The compliance rules that multi-units get wrong with Felice Ekelman, JD | 075

Getting workplace law advice after you get a complaint is like fixing a schedule after the shift's over. In this episode of The Pre-Shift Podcast, we sit down with Felice Ekelman, a principal at Jackson Lewis who leads the firm's restaurant industry group, to talk about the compliance mistakes that catch multi-unit operators off guard. Felice walks through why state and local rules don't travel with you from one location to the next, what "audit-proof" really looks like on paper and on the floor, and what the no-tax-on-tips provision means. Whether you're running two locations or twenty, her approach to hiring, classification, and training offers practical steps for operators looking to reduce risk as they grow. **Key Takeaways** - **Call Early, Not After:** Hear why the operators who end up needing a workplace lawyer are usually the ones who consult one before opening. - **Not All State Rules Are Alike:** Discover why assuming your California playbook works in New York (or vice versa) is one of the most common mistakes multi-unit operators make, and why highly regulated states like California, New York, Illinois, and Massachusetts require their own separate approach to wage transparency, scheduling notice, and break penalties. - **What "Audit-Proof" Actually Means:** Learn the checklist Felice runs with clients: an updated handbook, the right posters, compliant I-9s, matching time and pay records, and clocked meal breaks instead of automatic deductions. - **The Title Never Decides the Case:** Understand why calling someone a manager, a sous chef, or a shift lead doesn't determine whether they belong in the tip pool or qualify for overtime exemption. What matters is what the person actually does on shift, not their title. - **Transparency Builds Trust in the Tip Pool:** Hear why the biggest tip pool problems come from staff not understanding who's in the pool and how much they're getting, and why showing the math every shift cuts down on disputes. - **Training Is Where the Real Risk Sits:** Discover why Felice sees management training on EEO, wage and hour rules, accommodations, and consistent discipline as one of the highest-value investments an operator can make, since most legal exposure comes from a manager's split-second call. - **What New Rules Require From Your Payroll Provider:** Learn why tax only applies to a portion of overtime pay, and why your payroll provider needs to be told, specifically, to separate that line item since it won't happen automatically. **Resources** - More about Felice https://www.jacksonlewis.com/people/felice-b-ekelman - Contact Felice at Felice.Ekelman@jacksonlewis.com **Chapters** 00:00 Meet Felice Ekelman 00:55 Call Your Lawyer Early 02:55 Multi-Unit State Law Traps 04:27 Staying Ahead of Changes 07:34 California Compliance Minefield 09:22 Audit Proof Your Operation 13:49 Misclassification and Accommodations 16:07 Hourly vs Salary Exemptions 19:16 Tip Pool Rules and 80/20 23:41 Training Managers for Compliance 28:20 Insurance and Prevention Mindset 29:16 No Tax on Tips: What to Do 33:17 Contractors and Noncompetes 36:44 Top Priorities: Pay and I-9s 38:31 Key Takeaways Send us Fan Mail 📲 **Connect with us** [Email](mailto:marketing@7shifts.com) us Follow on LinkedIn **More 7shifts** Spotify | Apple Podcasts | Google Podcasts Subscribe to Food Runner, our Monthly Restaurant Newsletterhttps://podcasts.google.com/feed/aHR0cHM6Ly9hbmNob3IuZm0vcy8zOTgyY2RlNC9wb2RjYXN0L3Jzcw7shifts on YouTube Follow us on TikTok Read the 7shifts Blog **About Us** 7shifts is a restaurant platform that helps operators and managers hire, train, schedule, pay and retain their restaurant teams. With an easy-to-use platform and industry-specific solutions, 7shifts saves time, reduces errors, and helps keep costs in check for over 55,000 restaurants.