Posts from October 2020.
The Food, Beverage and Hospitality Industry & the Internet: Recent Developments

Below is a summary of recent developments for the Food, Beverage and Hospitality industry in terms of Internet laws and regulations. To learn more about these issues and how they affect the industry, join us on October 28, 2020 for our Industry Debrief on the CCPA, CPRA, Data Security and Other Risks.

Consumer Privacy and the CCPA

In June 2018, California enacted one of the most comprehensive privacy laws in the country, the California Consumer Privacy Act of 2018 (the “CCPA”). The CCPA went into effect on January 1, 2020, and started to be enforced by the California Attorney General ...

CDC Redefines “Close Contact” with COVID-19 Infected Individual

On Wednesday, October 22, 2020, the Centers for Disease Control and Prevention (CDC) expanded the definition of a “close contact” with a COVID-19 infected person to include brief interactions over a 24-hour period. This expanded definition has important implications for the workplace and impacts all COVID-19 state and county health orders.

Previously, the CDC defined a “close contact” to mean spending at least 15 minutes within six feet of an infectious person.  The new definition states that cumulative contact of 15 minutes or more within six feet of an infectious person ...

#MeToobin? When Home and Work Collide

Within hours, the sad story of Jeffrey Toobin became common knowledge. For those of you just emerging from a yoga retreat or a Dodgers-only-World-Series media frenzy, Jeffrey Toobin is (or was, as it remains to be seen what will ultimately happen with his employment status) a legal analyst for CNN and a writer for the New Yorker magazine. Highly respected and knowledgeable, Toobin’s comments on current legal events and issues were often both enlightening and insightful. Until Monday, when Jeffrey Toobin took the occasion of a Zoom call populated with numerous other New Yorker

Posted in Legal Bites
California Imposes Food Safety Requirements on Delivery Apps

On September 18, 2020, California Governor Gavin Newsom signed AB-3336 into law. This law sets new safety standards for third-party delivery apps, including sanitation and temperature standards. These standards are consistent with the requirements for restaurants and stores, but this is the first time that third-party delivery apps have been specifically required to follow them.

The law is codified at Section 113930.5 to the Health and Safety Code, which deals specifically with the transportation of food and which applies only to third-party food delivery platforms. 

The law ...

Posted in Legal Bites
LA County Orders Probe of Fast Food Worker Safety

On October 13, 2020, the Los Angeles County Board of Supervisors voted to investigate the working conditions in the fast-food industry. This motion was proposed by Supervisor Hilda L. Solis, and authorizes a specific probe into complaints at one fast food location, and a larger investigation into industry conditions throughout the county.

This investigation was prompted by complaints made about a McDonald’s location in Boyle Heights.  SEIU Local 721 issued a letter about working conditions at that location, including inadequate personal protective equipment and infrequent ...

AB 1281 Extends Employee Personal Information Exemption from Consumer Privacy Act

Assembly Bill 1281 extends to January 1, 2022, the exemption for employee personal information from most requirements of California’s Consumer Privacy Act.  Under last year’s AB 25, this exemption was set to expire on January 1, 2021.  Having been signed by Governor Newsom, AB 1281 will effectively replace AB 25 commencing on January 1, 2021.

The exemption allows businesses to collect and use a person’s information within the context of that person’s role or former role at the business. Employers still have the obligation to provide the employee or applicant with ...

An Interview With Peter Selvin: Dispute Resolution 

Lexology GTDT Market Intelligence provides a unique perspective on evolving legal and regulatory landscapes in major jurisdictions around the world. This interview discusses dispute resolution in the United States. 

1. What are the most popular dispute resolution methods for clients in your jurisdiction? Is there a clear preference for a particular method in commercial disputes? What is the balance between litigation and arbitration?

The principal alternatives to court litigation are arbitration and mediation.

As to arbitration, there has been considerable appellate ...

Posted in Legal Bites
FDA Announces Virtual Public Meetings on Food Traceability Rule

The FDA recently announced that it would be holding three virtual public meetings entitled “Requirements for Additional Traceability Records for Certain Foods; Proposed Rule.”

The purpose of the public meetings is to discuss the proposed rule entitled “Requirements for Additional Traceability Records for Certain Foods,” which was issued under the FDA Food Safety Modernization Act (FSMA).  

These public meetings are intended to facilitate and support the public's evaluation and commenting process on the proposed rule.  Interested participants are asked to submit ...

Employer Alert: SB 1383 Requires Small Employers to Provide Family, Medical and Child Bonding Leave and Expands Family Member Care Leave

Effective January 1, 2021, Senate Bill 1383 will significantly expand the California Family Rights Act (CFRA) to cover employers with at least 5 employees.  Previously, CFRA leave was required only of employers with at least 50 employees within a 75-mile radius.  Further, SB 1383 expands the CFRA with respect to purposes for which leave may be taken.

With the enactment of SB 1383, employers with only 5 employees or more will have to provide employees who meet certain minimum service requirements with up to 12 workweeks of unpaid protected leave during any 12-month period for a number of ...

Can the Bankruptcy Court Appoint a Receiver?

Q: I am a Chapter 7 bankruptcy trustee. One of the assets of the bankruptcy estate is a note, which is secured by an apartment building, owned by the debtor’s brother. The note is in default and I have learned there are health and safety issues at the building. Another asset is the debtor’s interest in a partnership, where the brother is the managing partner. The brother is selling off interests in real property owned by the partnership, but not remitting any of the proceeds to me. I intend to file adversary proceedings to judicially foreclose on the note and to recover the ...

Rulings Disagree: Is Loss of Use of a Leasehold 'Property Damage'?

Is a party’s loss of use of a leasehold or other interest in real property considered “property damage” within the meaning of a comprehensive general liability (CGL) policy? Two recent cases go in different directions on this point.

The starting point is the CGL’s Coverage A which typically provides coverage for “bodily injury and property damage liability”. In turn, “property damage” is typically defined to include the “loss of use of tangible property that is not physically injured”. The key question addressed by the following cases is whether a party’s ...

Posted in Legal Bites
California Enacts New Law Regulating Food Delivery Apps

On September 24, 2020, Governor Newsom enacted AB-2149, the Fair Food Delivery Act of 2020. The new law prohibits food delivery platforms from arranging for the delivery of food delivery orders without the express authorization of the food facilities. 

The law amends Business and Professions Code Section 22.4 to state: “[a] food delivery platform shall not arrange for the delivery of an order from a food facility without first obtaining an agreement with the food facility expressly authorizing the food delivery platform to take orders and deliver meals prepared by the food ...

Courts Wrestle With Coverage of Cyber-Related Claims

Cyber insurance is designed to fill an enterprise's coverage gaps, where coverage under other forms of in­surance may not be triggered by these kind of losses. At the same time, and because cyber insurance is a relatively new prod­uct, there are few reported cases involving coverage disputes. Importantly, those cases highlight the need for policyholders to scru­tinize the menu of available coverage grants in any proposed cyber insurance policy.

While to date there has been relative­ly few reported cases involving cyber in­surance coverage disputes, there has been much ...

Posted in Legal Bites
L.A. County to Reopen Breweries and Wineries

On September 27, 2020, the Los Angeles Board of Supervisors approved a motion to reopen breweries and wineries by October 6, 2020.  The reopening requires breweries and wineries to abide by strict safety guidelines, including but not limited to: outside operations, limited hours of operation, required reservations, appropriate social distancing, and all appropriate safety measures.  The motion directs the Los Angeles County Department of Public Health to begin with permitting outdoor, reservation-only seating at breweries and then create a plan to increase capacity.

This ...

A Win For Employers: Governor Newsom Vetoes AB 3216

Despite significant pressure from labor groups and others, Governor Gavin Newsom vetoed Assembly Bill 3216 yesterday.  If it had been signed, AB 3216 would have created a right of recall for laid-off employees of hotels and event venues, as well as those working in building maintenance.  The bill was criticized by the Chamber of Commerce and others who felt that the legislation sought to further burden industries who were already struggling as a result of the pandemic. Although AB 3216 is now off the table, employers should not forget that certain right to recall ordinances have already ...

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