GRA Weekly

July 25, 2024

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

THE GIVING KITCHEN SEES 'ASKS FOR HELP' RISE NEARLY 20%

The Giving Kitchen Sees 'Asks For Help' Rise Nearly 20%

The Giving Kitchen, an Atlanta-based nonprofit that helps restaurant workers in need, is seeing demand rise in 2024.

The Giving Kitchen saw "asks for help" — that is, applications for assistance — increase 17.8% year over year during the second quarter, according to its impact report. The nonprofit received 2,517 asks for help during Q2.

ADVOCACY UPDATE

Disaster Assistance Available for 11 Georgia Counties; SBA To Open Business Recovery Center

Businesses affected by the water main breaks, which occurred from May 31 to June 6, 2024, in 11 Georgia counties, may now apply for low-interest Economic Injury Disaster Loans (EIDL) from the U.S. Small Business Administration (SBA).

Applicants may apply online using the Electronic Loan Application (ELA) via SBA’s secure website at https://lending.sba.gov.

For more information about the program, click here.

MEET THE EXPERTS

Register Now To Attend GRA's Newest Educational Networking Event - Meet The Experts, Hosted In Partnership with NCR Voyix, Ecolab, Gas South, Moore Colson, And Sysco

Meet the Experts will feature over a dozen industry experts for an afternoon of speed coaching and power networking. On Wednesday, August 7, 2024 from 2:00PM to 5:00PM at the NCR Voyix Headquarters, restaurant and hospitality operators will have the opportunity to connect one-on-one with some of the biggest restaurateurs in the business, plus experts in HR, public relations, law, accounting, energy, licensing, insurance, and more.

How it works: Operators (restaurant/hospitality/foodservice owners, management, and restaurant leadership) can select up to five (5) topics to be paired with during the event for 15-minute sessions. Consider it an ideal opportunity to ask questions, get advice, and exchange business information to keep the conversation going in the future. It's speed coaching and power networking at its finest.

RESTAURANT SALES CONTINUE TO RISE

Restaurant Sales Continue to Rise in Latest Report

According to the National Restaurant Association's (NRA) latest report, eating and drinking places registered total sales of $94.8 billion on a seasonally adjusted basis in June, according to preliminary data from the U.S. Census Bureau. That was up 0.3% from May and represented the third consecutive monthly sales gain, after May’s preliminary reading was revised significantly higher.

Read the full report here.

TOP 5 QUESTIONS FOR EMPLOYERS THAT TAKE A TIP CREDIT

Can Restaurant Hosts Share In The Tip Pool?

Many restaurants utilize tip pools to encourage teamwork, consistency, and customer-focused service – but you may be confused about who can and can’t participate in the pool. You feel confident that your servers and bartenders can share their gratuities with each other, though you’re not sure whether your hosts are considered “tipped employees” under the applicable federal and state laws. Why is this significant? First, employers must follow stringent rules if they take a so-called “tip credit” and pay tipped workers less than the standard minimum wage. Second, recent rules from the Department of Labor (DOL) have caused more challenges for hospitality businesses utilizing the tip-credit method of wage payments. So, what are the legal considerations for hosts? Here are the top five questions you should consider - keep reading.

FEDERAL UPDATE

NLRB Drops Joint Employer Appeal

What Just 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.

New Federal Overtime Standards Take Effect

The U.S. Department of Labor has updated regulations to extend overtime pay eligibility to salaried restaurant employees earning up to $43,888 annually, a change expected to affect about 1M additional workers across various industries, with further increases in the threshold planned. A business coalition that includes the National Restaurant Association’s legal arm and the Texas Restaurant Association had filed a lawsuit in a U.S. District Court to halt adoption of the new overtime standard. Learn more.

OSHA Proposes New Heat Illness Prevention Rule

The Occupational Safety and Health Administration (OSHA) issued a proposed rule outlining steps employers would be required to take to protect indoor and outdoor workers from the risk of heat illness.

This rule applies to all employers conducting outdoor and indoor work, with limited exceptions.
Public comments are due 120 days after it is posted in the Federal Register.

Overview of the Proposed Rule: The National Restaurant Association (NRA) is analyzing the rule. Employer requirements include:

Heat Injury and Illness Prevention Plan (HIIPP): Develop and implement a plan with site-specific information to evaluate and control heat hazards.
Initial Heat Trigger Control Measures (80°F heat index): Provide cool drinking water, break areas with cooling measures, indoor work area controls, acclimatization protocols for new and returning employees, paid rest breaks if needed, and regular effective communication.
High Heat Trigger Control Measures (90°F heat index): Mandatory rest breaks of 15 minutes every two hours, observation for signs and symptoms of heat-related illness, a hazard alert, and warning signs at indoor work areas with ambient temperatures that regularly exceed 120°F.
Emergency Response Plan: Develop a heat emergency response plan and take steps if an employee is experiencing signs of heat-related illness.
Training Requirements: Provide initial and annual refresher training for supervisors, heat safety coordinators, and employees.
Recordkeeping Obligations: Maintain records of indoor monitoring data for at least six months.
Cost-Free Implementation: Ensure all requirements are implemented at no cost to employees.

Next Steps:

Review the Proposed Rule: Assess its potential impact on your operations.
Provide Feedback: Because this is the first-ever nationwide heat standard, it's essential for the restaurant industry to weigh in. Please share your insights and concerns with the Association as we draft comments to submit to OSHA. Additionally, we encourage operators to submit comments once the rule is published in the Federal Register.

For More Information:

New Action Expands Loan Access for Energy-Reducing Retrofits, Solar Panel Installation

The Small Business Administration has lifted the lending cap for clean energy projects through its 504 Loan Program, which is designed to benefit small and medium businesses. The cap was previously set at $16.5M.

What this means: Restaurant operators interested in projects to reduce energy consumption through a building retrofit or to produce renewable energy will have greater access to capital.

More about the program: The 504 Program has 10-, 20-, and 25-year maturity terms available with an interest rate above the current market rate for 10-year U.S. Treasury issues.

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.

QSR EVOLUTION CONFERENCE & NEXTGEN RESTAURANT SUMMIT

QSR Evolution Conference & NextGen Restaurant Summit

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.