Restaurant Law Blog

My bar/restaurant is thinking of changing its menu. Are there any special compliance measures we should take? 

In a recent case involving a Lower East Side American pub restaurant, owners were shocked to learn that changes in menu offerings and bar hours could result in a revocation of their liquor license, as well as bring about hefty fines and penalties.

The restaurant, known as the Sixth Ward, was restyled in 2008 as an American/Irish pub-style bistro, offering regular bar fare and a full bar menu.
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I am considering opening a restaurant in Manhattan. What are some compliance issues I should consider?

Owning a successful restaurant in New York City is tough, especially given the stiff competition and crabby critics. However, one area that need not be a headache is city and state compliance, The administrative regulations that apply to bars and restaurants are lengthy and detailed. If you are considering opening a restaurant in New York City, a restaurant and bar lawyer can help you better understand some of the most common pitfalls in regulatory compliance, including:

Can a block association stop a restaurant or bar from getting a liquor license?

Would-be restaurant and bar owners in New York may find that gaining approval of the State Liquor Authority (SLA) is harder than usual for establishments on the Lower East Side of Manhattan. A group known as the LES Dwellers has made it its mission to stop new nightspots from opening in "Hell Square," a nickname the group gave a nine-block area saturated with bars and restaurants.

The LES Dwellers object to the hordes of young people loitering outside of clubs, urinating, vomiting and sometimes literally falling down drunk. The crowds, they complain, make the streets impassable.
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Why Can’t the Employee Screening Process Be Simplified?

A National Restaurant Association (NRA) representative told members of Congress that the increasing number of local and state employment verification laws and regulations have complicated the screening process for potential employees and exposed restaurant owners to increased legal liability. NRA senior vice president of labor and workforce policy, Angelo Amador, spoke at a February hearing of the House Judiciary Committee Subcommittee of Immigration and Border Security, saying that the Legal Workforce Act, which the association supports, should preempt local laws and create a more streamlined system for verifying job candidates’ immigration status.

The proposed law would change the existing Immigration and Nationality Act to make mandatory and permanent the use of the federal electronic employment eligibility verification system, E-Verify. Amador testified:
“In the current system, employers are boxed in by federal regulations that, on one side, require them to conduct the I-9 (employment verification) process on every person they hire and, on the other side, limit their ability to question the validity of authorization and identity documents used during that process…Out of this frustration, and the frustration caused by the federal government’s inability to move forward on the issue, many states and localities have responded with a patchwork of employment verification laws.
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Are my employees affected by the President's executive actions on immigration?

Immigration is a hot button political issue. Despite varying views from political parties and people around the country, the reality is that much of the restaurant industry would cease to function without immigrant labor.

Recent executive action by President Obama expanded some immigration programs.
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What Insurance Coverage Does a Restaurant Need?

There is tremendous potential liability involved when operating a restaurant.  Liability varies  depending on a number of factors.  Some of these factors include how large your business is, the number of people you employ, the number of customers you serve, whether you serve alcohol and whether you own the property, among other things. Having the right insurance and sufficient coverage can help you avoid major problems for your restaurant.

What is an Arbitration Clause? It’s the Fine Print You Need to Understand.

A restaurant owner may sign any number of contracts in order to keep the doors open, a roof overhead and obtain supplies that are the lifeblood of the business. If the contract you are signing contains a forced or mandatory arbitration clause, and you fail to read the contract closely and fully understand its meaning, you could lose out on a number of legal rights without knowing it. One of those rights is the ability to go to court to protect your interests in the case that the contract is breached or the other party breaks the law and causes you harm.

What are ‘Interlocking Interests’?

One aspect of obtaining or renewing a liquor license is the consideration of any liquor related businesses you have an interest in. Earlier this year this issue came up involving Mario Batali and the Bastianich family.

The New York State Liquor Authority (NYSLA) looks at an applicant’s “interlocking interests” with other liquor related businesses when a person or entity is seeking to obtain or renew a liquor license. Applicants are required to disclose any interest, whether it’s direct or indirect, in any premises currently licensed by the NYSLA and/or any business that manufactures alcoholic beverages or transports or sells such beverages at wholesale. The second step has been interpreted broadly by the NYSLA, so any interest in such a business, anywhere, brings up these concerns.

If you have ever been to a restaurant with a large group of people, you are probably familiar with the concept of automatic gratuity.  Automatic gratuity is added to the bill so that the customer tips the staff a predetermined amount as opposed to at his or her own discretion.
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In 2014, the State of New York legalized the use of medical marijuana.  The possession and private use of minor amounts of the substance has been decriminalized in the state since 1977. Even so, tens of thousands of arrests are made each year in New York City for what is characterized as public use of the drug.  Now, legislators are seeking to put an end to that.

Democratic Senator Liz Krueger is committed to pushing the Marijuana Regulation and Taxation Act in early 2015.  The bill was introduced last year, rejected and has since been amended.  If passes, it would allow marijuana dispensaries regulated by the State Liquor Authority to be launched in New York.  The marijuana would be taxed and individuals would be permitted to possess two ounces and six plants for personal use only. 

In 1926, New York City enacted the Cabaret Law.  This law is meant to regulate nightlife activities in bars, restaurants and other establishments.  The legislation has undergone many challenges and has been amended since, but it still not a popular law.  Even Michael Bloomberg tried to change the law during his term as Mayor.  In a 1988 case, the portion of the law prohibiting live music was found to be unconstitutional.  While the portion of the law prohibiting dancing has been challenged, it still stands.  Now the main effect of the law is essentially to prohibit dancing in any establishment without a City issued cabaret license.