Opening a restaurant in New York City requires numerous licenses and permits. Most restaurant owners are familiar with the typical licenses and permits for restaurants. Most restaurants require many types of licenses, including liquor licenses, food facility health permits, certificates of occupancy, food service establishment permits, and many others.
However, restaurant owners may not be aware they must have licenses and permits to play music or host live entertainment in their restaurants. In this blog, our New York City business law attorneys discuss the legalities of live entertainment in restaurants in New York City.
Legal Issues to Consider for Restaurants Offering Live Entertainment in New York City
Some restaurants offer live entertainment for customers to enjoy instead of playing soundtracks as background noise. Some issues restaurant owners must consider include:
Licenses for Intellectual Property Rights
Whenever a restaurant plays music, it is considered a live performance. Therefore, owners must obtain the required licenses and permits even if they play soundtracks instead of hiring a DJ or live performers. When live performers play copyrighted music, the restaurant must obtain licenses from performance rights organizations such as SESAC, BMI, and ASCAP.
Dancing at NYC Restaurants
If you intend to allow customers to dance, the situation becomes more complex. You are no longer required to obtain a Cabaret license but must comply with numerous regulations for dancing in establishments. When you provide live entertainment, dancing may be spontaneous. Preparing for customers who want to dance is better than being caught off guard.
Contacts for Live Performers
Contracts are essential when hiring live entertainment for a restaurant, including hiring local bands, DJs, singers, or comedians to perform. The contract should be in writing and meet all New York contract law requirements. A well-drafted contract for live entertainment includes the days and times of each performance, payment terms, cancellation policies, licensing agreements, and liability clauses.
Security Measures for Live Performers
Live performers should feel safe when they are on stage. Restaurant owners may need to hire additional security to ensure performers remain safe before, during, and after performances. There should be specific emergency protocols if something should happen during a live performance.
Furthermore, the stage conditions must be safe. A restaurant owner should consider all reasonably foreseeable accidents and take precautions to avoid them.
Other Legal Considerations for Live Performances
New York City has strict noise ordinances and occupancy restrictions. The restaurant is responsible for ensuring the live entertainment does not violate noise ordinances.
There could be a much larger crowd than anticipated for a popular performance. Therefore, the restaurant should be prepared to handle a larger crowd. The owner may need to hire additional staff and security personnel.
Another important consideration is insurance. The owner should carefully review their business insurance policy to determine if the policy covers accidents and injuries related to live entertainment.
Learn More During a Consultation With a New York City Business Law Attorney
Playing music or hiring live entertainment for your restaurant without the proper permits and licenses could result in fines and other penalties. Navigating the licenses and permits required to host live entertainment in New York City can be daunting without a business lawyer’s help.
Contact Kent, Beatty & Gordon, LLP, to schedule a consultation with one of our experienced New York City business law attorneys. We can help you apply for and maintain the correct licenses for your business to avoid fines and other problems.