Category Archives Issue 510

A putative class of workers employed by Benihana Inc. in its New York City-based Haru Restaurants has filed an unopposed motion for preliminary approval of an agreement that would resolve claims that the company did not pay employees all the pay to which they were entitled and did not provide certain employees with valid tip credits. Lin v. Benihana Nat’l Corp., No. 10-1335 (S.D.N.Y., motion filed January 14, 2014). Under the agreement, the company would create a $600,000 settlement fund that would reimburse certain class members the full amount of their spread-of-hours premium and other members 80 percent of purported back pay due to an invalid tip credit. Under New York law, employees who work more than 10 hours during a work day are entitled to an extra hour of pay, referred to as spread-of-hours wages. Attorney’s fees and expenses would also be paid from the fund.   Issue 510

According to news sources, San Francisco City Attorney Dennis Herrera and New York Attorney General Eric Schneiderman have entered an agreement to share documents and otherwise coordinate efforts in their ongoing investigations of Monster Beverage Corp., which, they allege, illegally markets highly caffeinated beverages to children. Herrera reportedly said, “Up until now, we have been working in parallel fashion, but now you will see greater cooperation. I have enormous respect for Attorney General Schneiderman and am glad to be working with his office in this major consumer protection issue.” Herrera further claimed that the company continues “to market its potentially dangerous products to children, despite the known risks it poses to young people. Hopefully, our efforts can lead to a reform of those practices.” The agreement was apparently struck about the same time that a court dismissed Monster Beverage’s attempt to stop Herrera’s investigation. Details about the ruling appear in…

The Sixth Circuit Court of Appeals has determined that Kentucky has a rational basis for restricting the types of retailers that may be issued licenses to sell liquor and wine, thus ruling that the law does not violate grocers’ equal protection rights. Maxwell’s Pic-Pac, Inc. v. Dehner, Nos. 12-6056, -6057, -6182 (6th Cir., decided January 15, 2014). A state law adopted in 1939 that today prohibits the issuance of a retail drink license to “any business in which a substantial part of the commercial transaction consists of selling at retail staple groceries or gasoline and lubricating oil,” was interpreted in 1982 by the Alcohol Beverage Control Board in a regulation that defines “substantial part” (10% or greater of the monthly gross sales) and “staple groceries” (foods intended for human consumption other than soft drinks, candy, hot foods, and foods prepared for immediate consumption). Grocers challenged the restrictions on equal-protection, separation-of-powers…

California EPA’s Office of Environmental Health Hazard Assessment (OEHHA) has issued a hazard identification document for six chemicals that will be reconsidered for listing as reproductive toxicants under Proposition 65. Used in epoxy resins or as plasticizers, the chemicals—n-butyl glycidyl ether, diglycidyl ether, phenyl glycidyl ether, methyl n-butyl ketone, methyl isopropyl ketone, and α-methyl styrene—were added to the list via the Labor Code mechanism. Changes to federal regulations affecting this listing mechanism have required that the chemicals be reconsidered. Public comments are requested by February 25, 2014, and the Developmental and Reproductive Toxicant Identification Committee will discuss them during its March 19 meeting. Manufacturers of products containing chemicals determined to be known to the state to cause cancer or reproductive toxicity are required to provide warnings to consumers under the Safe Drinking Water and Toxic Enforcement Act of 1986 (Proposition 65). See OEHHA News Release, January 10, 2014.   Issue…

The European Food Safety Authority’s (EFSA’s) Panel on Dietetic Products, Nutrition and Allergies (NDA) has launched a public consultation for its draft scientific opinion on dietary reference values for iodine. Using data from “a large epidemiological study in European school-aged children showing that goiter prevalence is lowest for a urinary iodine concentration ≥ 100 μg/L,” NDA has proposed setting adequate intake (AI) levels for iodine at 150 μg/day for adults and between 70 μg/day and 130 μg/day for infants aged 7-11 months and all children. The panel has also recommended an AI of 200 μg/day for pregnant and lactating women, which takes into account “the additional needs due to increased maternal thyroid hormone production and the iodine uptake by the fetus, placenta and amniotic fluid” as well as “the existence of large iodine stores in conditions of adequate iodine status before pregnancy.” EFSA will accept comments on the draft scientific…

The U.S. Food and Drug Administration (FDA) has issued two final guidance documents for industry on distinguishing liquid dietary supplements from beverages. Titled “Distinguishing Liquid Dietary Supplements From Beverages” and “Considerations Regarding Substances Added to Foods, Including Beverages and Dietary Supplements,” the documents update 2009 draft guidance intended “to help dietary supplement and beverage manufacturers determine whether a liquid food product is properly classified as a dietary supplement or as a beverage, and to remind the industry of legal requirements regarding the substances that may be added to either type of product.” In “Distinguishing Liquid Dietary Supplements from Beverages,” FDA describes the factors characterizing liquid products deemed dietary supplements and those characterizing beverages deemed conventional foods. These include product claims, names, packaging, serving size, recommended daily intake, conditions of use, and product composition, as well as statements or graphic representations in labeling, advertising and other marketing practices, including promotional websites,…

More than 200 organizations, farms, grocers, individuals, and consumer and environmental rights organizations have submitted a letter to President Barack Obama (D) reminding him of his 2007 pledge “to give consumers the right to know if their food is genetically engineered (GE).” Claiming that 93 percent of Americans share his view, they call on the president to fulfill his commitment and establish a mandatory national labeling system. Among those signing the letter are the Center for Food Safety, As You Sow, Consumers Union, Greenpeace, the Sierra Club, and food companies including Eden Foods, Rudi’s, Amy’s Kitchen, Ben & Jerry’s, and Stonyfield Farm. See Center for Food Safety Press Release, January 16, 2014.  

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