Jacques Etkowicz’s Post

Effective July 1, 2024, California's SB 478 requires businesses to include all fees in advertised prices. However, CA restaurants have increasingly incorporated service fees for pay equity and employee benefits. SB 1524, fast-tracked in June and signed into law by Governor Newsom on June 29, provides a crucial last-minute lifeline to CA restaurants before the July 1 deadline. #Employers #EmploymentLaw #slotnicklaw #slotnick

Did you know that restaurants in California will not be able to add what the government considers to be "junk" fees to your bill starting 7/1? I think most people in the state will not have an issue with that. Check out this article to learn more.

"That random and often a suprise additional 3 to 5% service fee, that's becoming standard in major metro area restaurants is beng stopped in California" The ban on surcharges would mark a watershed moment for the state’s restaurant industry, which has in recent years relied on mandatory service charges to supplement optional tips and boost staff wages. Under the attorney general’s interpretation of the new legislation, however, all charges besides taxes will become illegal. The change would effectively require business owners throughout the state to rethink longstanding financial practices in just two months. https://lnkd.in/ekGer-jR

If you are in the California restaurant industry, you are no doubt already tracking A.B. 1228. That’s the bill that would make fast-food franchisors legally liable for labor violations committed by franchisees. This article does a disservice to the issue by focusing on democrat vs Republican. This is a bill that is anti-business and anti-restaurant, regardless of party lines. All restaurateurs need to be coming together to fight this. California Restaurant Association https://lnkd.in/gwXXgP2A

Attention restaurant owners: The California attorney general’s office announced last week that the new state law banning “junk fees” will extend to surcharges at restaurants, marking a significant shift in billing practices in the food industry. Under Senate Bill 478, effective starting July 1, 2024, California restaurants will be prohibited from adding service fees to bills—a practice that had been adopted by many eateries as a means to support higher wages in lieu of traditional tipping. Learn more here: https://lnkd.in/gqfBs83s #RestaurantOwners #LegalCompliance #PricingStrategy

This demonstrates how far this country has lost its mind with politicizing things. Here is an article about a Bill in California that hurts the restaurant industry but is disguised as an attempt to save workers from big bad restaurant owners. It doesn’t save workers and has trickle down effects that ultimately hurt them and franchisees. The author of the article makes it a partisan issue about Democrat vs Republican … Which also ultimately hurts the restaurant industry. We don’t need to identify as right or left to agree that a proposed law is bad. But when we polarize it as right or left, people end up taking sides and missing the real issue. This is a bad law. Bad for small and mid-size restaurant owners, bad for franchisees, and ultimately bad for restaurant workers. If there are issues that need to be addressed for restaurant workers, and I’m not saying there are not, THIS is not it. Workers' Compensation Law Section of the California Lawyers Association California Restaurant Association #franchise #franchising #restaurantindustry #workerscompensation #workerscomp #californialaw #californialawyer #insurance #selfinsured #restaurants #californialawyers

A Seattle-based five-unit restaurant group agrees to pay $323k for allegedly misallocating proceeds from a service fee. Wait, what? Unlike tips, I thought service charges were the employer's property, and they could do whatever they wanted with this money? That is true only for Federal purposes; state and local regulations around service charges can vary. For example, under Washington state law, restaurants must disclose the percentage of service charges payable directly to the employee(s) on the receipt and menu. Washington, DC has its own set of service charge disclosure requirements, and violating these rules can lead to a $5,000 fine for a first-time offense and rise to $10,000 for additional violations. California has also passed Senate Bill 478, signed into law by Governor Gavin Newsom. This law, which also targets hidden fees, takes effect on July 1, 2024.    Given the trend in changing restaurant wage models throughout the US, state and local governments are starting to regulate how restaurants present their service fees, surcharges, credit card fees, autograt, large-party fees, or any other auxiliary fee not baked into menu prices. Getting a green light from your attorney before rolling out a service charge model is essential to ensure you comply with local, state, and federal regulations. Unfortunately, this regulation will only get worse as more states move to abolish the tipped minimum wage. New York could be next as progressive lawmakers ramp up their efforts to pass legislation eliminating the tipped minimum wage.   Finally, the Federal Trade Commission (FTC) has proposed a rule banning service fees and surcharges at restaurants of all sizes and forcing them to overhaul menu prices so that the listed price is the total price a customer must pay. The FTC admits its plan will cost restaurant operators $3.5 billion to implement. We'll keep you updated on how this story evolves. If you want to tell the FTC that restaurant operators and workers can’t afford this regulatory overreach, click the link below to act. #restaurantmanagement #restaurants #restaurantfinance #takeaction #restaurantowners #restaurateurs

"No taxation without representation" is a fundamental right, unless in California you're: 1) an independent restaurant operator; a 2) company-owned restaurant group; or 3) a restaurant franchisor. Although AB 1228 (aka "The Fast Act"), which goes into effect April 1, will in one way or another "tax" all restaurants doing business the golden state, none of the aforementioned have representation on the newly-appointed "Fast Food Council" (link to article below). This omission leaves a massive number of important restaurant voices silent and without input on critical matters that will further impact business, jobs and customers. What do these unrepresented voices represent in California? Literally, over a million jobs, tens of billions of dollars in revenue, and many of the most inspiring and exciting employers and brands in the industry. To keep California in its rightful place as one of the greatest restaurant markets in the world, the "Fast Food Council" needs members from these unrepresented categories. This will help ensure that decisions and recommendations that impact restaurants, employees, and guests are better informed than under the current structure. Governor Gavin Newsom, please give consideration to expanding the Council to give these important voices a seat at the table. https://lnkd.in/gki25bBC

The Federal Trade Commission (FTC) has proposed a rule banning service fees and surcharges at restaurants of all sizes and forcing them to overhaul menu prices so that the listed price is the total price a customer must pay. The FTC admits its plan will cost restaurant operators $3.5 billion to implement. We'll keep you updated on how this story evolves. If you want to tell the FTC that restaurant operators and workers can’t afford this regulatory overreach, click the link below to act. #restaurantmanagement #restaurants #restaurantfinance #takeaction #restaurantowners #restaurateurs

Two Victories: PAGA Reform & Pricing Flexibility/Transparency Bill Two significant legislative victories have been achieved, thanks to our collective efforts. The reform of the Private Attorneys General Act (PAGA ), a goal we've been striving towards for years, has finally been realized with the signing of SB 98 and AB 2288. This success is a testament to the collaborative work of the California Restaurant Association (CRA), the Fix PAGA Executive Committee, the Governor's Office, and labor, who have all played a crucial role in achieving a meaningful PAGA reform. Another significant win was the signing of SB 1524, an urgent legislation co-sponsored by the CRA, Unite Here, and Lieutenant Governor Eleni Kounalakis. This law, effective immediately, requires all mandatory fees and charges to be clearly and conspicuously displayed, with an explanation of their purpose, on any advertisement, menu, or other display that contains the price of the food or beverage item. This transparency empowers restaurants to choose the best pricing models for their operations, guests, and team-members.