Restaurant & Bar Employment Law: Knowledge & Experience at Work

The employees of a restaurant or bar are the lifeblood of the establishment, such the appropriate legal arrangements need to be put in place and enforced for the protection of the establishment.

Contact Neufeld Legal PC for restaurant/bar legal matters at 403-400-4092 / 905-616-8864 or Chris@NeufeldLegal.com

Employees are essential in the restaurant business, yet they can also be a great source of legal aggravation. As laws are generally drafted in favour of employees, as opposed to employers, it places the employer in a very precarious position, even when the employees are not meeting reasonable expectations. So even though you may theoretically be in the right, due to the general nature of the law, it is entirely possible to find yourself on the wrong side of the law when an employee is misperforming or underperforming.

The preferred method for dealing with any employee situation is to clearly define their role at the outset, whether they are employees or independent contractors, have a contractual agreement that clear spells out their role and obligations, and have a signed operations manual. Yet in most employment situations this is not the case and there is an ad hoc scenario, wherein the employer-employee relationship is not clearly defined. In such situations, it becomes even more important to consult a lawyer prior to undertaking any controversial employment action, as a fewer minor adjustments to the employer's approach could save the employer a considerable amount of money and aggravation.

The scope of our employment law legal work for restaurants and bars includes:

A. Drafting and Reviewing Employment Documents

Employment Contracts/Agreements: Drafting, reviewing, and negotiating contracts for various roles (e.g., managers, chefs, servers) to clearly define terms of employment, compensation, roles, and termination clauses (including for just cause).
Independent Contractor Agreements: Advising on and drafting agreements to correctly classify workers (e.g., performers, certain consultants) as independent contractors versus employees, minimizing the risk of misclassification claims (which can result in back wages, benefits, and penalties).
Employee Handbooks and Policy Manuals: Developing and updating comprehensive workplace policies covering topics such as:
- Wage and hour rules (e.g., breaks, overtime, tip pooling/distribution).
- Anti-discrimination and anti-harassment policies.
- Workplace health and safety.
- Attendance, time off, and leave policies (e.g., sick leave, parental leave).
- Discipline and termination procedures.
- Confidentiality and non-compete/non-solicitation clauses (where legally enforceable).

B. Wage and Hour Compliance

Minimum Wage and Overtime: Advising on provincial laws regarding minimum wage, how it applies to tipped employees, and proper calculation of overtime pay.
Hours of Work and Rest/Meal Breaks: Advising on legal requirements for employee break times and maximum hours of work.
Payroll Audits: Conducting internal audits to ensure compliance with all wage and hour laws and to proactively correct any discrepancies before a government investigation or lawsuit.

C. Dispute Resolution and Litigation

Wrongful Dismissal/Termination: Defending the owner against claims of wrongful dismissal, advising on termination procedures to mitigate legal risk, and negotiating severance packages.
Discrimination and Harassment Claims: Representing the owner in disputes before human rights tribunals or courts, and assisting with internal investigations of such claims.
Mediation and Arbitration: Representing the owner in alternative dispute resolution processes to settle employment claims outside of court.

D. Employee Management and Discipline

Disciplinary Action: Advising on the proper legal steps for progressive discipline, performance management, and documentation to support a "just cause" termination.
Workplace Investigations: Conducting or overseeing internal investigations into allegations of misconduct, harassment, or policy violations.
Layoffs and Restructuring: Providing legal guidance on mass layoffs, calculating notice/severance obligations, and ensuring compliance with employment standards during business changes.

E. Regulatory Compliance

Employment Standards: Ensuring all practices adhere to the relevant provincial employment standards legislation.
Human Rights/Anti-Discrimination Law: Advising on compliance with laws prohibiting discrimination in hiring, promotions, and all terms of employment, including accommodating employees with disabilities.
Workplace Health and Safety: Advising on OHS/OSHA requirements, reporting protocols, and safety policies.

As an experienced business lawyer experienced in the operational side of the restaurant business, we can provide invaluable practical experience and knowledge when advising restaurant clients, both franchised and independently owned. There is simply nothing better than first-hand experience when providing restaurant clients with professional business and legal advice.¹

For knowledgeable and experienced legal representation in starting, operating and managing a restaurant or bar, together with a raft of legal intricacies and dilemmas that may arise, contact restaurant lawyer Christopher Neufeld at 403-400-4092 [Alberta], 905-616-8864 [Ontario] or Chris@NeufeldLegal.com.

Restaurant Lawyer - About our Legal Practice

1. We will not undertake employer legal representation in disputes or litigation where the employer has contravened the Alberta Employment Standards Code or the Ontario Employment Standards Act with respect to the computation and payment of wages to its employees, given that our law firm is one of the strongest advocates for strict compliance with the applicable provincial employment standards legislation.