GRA Weekly

September 5, 2024

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

RESTAURANT COMMUNITY RECOGNIZED IN 40 UNDER 40 AWARD

Four in the Restaurant Community Awarded as Standouts in the Industry

Congrats to Evan Karanovich (Chick-fil-A Corporate Support Center), Fares Kargar (Nooshe Jan Group), Kyle Walcott (Coca-Cola Scholars Foundation), and Peter Kiley (Monday Night Brewing and Sneaky Pete Spirits) who have all been awarded Atlanta Busine ss Chronicle's 2024 40 Under 40. This year marks the 21st year of the program, spotlighting the next generation of business leaders.

2024 GRACE AWARDS GALA - NOMINATE TODAY

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.

80/20/30 TIP CREDIT RULE

Appeals Court Strikes Down Onerous 80/20/30 Tip Credit Rule: 7 Things Hospitality Employers Should Know About This Win

A federal appeals court just delivered some good news to hospitality employers by blocking the Department of Labor’s infamous 80/20/30 rule, providing immediate relief to employers around the country by vacating the regulations in question. The DOL’s rule — which creates time-keeping and other compliance nightmares — applies to employers that take the tip credit toward their minimum wage obligation under federal wage and hour law. Continue reading.

NATIONAL FOOD SAFETY MONTH

September is National Food Safety Month!

This year ServSafe is getting smart about foodborne illnesses by understanding, managing, and preventing outbreaks. To kick things off, they are examining common culprits of foodborne illnesses like Norovirus, Salmonella, E. coli, Hepatitis A, and Shigella.

Download their eBook, "The Science of Foodborne Illnesses and Outbreaks," to learn about these pathogens and how to prevent contamination in your operation.

To celebrate NFSM2024, GRA members can save 20% off on popular ServSafe products all month with code NFSM2024.

QUARTERLY SALES & USE TAX RATE UPDATES

Georgia DOR | Quarterly Sales & Use Tax Rate Updates

Effective October 1, 2024, Georgia Department of Revenue has published the new quarterly sales and use tax rates. Historical, current and upcoming sales and use tax rates changes may be viewed 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.

WHAT WE'RE READING THIS WEEK:

2024 Georgia Grown Chef and GRA member, Lauren Bolden, of Pie Bar Featured in Georgia Magazine

When Leaders Can Show Their Humor—And When They Can't

Consumers Have Mixed Feelings About AI In Restaurants

ICYMI: LAST WEEK'S TOP STORIES

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.

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.

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.

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.