Q4 2019 levels. Deal volume dropped to 117 transactions, the lowest quarterly total...more

Hogan Lovells

Chipotle Mexican Grill Enters into Deferred Prosecution Agreement to Resolve Charges Related to Foodborne Illness Outbreaks

Hogan Lovells on

On April 21, 2020, Chipotle Mexican Grill, Inc. (Chipotle) and the U.S. Department of Justice (DOJ) entered into a three-year deferred prosecution agreement (DPA) in connection with norovirus and Clostridium perfringens...more

Robins Kaplan LLP

Financial Daily Dose 3.17.2020 | Top Story: The Bear Market Roars, with Markets Falling nearly 13% as Whole Sectors of US Economy...

Robins Kaplan LLP on

As Americans [way-too] slowly come to the realization that COVID-19 is a very real and very present threat, the business world is changing around them at a staggering pace. Stocks nosedived again on Monday, with the three...more

Foley & Lardner LLP

Massachusetts Attorney General Cracks Down on Child Labor Law Violations

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Businesses may employ minors in Massachusetts, but complying with Massachusetts child labor law involves more than just ensuring your workers are 14 or older. Last week, fast-casual Mexican food chain Qdoba Restaurant...more

Foster Garvey PC

OTA & Travel Distribution Update: Sales principles introduced for online booking sites in the U.K.; AirAsia.com the next large...

Foster Garvey PC on

Sales Principles Introduced for Online Booking Sites in the UK - ("Hotel Booking Sites Get Consumer-law Compliance Principles from CMA," MLex, March 1, 2019) (subscription required) By September 1, 2019, hotel booking...more

Lewitt Hackman

FRANCHISOR 101: Thrust Into Antitrust

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Jimmy John’s will face antitrust claims, after an Illinois federal judge declined to dismiss allegations in a class action. Plaintiffs claim the chain’s franchise agreement harmed competition by preventing franchisee...more

FordHarrison

Beware of ICE in the Kitchen: the Return of Worksite Raids

FordHarrison on

Restaurants – which historically have relied on immigrants for a large part of their labor force – have a new challenge to face when it comes to running their businesses. ...more

Robins Kaplan LLP

Your Daily Dose of Financial News

Robins Kaplan LLP on

Now to be fair, Starbucks Executive Chair Howard Schultz has stepped away before.  But this time feels more definitive, especially with the call of politics apparently swimming around in his post-Sbux plans....more

Smart & Biggar

Keeping those New Year's resolutions just got a little easier in Ontario

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The Ontario Healthy Menu Choices Act and its Regulations, which became effective January 1, 2017, aims to allow Ontarians to make informed food and beverage choices when eating in a restaurant or purchasing take-away meals. ...more

U.S. Equal Employment Opportunity Commission...

EEOC Sues Bojangles For Sex Harassment and Retaliation

Restaurant Chain Subjected Transgender Employee to Sex Harassment, Then Fired Her for Complaining, Federal Agency Charges - FAYETTEVILLE, N.C. - Bojangles Restaurants, Inc., a North Carolina corporation operating a chain...more

Mintz - Employment Viewpoints

As Affordable Care Act Enforcement Looms, Some Lessons Learned From Massachusetts

As the ACA audit era approaches, many employers are wondering: what will happen? What sorts of documentation will the IRS request? What industries will be targeted? And what can employers do to prepare? In this post, I...more

U.S. Equal Employment Opportunity Commission...

Noodles Asian Bistro to Pay $25,000 to Settle EEOC Pregnancy Discrimination Lawsuit

Restaurant Fired Employees Because of Pregnancy, Federal Agency Charged - MEMPHIS, Tenn. - Noodles Asian Bistro, Inc., an Asian restaurant located in Bartlett, Tenn., will pay $25,000 to settle a pregnancy...more

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