Know Where We Stand

Below are positions that DRA stands on to let you know what we are doing to oppose or agree upon.


DRA SHOP LEGISLATION - OPPOSE

Dram shop legislation creates third party liability for reckless or intentional serving of an intoxicated person if that person would later injure an innocent party. Delaware courts could examine and make civilly liable restaurant owners and employees for property damage, personal injury or death sustained by a third party as a result of the purchaser’s intoxication.


The Delaware Restaurant Association strongly opposes dram shop legislation. This law would target responsible business operators who would be considered guilty, until proven innocent. The burden of proof would fall directly on the business owner. Liquor liability costs would skyrocket making it cost-prohibitive for small businesses. Dram shop legislation creates a “feeding frenzy” for trial attorneys paving the way for frivolous law suit abuse.

• The Delaware Restaurant Association supports mandated server-training at a minimum for Delaware operators. The state already has one of the most stringent server-training laws in the country which requires every seller or handler of alcohol to undergo training. Delaware’s restaurant community exceeds the state mandate by conducting additional on-premise training for staff.
• Delaware is one of only 15 states with mandatory training.
• This bill would encourage frivolous lawsuit abuse by attorneys seeking to make more money if the state would expand civil liability to sellers of alcohol.
• The increased cost of liquor liability would skyrocket!  The average policy that costs about $250 ( for a basic $1 million coverage policy) could exceed over $10,000 and may be impossible ( for many) to find in Delaware.
• Liquor liability “Dram Shop” laws do nothing to make our highways safer.  The focus needs to be on prevention and education programs.

TIPPED EMPLOYEE WAGE INCREASE - OPPOSE

Currently, Delaware’s Minimum wage is $7.15 per hour and the Cash Wage is $2.23 per hour. Delaware operators already pay more than the national federal minimum wage of $5.85 and $2.13 per hour. By law, employers must pay the minimum wage of $7.15 per hour if the employee does not exceed the minimum wage when combining the cash wage and tips.

• Employees are guaranteed to make at least the minimum wage of $7.15 per hour. Employers must make up the difference if employees’ tips fall short of minimum wage when combined with the cash wage of $2.23. 

• Delaware’s minimum wage exceeds Federal law as well as its neighboring states of Maryland, Pennsylvania and New Jersey.

• Tipped employees are NOT minimum wage earners.  The IRS has determined that tips/gratuities are wages.  According to the National statistics, compensation for servers exceeds $10 per hour. 

• The restaurant industry in Delaware is struggling to cope financially with increased cost of goods, a constriction in the market as well as a struggling economy.  Increasing the tip credit would create another financial burden to the State’s number one small business and tourism employer.

• In recent years, the IRS has developed programs that have encouraged the employers to increase the amount of tips that their employees claim through education.

FOOD LAWSUITS, OBESITY AND NUTRITION

DRA supports state and federal legislation to prevent customers from suing restaurants for obesity-related claims. In a perfect world, legislation of this type would not be necessary, as individuals make their own decisions about what and where to eat. Unfortunately, this has not stopped unscrupulous attorneys and individuals from filing claims. Very few restaurant owners can afford the costs of defending themselves against these frivolous suits. For small, independent operators, the cost of defending themselves against just one such lawsuit could be enough to put them out of business for good, even if the case is ultimately thrown out of court. In response to growing consumer demand for healthy menu choices, the restaurant industry offers options to satisfy a wide variety of dietary needs. However, healthier menu options provide only part of the solution for combating obesity. We firmly believe that balanced nutrition, moderation in consumption and physical activity are the most important elements of a healthy lifestyle. According to the National Restaurant Association, 76% of all meals are eaten at home. Combating obesity and related illnesses must begin with education, and personal responsibility, not with senseless lawsuits that burden a legal system already rife with abuse.

TRANS FAT BAN

The recent decision to ban trans fat oils by the New York City Board of Health has raised serious concerns about a municipal health agency banning a product or ingredient that the Food and Drug Administration has already approved for consumption. During the 1980’s and 1990’s, in response to scientific findings that suggested saturated fats were harmful, restaurants successfully incorporated trans fats into their cooking procedures. Now, with most experts advising people to eliminate trans fats from their diets, restaurateurs are making the switch away from trans fats. The DRA agrees that it is a good decision for restaurants to move away from trans fat in cooking oils and products it serves. Many restaurants are already eliminating or preparing to eliminate trans fats from their cooking oils and their products voluntarily. The restaurant industry is responsible and listens to science as it evolves. However, the challenges and unintended consequences of a municipal ban on trans fat in a specific time-frame is unworkable. As a farm-to-table issue, it takes time to develop, plant, grow, harvest and process new alternative crops and to test new oils. Because of this supply problem, many restaurants would have to switch to oils high in unhealthful saturated fats, a move opposed by health advocacy groups.