Hot Off the Grill Edition #5

"Hot Off the Grill" - Edition #5

Introducing our sizzling new edition of newsletters: "Hot off the Grill"! We're fired up to bring you the latest and greatest industry updates, straight from the grill to your inbox. Curated by the National Restaurant Association and industry leaders, "Hot off the Grill" is your go-to source for the hottest industry topics happening across the county. So, sit back, relax, and let us serve you the freshest updates straight from the grill!

In This Issue:

• RLC Sues to Stop Illegal Overtime Rule
• Upcoming Webinar on Child Labor
• Farm Bill Passes House Ag Committee
• Read The Restaurant Advocate
• Upcoming Webinar on SBA Audits, Inquiries
• Payment Card Settlement Claim Deadline Extended
  
  

RLC Sues to Stop DOL Overtime Rule

What Happened: Late last week, the Restaurant Law Center (RLC), Texas Restaurant Association, and other business groups filed a lawsuit to stop the U.S. Department of Labor's (DOL's) 2024Overtime Final Rule (2024 Rule). The lawsuit was filed in the U.S. District Court for the Eastern District of Texas and seeks to vacate the 2024Rule, arguing it imposes illegal and harmful regulations.  

Why It Matters: This action aims to protect restaurants and businesses from significant financial burdens and operational challenges. The 2024 Rule is set to increase the overtime threshold to $43,888 on July 1, 2024, and to$58,656 on Jan. 1, 2025. It also includes an automatic update to the overtime threshold every 3 years based on available wage data.

A Note on Timing: Because the first phase of the increased salary threshold is scheduled to take effect July 1, 2024, the coalition requested expedited consideration by the court.

RLC POV: "It is regretful that the Department of Labor is forcing employers to relitigate the issues that were decided when the Court struck down the 2016 Overtime Rule because of its illegality," said Angelo Amador, Executive Director of the Restaurant Law Center. "The 2024 Overtime Rule repeats the errors of the 2016 Rule and fails to address the flaws previously identified by the Court.”

Dive Deeper: Learn more about the RLC's case

Register for Youth Employment, Compliance Webinar

Mark Your Calendar: The National Restaurant Association and the U.S. Department of Labor's (DOL) Wage and Hour Division (WHD) are hosting a webinar, "Child Labor Law Compliance in the Foodservice Industry: Keeping Teens Safe This Summer," Tues., June 18 at 2 p.m. ET.

Why Attend: Make sure your team has the knowledge to successfully navigate federal child labor laws this summer.

What to Expect: The hour-long webinar will help you to ensure a safe and productive summer season.

• An overview of federal child labor laws: Ensure you're up to date with the basics.
• Permissible work hours: Learn the legal working hours for 14- and 15-year-olds.
• Prohibited jobs: Understand the jobs deemed hazardous for 14- and 15-year-olds and jobs prohibited for all workers under 18.
• Common violations: Avoid the most frequent pitfalls.
• Q&A session: Get your questions answered by WHD specialists.

Don’t Miss Out: Register here to secure your spot or watch a recording after.

Get Ready: Check out this DOL factsheet, Child Labor Rules for Employing Youth in Restaurants, or try the DOL’s employer self-assessment tool on child labor in restaurants

Payment Card Settlement Claim Deadline Extended!

The News: The deadline to submit a claim as part of the Payment Card Settlement has been extended to Aug. 30,2024.

How We Go There: The Payment Card Settlement is the biggest antitrust class-action settlement in history and sets aside about $6B for U.S. merchants who paid artificially inflated Visa and Mastercard interchange fees.

Key Takeaway: If your restaurant accepted Visa and/or Mastercard at any time between Jan. 1, 2004, to Jan. 25, 2019, you may be entitled to a share of this$6B class-action settlement. Visit www.paymentcardsettlement.com to submit a claim before the updated deadline, Aug. 30, 2024.

Learn More: Click here to watch a recording of a webinar the Association and the Restaurant Law Center hosted on the settlement. Register for the webinar to access the recording

Farm Bill Passes House Ag Committee

What Happened: Last week, the House Agriculture Committee advanced its version of the Farm Bill by a vote of 33 to 21, with the support of 4 Democrats. As expected, the markup was heated, with major points of contention centering on climate provisions and changes to the Supplemental Nutrition Assistance Program.

Dive Deeper: While the most recent farm bill expired in Sept. 2023, Congress has passed several extensions to continue most programs. The current extension ends Sept. 30,2024.

What’s Next: The bill’s path forward in the House is uncertain at best. There is unlikely to be time for a full House vote this summer, and even then, the House’s tight margins mean passage on the House floor is far from guaranteed. Sen. Debbie Stabenow (D-MI), Chairwoman of the Senate Agriculture Committee, issued this statement in response. Ranking Member Sen. John Boozman (R-AR) also issued a statement that promised a GOP-led Farm Bill framework in the coming weeks.

Best Practices for Responding to SBA Audits, Inquiries

Key Takeaway: As the Small Business Administration (SBA) ramps up its audit and enforcement efforts, operators may want to know what to do if they receive a letter from the SBA regarding Restaurant Revitalization Fund (RRF) and/or Payment Protection (PPP) funds received by their businesses.

Signup: This Restaurant Law Center webinar will review best practices, including strategies for responding to PPP/RRF eligibility inquiries. Join the RLC webinar Tues., June 4, 2024, at 11 a.m. ET by signing up here

In the news…

More Than Ever, Restaurant Growth is Impacted by Geographic Variations

“The outward migration changed the business economics of these city center restaurants’ operations, and many have had to adapt. Some operators followed that migration, but as re-migration happens, we look at employee occupancy levels and they remain extremely low,” said Hudson Riehle, SVP of the Research and Knowledge Group at the National Restaurant Association. “As the industry progresses, it has become more fragmented, just as the overall economy is becoming more fragmented. The old adage that ‘all restaurant sales are local’ is ringing truer as the years progress.”

Companies Warn Against Immigration Cuts as Donald Trump Plans Crackdown (register to read)

Business groups in the U.S. caution that the economy heavily relies on foreign workers, warning that any immigration crackdown could exacerbate labor shortages and hinder economic growth, with potential implications for industries such as construction and hospitality. “We’ve already seen restaurants that used to do lunch service not offer that anymore—there’s going to be a point where our access to recruiting and retaining the workforce is going to limit our economic activity,” said National Restaurant Association EVP for Public Affairs Sean Kennedy.