Regulatory and Legal Affairs

📌 The National Labor Relations Board (NLRB) withdrew its appeal of a federal judge's ruling against the broadened joint employer rule in May. The rule, expanded last fall and struck down by multiple government branches, could have held franchisees and franchisors equally liable for labor terms. The NLRB still supports the legality of the rule despite the blocked appeal, which leaves the possibility of a future challenge open.

🚧 Announced on July 17, the UK Government's new Employment Rights Bill, to be introduced within the first 100 days of the new parliament, will ban zero-hour contracts and 'fire and rehire' practices, while ensuring workers receive contracts reflecting regular working hours. All workers to have 'reasonable notice' of shift changes with compensation for cancelled shifts. The bill also mandates sick pay, parental leave, and protection from unfair dismissal from day one, abolishing the lower earnings limit on Statutory Sick Pay and its three-day waiting period. Further protections for new mothers include unlawful dismissal prevention for six months post-return to work, and a 'genuine living wage' is planned. Additionally, the bill will streamline union recognition and access. Concurrently, reforms to the Apprenticeship Levy and improvements to the planning system aim to boost hospitality sector growth.

🍻 Eluned Morgan, Wales’s Health Secretary, proposes banning free sugary drink refills in hospitality businesses to encourage healthier living. Over 60% of Wales' population is obese or overweight. Other plans include ending promotions like buy-one-get-one-free on unhealthy foods. Consultation responses are due by September 23, 2024. Draft regulations may be laid before the Senedd in 2024, with a 12-month transition period, aiming for enforcement by end of 2025. Non-complying businesses could face £2,500 fines.

🚿 Starting January 1, 2025, New York State mandates hotels with over 50 rooms to stop providing small plastic toiletry bottles under 12 ounces; smaller hotels have until 2026. Initial violations incur a $250 fine, with subsequent breaches at $500, benefiting the state’s Environmental Protection Fund. The bill, introduced in 2019, was signed into law in 2021 by Governor Kathy Hochul but delayed implementation. New York follows California's 2019 law, with Washington and Illinois considering similar legislation. Marriott reported 95% compliance with switching to larger toiletry bottles in 2023, while Holiday Inn planned to ditch mini toiletries by 2021 and Disney aimed for an 80% plastic reduction.

🥥 The Coconut Tree, claiming to be the 'largest Sri Lankan restaurant group outside Sri Lanka', underwent a Company Voluntary Arrangement (CVA) process overseen by Forvis Mazars, approved on 13 June, after facing financial challenges, including closing its Cardiff location in March. Founded in 2016, it operates eight UK restaurants. In January 2023, it sought a £1m equity-based crowdfund for expansion, targeting the London market, boasting a £10m pre-money valuation.