Hot Off the Grill Edition #14

Minneapolis Watches for a “Labor Standards Board” Bill

What’s Happening: The Minneapolis City Council had floated the idea of a “Labor Standards Board,” made up of unelected board members who could make recommendations for new labor regulations impacting business owners across the city. The City Council is close to finishing their session, and there still has not been a formal introduction of a bill.

Go deeper: The “Labor Standards Board” proposal follows the format of a similar board included in the California FAST Act. The Save Local Restaurants (SLR) Minneapolis coalition has been working with Hospitality Minnesota for more than a year to educate media, lawmakers, and other business groups across the city about the dangers that come from the creation of a labor standards board.

• Read: No to the Labor Standards Board and top-down mandates

• Read: The unintended consequences of a labor standards board on small business autonomy

• Letter: Minneapolis BIPOC + solidarity restaurant operator letter on the labor standards board to the City Council

• Roundtable: Local celebrity chefs used their voices to amplify their opposition to the labor standards board

What’s Next: The SLR Minneapolis coalition and Hospitality Minnesota continue to watch for the bill to be introduced, while keeping the pressure on the council through grassroots advocacy and media engagement.

Tip Credit Elimination and Minimum Wage Increase Won’t Appear on Portland, ME Ballot

What’s Happening: On Monday, the Portland, Maine City Council opposed sending proposals to eliminate the tip credit and raise the minimum wage to $20/hr to the ballot. The proposals were kicked back to committee, which effectively kills both initiatives.

How We Got Here: Hospitality Maine, restaurant owners, and tipped servers have been actively working to educate council members since the ballot initiative was announced in early July. Dozens of servers and operators testified at a hearing Monday on why it is important to preserve the tip credit and maintain the current minimum wage.

Where the National Association Stands: The tip credit maximizes server earning potential, allows operators to hire ample waitstaff, and keeps menu prices affordable for customers. With this optional compensation model, tipped workers never make less than the prevailing minimum wage – and often make much more. The high earning potential of the tip credit is a draw for potential servers.

Register Now for the 8th Annual Restaurant Legal Summit

Join the Restaurant Law Center on October 23–25, in beautiful San Juan, Puerto Rico, to connect with chief legal officers, attorneys, and human resource professionals from across the industry. Network with senior representatives from some of the most successful brands in the industry and learn about the latest trends and best practices from top legal experts. Don't miss this opportunity to earn CLE, SHRM, and HRCI credit hours, participate in insightful sessions led by experts from the nation's leading law firms, and enjoy delicious food and relaxed social events perfect for networking.

Register before Fri., Sept. 6, to take advantage of the early-bird discount.

What’s all the Fuss About Tips and Taxes?

The "no tax on tips" pledge is gaining traction in the election, with both presidential candidates promising it. Two of the biggest associations for the top tipped industries — the National Restaurant Association and the Professional Beauty —both endorsed Ted Cruz’s proposal. “Tipped employees are a critical part of the restaurant industry, and anything that strengthens their economic condition isa positive for them,” said Sean Kennedy, EVP of Public Affairs for the National Restaurant Association. “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.”

BayArea Startup Launches Automated Kitchen for use in Food Trucks

A Bay Area startup has launched the first unmanned robotic mobile kitchen, capable of cooking and delivering a full meal on the go, aiming to address restaurant industry challenges like high turnover and labor shortages while maintaining a focus on food quality. Recent statistics from the National Restaurant Association show the average turnover rate in the industry is around 75%. That means on average,3 out of every 4 employees will leave their positions within a year.

Restaurants are Now Twice as Likely to Charge a ‘Service Fee’ -- but Where Does the Money Go?

Restaurants are increasingly adding service charges to bills to help offset rising operational costs, a practice that has nearly doubled since last year, according to data from Square. “Restaurants have been increasing menu prices to offset skyrocketing operational costs, but they can only do that so often and by so much before guests complain," Denise Mickelsen, communication director at the Colorado Restaurant Association and Foundation, told Nexstar