• Posts by Pooja S. Nair
    Partner

    Pooja S. Nair is a business litigator and problem solver with a focus on the food and beverage sector. She advises food and beverage clients, startups and other businesses on a comprehensive range of issues, including employment ...

Posted in Legal Bites
LA County Cracks Down on Restaurants Violating COVID-19 Health Orders

On July 7, 2020, the Los Angeles County Board of Supervisors passed a motion to fine LA County businesses, including restaurants, for violations of COVID-19 public health orders, and to shut businesses down for non-compliance in as little as two health inspector visits. The motion was proposed by Supervisors Shelia Kuehl and Janice Hahn. 

In explaining the urgency of passing the motion, the proposal states: “on the weekend of June 27-28, inspectors found that 49% of bars and 33% of restaurants were not adhering to physical distancing protocols indoors and that 54% of bars and 44% of ...

Posted in Legal Bites
FTC Issues Proposed Rule for Made in USA Labeling

On June 22, 2020, the Federal Trade Commission issued a proposed Made in USA Rule regarding when businesses can advertise that their products are made in the U.S., and giving the agency discretion to impose civil penalties.  The proposed rule has not yet been published in the Federal Register, but the agency has invited businesses to file public comments regarding their feedback.

Under the Rule, advertisers would be prohibited from making unqualified Made in USA claims unless the following three factors are met.  First, final assembly or processing of the product occurs in the United ...

Posted in Legal Bites
California Orders Restaurants to Halt Indoor Dining

On July 1, 2020, Governor Gavin Newsom ordered restaurants in nineteen California counties, including Los Angeles County, to cease indoor operations for at least three weeks, until July 22, 2020.

The nineteen counties affected by the Governor’s order represent 70% of the California population. They are Contra Costa, Fresno, Glenn, Imperial, Kern, Kings, Los Angeles, Merced, Orange, Riverside, Sacramento, San Bernardino, San Joaquin, Santa Barbara, Santa Clara, Solano, Stanislaus, Tulare and Ventura counties.

In addition to restaurants, the order requires that wineries ...

Posted in Legal Bites
Bars, Tasting Rooms and Breweries Ordered to Close

On June 28, 2020, California Governor Gavin Newsom ordered that bars in seven California counties close. These counties are: Los Angeles, Fresno, Kern, San Joaquin, Tulare, Kings and Imperial. 

The state has also recommended, but not ordered that eight other counties issue local health orders closing bars: Contra Costa, Santa Clara, Sacramento, Riverside, San Bernardino, Ventura, Santa Barbara and Stanislaus.

The order and recommendations are a result of an increase in new cases and hospitalizations across the state.

Following the order, the Los Angeles County Department of ...

Posted in Legal Bites
Business Interruption Insurance Coverage: A Guide for Restaurants

Restaurants whose operations have been shut down due to the coronavirus crisis are looking to their business interruption or business income insurance policies for relief, and have found resistance from insurance companies paying these claims.

As a general matter, in order to trigger coverage those policies require (1) direct physical loss or damage; (2) to covered property: (3) arising from a covered peril; and (4) resulting in the suspension of the business’ operations.

In cases where coverage is triggered, an insured business may be entitled to recover the net income it would ...

Posted in Legal Bites
California Legislature Advances Bill to Regulate Food Delivery Platforms

California’s legislative season is in full swing, and the California State Assembly and State Senate are advancing bills that will affect the food, beverage, and hospitality industry, with a focus on the restaurant industry.

State legislators have shown an interest in regulating food delivery platforms. Several cities, including San Francisco and Los Angeles, have capped delivery fees that these platforms, including Grubhub, Door Dash, Uber Eats and Postmates, can charge restaurants at least for the duration of the COVID-19 pandemic.

Concerns have also been raised by ...

Posted in Legal Bites
“L.A. Al Fresco” Program Launched

The City of Los Angeles has launched an “L.A. Al Fresco” Program aimed at helping restaurants reopen while following COVID-19 physical distancing guidelines. 

The program will allow restaurants to use their sidewalk and private parking lots spaces to increase their outdoor dining capacity.  Through the program, the City will offer streamlined, immediate approval for eligible restaurants to provide outdoor dining in sidewalks and private parking lots.  The approval will also allow restaurants to serve alcohol in these areas.

L.A. Al Fresco was launched on May 29, 2020 and the ...

Posted in Legal Bites
LA City Council Caps Delivery Fees at 15%

On June 3, 2020, the Los Angeles City Council adopted an ordinance capping third-party food delivery services fees at 15% for the duration of the COVID-19 public health emergency. The ordinance will become part of the City’s Municipal Code.

The new ordinance makes it unlawful for a third-party food delivery service to charge a restaurant a fee per online order of more than 15% of the purchase price of the order. The ordinance is designed to protect the restaurant industry during the COVID-19 pandemic, when dine-in was prohibited. The ordinance is set to expire 90 days after the ...

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