Restaurants and Food Service Businesses

Business.gov helps small business owners stay abreast of legal and regulatory issues affecting their daily lives. This guide provides an overview of federal regulations that affect restaurants and other food service businesses, including links to guidance that help restaurateurs stay in compliance with federal regulations.

Americans with Disabilities Act (ADA)

The ADA provides specific challenges for food service businesses. Employers must avoid discriminating against customers and employees with disabilities while obeying strict public health rules. To help restaurant owners comply with both sets of requirements, the Equal Employment Opportunity Commission has published How to Comply with the Americans with Disabilities Act : A Guide for Restaurants and Other Food Service Employers.

Child and Teen Labor

The Fair Labor Standards Act (FLSA) establishes child labor regulations affecting full-time and part-time restaurant workers. The U.S. Department of Labor has issued the following publications to help food service businesses comply with the child labor provisions under FLSA.

• Employing Youth in Restaurants
  This fact sheet provides general information concerning the application of the federal youth employment provisions to restaurants and quick-service establishments that employ workers who are less than 18 years of age.
  
• YouthRules!
  Gateway to Federal and State laws that apply to teen workers.
  
• Restaurant Employer Self-Assessment Tool
  This self assessment tool helps employers comply with the youth employment provisions of the Fair Labor Standards Act.
  
• Teen Worker Safety in Restaurants
  This OSHA eTool describes common hazards and potential safety solutions for teen workers and their employers in the restaurant industry. It details several facets of the industry, including: serving, clean-up, cooking, food preparation, delivery, and general hazards.

Immigration

Keeping abreast of immigration laws is a must for any restaurant owner. According to a report by the Pew Hispanic Center, short-term unauthorized workers make up about 10% of all persons employed in food preparation and service. Business.gov"s Small Business Guide to Immigration Regulations provides an overview of key immigration laws affecting the food service industry.

Minimum Wage, Tips, and Overtime

The Fair Labor Standards Act (FLSA) also establishes minimum wage, overtime pay, and recordkeeping standards affecting full-time and part-time workers. The U.S. Dept. of Labor provides the following guides to help restaurant owners comply with wage requirements under FLSA.

• Restaurants and Fast Food Establishments Fact Sheet
  Provides general information on the application of FLSA, including minimum wage, food credit, tips, and overtime.
  
• Fair Labor Standards Act Advisor
  An online guide that helps employers understand Federal minimum wage, overtime, child labor and recordkeeping requirements.
  
• Tipped Employees Under the Fair Labor Standards Act
  This U.S. Dept of Labor fact sheet provides general information concerning the application of the FLSA to employees who receive tips.

The National Restaurant Association also provides a helpful guide on How to Calculate Overtime for Tipped Employees.

Taxes

The Internal Revenue Service"s Tax Guide for Restaurants provides guidance on proper recordkeeping, reporting tips, and other tax issues affecting restaurant owners.

Nutritional Labeling

The Nutrition Labeling and Education Act (NELA) sets regulations for food labeling, including nutritional label standards, nutrient content claims, and health claims. NELA applies to virtually all foods in the food supply, including food served and sold in restaurants. While NELA specifies a number of exemptions for restaurants, there are many instances where a nutritional label is required.

The Food and Drug Administration"s Nutritional Labeling Guide for Restaurants and Other Retail Establishments provides answers to commonly asked questions regarding the application of NELA.

Food Safety

The U.S. Food and Drug Administration (FDA) establishes food safety guidelines and regulations that are required for food labeling and the safe preparation, manufacture, and distribution of food products.

• Food Safety Regulations for New Businesses
  Comprehensive guide to food safety laws and regulations governed by the FDA.
  
• Food Safety: Information for Industry
  Guide to food safety regulations for food manufacturers, retailers, and related industries.
  
• Safe Food Handling Fact Sheets
  Information on safe handling of poultry, eggs, and meat products.

Franchises and Business Opportunities

Aspiring restaurateurs often look at buying a franchise as a way to break into the food business. By purchasing a franchise, you will have instant brand name recognition, and be able to easily obtain training and support to help you succeed. However, purchasing a franchise is not a guarantee of financial success. There are numerous costs and conditions associated with franchises that may not agree with your goals as a restaurateur.

The following guides provide helpful advice to anyone considering a franchise opportunity:

• Buying a Franchise
  The U.S. Small Business Administration provides this guide on how franchises work, researching opportunities, and answers to common questions about franchising.
  
• Consumer Guide to Buying a Franchise
  The Federal Trade Commission provides advice on avoiding costly pitfalls before buying a franchise.
  
• Evaluating Franchise Opportunities
  Guide to questions you should ask to adequately evaluate the business, the franchiser, the franchise package and yourself as a franchise owner.

For more information, visit the Guide to Franchises & Business Opportunities.