Interesting article regarding the ILCC's interpretation of the following regulation:
"A brew pub license shall allow the licensee to manufacture beer only on the premises specified in the license, to make sales of the beer manufactured on the premises to importing distributors, distributors, and to non-licensees [consumers] for use and consumption, to store the beer upon the premises, and to sell and offer for sale at retail from the licensed premises, provided that a brew pub licensee shall not sell for off-premises consumption more than 50,000 gallons per year."
The ILCC has interpreted this regulation to mean: "c. A Brew Pub license holder shall not: 1) Annually sell more than 50,000 gallons of its manufactured beer to licensed distributors for off-premises consumption."
The question is whether a craft brewer with a brewpub license cannot sell more than 50,000 gallons from the brewery to consumers for consumption off premise, or whether it cannot sell more than 50,000 gallons to consumers off-premise even through distributors. The latter interpretation, proposed by the ILCC would severely impact growth opportunities for the industry. Learn more in the attached article written by Phillip Montoro.
http://www.chicagoreader.com/Bleader/archives/2014/05/26/new-proposed-state-distribution-rules-would-choke-the-growth-of-chicagos-biggest-craft-brewers
Wednesday, May 28, 2014
Tuesday, May 27, 2014
Shiftgig Q&A: Legal Bites: Can Dancing Really Be Banned, Footloose-style?
Legal Bites: Can Dancing Really Be Banned, Footloose-style?
Q: Can a town ban dancing like in the movie Footloose?
A: A Roseville, California bar owner has recently sued the village for false arrest alleging that he was arrested in 2012 for violating the city’s dance permit ordinance. This begs the question, did Kevin Bacon have a false arrest suit for the Sheriff’s constant harassment in Footloose? (I would have referenced the remake, but honestly, I have no idea who was in it, and even if I did, I’d be distracted trying to connect them with six degrees of separation to Kevin Bacon). The bottom line is yes, some restrictions (though, usually, not the draconian total ban) are in place across the country that limit an establishment’s ability to allow people to boogie down.
Roseville, CA does have a zoning ordinance that states "It is unlawful for any renter, leasee or owner of any premises, or any person acting in the capacity of a manager, employee, or agent thereof, to conduct, permit, encourage, facilitate, or allow a public or private dance without the dance permit required by this chapter. " Roseville Municipal Code 9.040.020. This type of ordinance actually has been upheld as constitutional by the US Supreme Court as rationally related to a legitimate public interest, meaning that if the city of municipality has a good reason, the law will be upheld. Other towns have similar provisions – Footloose, the original movie, was based on Elmore City, OK which banned public dancing within the city limits. Purdy, Missouri is another town that had banned dancing, even for students at a high school prom.
Even some big cities have limitations on dancing. New York City requires establishments to obtain a Cabaret License if they want to allow The typical test used to see if the license is required is three or more people are found dancing at one time in the establishment. The City of Chicago requires some businesses to obtain a Public Place of Amusement license (PPA) for all nightclubs, dance clubs, karaoke, and DJ’s, and these activities usually implicate dancing.
The lesson here is that establishments must check local ordinances, regulations, and laws to make sure that they are complying with the required permits and zoning ordinances, or consult with a legal expert – usually before opening the doors. Or, you can just write a letter to Kevin Bacon and ask that he advocate on your behalf.
Jonathan
Jonathan Boulahanis is an attorney in the Chicago office of Clark Hill PLC and is a leader of the firm’s Food and Beverage team. Since Jonathan can’t cook like his Italian mother and the fast food was going to his hips, he became a self-proclaimed foodie. As an attorney, he has made a commitment to serve the food and beverage industry, no pun intended, by representing restaurants, bars, individuals, and other food and beverage businesses with various legal issues as they arise. You can reach him by sending an email to submissions@shiftgig.com.
LEGAL DISCLAIMER:
The responses provided in this blog are for informational purposes only and not for the purpose of providing legal advice. You should contact an attorney to obtain advice with respect to any particular issue or problem. Use of this blog does not create an attorney-client relationship between Jonathan Boulahanis or Clark Hill PLC and the user.
***This article was posted as part of a question and answer series that Jonathan Boulahanis is conducting with Shiftgig.com. The article, as well as all other articles in the series, can be found at http://www.shiftgig.com/articles.
Friday, May 23, 2014
Are your interns unpaid? Be careful
As summer approaches, a new set of high school and college age employees embark on corporate America to gain valuable experience and learn new businesses. As this time approaches, companies should be mindful of a litigation trend sweeping the country in relation to unpaid internships.
In June 2013, Judge William Pauley III of the Southern District of New York ruled that Fox Searchlight violated federal and state minimum wage laws by not paying two interns on the set of the movie The Black Swan. Glatt v. Foxx Searchlight Pictures, Inc., 2013 US. Dist. Lexis 82079 (S.D.N.Y. June 11, 2013).
Judge Pauley utilized six principals supplied by the Department of Labor in an April 2010 Fact Sheet to come to the determination that the interns should have been paid: "(1) the internship, even though it includes actual operation of the facilities of the employer, is similar to training which would be given in an educational environment; (2) the internship experience is for the benefit of the intern; (3) the intern does not displace regular employees, but works under close supervision of existing staff; (4) the employer that provides the training derives no immediate advantage from the activities of the intern; and on occasion its operations may actually be impeded; (5) the intern is not necessarily entitled to a job at the conclusion of the internship; and (6) the employer and the intern understand that the intern is not entitled to wages for the time spent in the internship." DOL WHD Fact Sheet # 71 (April 2010).
Both complaints to the Department of Labor and private suits have exponentially increased in the last five years. As your company begins implementing internship programs for the summer, it is essential to examine the program itself, and the agreement between the intern and the company, to limit any exposure of potential liability.
In June 2013, Judge William Pauley III of the Southern District of New York ruled that Fox Searchlight violated federal and state minimum wage laws by not paying two interns on the set of the movie The Black Swan. Glatt v. Foxx Searchlight Pictures, Inc., 2013 US. Dist. Lexis 82079 (S.D.N.Y. June 11, 2013).
Judge Pauley utilized six principals supplied by the Department of Labor in an April 2010 Fact Sheet to come to the determination that the interns should have been paid: "(1) the internship, even though it includes actual operation of the facilities of the employer, is similar to training which would be given in an educational environment; (2) the internship experience is for the benefit of the intern; (3) the intern does not displace regular employees, but works under close supervision of existing staff; (4) the employer that provides the training derives no immediate advantage from the activities of the intern; and on occasion its operations may actually be impeded; (5) the intern is not necessarily entitled to a job at the conclusion of the internship; and (6) the employer and the intern understand that the intern is not entitled to wages for the time spent in the internship." DOL WHD Fact Sheet # 71 (April 2010).
Both complaints to the Department of Labor and private suits have exponentially increased in the last five years. As your company begins implementing internship programs for the summer, it is essential to examine the program itself, and the agreement between the intern and the company, to limit any exposure of potential liability.
Tuesday, May 20, 2014
Minimum Wage Debate Hits Chicago
Mayor Emmanuel announced today that he is forming a task force to discuss raising the minimum wage, which has been a hot button issue nationwide. The Mayor did not announce who would be part of the task force, but did say labor and business leaders will be included in the task force. Findings will be presented to the Mayor later this summer. The Mayor is stuck between a rock and a hard place on this issue, as he is being criticized by union leaders for "giving in" to corporate interests, and is being criticized by corporations for increased costs of doing business in Chicago. It will be interesting if the hospitality industry will be included in the task force.
The National Restaurant Association has weighed in on the issue of increased minimum wage, and has lobbied against a dramatic increase in the minimum wage. The NRA has explained "As businesses struggle to recover from the economic recession, dramatic, mandatory wage increases such as those proposed under the Fair Minimum Wage Act of 2013 would place yet another financial burden on business owners who are already feeling the pressures of a weak economy and additional costs and regulatory complexity associated with the Affordable Care Act." Additionally, the impact would have a dramatic effect on the restaurant industry in particular, as most industry participants only have 3-5% pretax profit margins, and "58 percent of restaurant operators increased menu prices and 41 percent reduced employee hours following the 2007 minimum wage increase."
The National Restaurant Association has weighed in on the issue of increased minimum wage, and has lobbied against a dramatic increase in the minimum wage. The NRA has explained "As businesses struggle to recover from the economic recession, dramatic, mandatory wage increases such as those proposed under the Fair Minimum Wage Act of 2013 would place yet another financial burden on business owners who are already feeling the pressures of a weak economy and additional costs and regulatory complexity associated with the Affordable Care Act." Additionally, the impact would have a dramatic effect on the restaurant industry in particular, as most industry participants only have 3-5% pretax profit margins, and "58 percent of restaurant operators increased menu prices and 41 percent reduced employee hours following the 2007 minimum wage increase."
Thursday, May 8, 2014
Chicago Push Cart Vendors May Be Subject of New Ordinance
Could push carts be the hot button regulation this summer? It looks like it may be so... It will be interesting to see how this ordinance develops, and whether regulations will be stalled due to political pressures. The push cart operators want to be able to operate in a more widespread manner across the city without regulation, while the City contends that licensing and regulation is necessary for public safety. This battle has been going on for years, dating back to the Daley administration.
http://www.suntimes.com/27296322-761/emanuel-searching-for-way-to-sanction-pushcart-food-vendors.html#.U2ugY4FdVzU
http://www.suntimes.com/27296322-761/emanuel-searching-for-way-to-sanction-pushcart-food-vendors.html#.U2ugY4FdVzU
Shiftgig Q&A - Shift Cancelled On My Way To Work
Legal Bites: So My Shift Was Cancelled on My Way to Work... I Get Nothing?
Q: I was on my way into my shift, and I got a call saying my shift was cancelled. Is that allowed?
A: The long and short of it is yes. Under federal law, employers are not required to consider time showing up as compensable time. Additionally, employees’ time traveling to work is not compensable time. If an employee is traveling to a different location, special assignment, or has already started work, the travel time can be compensable. However, the federal laws do not have a “reporting time” pay that would compensate someone just for showing up or starting to travel into work.
This answer comes with the caveat that some states have stronger protections than the federal laws. For example, California has a “reporting time pay” law that covers this situation and guarantees at least partial compensation for reporting to work. Additionally, company handbooks and union contracts sometimes require compensation for this situation.
Jonathan
Jonathan Boulahanis is an attorney in the Chicago office of Clark Hill PLC and is a leader of the firm’s Food and Beverage team. Since Jonathan can’t cook like his Italian mother and the fast food was going to his hips, he became a self-proclaimed foodie. As an attorney, he has made a commitment to serve the food and beverage industry, no pun intended, by representing restaurants, bars, individuals, and other food and beverage businesses with various legal issues as they arise. You can reach him by sending an email to submissions@shiftgig.com.
LEGAL DISCLAIMER:
The responses provided in this blog are for informational purposes only and not for the purpose of providing legal advice. You should contact an attorney to obtain advice with respect to any particular issue or problem. Use of this blog does not create an attorney-client relationship between Jonathan Boulahanis or Clark Hill PLC and the user.
***This article was posted as part of a question and answer series that Jonathan Boulahanis is conducting with Shiftgig.com. The article, as well as all other articles in the series, can be found at http://www.shiftgig.com/articles.
Friday, May 2, 2014
Legal Bites: Am I Breaking the Law if I Don't Have Nutritional Info on Menus?
Q: Why are some places beginning to put nutritional information on their menus and menu boards - am I breaking the law by not including the information on the menu at my restaurant?
A: As society becomes more aware of health issues and obesity in America, lawmakers have started making a push for consumers to be informed about what they are eating - especially in the fast food industries. For example, the onus is placed on a restaurant to inform their customer that eating a Whopper with Cheese is going to account for more than 1/3 of the recommended daily caloric intake - without the fries. States, like NY, started pushing for nutrition information requirements some years ago. However, the issue was recently addressed in the Affordable Care Act.
In the ACA, the Food and Drug Administration proposed guidelines that would become law. Those guidelines are in the final stages of discussions and the requirements will go into effect soon. The guidelines require chains to post caloric information, information on fat, saturated fat, cholesterol, sodium, carbohydrates, fiber and protein, and also would have to provide the information to customers, in writing, upon request. Some highlights in the new law include:
* Applies to restaurants with 20 or more locations. Restaurants operations with less than 20 locations do not have to participate, though, they may voluntarily opt in;
* Only applies to restaurants or similar food retail establishment, as defined by more than 50% of their total floor area is used for the sale of food;
* Nutrition information must be posted on all menus, drive through boards, and menu boards;
* Contain a statement like "[a] 2,000 calorie diet is used as the basis for general nutrition advice; however, individual calorie needs may vary.”
* Self-service style restaurants, such as buffets, must also post nutrition information by each item as a per serving basis;
* Has a provision that vending machine operators that own 20 or more machines post caloric information.
Jonathan
Jonathan Boulahanis is an attorney in the Chicago office of Clark Hill PLC and is a leader of the firm’s Food and Beverage team. Since Jonathan can’t cook like his Italian mother and the fast food was going to his hips, he became a self-proclaimed foodie. As an attorney, he has made a commitment to serve the food and beverage industry, no pun intended, by representing restaurants, bars, individuals, and other food and beverage businesses with various legal issues as they arise. You can reach him by sending an email to submissions@shiftgig.com.
LEGAL DISCLAIMER: The responses provided in this blog are for informational purposes only and not for the purpose of providing legal advice. You should contact an attorney to obtain advice with respect to any particular issue or problem. Use of this blog does not create an attorney-client relationship between Jonathan Boulahanis or Clark Hill PLC and the user
***This article was posted as part of a question and answer series that Jonathan Boulahanis is conducting with Shiftgig.com. The article, as well as all other articles in the series, can be found at http://www.shiftgig.com/articles.
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