Delivering Hospitality Legal and Safety News to the Food & Beverage Industry

October 2019's Converge Newsletter
What Restaurants Can Lose Without Foodborne Illness Outbreak Insurance
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October 2019 via FSR Magazine

Up to 90 percent of U.S. restaurants lack proper insurance coverage, exposing them to significant risk in the event of a foodborne illness outbreak. According to a study from researchers at the Johns Hopkins Bloomberg School of Public Health, a single foodborne outbreak could cost a restaurant millions of dollars in lost revenue, fines, lawsuits, legal fees, insurance premium increases. And that doesn’t even include damage to a restaurant’s reputation.

Unfortunately, for decades, restaurants of all sizes including diners, food trucks, cafes and many others that sell prepared, non-packaged food, have not had access to the proper insurance when it comes to legal and financial exposures regarding foodborne illness events.

Despite the industry’s seeming lack of preparedness, foodborne illness is nothing new. Perhaps the most prominent foodborne illness outbreak occurred at Jack in the Box locations back in 1994, killing four children and hospitalizing more than 170 people. Jack in the Box recovered, but it weathered the storm with the backing of major corporate resources.

Of course, not every restaurant and food service provider has this kind of financial backing. So why aren’t restaurants concerned about lacking significant coverage to protect themselves in the event of an outbreak? Without supplemental insurance that covers foodborne illness, restaurants truly risk it all.'s ConvergeBlog
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State & Federal Alcohol Compliance Update: TTB Enforcement and Related Matters

October 24, 2019 via ConvergeBlog
In recent months, TTB has, thanks to a generous allocation in the federal budget, embarked on a rigorous trade practices investigation of alleged violations of the Federal Alcohol Administration Act (the "Act").
Ninth Circuit Court of Appeals Holds Franchisor Not Liable as a Joint Employer of its Franchisee's Employees

October 22, 2019 via Cozen O'Connor

On October 1, 2019, the Ninth Circuit Court of Appeals decided...Salazar v. McDonald's Corp. No. 17- 15673 (9th Cir. 2019), holding franchisor McDonald’s was not a joint employer with its franchisee, because McDonald’s did not retain control of day-to-day aspects of work at the franchisee’s restaurants.
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Tread Carefully If You Receive A "No-Match" Letter
October 8, 2019 via Total Food

Given the already tight labor market and high turnover in the industry, there is a legitimate concern that restaurants will not be able to meet their staffing needs if they confront employees about "no match" letters. Yet, ignoring "no match" letters and failing to follow up with employees may subject restaurants to stiff penalties.

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