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Voluntary FDA Sodium Reduction Recommendations Released
What happened: The Food and Drug Administration (FDA) has proposed Phase II voluntary targets to reduce sodium in over 150 categories of packaged foods and restaurant foods.
Why it’s important: The guidance is Phase II of the FDA’s sodium reduction efforts and builds on the Phase I sodium reduction targets issued in Oct. 2021. The new draft targets represent anywhere from a 1%-58% reduction from the current marketplace sodium levels, with the majority of restaurant food categories having a 20%-35% reduction goal over the next 3 years.
Phase I update: The FDA also released preliminary findings on progress toward achieving the 2021 Phase I sodium reduction targets between 2010 and 2022, which called for around 10%-20% reductions depending on food category. They found that since 2010, 35% of restaurant food categories have decreased in sodium while 49% of restaurant food categories have increased in sodium. The agency said it will issue a complete evaluation of the industry’s progress to the Phase I targets when the data from 2024 is available. The FDA has said it anticipates regular evaluations of sodium in the food supply every 3 years.
What’s next: The Association has expressed to the FDA the industry’s concern with these steep Phase II reductions and explained that challenges within our supply chain make it difficult to meet these goals. The Association continues to push for realistic timelines, credible data, and better understanding of restaurant supply chains.
In Big Win for Restaurant Operators, U.S. Court of Appeals Wipes Away 2021 Amendments to the Dual Jobs Regulation
What happened: In a 3-0 decision, the 5th Circuit Court of Appeals vacated the U.S. Department of Labor’s 2021 Final Rule amending the “Dual Jobs” regulation, agreeing with the Restaurant Law Center and the Texas Restaurant Association (TRA) that the Final Rule is arbitrary and capricious because it draws a line for application of the tip credit based on impermissible considerations and contrary to the statutory scheme enacted by Congress. This is a major win for restaurant operators, the Association, the Law Center and the TRA.
What it means: The amendment to the Dual Jobs regulation is now unenforceable. The Court noted in its decision that this case holds no bearing “on the validity of the dual-jobs regulation,” which was not at question. The decision highlights the importance of the restaurant industry having its own legal representative to take cases where others will not.
What they’re saying:
“This decision is a big deal for restaurant owners and for tipped employees. For more than two and a half years, restaurant owners have worked in fear of not being in compliance with the complicated and confusing requirements of the 2021 amendments. Today’s decision will alleviate the confusion and allow operators to focus on the economic challenges that threaten their business viability.” –Sean Kennedy, Executive Vice President of Public Affairs, National Restaurant Association
“We are pleased that the court agreed with us and determined that the Wage and Hour Division overreached and exceeded its proper authority with its amendments to the ‘Dual Jobs’ regulation. The Department of Labor and its agencies had no authority to redraft the laws that Congress enacts, denying businesses the rights conferred by statute. The Restaurant Law Center and the Texas Restaurant Association brought this case because local restaurants would suffer irreparable damage from the illegal and unjust 2021 amendments to the ‘Dual Jobs’ regulation and we’re satisfied to have ultimately succeed in having the new regulation thrown out due to its illegality.” –Angelo Amador, Executive Director, Restaurant Law Center
NLRB Drops Joint Employer Appeal
What Happened: The National Labor Relations Board (NLRB) has officially dismissed its appeal of the Eastern District of Texas decision vacating the 2023 Joint Employer Rule. The 2020 Final Rule, which requires direct and immediate control to establish a joint employer relationship, remains in effect.
Why it Matters: The NLRB's decision to drop its appeal is a significant win for the Restaurant Law Center (RLC), a leading co-plaintiff in the legal challenge against the 2023 Rule, and the industry as a whole.
- The RLC-supported 2020 Rule provides clear guidance for employers.
- We remain vigilant against future attempts by the NLRB and the Administration to expand joint employer liability.
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Go Deeper: For more information, please see the attached press release.
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