Legal Eats

Legal Resources for Food Justice Enterprises Presented by:

What is FOOD JUSTICE?

So, where do we go from here?

Legal Presentations Snack Break More Legal Presentations! Resource Fair
Introduction of our Experts Breakout Sessions to Learn More

Questions to Ask
Who will own the business? How will the business be managed? Should the business pay taxes separately from you? Do you want to be protected from liability?

Business Entity Choices

Sole Proprietorship & Partnerships

One owner: Sole Proprietorship Two or more owners: Partnership

Pros: easy to set up; no additional fees; organizational freedom Cons: very risky; personal assets (home, savings, etc) at stake; responsible for partners mistakes Insurance

Profits

Business

Taxes Liability/Risk

Owner
Pg. 2 and 3 in Handbook

Limited Liability Company (LLC)

Not as risky as a Partnership/Sole Proprietorship and not as complicated as a Corporation Must file with the state; $800 annual fee Popular for small businesses Liability/Risk Protection

Business
Prots Taxes

Owner
Pg. 3 in Handbook

Corporations
For-Profit

Nonprofit
Separate Tax Payer Owned by Shareholders Requires a Board of Directors Must file with State

Cooperative

Business

Liability

Taxe s

Profits

Shareholders

For-Profit Corporations
Owners=shareholders Profits and Control determined by amount of shares
If you own 25% of the shares of the company, you can receive 25% of the profits and your vote counts for 25%

Pros: Liability protection; easier to get loans/raise investment money Cons: complicated; can be double taxed if profits are distributed to shareholders; $800 annual fee

Pg. 3 in Handbook

Nonprofit/Cooperative Differences

Ownership Taxes

No Owners Can apply for tax exemption/Can receive taxdeductible donations

1 Vote/Member Pass through to members (like an LLC

Moving Forward
Free Resources (Pg. 4 in Hand Book)
Business Counselors Books Legal Services

Talk to a Lawyer, Attend a Legal Caf!

COOPERATIVES + Food!
Where would you rather get your food?

or

A 99 cent store?

A coopera>vely-owned grocery store?

In a Traditional Corporation:

See page 6 in your manual.

But in a Cooperative

Control is based on membership, not share ownership

Cooperatives share control, profits, and ownership

Cleveland, Ohio?

A WORKER Cooperative

Patronage determined by # of hours worked or wages earned by the member for the coopera5ve.

A CONSUMER Cooperative

A PRODUCER Cooperative

Now lets play What kind of co-op is it? BREAD COOPERATIVE

WORKER coop: Members are workerowners of the bakery. PRODUCER coop: Each member has an independent bread baking business and the co-op markets or sells their product. CONSUMER coop: Members are the people who buy the bread.

Cooperatives have some tax benefits!

See page 7 in your manual.

Cooperatives are present as: Legal Entity Legal Structure Principles

Open, voluntary membership Democratic governance Limited return onequity Surplus belongs to members Cooperation between cooperatives Concern for community LLC or corporation set up like a cooperative Nonprofit Mutual Benefit Corporation Nonprofit Public Benefit Corporation Cooperative Corporation The only entity that can legally use the word cooperative in its name.

NONPROFIT + THE FOOD SYSTEM

See page 10 of the manual.

See page 10

See page 10

nd o a d i ze n a g Or

ly fo e v i clus x e ted a r e p

r...

CHARITABLE/ EDUCATIONAL Purposes

501(c)(3) Tax-Exempt Nonprofit Corporation

PERSONAL/ COMMERCIAL Purposes

CITY SLICKERS FARMS, West Oakland

Lunch:
Teach school children and community members about nutrition and cooking, then provide lunch for $3 per student.

nd a d e z ni Orga

for y l e lusiv c x e ted opera

Charitable/ Educational Purposes

Tax-Exempt Nonprofit Corporation LUNCH: Business A Related

See page 11 in your manual.

Dinner:
Have fabulous expensive dinners; provide vocational training to recently released prisoners.

nd a d e z ni Orga

for y l e lusiv c x e ted opera

Charitable/ Educational Purposes

Tax-Exempt Nonprofit Corporation DINNER: Related Business? Maybe not.

nd a d e z ni Orga

for y l e lusiv c x e ted opera

Charitable/ Educational Purposes

Tax-Exempt Nonprofit Corporation Related Business

Unrelated Business
See page 11 in your manual.

Earning money

Charitable/ Educational Purposes

Tax-Exempt Nonprofit Corporation Related Business
Unrelated Business

Pay taxes on this money

Tax-Exempt Nonprofit Corporation Related Business

Charitable/ Educational Purposes

UNRELATED BUSINESS

If unrelated business becomes substantial, it may jeopardize organizations tax exempt status.

$$

 Tax-Exempt Nonprofit Corporation Related Business

Owns/controls

Charitable/ Educational Purposes

Dividends

For-Profit Subsidiary Corporation (or LLC)

$$$

Permit it, Name it, and License it!

Get a Permit!
A Sellers Permit is issued by the California Board of Equalization (CBOE): If you are engaged in business in California or make sales for a temporary period (less than 90 days)

http://www.boe.ca.gov/pdf/pub73.pdf Pg. 3-4 in Handbook

How about in-person?

Board of Equalization (Oakland) 1515 Clay St, Suite 303 510-622-4100 (Oakland) 800-400-7115

openstreetmap.org; Crea>ve Commons License CC BY-SA

Taxable?

See CBOE Publication 61: http://www.boe.ca.gov/pdf/pub61.pdf

Lets Give it a Name!

Step 1: Pick a DBA name (DBA: Doing Business As) Step 2: Register the name with the County Step 3: Notice in the newspaper Step 1: Legal Name
Josh Furman Furman Brothers, LLC DBA Name Joshs Doughnuts Furman Cafe

Step 2: Fill out the form with the county

(http://www.co.alameda.ca.us/auditor/clerk/fbnforms.htm)

Step 3: Publish notice in a local newspaper

(legalads@bayareanewsgroup.com)
Pg. 4 in Handbook

Get it Licensed!
City business license for every place of business Issued by Oakland, Berkeley, San Francisco, Etc.

Pg. 5 in Handbook

State Sellers Permit

County DBA Registration

City Business License

A Very Brief Guide to Liability, Insurance, and Risk-Management for Food Enterprises

What Well Cover

How to Manage Risk Types of Insurance How To Save Money

Why Worry?

What Kind of Insurance Do I Need?

Will you rent or own a building?
Property Insurance

Will you interact with the public?

Commercial General Liability Insurance

What kind of food will you sell?

Product Liability Insurance

Will you use vehicles?

Vehicle Insurance

Will you have employees?

Workers Compensation Insurance

Property Insurance
If you own a building, property insurance will cover you in the event of fire and water damage, along with vandalism, and other disastrous events. You can purchase additional insurance to cover theft and earthquake. If you rent, it will cover any improvements you made, as well as any equipment that you own.

Commercial General Liability Insurance

Covers accidental injuries, food poisoning, and damage to the property of others. Especially important if the public will be personally visiting your business (for instance, if you have a store, restaurant, market stall, or food truck).

Happens

Product Liability Insurance

If you are not interacting with the public, you probably do not need general liability insurance You will need product liability insurance to protect against food poisoning.

Vehicle Insurance
Protection from losses incurred while employees and volunteers use your vehicles for business purposes, and for any damage done to the vehicles. Not necessary if your drivers are independent contractors who have their own insurance and drive their own vehicles.

Workers Compensation Insurance

If you have employees, you are legally required to have workers compensation insurance for them (and you cant make them pay for it). Not necessary for volunteers (but you can include them in your policy if you want to).

What Kind of Insurance Do I Need?

Will you rent or own a building?
Property Insurance

Will you interact with the public?

Commercial General Liability Insurance

What kind of food will you sell?

Product Liability Insurance

Will you use vehicles?

Vehicle Insurance

Will you have employees?

Workers Compensation Insurance

Overview

Pg. 13-19 in Handbook

Employee?
Employee
Responsible to Person Responsible to Government

Not Employee
Independent Contractor Business Partner Intern Volunteer

Independent Contractor
Contracts with your business Specific work Limited time Self-supervised

Intern

Volunteers
Unpaid work for charity, education, humanity Not allowed in for-profits Limits in non-profits

Employee

Volunteer

Minimum Wage

CA: $8.00 Per Hour

Sun

Mon

Tue

Wed

Thr

Fri

Sat

Work

Work

Work

Work

Work

Work

BREAKS

Workers Compensation

Responsibilities to Government
Department of Fair Employment and Housing

Discrimination and Harassment in Employment are Prohibited by Law

Laws enforced by the Department of Fair Employment and Housing (DFEH) protect you from illegal discrimination and harassment in employment based on Race Color Religion Sex (pregnancy or gender) Sexual orientation Marital status National origin (including language use restrictions) Ancestry Disability (mental and physical, including HIV and AIDS) Medical condition (cancer/genetic characteristics) Age (40 and above) Denial of family and medical care leave Denial of pregnancy disability leave or reasonable accommodation The California Fair Employment and Housing Act (Part 2.8 commencing with Section 12900 of Division 3 of Title 2 of the Government Code) and the Regulations of the Fair Employment and Housing Commission (California Code of Regulations, Title 2, Division 4, Sections 7285.0 through 8504): Prohibit harassment of employees, applicants, and independent contractors by any persons and require employers to take all reasonable steps to prevent harassment. This includes a prohibition against sexual harassment, gender harassment, and harassment based on pregnancy, childbirth, or related medical conditions. Prohibit employers from limiting or prohibiting the use of any language in any workplace unless justified by business necessity. The employer must notify employees of the language restriction and consequences for violation. Require that all employers provide information to each of their employees on the nature, illegality, and legal remedies that apply to sexual harassment. Employers may either develop their own publications, which must meet standards as set forth in California Government Code Section 12950, or use a brochure from the DFEH. Require employers with 50 or more employees and all public entities to provide sexual harassment prevention training for all supervisors. Require employers to reasonably accommodate an employee or job applicants religious beliefs and practices. Require employers to reasonably accommodate employees or job applicants with a disability in order to enable them to perform the essential functions of a job. Permit job applicants and employees to file complaints with the DFEH against an employer, employment agency, or labor union that fails to grant equal employment as required by law. Prohibit discrimination against any job applicant or employee in hiring, promotions, assignments, termination, or any term, condition, or privilege of employment. Require employers, employment agencies, and unions to preserve applications, personnel records, and employment referral records for a minimum of two years. Require employers to provide leaves of up to four months to employees disabled because of pregnancy, childbirth, or a related medical condition. Require an employer to provide reasonable accommodations requested by an employee, on the advice of her health care provider, related to her pregnancy, childbirth, or related medical conditions. Require employers of 50 or more persons to allow eligible employees to take up to 12 weeks leave in a 12-month period for the birth of a child; the placement of a child for adoption or foster care; for an employees own serious health condition; or to care for a parent, spouse, or child with a serious health condition. (Employers are required to post a notice informing employees of their family and medical leave rights.) Require employment agencies to serve all applicants equally, refuse discriminatory job orders, and prohibit employers and employment agencies from making discriminatory pre-hiring inquiries or publishing help-wanted advertising that expresses a discriminatory hiring preference. Require unions not to discriminate in member admissions or dispatching to jobs. Prohibit retaliation against a person who opposes, reports, or assists another person in opposing unlawful discrimination. The law provides for administrative fines and remedies for individuals, including the following: hiring, front pay, back pay, promotion, reinstatement, cease-and-desist order, expert witness fees, reasonable attorneys fees and costs, punitive damages, and damages for emotional distress.

Equal Employment Opportunity is

Private Employers, State and Local Governments, Educational Institutions, Employment Agencies and Labor Organizations
Applicants to and employees of most private employers, state and local governments, educational institutions, employment agencies and labor organizations are protected under Federal law from discrimination on the following bases: RACE, COLOR, RELIGION, SEX, NATIONAL ORIGIN Title VII of the Civil Rights Act of 1964, as amended, protects applicants and employees from discrimination in hiring, promotion, discharge, pay, fringe benets, job training, classication, referral, and other aspects of employment, on the basis of race, color, religion, sex (including pregnancy), or national origin. Religious discrimination includes failing to reasonably accommodate an employees religious practices where the accommodation does not impose undue hardship. DISABILITY Title I and Title V of the Americans with Disabilities Act of 1990, as amended, protect qualied individuals from discrimination on the basis of disability in hiring, promotion, discharge, pay, fringe benets, job training, classication, referral, and other aspects of employment. Disability discrimination includes not making reasonable accommodation to the known physical or mental limitations of an otherwise qualied individual with a disability who is an applicant or employee, barring undue hardship. AGE The Age Discrimination in Employment Act of 1967, as amended, protects applicants and employees 40 years of age or older from discrimination based on age in hiring, promotion, discharge, pay, fringe benets, job training, classication, referral, and other aspects of employment. SEX (WAGES) In addition to sex discrimination prohibited by Title VII of the Civil Rights Act, as amended, the Equal Pay Act of 1963, as amended, prohibits sex discrimination in the payment of wages to women and men performing substantially equal work, in jobs that require equal skill, effort, and responsibility, under similar working conditions, in the same establishment. GENETICS Title II of the Genetic Information Nondiscrimination Act of 2008 protects applicants and employees from discrimination based on genetic information in hiring, promotion, discharge, pay, fringe benets, job training, classication, referral, and other aspects of employment. GINA also restricts employers acquisition of genetic information and strictly limits disclosure of genetic information. Genetic information includes information about genetic tests of applicants, employees, or their family members; the manifestation of diseases or disorders in family members (family medical history); and requests for or receipt of genetic services by applicants, employees, or their family members. RETALIATION All of these Federal laws prohibit covered entities from retaliating against a person who les a charge of discrimination, participates in a discrimination proceeding, or other wise opposes an unlawful employment practice. WHAT TO DO IF YOU BELIEVE DISCRIMINATION HAS OCCURRED There are strict time limits for ling charges of employment discrimination. To preserve the ability of EEOC to act on your behalf and to protect your right to le a private lawsuit, should you ultimately need to, you should contact EEOC promptly when discrimination is suspected: The U.S. Equal Employment Opportunity Commission (EEOC), 1-800-669-4000 (toll-free) or 1-800-669-6820 (toll-free TTY number for individuals with hearing impairments). EEOC eld ofce information is available at www.eeoc.gov or in most telephone directories in the U.S. Government or Federal Government section. Additional information about EEOC, including information about charge ling, is available at www.eeoc.gov.

Job applicants and employees: If you believe you have experienced discrimination, you may file a complaint with DFEH. Independent contractors: If you believe you have been harassed, you may file a complaint with DFEH. Complaints must be filed within one year of the last act of discrimination/harassment, or, for victims who are under the age of 18, not later than one year of that persons eighteenth birthday.
For more information, contact DFEH toll free at (800) 884-1684, Sacramento area & out-of-state at (916) 478-7251, TTY number at (800) 700-2320, or visit our web site at www.dfeh.ca.gov Government Code Section 12940 and Title 2 California Code of Regulations Section 7287 require all employers to post this document. It must be conspicuously posted in hiring offices, on employee bulletin boards, in employment agency waiting rooms, union halls, and other places employees gather. In accordance with the California Government Code and ADA requirements, this publication can be made available in Braille, large print, computer disk, or tape cassette as a disability-related reasonable accommodation for an individual with a disability. To discuss how to receive a copy of this publication in an alternative format, please contact the DFEH at the numbers above. State of California Department of Fair Employment & Housing
DFEH-162 (05/06)

hPp://www.eeoc.gov/employers/upload/eeoc_self_print_poster.pdf

hPp://www.dfeh.ca.gov/res/docs/Publica>ons/DFEH-162.pdf

Take Aways

Legal Eats Hut

ZONING

Facilities

 Zoning Map

hPp://www2.oaklandnet.com/oakca1/groups/ceda/documents/report/oak028431.pdf

RM-2

Zoning Map
RU-4
83RD AV

RM-4
SE N E C A S T

LAS

A AS G VE

ID

CN-4

RD-1 RU-5

MAC ART H UR
RM-3

T BURR S

LAW LOR

ST
ST

RN EA

S A V

S ST

BLV D CN-3
HILRM-2 LSI DE ST

BURR S

81ST AV

DOWLING S T
87TH AV

RM-2

RM-3 RM-2

RU-4

THERM AL S

CN-3

RD-1 RM-3 RM-4/C

82ND AV

RU-4
89TH AV

ELMAR AV TOLER AV

RD-2 RM-3/C
OLIVE ST
84TH AV 85TH AV

PEACH ST

RD-2 RU-1 OS (NP)

ST

CN-4

BANCROFT AV
SUNNYSID E
OLIVE ST

92ND AV

TH AV

Macarthur Blvd & 90th Ave.

AV

BIRCH ST

TH ST

RM-1

CHERRY ST

WARNER A V

86TH AV

RM-1

designates activities that are prohibited except as accessory activities according to the regulations contained in Section Oakland Planning Code Administrative P(L2)17.010.040. P(L2) P(L5) P(L5) Table 17.33.01: Permitted and Conditionally Permitted Activities
Special Health Care C(L4) C(L4)
Activities Utility 17.33.01: and Vehicular Table Permitted

Nonassembly Cultural

--

P(L5)

P(L5)

P(L5)

P(L5)

Health Care

C(L4)

C(L4)

C(L4) C(L4)

C Effective Effective May May 30, 30, 2012 2012 C C C CN-4 17.102.410 Additional
Regulations
Additional Additional Regulations Regulations

Extensive Impact Activities Activities Commercial Activities Residential Activities General Food Sales Permanent

Zones C(L4) C(L4) C(L4) and Conditionally Table 17.33.01: Permitted and Conditionally Permitted Permitted Activities Activities

C(L4) CN-1 Zones Zones

C(L4) CN-2

C(L4) CN-3

CN-1 P(L5) P(L1)(L2)(L3) CN-1 C(L4) P(L1)(L2)(L3) C(L4) C(L4) C(L1)(L3)(L4) C(L4)

CN-2 P(L5) P(L1)(L2)(L3) CN-2 P(L5) P(L1)(L2)(L3) P(L5) P(L5) C(L1)(L3)(L4) P(L5)

CN-3 P(L7) P(L1)(L3) CN-3 P(L5) P(L1)(L3) P(L5) P(L5) C(L1)(L3)(L4) P(L5)

CN-4 P(L7) P(L1)(L3) CN-4 P(L5) P(L1)(L3) P(L5) P(L5) C(L1)(L3) P(L5)

Full Service Service Restaurants Residential Care Full Restaurants Limited Service Service Restaurant Restaurant Caf Service-Enriched Permanentand Housing Limited and Caf

17.102.212 17.102.212

Transitional Housing Fast-Food Restaurant Restaurant Fast-Food Emergency Shelter Convenience Market Convenience Market Semi-Transient Bed and Breakfast Alcoholic Beverage Sales Alcoholic Beverage Sales Civic Activities

C(L1)(L3)(L4) C(L4) C(L4) C(L1)(L3)(L4) C(L4) C(L4) -C(L3)(L4) C(L4) C(L4)

C(L1)(L3)(L4) C(L4) C(L4) C(L1)(L3)(L4) C(L4) C(L4) -C(L3)(L4) C(L4) C(L4)

C(L1)(L3)(L4) C(L4) C(L4) C(L1)(L3)(L4) C(L4) C(L4) -C(L3)(L4) C(L4) C(L4)

C(L1)(L3) C C C(L1)(L3) C C -C(L3) C C

139 17.102.210 17.102.212 17.102.210 and 8.09 and 8.09 17.102.212 17.102.210 17.102.210
17.102.210 17.102.210 17.10.125 and and 17.102.040 17.102.040 17.102.210 17.102.210

Essential Service P P P designates permitted activities in the corresponding zone. C(L4) C(L4) Mechanical or Electronic Games C(L4) C(L4) Mechanical or Electronic Games

P P C(L4) C C(L4) C Limited Activities P(L2) P(L2) P(L5) Medical Child-Care Service P(L6) P(L6) P(L5) Medical Service activities that are permitted P(L2) P(L6) of a Conditional P(L6) Use P(L5) C designates only upon the granting Permit (CUP) in the corresponding zone (see Chapter the CUP procedure). Community Assembly C(L4) C(L4) C(L4) C P(L5) 17.134 for P(L5) P(L5) P(L5) General Retail Sales P(L5) P(L5) P(L5) P(L5) General Retail Sales Recreational Assembly Retail and P(L2) P(L2) P(L5) P(L5) Large-Scale Combined Large-Scale Combined Retail and to certain limitations L designates activities subject or notes listed at the bottom ---- of the table. -----Grocery Sales Community Education C(L4) C(L4) C(L4) C Grocery Sales

-- designates activities that are prohibitedP(L5) except as accessory to the regulations contained in P(L5)activities according P(L5) P(L5) Consumer Service Nonassembly Cultural P(L5) P(L5) P(L5) P(L5) Consumer Service Section 17.010.040.

 Oakland Planning Code

Table 17.33.02: Permitted and Conditionally Permitted Facilities Table 17.33.02: Permitted and Conditionally Permitted Facilities
Facilities Zones

Effective May 30, 2012 Effective May 30, 2012

Additional Regulations Additional

Facilities
Mobile Home

Zones CN-1 CN-1 --P

CN-2

CN-3

CN-4

Regulations

CN-2 --P

CN-3 --P

CN-4 --P

Mobile Home Facilities Nonresidential Nonresidential Facilities Enclosed Nonresidential Enclosed Nonresidential Open Nonresidential Open Nonresidential Sidewalk Caf Sidewalk Drive-In Caf Drive-In Drive-Through Drive-Through Telecommunications Facilities Telecommunications Facilities Micro Telecommunications Micro Telecommunications Mini Telecommunications Mini Telecommunications Macro Telecommunications Macro Telecommunications Monopole Telecommunications Monopole Telecommunications Tower Telecommunications Tower Telecommunications

P C(L4) C(L4) P P ----P(L5)

P C(L4) C(L4) P P ----P(L5)

P C(L4) C(L4) P P ----P(L5)

P C(L4) C(L4) P P C C C C
P(L5) 17.128 17.102.335

17.102.335

P(L5) P(L5) P(L5) C C C C ---

P(L5) P(L5) P(L5) C C C C ---

P(L5) P(L5) P(L5) C C C C ---

P(L5) P(L5) P(L5) C C C C ---

17.128 17.128 17.128 17.128 17.128 17.128 17.128 17.128 17.128

1)Location 2)Map 3)Tables 4)If lost, get help

What Youll Need to Do

1. GET CERTIFIED! 2. GET A PERMIT!

Pg. 29-32 in Handbook

Get Certified

For Operators: Food Safety Certificate

For Employees: Food Handler Card

Get a Health Permit

What do I have to do? It depends:

Restaurants

Temporary Food Booths

Cottage Foods

Restaurants
Certification: o Operator: Food Safety Certification o All Employees: Food Handler Card Permitting Process: Arrange for inspection with county Health Dept. call (510) 567-6700

Restaurants
Equipment requirements: for example, separate sinks for various tasks Sanitize equipment/utensils, wash hands regularly Observe cooking/holding temperatures

Temporary Food Booths

Certification: o Operator: Food Safety Certification o All Employees: Food Handler Card Permitting Process: o Operator application / self-inspection form o http://www.acgov.org/aceh/food/temp.htm

Temporary Food Booths

Must have covering Equipment for washing hands / utensils if serving non-prepackaged food No home food prep Different workers must do different tasks for example, same person cant handle money and food

Cottage Foods
Certification: Food Handler Card Permitting Process: o Direct sales: Self-certification o Indirect sales: Inspection o http://www.acgov.org/aceh/

Cottage Foods
Wash, rinse, and sanitize surfaces, equipment and utensils before each use Keep small children and pets out of kitchen during food prep No domestic activities during food prep (for example, entertaining guests, making dinner, etc.)

Resources
Legal Eats Handbook, pp. 29-31 Alameda County Environmental Health http://www.acgov.org/aceh/ (510) 567-6700 California Retail Food Code: www.acgov.org/aceh/food/calCode.htm

To Recap
1. GET CERTIFIED!

Food Managers Certificate

Food Handler Card

To Recap
2. GET A PERMIT!

BREAKOUT SESSIONS
Commercial Kitchens Kitchen 812/La Placita Organic Certification - Allison Health Permits/Cottage Food Jackie/Christina Grassroots Financing/Capital Raising Janelle Orsi (SELC) Business Formation Legal Q&A Sushil Jacobs