The American Rescue Plan Act of 2021 Provides COBRA Premium Subsidies

Employers know that the Consolidated Omnibus Budget Reconciliation Act (COBRA) provides an opportunity for group health plan continuation coverage to covered employees and their families upon the occurrence of a qualifying event, such as a termination of employment or a reduction in hours. The recently enacted American Rescue Plan Act of 2021 (ARP) provides COBRA limited premium subsidies and new enrollment rights to certain Assistance Eligible Individuals. An Assistance Eligible Individual would not be required to pay COBRA premiums from April 1, 2021 through September 30 ...

Posted in Legal Bites
California Supreme Court Signals the End for Rounding Meal Break Time

As technology has advanced, employers routinely rely on electronic timekeeping software to ensure accurate record keeping. Such software often includes a setting to round employees’ time (typically to the nearest quarter hour) and is implemented as a result of either deliberate company policy or through inadvertent default. Regardless, employers should review these policies and settings following the California Supreme Court’s recent decision in Donohue v. AMN Services, LLC.

In Donohue, the Court unequivocally held employers may no longer round an employee’s in and ...

Posted in Legal Bites
FTC Announces New Enforcement Actions for COVID-19

In April 2021, the Federal Trade Commission (“FTC”) emphasized its commitment to protecting consumers from unsubstantiated claims of products advertised to prevent, treat or cure COVID-19. On April 29, 2021, the FTC announced an additional set of warning letters related to these types of claims. The FTC has now sent nearly 400 warning letters in ten sets to companies and individuals. According to the agency, “In the letters, the FTC states that one or more of the efficacy claims made by the marketers are unsubstantiated because they are not supported by scientific evidence ...

LA County to Move into Yellow Tier

On Wednesday, May 5, 2021, the Los Angeles County Public Health Department (the “Department”) is expected to issue a new Public Health Officer order to officially move into the least restrictive “yellow tier” of California’s color-coded reopening system. The criteria for entering the yellow tier is less than 2% positivity and fewer than 1 daily new case per 100,000 county residents. The Order would be effective on Thursday, May 6, 2021.

On April 30, 2021, the Department made some modifications to the Public Health Order, lifting hours limitations on bars, breweries and ...

Posted in Legal Bites
The Increasing Popularity of Ghost Kitchens Raises Questions Over Restaurant Brands’ IP Protections

Since the inception of the pandemic, “ghost kitchens” – or shared commercial spaces which host multiple restaurant brands only serving food via delivery or takeout – have presented a surprising silver lining for both restaurateurs and commercial real estate owners alike. For commercial real estate owners, ghost kitchens present an invaluable opportunity to market real estate spaces that have otherwise lost value with the decline in brick and mortar retail. For restaurateurs, ghost kitchens provide significant savings on the rent and labor costs associated with a ...

DFEH Updates COVID-19 Vaccination Guidance

California’s Department of Fair Employment and Housing (DFEH) has updated its COVID-19 vaccination guidance, replacing its prior guidance issued July 24, 2020.

The DFEH’s updated guidance, available here, permits employers to require employees to receive a vaccine approved by the Food and Drug Administration (FDA), subject to certain exceptions and requirements. 

Specifically, in instituting such a mandatory policy, an employer’s policies or practices cannot discriminate or harass employees or applicants based on a characteristic protected by the Fair Employment ...

Posted in Legal Bites
Federal Food Bills – Proposed Changes for the Food Industry

During the first quarter of 2021, various federal bills were introduced which impact the food industry. This article provides a primer on some of these bills and their potential impact on the food industry.

The Food Allergy Safety, Treatment, Education and Research (FASTER) Act (S.578), introduced by Senator Tim Scott on March 3, 2021, later passed by both the Senate and House of Representatives, and signed into law by President Biden on April 26, 2021:

  • The FASTER Act requires companies to declare the presence of sesame on food packaging labels by January 1, 2023 and was introduced and ...
Posted in Legal Bites
Restaurant Revitalization Fund Opening May 3

On April 27, 2021, the Small Business Administration ("SBA") announced that the much-anticipated Restaurant Revitalization Fund would be opening on May 3, 2021 at 9 am PST/12 pm EST. Restaurant operators may register through the SBA’s RRF portal beginning on Friday, April 30 at 6 am PST/9 am EST.

The SBA will host two webinars on Tuesday, April 27 and Wednesday, April 28 covering the Restaurant Revitalization Fund program details and how to submit an application. The two webinars will cover the same content. Registration is available here. The webinars are limited to the first ...

Posted in Legal Bites
LA Mayor Proposes Measures to Help Restaurants

On Monday, April 19, 2021, Los Angeles Mayor Eric Garcetti delivered his 2021 State of the City speech and announced several initiatives designed to assist restaurants. 

The proposals for restaurant relief included in Garcetti’s speech include:

  • $25 million program to write Comeback Checks of $5,000 to 5,000 small businesses.
  • A proposed ordinance to cut the time for alcohol permit approval for restaurants by 90% and to cut the cost of that permit by 70%.
  • Allowing restaurants to defer city fees of $8,000 or more for a three-year period.
  • Suspension of valet and off-site parking ...
California Enacts COVID-19 Right of Recall Law in Certain Sectors

Governor Newsom has signed into law Senate Bill 93, a state-wide right of recall, intended to assist California workers in sectors that have been especially hard hit by the COVID-19 pandemic. This new law, which is similar to earlier Los Angeles County and Los Angeles City COVID-19 ordinances, goes into effect immediately and will remain in effect through December 31, 2024. 

California’s new right of recall law applies to certain hotels, private clubs, event centers, airport hospitality operations and providers of janitorial, maintenance or security services to office, retail ...

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