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NATIONAL AFFAIRS:
A D V O C A C Y
I S S U E S
FDA announces 1-year delay in menu-labeling rule (July, 2015)
The Food and Drug Administration has pushed the effective date for a
new federal menu-labeling regulation for chain restaurants and similar
foodservice establishments to Dec. 1, 2016.
The FDA had originally set Dec. 1, 2015, as the compliance date but
said today that it is extending the compliance date in response to
requests and in order to further clarify the rule’s requirements. The
regulations apply to restaurants and similar retail food establishments
with 20 or more locations operating under the same name and serving
substantially the same menu items. Smaller restaurants can choose to
comply voluntarily. The law requires covered establishments to post
calories for standard menu items, and provide guests with additional
nutrition information upon request.
New Proposal Redefines Overtime (June 2015)
The Labor Department released a 295-page proposed revision to federal
overtime laws that greatly increases the salary level that dictates which
employees must be paid overtime.
Under the proposed revisions, the threshold would increase from the
current $23,660, or $455 a week, to $50,440, or $970 a week. This
means most salaried employees earning below $50,440 a year would
be eligible for overtime pay if they work more than 40 hours in a
week. The DOL has proposed automatically adjusting the threshold
after that, according to inflation or wage growth. About 5 million
individuals would become eligible for overtime pay under the proposed
revisions, according to the White House. The revisions are expected to
be published in the Federal Register within the next few days, and a 60-
day comment period will follow. The White House indicated that final
regulations are expected in 2016.
House Passes Bill to change Full-Time Definition (January 2015)
Just two days into its new session, the House of Representatives passed
bipartisan legislation to change the health care law’s definition of “full
time” from 30 hours to 40 hours a week.
Changing the health care law’s full-time definition has been a leading
advocacy priority for the National Restaurant Association since the law
was passed in 2010. The NRA is concerned a 30-hour definition of full-
time would lead to more rigid scheduling practices in the industry at the
expense of the flexibility that attracts millions of employees to work in
the industry. Under the health care law, businesses with 100 or more
full-time-equivalent employees—generally defined as those who average
at least 30 hours per week—are required to offer health care benefits
to those employees and their dependents or face penalties in 2015. The
requirement will expand next year to include businesses with 50 to 99
full-time-equivalent employees. Passing the bill in the Senate is expected
to be more challenging, as 60 votes are required to bring it to a vote.
The NRA and More Time for Full Time initiative urge restaurateurs to
write to their senators and ask them to support the bill. Write to your
senators today.
2015 — Marks Beginning of Reporting Mandate
for ACA; Fines for Noncompliance Increase (June 2015)
January 1, 2015 was the “effective date” for the new requirements.
Significant penalties apply if forms are filed late, inaccurately, or not at all.
All applicable large employers must report 2015 calendar year data to
the IRS, even if they qualify for temporary relief from the requirements
of the employer mandate. Employee statements must be distributed by
February 1, 2016 (the annual deadline will generally be January 31).
Forms must be submitted to the IRS by February 29, 2016 (if filed by
paper) or March 31, 2016 (if filed electronically).
The penalties for filing late or inaccurate Form 1094-Cs and Form 1095-
Cs mirror those that apply to Form W-2s. These penalties can be as high
as $250 per form (this is a change, up from the $100 original fine), with
a maximum of $3,000,000 per year (up from $1.5M maximum penalty).
The penalty for intentionally disregarding the employer reporting
requirements is $250 per Form 1095-C, with no maximum penalty.
Such a failure is also likely to trigger an audit to evaluate if employer
mandate penalties should also be assessed.
NY wage board calls for $15 fast-food minimum wage (July 2015)
The wage board appointed by New York Gov. Andrew Cuomo to set a new
minimum wage for the state’s fast-food restaurants voted July 22 to
recommend a $15 minimum wage for quickservice chains that have at
least 30 locations nationally.
The wage board finalized its report and is expected to send it to Acting
Labor Commissioner Mario Musolino this week. A 15-day comment
period will begin once Musolino receives the report, and he is expected
to approve it once the comment period ends. The report will then be
sent to Cuomo, who will have 45 days to sign it.
The three-member board, which Cuomo appointed, did not include any
restaurant operators. It included Buffalo Mayor Byron Brown, Service
Employees International Union Secretary-Treasurer Mike Fishman, and
Kevin Ryan, chairman and founder of online retailer Gilt. The SEIU
has spent millions of dollars supporting a $15 minimum wage across
the country.
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