CRM CRM Legal Compliance & Risk Management 1 — Questions and Answers
Question 1: Under the Americans with Disabilities Act (ADA), a restaurant is required to:
- Provide accessible entrances, restrooms, and seating areas for guests with disabilities (Correct answer)
- Offer a separate menu for guests with disabilities
- Hire a minimum percentage of employees with disabilities
- Provide complimentary meals to guests with disabilities
Correct answer: Provide accessible entrances, restrooms, and seating areas for guests with disabilities
The ADA mandates that places of public accommodation, including restaurants, remove physical barriers to access for people with disabilities.
Question 2: A restaurant manager discovers that a server has been working off the clock to complete side-work. Under the Fair Labor Standards Act (FLSA), this is:
- A violation—all hours worked must be recorded and compensated at the applicable wage (Correct answer)
- Acceptable if the employee volunteers to do so
- Legal as long as the employee earns above minimum wage on average
- Permitted if the side-work takes less than 30 minutes
Correct answer: A violation—all hours worked must be recorded and compensated at the applicable wage
The FLSA requires employers to pay employees for all hours worked; permitting off-the-clock work—even voluntarily—violates federal wage law.
Question 3: Dram shop laws in the United States hold restaurants liable for:
- Injuries or damages caused by a visibly intoxicated guest who was served alcohol on the premises (Correct answer)
- Serving alcohol without a food order
- Running a happy hour promotion
- Allowing guests to bring their own wine
Correct answer: Injuries or damages caused by a visibly intoxicated guest who was served alcohol on the premises
Dram shop statutes create third-party liability for establishments that continue to serve alcohol to visibly intoxicated individuals who later cause harm.
Question 4: Which federal law requires restaurants to post specific notices about employee rights in the workplace?
- The National Labor Relations Act (NLRA) and Department of Labor posting requirements (Correct answer)
- The Food Safety Modernization Act (FSMA)
- The Sherman Antitrust Act
- The Truth in Menu Act
Correct answer: The National Labor Relations Act (NLRA) and Department of Labor posting requirements
Federal law mandates that employers display official DOL posters covering minimum wage, OSHA rights, FMLA, and EEOC protections where employees can see them.
Question 5: A restaurant employee reports sexual harassment by a co-worker. Under Title VII of the Civil Rights Act, the manager must:
- Take the complaint seriously, investigate promptly, and take corrective action if harassment occurred (Correct answer)
- Dismiss the complaint if it is the employee's first report
- Transfer the complaining employee to a different shift immediately
- Wait for HR to initiate an investigation before taking any action
Correct answer: Take the complaint seriously, investigate promptly, and take corrective action if harassment occurred
Title VII requires employers to address harassment complaints promptly and thoroughly to prevent a hostile work environment and limit legal liability.
Question 6: Tip pooling among front-of-house and back-of-house employees is governed primarily by:
- The Fair Labor Standards Act (FLSA) and any applicable state tip-pooling laws (Correct answer)
- The ADA
- The Health Insurance Portability and Accountability Act (HIPAA)
- IRS Form W-2 reporting rules only
Correct answer: The Fair Labor Standards Act (FLSA) and any applicable state tip-pooling laws
The 2018 FLSA amendments allow tip pooling with kitchen staff when the employer does not take a tip credit, subject to state law variations.
CRM CRM Legal Compliance & Risk Management 1
Under the Americans with Disabilities Act (ADA), a restaurant is required to: