Tip Pooling Part Two:  Tipping Management and Other Employees

As discussed in Part One of the Gratuity Law Series, California’s Labor Code §351 provides that “no employer or agent shall collect, take, or receive any gratuity” if the patron intended for the gratuity to be given to an employee.  Though this statement may appear simplistic on its face, courts have frequently been asked to decide who is an “employer or agent” for the purposes of this law.  Continue reading

Posted in Uncategorized

Why restaurants account for the most sex harassment claims

Nearly 40% of EEOC claims for sex harassment claims emanate from restaurants.  That’s more than any other type of business.  Why?  See this Atlantic Magazine’s CityLab article

Posted in Uncategorized

What’s required to begin franchising a business?

Raising Cane's

Photo: Flickr Creative Commons 2.0, photo by Mr. Blue MauMau -Raising Cane’s

The United States is filled with successful franchises, ranging from small businesses slowly spreading their reach to Fortune 500 conglomerates with a global empire.  Many times, the average consumer is oblivious to whether an establishment is operated by a franchisee, which is the business that receives proprietary knowledge and rights from the larger business, or by a franchisor, which is the larger business that provides a franchisee with proprietary knowledge and rights.  Continue reading

Posted in business startup and growth | Tagged ,

Legality of Surcharges to Offset Rising Wages

St. Regis Bali breakfast

In-Suite Breakfast Experience – St. Regis Bali, photo by Matt@PEK, CC 2.0

With the passage of both local and state minimum wage increases, the hospitality industry has looked at surcharges to off-set the costs of a labor force, which has traditionally looked to tips for much of their actual compensation. The state minimum wage is to incrementally increase to $15 per hour by 2022.  Some localities, particularly San Francisco, exceed this amount. Continue reading

Posted in employment | Tagged , , ,

CityLab: Can Craft Breweries Transform America’s Post-Industrial Neighborhoods?

Interesting article in Atlantic Magazine’s CityLab by renowned urban economist Richard Florida: Can Craft Breweries Transform America’s Post-Industrial Neighborhoods?

Posted in Uncategorized

Tip Pooling Basics

cash bar tips

Photo by Bob Doran, Flickr Creative Commons

        Though the concept of tipping has developed through custom, a business’s tipping practices are regulated by state law. This is especially true within California.  This series will explain acceptable tipping practices for businesses within the state.  Here, it begins by explaining tipping in California through the lens of property rights. Continue reading

Posted in employment | Tagged ,

Marketing Beer through Farmers’ Markets


Guilford farmers market beer vendorCrowds of people regularly flock to farmers markets seeking new brands, new tastes, and an intimate experience with local treats.  For much of California, and especially the San Diego area, farmers’ markets can operate year-round as a great tool both for selling product and marketing a brand.  The California legislature’s passage of Assembly Bill 2004 and Assembly Bill 774 allows for beer to be sold at farmers’ markets.  This means that craft breweries have an entirely new market to advertise and sell their products, letting its beer take its place as a piece of local pride amongst other local foods and drinks. Continue reading

Posted in Uncategorized