Last night, (December 26, 2024), the Fifth Circuit Court of Appeals, sua sponte (of its own accord), vacated its own order lifting the injunction that blocked the required filing of the “beneficial ownership information” (BOI) report under the Corporate Transparency Act (CTA), while another set of three judges considers the substantive arguments in the case, and not just whether the injunction was properly granted. In other words, the injunction is back in place and filing of the BOI report is not required, for now.
We regret sharing the paid filer service link in an email alert. Please note that they do assist you in submitting your BOI report, so it is a legitimate service. However, we should have provided the link directly for the no-cost option for submitting the information. We do not endorse paid filer services for this BOI reporting requirement. If you want to make sure that you are in an official US Government website, please note that only “.gov” websites belong to an official federal government organization. In this case, it is fincen.gov and everything else derives from that root. Background: If the CTA is found to be constitutional, small businesses with less than $5 million in annual revenue and less than 20 full-time employees would be required to report on their ownership structure, business addresses, and other information to the Financial Crimes Enforcement Network (FinCEN), a subagency of the US Department of Treasury. On December 3, 2024, a federal district court enjoined enforcement of the CTA and its corresponding BOI reporting rule. The federal government appealed, and, on December 23, 2024, a “motions panel” of the Fifth Circuit granted the government’s motion to lift the injunction pending appeal. The Fifth Circuit, on December 26, 2024, vacated its own order now that a “merits panel” has the appeal, “in order to preserve the constitutional status quo while the merits panel considers the parties’ weighty substantive arguments.” By doing so, the Fifth Circuit reinstated the injunction. The problem: The Treasury Department reported in October that it had received just 10% of the required submissions to comply before penalties would begin in 2025. Many attributed the low compliance rate to a lack of awareness among small businesses, insufficient outreach & education from the federal government, and a tight time frame for compliance. The Restaurant Law Center, with other industry allies, filed a brief on December 18, 2024, urging the Court of Appeals to deny the Motion to Stay because “granting the stay would result in consequences to [the Association’s] members that cannot be reversed as our members would face a compliance deadline of less than two weeks. Given that imminent deadline, which businesses across the nation no longer think applies to them, the practical implications of the government’s demand to stay the injunction would be severe.” Thus, yesterday’s announcement is welcomed news. To File or Not to File: If you have already filed your BOI report, you have nothing to worry about. If you have not filed, you now have the option to voluntarily file or wait to see what is the next ruling to come down from the Fifth Circuit, understanding that, if the law is found constitutional, you may have a short window to comply. We are not making a recommendation either way. You can follow the news on BOI reporting directly from the official FinCEN website found here, although it tends to be a day or two late. And, if you want to go ahead and voluntarily file a BOI report, free of charge, you can click here. What’s next: Litigation in this particular case, Texas Top Cop Shop, Inc., et al. v. Garland, et al., continues. The Restaurant Law Center is waiting for the Fifth Circuit’s merits panel to issue a “briefing schedule” to know when we are expected to present the restaurant industry’s position with regards to the CTA and its BOI reporting requirements. Questions? Email or call the AskWRA Team at 608.270.9950
0 Comments
Lobbying Efforts Were Successful
After a 15-month advocacy campaign, restaurant operators have secured a major win from the Biden Administration. Restaurant service fees, delivery fees, credit card surcharges, and other fees have been excluded from a federal ban on so-called “junk fees.” This morning, a final rule from the Federal Trade Commission (FTC) limited the prohibition on junk fees to live-event tickets and short-term lodging (hotel, motel, inns, etc.). In 2023, the FTC proposed to ban commonly used restaurant charges and force these fees into menu prices. The FTC estimated this mandate would cost the restaurant industry about $3.5 billion to comply and add at least $4,800 in costs for every restaurant location that would be required to update their menu pricing. The National Restaurant Association and the Wisconsin Restaurant Association lobbied on the industries behalf and rallied restaurant operators to contact the FTC with their concerns. Your Voice Made a Difference Thanks to the thousands of operators who raised concerns with the FTC’s action, both directly with the agency and with Capitol Hill lawmakers, we are proud that restaurants are not included in the final rule. Questions? Email Susan Quam ![]() Brad Hammen Restaurant Operations Consultant at US Foods (Formerly with Outback Steakhouse) 2024 WRA Chair of the Board 2024 has been an extraordinary year for the Wisconsin Restaurant Association (WRA). It was my honor to serve as Chair of the Board of Directors, working closely with Kristine Hillmer, President and CEO, her remarkable team, and the dedicated members of our board. Together, we faced a challenging, but rewarding year; tackling industry-wide hurdles, celebrating successes and setting the table for an even brighter future in Wisconsin’s hospitality scene. What a year it’s been for the restaurant industry in Wisconsin, which continues to be a cornerstone of our state’s economy. With over 13,000 restaurant locations generating $14.9 billion in sales, our industry plays a vital role in Wisconsin’s prosperity. We employ 278,000 people, accounting for 9% of the state’s total workforce. It's also important to note that 96% of these establishments are small businesses with fewer than 50 employees, emphasizing the crucial role of local entrepreneurs. Additionally, every dollar spent in Wisconsin restaurants contributes an additional $2.03 to the state economy; showcasing the far-reaching impact we have. These numbers highlight our responsibility to create jobs, support local economies and provide spaces where people can come together to relax, celebrate and enjoy—an obligation this industry is proud to fulfill. This year truly put Wisconsin in the national spotlight, and I couldn't be prouder of how our industry shined. The Republican National Convention took center stage in Milwaukee. The convention brought together political leaders, media and visitors from all over the country; giving us the perfect opportunity to showcase Wisconsin’s dynamic restaurant scene. On top of that, the popular show Top Chef came to Milwaukee, bringing even more attention to our state and highlighting the creativity and talent of our culinary community. Despite the challenges we faced — elevated inflation, the pressures of an election cycle in a key swing state, and ongoing workforce shortages — the resilience of our industry was on full display. I saw optimism and determination at every turn, from bustling kitchens to packed dining rooms, proving that Wisconsin's restaurant community is not only up to the task, but thriving. We used the national stage to demonstrate what makes Wisconsin hospitality so special: our passion, our dedication to local flavors and our commitment to delivering outstanding experiences to every guest. This year wasn’t just about overcoming obstacles; it was about showcasing the incredible strength, diversity and innovation of our state’s food scene. We showed the nation that Wisconsin is a place where the restaurant industry is not just surviving, but setting trends and leading the way. Advocacy for our industry is something I deeply value, and it has been a priority for the Wisconsin Restaurant Association to monitor and influence industry regulation and public policy at every level: state, local and national. This year, I had the privilege of attending several key events where I was able to represent and advocate for our industry. In January, WRA Advocacy Day set the stage for our efforts, highlighting the importance of a unified voice within the Wisconsin restaurant community. Then in April, I traveled to Washington, D.C. for the Public Affairs Conference, where we directly engaged with policymakers on critical issues impacting our industry. The Restaurant Caucus Dinner in Madison later brought together legislative leaders, focusing on both the challenges and opportunities that lie ahead for Wisconsin’s restaurant sector. I strongly encourage everyone in our industry to take part in these events in the coming year. Our collective voice is powerful, and your participation can help shape a better future. Keep an eye out for the 2025 dates. Your involvement can make a significant difference. I also had the opportunity to attend several incredible WRA events that showcased the strength and innovation of our industry and organization. One of the highlights was the inaugural Women in Hospitality Conference in Madison, where I had the honor of serving on the advisory committee. It was an inspiring experience to witness the launch of this event, which also introduced the “Top 20 Women in Hospitality to Watch in Wisconsin.” This recognition was a powerful celebration of the outstanding women leaders in our industry, and I’m incredibly proud of the event’s success in its first year. It was a privilege to be part of such an impactful moment, and I encourage everyone to attend in the future to see firsthand the amazing talent and leadership shaping the future of hospitality in our state. The Wisconsin Food & Hospitality Expo is truly the event of the year for our industry, and I was thrilled to be part of it. This Expo brings together the food, beverage, hospitality and bakery industries, offering a unique opportunity to source products and services, connect with peers, and explore the latest trends shaping our businesses. It’s an exciting platform for discovering innovative ideas that can elevate your operations and keep you ahead of the curve. Whether you're looking to network, learn, or discover new products, the Expo is a can't-miss experience that consistently delivers valuable insights for anyone in the hospitality field. I also had the chance to attend the Restaurant Insights Summit at Waukesha County Technical College in Pewaukee, which provided valuable perspectives on the evolving landscape of our industry, focusing on innovation and future trends. These events are fantastic opportunities to connect, learn and be inspired by the leaders and innovators who can help drive your business forward. I hope to see you at these events in the future! As we move past 2024 and into a new year, I am confident that the WRA is well-positioned to lead the way. Our advocacy efforts will continue, from monitoring industry regulations to championing workforce development and diversity. The events WRA offers will help Wisconsin restaurateurs evolve and innovate, ensuring their success and maintaining our state's position as a leader in hospitality across the nation. Wisconsin’s restaurants are resilient, and with the support of the WRA, I have no doubt we will continue to set the table for success. Serving as Chair has been a true privilege, and I am grateful for the opportunity to contribute to an industry that is so essential to Wisconsin’s culture and economy. Our establishments are more than just places to eat. They are where we gather, celebrate and connect. I look forward to the future with optimism and the certainty that Wisconsin’s hospitality industry will continue to thrive. |
Archive
February 2025
Categories |