Restaurants

North Carolina Supreme Court Rules in Favor of Bars and Restaurants in Landmark COVID-19 Insurance Claim

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Raleigh, North Carolina — In a landmark decision, the North Carolina Supreme Court recently ruled in favor of 15 local bars and restaurants in a dispute over COVID-19 insurance coverage with Cincinnati Insurance Company. This unanimous decision underscored the broad interpretation of “direct physical loss” under commercial property insurance policies, including losses stemming from government-mandated shutdowns due to the pandemic. The case, centered around North State Deli and 14 other businesses, has been closely watched for its potential implications on similar insurance disputes nationwide. The court’s interpretation extends coverage to encompass temporary closures and usage … Read more

California Enacts Groundbreaking Safety and Consumer Rights Laws; Restaurants Exempt from Junk Fee Ban

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Sacramento, California – An emergency bill signed by Gov. Gavin Newsom late Sunday provides a temporary shield for California’s restaurants from a broader legislation targeting “junk fees,” which takes effect Monday. This swift legislative action underscores the balancing act between consumer protection and the operational realities of businesses. The exempted establishments can now breathe a sigh of relief, as they navigate an ever-evolving regulatory landscape. The law initially aimed to eliminate unexpected or excessively high fees across various services. Legislators agreed that immediate enforcement could pose logistical challenges for small-scale eateries already grappling with thin … Read more

Jeff Ruby’s Restaurants Faces Federal Lawsuit for Skimming Server Tips and Paying Non-Tipped Workers

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CINCINNATI – The company operating Jeff Ruby’s restaurants is facing a federal lawsuit, accused of diverting money from the server’s “tip pool” to non-tipped employees. The lawsuit alleges that Ruby’s restaurants paid “tip pool employees” less than the federal and state minimum wage by utilizing the “tip credit” to meet their wage obligations. It further claims that the company failed to inform workers about this practice, as required. The suit also asserts that Ruby’s distributed “tip pool” funds to behind-the-scenes workers, including cooks and dishwashers, who were consequently paid less. On Tuesday, CEO Britney Ruby … Read more