Top 10 Workplace Law Issues Breweries and Brewpubs Face

The craft beer industry has experienced significant growth in recent years, with thousands of breweries and brewpubs operating across the United States. While this booming sector offers a vibrant and exciting work environment, it also presents unique challenges when it comes to workplace law. From employee safety to wage regulations, breweries and brewpubs must navigate a complex legal landscape to ensure compliance with federal, state, and local laws. Failing to adhere to these regulations can result in costly lawsuits, fines, and damage to the business’s reputation. Here, we explore the top 10 workplace law issues that breweries and brewpubs face.

1. Wage and Hour Compliance

One of the most common legal issues breweries and brewpubs face relates to wage and hour compliance. The Fair Labor Standards Act (FLSA) governs minimum wage, overtime pay, and record-keeping requirements for employers. With many breweries employing hourly workers, it’s crucial to ensure employees are paid in accordance with both federal and state wage laws.

Brewpubs often have tipped employees, such as servers and bartenders, whose wages can fluctuate based on gratuities. Employers must carefully comply with tip credit laws and make sure tipped workers are paid at least the minimum wage when tips are included. Additionally, breweries must track overtime hours and ensure that non-exempt employees are properly compensated for any time worked over 40 hours a week.

2. Health and Safety Regulations

Breweries, by their very nature, involve physical labor and the use of heavy equipment. As such, they are subject to Occupational Safety and Health Administration (OSHA) regulations, which require employers to maintain a safe working environment. Breweries must ensure employees are properly trained to operate machinery, handle hazardous materials like cleaning chemicals, and work in confined spaces like fermentation tanks.

Injury prevention is key, and breweries must have safety protocols in place to reduce the risk of workplace accidents, such as slips and falls, burns, and exposure to harmful substances. Additionally, having a robust injury reporting system and complying with OSHA’s record-keeping requirements is crucial to avoiding fines and litigation.

3. Workers’ Compensation

Workplace injuries are a significant concern in breweries due to the physically demanding nature of the job. Workers’ compensation laws require employers to provide benefits to employees who are injured on the job. These benefits typically cover medical expenses, lost wages, and rehabilitation costs.

Brewpubs and breweries must ensure they have adequate workers’ compensation insurance coverage in place and that employees are aware of how to report injuries. Employers should also implement programs to reduce workplace injuries and promote a safe work environment, which can help lower insurance premiums and mitigate legal risks.

4. Discrimination and Harassment

Discrimination and harassment are critical legal issues for any business, including breweries and brewpubs. Federal laws like Title VII of the Civil Rights Act of 1964, the Americans with Disabilities Act (ADA), and the Age Discrimination in Employment Act (ADEA) prohibit discrimination based on race, gender, age, disability, and other protected characteristics.

Breweries and brewpubs must establish clear anti-discrimination and anti-harassment policies, provide training to employees, and ensure that any complaints are addressed promptly and fairly. Failing to do so can lead to lawsuits, financial penalties, and reputational damage. Creating an inclusive, respectful workplace culture is not only a legal obligation but also essential for employee morale and retention.

5. Alcohol-Related Liability

As alcohol is central to the operations of breweries and brewpubs, they must be particularly mindful of laws related to alcohol service. Serving alcohol comes with specific legal responsibilities, such as ensuring that employees are trained to recognize intoxicated customers and prevent over-serving. Brewpubs may be liable under dram shop laws, which hold businesses responsible for injuries caused by intoxicated patrons.

Additionally, brewery employees who are involved in tastings or handling alcohol must be aware of their legal obligations and avoid consuming alcohol during working hours, as this can raise safety concerns and increase liability risks.

6. Employee Classification

The proper classification of employees is a major issue for breweries and brewpubs. Many businesses in the craft beer industry rely on both full-time employees and independent contractors, such as seasonal workers, delivery drivers, or consultants. Misclassifying workers as independent contractors when they should be classified as employees can lead to violations of labor laws, including unpaid overtime and benefits.

To avoid legal issues, breweries should ensure that workers are correctly classified based on the IRS guidelines and applicable state laws. Misclassification can result in significant financial penalties, including back wages and taxes owed.

7. Immigration Compliance

With many breweries and brewpubs hiring workers from diverse backgrounds, it’s essential to ensure compliance with immigration laws. Employers must verify the work eligibility of their employees by properly completing and maintaining Form I-9 for all hires. Additionally, employers must refrain from discriminating against employees based on their citizenship status or national origin, as doing so can lead to legal action under the Immigration Reform and Control Act (IRCA).

Breweries that employ non-U.S. workers must also ensure they are following visa requirements and maintaining proper documentation. Violations of immigration laws can result in hefty fines and potential criminal charges.

8. Employee Benefits and Paid Leave

Providing employee benefits, such as health insurance and paid leave, is a legal requirement in many jurisdictions. The Affordable Care Act (ACA) mandates that employers with 50 or more full-time employees provide health insurance or face penalties. Additionally, state and local laws may require breweries and brewpubs to offer paid sick leave, family leave, or maternity leave.

Employers must keep up to date with the specific requirements in their state, as non-compliance can result in legal disputes and financial liabilities. Offering competitive benefits can also help attract and retain talented employees in an industry known for its high turnover rates.

9. Unionization and Collective Bargaining

The craft beer industry has seen an increase in unionization efforts in recent years, as employees in breweries and brewpubs seek better working conditions, wages, and benefits. Under the National Labor Relations Act (NLRA), employees have the right to organize and engage in collective bargaining.

Breweries must be mindful of employees’ rights to form unions and avoid retaliatory actions against workers who advocate for better conditions. Employers should also be prepared to engage in good-faith negotiations with unions, should their workforce choose to unionize. Failure to comply with labor laws surrounding unionization can lead to legal challenges and reputational harm.

10. Privacy and Data Protection

With more businesses relying on digital platforms for HR, payroll, and scheduling, data privacy is an emerging legal concern for breweries and brewpubs. Employers must ensure they comply with data protection laws such as the California Consumer Privacy Act (CCPA), which sets strict guidelines for how businesses collect, store, and manage employee data.

Additionally, employers must be cautious when conducting background checks or monitoring employees, as there are legal limitations on how personal information can be used. Breweries should implement data protection policies to safeguard employee information and ensure compliance with federal and state privacy laws.

Breweries and brewpubs operate in a complex legal environment, where compliance with workplace laws is essential to running a successful business. From wage and hour laws to safety regulations and anti-discrimination policies, employers in the craft beer industry must remain vigilant and proactive in addressing legal challenges. By understanding and addressing these top 10 workplace law issues, breweries and brewpubs can protect their business, maintain a positive work environment, and ensure they remain in good standing with federal and state regulations.