GRA Weekly

August 29, 2024

This week's newsletter is brought to you by GRA Corporate Partner, DoorDash

2024 GRACE AWARDS GALA - SUBMIT YOUR NOMINATIONS

Submit Your GRACE Nominations Today!

It's time to nominate the best and brightest in Georgia's restaurant industry! Submit your selections by September 20.

Finalists will be announced by end of September. Winners will be announced during the GRACE Awards Gala on Monday, December 9 at the Georgia Aquarium. To sponsor the awards gala, please contact Sarah Thorson.

GRA IN THE NEWS

Governor Kemp Hosts Small Business Round Table

Along with other state leaders, Governor Brian P. Kemp hosted small business leaders for a roundtable discussion today on civil litigation policies impacting the state's business climate and day-to-day affordability for hardworking Georgians. This is the first of three roundtable listening sessions on this topic Governor Kemp announced earlier this month to engage stakeholders from around the state which will ultimately inform policy proposals in the coming legislative session. Continue reading.

IRS PROVIDES DETAILS OF SECOND ERC - VOLUNTARY DISCLOSURE PROGRAM

IRS Provides Details of Second Employee Retention Credit Voluntary Disclosure Program

The Internal Revenue Service urged businesses that have received Employee Retention Credit payments to recheck eligibility requirements and consider the second Employee Retention Credit (ERC) Voluntary Disclosure Program (VDP) to resolve incorrect claims without penalties or interest.

The second ERC-Voluntary Disclosure Program will run through Nov. 22, 2024, and allow businesses to correct improper payments at a 15% discount and avoid future audits, penalties and interest. Continue reading.

LOCAL UPDATE

Alpharetta City Council Passes New Alcohol License Process

Earlier this week the Alpharetta City Council passed a new ordinance aimed at streamlining and clarifying the process for new alcohol licenses in the city. Currently, all new licenses must appear for a public hearing before receiving their final approval. Under the new plan for applicants who meet all criteria, the public hearing will no longer be required and the application will be approved on the staff level. Some situations, including when licensed premises does not have a building permit, when a variance is required, is for a

special event, or when other conditions may exist, will still require a public hearing.

Also included in the ordinance is the requirement that all fees and costs of the alcohol license be brought before the council for approval.

STATE UPDATE

Georgia House Holds Study Committee Hearing on Credit Card Fees

On Thursday, members of the Georgia House of Representatives held the first meeting of the House Study Committee on Credit Card Fees on State Sales and Excise Tax and Their Impact on Georgia Merchants and Consumers.

Presentations were heard from:

Julian Morris - Senior Scholar, International Center for Law and Economics

Bill Sheedy - Senior Advisor, Visa

Kelsey Finn - Director of Tax Policy, Georgia Department of Revenue

Future meetings will feature presentation from small business owners from across the state, including an emphasis on fraud prevention and recovery of losses when fraud occurs. Watch the meeting here.

FEDERAL UPDATE

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.
Go Deeper: For more information, please see the attached press release.

DOORDASH TAKES NEW STEP TO CRACK DOWN ON DELIVERY FRAUD

DoorDash Cracking Down on Delivery Fraud

DoorDash is taking another step to prevent customers from lying about their food not being delivered.

The third-party restaurant delivery company said that it will require some customers to share a four-digit code with their delivery person to confirm they received their order. The new feature will be reserved for “certain situations” or customers who frequently report problems with their deliveries. Continue reading.

NEXT WEEK: QSR EVOLUTION CONFERENCE & NEXTGEN RESTAURANT SUMMIT

QSR Evolution Conference & NextGen Restaurant Summit - Register Today!

The QSR Evolution Conference will focus on the needs of quick-service restaurant operators where industry leaders will hear and share perspectives on running QSRs of the future. Educational sessions focus on growth and franchising, leadership, technology, digital marketing trends, company culture, drive-thru and the changing consumer.

The NextGen Restaurant Summit is geared toward nextgen and emerging full-service brand operators. Topics covered during educational sessions cover unique restaurant experiences of the future, F&B innovation, technology, restaurant design, menu engineering and labor and employment.

When: September 4-5, 2024

Where: Atlanta Marriott Marquis

Keynote presentations will be provided by:

Burger King
Firehouse Subs
GoTo Foods
Inspire Brands
KFC
Popeyes
Tim Hortons
...and more!

As a partner of the event, we secured a discount for GRA members to attend. Use code GRA10 at checkout to save 10% on your full conference pass which will grant you access to all sessions and included receptions of the event.

BEN'S FRIENDS

Ben’s Friends, a national support group for people in the hospitality industry struggling with addiction, launched in Atlanta this month. Weekly meetings will be held on Mondays from 11AM - 12PM at Pricci Restaurant.

This chapter welcomes anyone who has found, or is struggling to find, sobriety while working in the food and beverage industry. For more details and updates, follow their Instagram here.

GRANT MONEY

The Heinz Black Kitchen Initiative - Grant Available

The Heinz Black Kitchen Initiative, now in its fourth year, is awarding grants to support Black-owned restaurants across the U.S. In partnership with the Lee Initiative and Southern Restaurants for Racial Justice, the initiative has provided over $1 million in grants and resources to date.

Applications are due by September 15. Apply here.

RESTAURANT LEGAL SUMMIT

8th Annual Restaurant Legal Summit

Join the Restaurant Law Center this October 23-25 for the 8th Annual Restaurant Legal Summit in San Juan, Puerto Rico! Learn and connect with other industry chief legal officers, attorneys, and human resource professionals. In addition to meeting senior representatives from some of the industry’s most successful brands, attendees get access to the latest information on current trends and best practices from legal experts at some of the nation’s top law firms.