Duff on Hospitality Law

Understanding Basic Menu Health Warning Requirements in the State of Washington

Over the past several months, we’ve received a number of client inquiries regarding menu labeling requirements, specifically the warnings required under Washington’s Food Code. A companion piece on Oregon’s requirements will be posted soon. Enjoy.

From fine dining to family-style restaurants, menus set the tone and begin a dialog with their patrons about the variety of food and drink options offered by the dining establishment. They also serve as real estate for public safety and legal disclaimers intended to protect patrons from food borne illness--and restaurateurs from claims and lawsuits. Aside from Pacific Northwest Portlandia comic relief (a television show based in Portland whose first episode features diners inquiring about the quality of life of the chicken they are about to order), many actually read the fine print off menus: Where are those oysters from? How was that albacore caught? Are the tomatoes heirloom?

I know. I know. Here it is the end of September and I am only now posting details on the 2011 ZINO Zillionaire Investment Forum that occurred weeks ago. What can I say, it is fall conference season and the many seminars, conferences, panels and presentations scheduled for the months of September, October, November and December are taking their toll. That said, I wanted to take the time to share highlights from this terrific all day investment forum put on by our friends at ZINO at Seattle's Museum of History and Industry.

This week, Employment Law partner & Hospitality team member, Diana Shukis, breaks down the effects of Seattle’s recently enacted “Sick Leave” requirement. On September 12, 2011 the Seattle City Council approved an ordinance that requires businesses with five or more employees to provide paid leave for employees when they or their family members are ill or a victim of domestic violence. The new leave requirement goes into effect on September 1, 2012. Here are answers to common questions to help guide you as you think ahead toward compliance:

As lawyers, we’re responsible not only for knowing the existing law, but also keeping a close eye on proposed legislation. This week, Employment law specialist, Mike Brunet, highlights two proposed bills, one national and one local, that could have a huge impact on the hospitality industry.

Customer Internet access, preferably wireless, is expected in the hospitality industry. Unfortunately, some guests and customers use the Internet access and computer networks you provide to break the law. Specifically, they infringe copyrights by uploading and downloading illegally obtained copies of movies, songs and television clips that are probably themselves illegally obtained copies of copyrighted works, which enterprising persons then illegally post to publicly available Internet sites for download or further sharing (read: illegal copying).

After some delay, the new federal regulations giving gift card holders greater protections took effect recently, adding to a patchwork of state consumer laws already in place. The new regulations apply to both issuers and sellers of store gift cards, gift certificates, and general use prepaid cards, such as prepaid Visas or Mastercards, sold after August 22, 2010. We’ve seen our clients consider conflicts between state and federal law, advertising policies for resellers, tax recognition on gift card income, and unclaimed property laws.

As many of you are aware, the 9th Circuit Court of Appeals gave Northwest restaurant owners much to cheer about early last year when it authorized Northwest restaurants to initiate mandatory tip pools including back-of-house employees who traditionally do not receive tips. A complete description of the Court's decision in Woody Woo and its immediate effects can be found in my blog post from last November.

The Federal Drug Administration (FDA) has released its long anticipated draft regulations about menu labeling, which describe how the agency intends to enforce Section 4205 of the Patient Protection and Affordable Care Act of 2010, signed into law by President Obama just over a year ago. The FDA is accepting comments from the public on the proposed regulations until June 6, 2011.

For those of you that routinely purchase split cases of wine, December 8 is an important date. On December 8, the Washington State Liquor Control Board will hold public hearings in Olympia on proposed regulatory changes that would authorize wine distributors to collect handling fees from hotels, restaurants and other retail licensees that order and receive split cases of wine. As you may have already guessed, the newly proposed rule is the result of a request made by the Washington Beer and Wine Wholesalers Association.

Given the number of questions I've received recently from clients who've heard rumors about tip pooling becoming legal, I thought it time to update everyone. The short answer is (at least for now) that employers in Washington and Oregon may initiate mandatory tip pools under certain circumstances.