SBA Closes RRF

Rife with problems from the get-go, the Restaurant Revitalization Fund (RRF) was closed to new applications yesterday by the US Small Business Administration (SBA), but the application portal will remain open for another two weeks to allow applicants to check their status. With its creation as an integral part of the American Rescue Plan –…

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Court Tosses Eviction Moratorium

A Washington DC-based federal judge has thrown out the eviction moratorium prompted by the coronavirus pandemic and imposed by the Centers for Disease Control (CDC) last year. The federal moratorium on residential evictions has been extended three times since it was first implemented under President Trump last September, was most recently extended by President Biden…

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Court Rejects Joint-Employer Delay

The U.S. Court of Appeals for the 2nd Circuit denied a request by the Department of Labor under President Biden to delay for 6 months, the filing of a DOL brief seeking to overturn the Trump administration rule on the joint employer issue. In the wake of the decision, DOL must still file its brief…

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Court Validates Salary History Consideration

According to a federal District Court in Virginia, the use of salary history in employment decisions is a reasonable – and legal – tool for employers to consider in making employment decisions. Early this month, the court applied a precedent set by the Fourth Circuit Court of Appeals (Spenser v. Virginia State University) versus a…

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“Hero Pay” Lawsuit Dismissed

As the idea of “Hero Pay”, an hourly premium paid to front-line grocery and retail workers during the existence of a public emergency, gains traction around the country (hazard pay ordinances are in effect in Berkeley, Long Beach, Los Angeles, Oakland, San Francisco and a host of other California cities as well as in Seattle),…

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States Sue over Tax Cut Restriction

One of the provisions in the Biden administration’s $1.9 trillion American Rescue Plan of 2021 prohibits states from using the federal relief cash either directly or indirectly to reduce taxes. In response, Ohio, Arizona, Missouri and a host of other – mostly red – states have filed suit against the Biden administration challenging the prohibition.…

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All Around Biz Interruption Insurance

A Boston-based federal district court judge has dismissed a lawsuit filed last May by the Massachusetts-based high-end seafood chain, Legal Sea Foods. US District Court Judge Nathaniel Gorton agreed with defendant Strathmore Insurance Company that the COVID-19 virus did not result in the requisite physical damage to Legal Sea Foods’ property, notwithstanding government ordered shutdowns…

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Advances on Business Interruption Insurance

There was some legal and legislative headway made this past week on the question of business interruption protections being applicable during the pandemic. First off, the US District Court for the Northern District of Ohio ruled last week that a claim for insurance protection under business interruption coverage by a multi-state restaurant owner was valid…

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DDIFO Joins IFA in Lawsuit vs California AB5

This week, DDIFO joined the International Franchise Association (IFA), the Asian American Hotel Owners Association (AAHOA) and the Supercuts Franchisee Association in filing a federal lawsuit challenging California Assembly Bill 5 (AB5) law. Filed in the US District Court for the Southern District of California, the lawsuit contends that AB 5 is preempted by the…

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When It Rains, It Pours

A few weeks ago, we reported on McDonalds suing to recover severance and bonus payments paid to terminated CEO Steve Easterbrook. On the heels of that evolving storm, executives at McDonalds now have an additional matter to deal with – a federal civil rights lawsuit brought by 52 black former franchisees. In the suit, filed…

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