California Restaurant Association sues to challenge ban on mandatory ‘captive audience’ meetings
Business organizations are suing the state of California three months after Gov. Gavin Newsom signed Senate Bill 399 into law, which banned employer retaliation against employees who refuse to attend mandatory meetings about religious or political matters. The lawsuit, which was filed by the California Chamber of Commerce and California Restaurant Association, claimed that the California state law blocks businesses from exercising their First and Fourteenth Amendment rights to talk to employees about political issues, including “the decision to join or support any labor organization.” According to the lawsuit, the California bill discriminates against employers’ viewpoints by “regulating the content of employers’ communications with their employees, and by chilling and prohibiting employer speech.”
These are the top 7 issues facing the struggling restaurant industry in 2025
Locally, several Los Angeles restaurateurs report that they have yet to recover from entertainment industry strikes last year, which severely affected the service industry. Paired with low patronage and pandemic-era loans and rent payments that came due, several acclaimed restaurants are struggling or have shuttered across the country, particularly in L.A. Here are the top seven challenges restaurants are likely to face in the coming year: labor costs, food prices, health insurance, credit card fees, child care, delivery app fees, and service charges and tipping.
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How the surgeon general’s advisory on alcohol could impact restaurant sales
Last week, United States Surgeon General Dr. Vivek Murthy issued a new advisory outlining the link between alcohol consumption and increased cancer risk. In the advisory, he noted that alcohol consumption is the third leading preventable cause of cancer in the United States, after tobacco and obesity. Alcohol-based beverages currently represent about 21% of total sales at full-service restaurants that sell them, according to the National Restaurant Association. That number is even higher at fine dining establishments. At limited-service restaurants that sell alcoholic beverages, they make up 6% of sales.
No more tax on tips? Workers welcome plan, but experts say there are better ways to help
Economists are skeptical of the “no tax on tips” proposal’s ability to reach those most in need and concerned about how it may change employer and customer behavior. Under the plan, workers would still owe federal income taxes on their base hourly wage but wouldn’t be taxed on whatever tips they bring in, be those via cash, card or check. The Yale Budget Lab estimates the average tax cut for families affected by the change would be about $1,700, though those in the bottom fifth of earners would see a $200 average cut.
Many of you worry about limited choices and increased business insurance costs. The CRA aims to develop a solution for our restaurant members, such as commercial property and casualty insurance. We need your help gathering data.
This is NOT A SOLICITATION of insurance products or services but an opportunity to collaborate in building a better insurance program for restaurants.
Log into the CRA website to access your discounts today! If you need help, don't hesitate to contact Macy Fitch at mfitch@calrest.org.
CRA
HELP US HELP YOU! California's Insurance Crisis
Many of you have expressed worries about the limited choices and increased business insurance costs. The CRA aims to develop a solution for our restaurant members, such as commercial property and casualty insurance. However, we need your help to gather the necessary data to create this program. This is not a solicitation of insurance products or services but an opportunity to collaborate in building a better insurance program for California restaurants. You can fill out the form or request your broker complete the information.
Your information will remain private and only be shared with the parties involved in developing this program. This program is intended to be distributed through your current agent or broker, ensuring your existing relationships remain intact.
LEGAL PARTNER CONTENT New year, new minimum wage: California employers should prepare for statewide pay increases
Effective January 1, 2025, California's minimum wage increased to $16.50 per hour for employers of all sizes, a 50-cent rise from 2024. The California state minimum wage rate is used to determine the salary threshold for administrative, executive, and professional exemptions. CRA Legal Center partner Kronick reviews other general state minimum wage, specific industries, professions and some local cities with different minimum wages.
Do you have questions? CRA members receive one call (not exceeding 15 minutes) of legal advice monthly from one of our legal partners. Learn more.
LEGAL PARTNER CONTENT What is Automated Decisionmaking Technology (ADMT) under CCPA proposed regulations?
On November 8, 2024, the California Privacy Protection Agency (CPPA) voted to advance proposed regulations regarding automated decision-making technology. CRA Legal Center partner Jackson Lewis provides an overview of what "automated decision-making technology" entails and highlights key provisions to assist businesses in understanding how to evaluate its potential impacts.
Do you have questions? CRA members receive one call (not exceeding 15 minutes) of legal advice monthly from one of our legal partners. Learn more.
