The business environment is broad and poses a lot of questions for any new business. For instance, political, technological, environmental, and social factors are all elements that should be taken into consideration before operations commence, and this also applies to a new catering subsidiary company. Legal factors also stand out as and are the legislative forces that define the scope of actions that a business can undertake. Different legislative requirements determine whether a business abides by the law or not. While there are numerous legal elements within the business environment, the most important ones to consider when starting a new catering subsidiary company include menu labeling laws, food safety and handling laws, consumer protection laws, health and safety laws, zoning laws, and legal business structure requirements.
The first legal factor is the adherence to menu labeling laws. Given the prevalence in conditions related to poor dietary habits such as obesity and diabetes, the food environment has called for enforcement of menu labeling laws (VanEpps et al., 2016). Since a catering subsidiary company might handle food items that have to be labeled, it is necessary that these are reviewed upfront to avoid legal sanctions. Besides menu labeling laws, zoning laws that determine the kind of business establishments to be put in a certain area are another legal factor. According to Zaganjor et al. (2019), zoning laws are applied as part of food service guidelines aimed at improving the food environment to become healthier for consumers. Abiding by zoning laws prevents the risk of the business getting shut down prematurely.
Another important legal consideration is abiding by minimum wage requirements. Different business establishments have different minimum wage requirements and these rules also apply to the food industry. A new catering company has to follow minimum wage requirements as these are laid down to enable employees to support themselves financially (Pereira, 2017). Besides minimum wage requirements, health and safety laws at the workplace are an important legal aspect that the catering business would need to show compliance as well. The US ensures protection of its workers at the workplace under the Occupational Safety and Health (OSH) Act (US Department of Labor, n.d.). The law provides that all businesses – large or small – provide a safe working environment for its employees.
Food safety and handling laws are critical legal aspects in the catering business. In the US, the Food and Drug Administration Agency (FDA) is the institution that regulates the food industry. Thus, the business will have to show compliancy to this agency by adhering to the Meat Inspection Act and the Food Drug and Cosmetic Act (European Parliament, 2015). The business will also have to establish contract laws prior to its operations. While contract law affects both employees and customers, the start-up will need to focus more on employment contracts. In the US, employment contracts are put in the form of guidelines and framework that define the terms of employment and other negotiable contract stipulations (Vainieri et al., 2019). Contract laws will govern the business’ relationships with employees to avoid legal suits from potential employee complaints.
In conclusion, opening a new catering subsidiary company should be done in consideration of the associated legal factors. More specifically, these include food safety and handling laws, consumer protection laws, health and safety laws, menu labeling laws, zoning laws, and legal business structure. Abidance by these legal factors ensures that the new business operates within the stipulated legal environment and eliminates potential legal sanctions. It is necessary that a legal team is consulted on how these factors are applied before commencement of operations.
References
European Parliament. (2015). Food Safety and Regulation Policies in the United States. Study for the ENVI committee.
Pereira, S. (2017). Disrespecting the Minimum Wage: How States Limit the Opportunity for Restaurant Workers to Support Themselves. Themis: Research Journal of Justice Studies and Forensic Science, 5(1), 85-101. Web.
US Department of Labor. (n.d.). Workplace Safety and Health. United States government.
Vainieri, M., Smaldone, P., Rosa, A., & Carroll, K. (2019). The Role of Collective Labor Contracts and Individual Characteristics on Job Satisfaction in Tuscan Nursing Homes. Health Care Management Review, 44(3), 224-234. Web.
VanEpps, E. M., Roberto, C. A., Park, S., Economos, C. D., & Bleich, S. N. (2016). Restaurant Menu Labeling Policy: Review of Evidence and Controversies. Current Obesity Reports, 5(1), 72-80.
Zaganjor, H., Bishop Kendrick, K., Onufrak, S., Ralston Aoki, J., Whitsel, L. P., & Kimmons, J. (2019). Food service guideline policies on local government–controlled properties. American Journal of Health Promotion, 33(8), 1166-1173.