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|Will Automatic Gratuities at Restaurants Be a Thing of the Past?|
Ameneh K. Ernst, Brooke S. Purcell; Ogletree, Deakins, Nash, Smoak & Stewart, P.C.;
February 17, 2014, previously published on February 10, 2014Automatic gratuities for large parties are commonplace in many restaurants, bars, and hotels throughout the country. However, as of January 2014, the Internal Revenue Service (IRS) now classifies these automatic gratuities as “service charges.” As a result, the automatic tips will be...
|Favorable Outcome for Starbucks in Tip Pool Class Action|
Jennifer A. Shoemaker; Underberg & Kessler LLP;
January 31, 2014, previously published on January 21, 2014The United States Court of Appeals for the Second Circuit recently decided that Starbucks baristas must share their tips with shift supervisors who do much of the same work. A group of plaintiffs sued on behalf of a class of more than 5000 baristas, alleging that Starbucks’ policy requiring...
|South Carolina Supreme Court Dismisses Lawsuit Against Carnival Cruise Lines|
Ronald E. Cardwell; Nexsen Pruet, LLC;
January 30, 2014, previously published on January 23, 2014On January 22, 2014, the South Carolina Supreme Court granted Carnival Corporation d/b/a Carnival Cruise Lines’ motion to dismiss the lawsuit brought by several citizen groups in Charleston, South Carolina. The Court held the citizen groups lacked standing to assert their nuisance and zoning...
|Ferreting Out the Frauds: a Virginia Court Orders Yelp To Identify Anonymous Users|
Alicia Sienne Voltmer; Ogletree, Deakins, Nash, Smoak & Stewart, P.C.;
January 28, 2014, previously published on January 22, 2014Social media is widely used in the hospitality industry for everything from promoting sales to recruiting new talent. Facebook, Twitter, Pinterest, Foursquare, and a number of other sites provide hoteliers and restaurateurs with nearly limitless access to local, national, and international...
|New Document Requirement at Mumbai FRRO for Foreign Nationals Residing in Hotels|
Fragomen Del Rey Bernsen Loewy LLP;
January 15, 2014, previously published on January 14, 2014The Mumbai Foreigners Regional Registration Office (FRRO) now requires foreign nationals residing in hotels or service apartments to submit Form C (Arrival Report of Foreigner in Hotel) at their registration and visa extension appointments.
|Restaurant and Retail Franchisors: Could This Be You in 2014?|
David L. Cahn; Whiteford, Taylor & Preston L.L.P.;
January 15, 2014, previously published on January 14, 2014The case of Wojcik v. Interarch, Inc., currently pending in the U.S. District Court for the Northern District of Illinois against the fast casual restaurant franchisor Saladworks, LLC, contains a factual scenario that should serve as a valuable reminder for existing franchisors who are updating...
|Recent Case Provides Stark Reminder to Obtain a General Release When Settling Workers’ Compensation Claims|
Joshua L. Schwartz; Barley Snyder;
January 14, 2014, previously published on January 10, 2014The intersection between the workers’ compensation system and other employment laws can be difficult to navigate. (See “Falling Down the Injured Worker Rabbit Hole” ). Therefore, when an employee asserts claims for workers’ compensation and under other employment laws, it is...
|Ordinance Authorizing Warrantless Inspections of Hotel Records is Unconstitutional|
Kronick Moskovitz Tiedemann Girard A Law Corporation;
January 14, 2014, previously published on January 13, 2014Motel owners challenged a Los Angeles Municipal Code provision requiring hotel guest records to be made available to any Los Angeles Police Department officer for inspection. The United States Court of Appeals for the Ninth Circuit held that the portion of the ordinance that authorizes on-site,...
|Court Holds Bans on Sex Offenders Entering Parks Without Permission Invalid|
Tamara Bogosian, Paul A. Cappitelli, Thomas A. Rice, G. Ross Trindle; Best Best & Krieger LLP;
January 14, 2014, previously published on January 13, 2014A California Court of Appeal recently struck down a provision of the Irvine Municipal Code and an Orange County ordinance, both of which required registered sex offenders to obtain permission from the City Police Chief or County Sheriff, respectively, prior to entering parks in the county. The...
|Tax Ruling Impacts the Use of Mandatory Service Charges|
David A. Prather, Salvador P. Simao; Ford & Harrison LLP;
January 13, 2014, previously published on January 10, 2014Executive Summary: Beginning on January 1, 2014, "mandatory gratuities" or service charges are no longer considered "tips" by the Internal Revenue Service, and thus are not excludable from FICA withholding. This change may make it less attractive for hospitality employers to use...