Restaurant Compliance Checklist

Local Food Service Permit and Health Inspections

Every restaurant needs a food service establishment permit, typically issued by the county or city health department, before serving food to the public. Most jurisdictions base their food safety rules on some version of the FDA Food Code, a model code states and localities adopt and adapt rather than enforce directly, and require periodic health inspections to maintain the permit. Requirements commonly cover food storage temperatures, handwashing facilities, pest control, and employee health and hygiene practices.

Food Handler Certifications

Many states and localities require some or all food service employees to complete a food handler training course and carry a certification, often renewed every few years. Some jurisdictions also require a certified food protection manager on staff, someone who has passed a more rigorous food safety exam, typically one person per location rather than every employee.

Liquor Licensing

If your restaurant serves alcohol, you need a liquor license from your state's alcoholic beverage control agency, and often a separate local approval as well. A restaurant that brews its own beer or makes its own wine on-site additionally needs a federal permit from the Alcohol and Tobacco Tax and Trade Bureau, which regulates manufacturing, separate from the state license that covers retail sales. Liquor license applications often take longer to process than other restaurant permits, so apply well before your planned opening date.

A General Business License

Beyond the food-specific permits, most cities and counties require a general business operating license for any business, including a restaurant, operating within their jurisdiction. Check your specific city or county for this requirement in addition to your food service permit.

Tipped Employee Wage Rules

Restaurants are one of the few industries where the FLSA's tip credit provisions come up constantly. An employer can pay a tipped employee a direct cash wage as low as $2.13 an hour, taking a tip credit of up to $5.12 an hour, as long as the employee's tips bring their total compensation up to at least the $7.25 federal minimum wage for every hour worked in the workweek; if tips don't make up the difference, the employer has to pay it. The Department of Labor is explicit that an employer cannot keep employees' tips under any circumstances, and that managers and supervisors also can't keep tips, including through a tip pool. Many states set a higher minimum cash wage for tipped employees than the federal $2.13, or eliminate the tip credit entirely, so check your specific state's rule rather than relying on the federal figures alone.

Workers' Compensation and Workplace Posters

Most states require workers' compensation insurance once a restaurant has employees, given the physical nature of kitchen and service work. Restaurants also need to display required federal and state workplace posters, including notices covering minimum wage, overtime, and workplace safety protections.

Sales Tax on Prepared Food

Most states require restaurants to collect sales tax on prepared food and register for a state sales tax permit, though the rate and what counts as "prepared" versus grocery food can differ from the general sales tax rules that apply to other retail goods. Check with your state's department of revenue for the rule that applies to prepared food specifically.

Multiple Inspections Can Happen on Different Schedules

A health department inspection, a fire marshal inspection, and a liquor control compliance check are usually separate processes run by different agencies on their own schedules, not a single combined inspection. Staying prepared for each one separately avoids a surprise finding that halts service.

Renewal Deadlines Vary Across Your Different Permits

Your food service permit, liquor license, and general business license are likely to renew on different schedules and through different agencies. Track each one separately on a compliance calendar rather than assuming they all renew together.

State Tipped Wage Rules Often Differ From the Federal Minimum

Several states require a higher minimum cash wage for tipped employees than the federal $2.13, and some don't allow a tip credit at all, requiring the full state minimum wage in cash regardless of tips received. Confirm your specific state's rule before setting your tipped employee pay structure.

This Is Not Legal Advice

Restaurant compliance touches health, alcohol, labor and tax law all at once, and specific requirements vary significantly by state and locality. Talk to a business attorney or your local health and alcohol licensing agencies directly before opening, and periodically after, to confirm you're meeting current requirements.