Memphis has always had its share of odd liquor rules. A recent change in the law is different, because it makes doing business in Memphis much more cumbersome and expensive.
For some time, Memphis required beer permit holders to register all employees that touch beer. This mostly affects grocers, drug stores and convenience stores, requiring every sales clerk and stocker to go downtown and obtain the permit. The rule does not apply to restaurants and other businesses with liquor licenses.
We suspect that lots of businesses were clueless and did not comply. Although a pain, however, compliance only involved a $10 fee per employee.
Will Cheek's Blog
Beginning July 1, the fee jumped to $50 per employee: $29 for a TBI background check and $21 for an affidavit. For most C stores, drug stores and small groceries, this means every employee must have the $50 card.
Memphis is telling new applicants about the new employee card rule. It remains to be seen how closely the rule is enforced with existing permit holders.
The good news is that the card follows the employee, meaning that it is valid if an employee moves between stores or is hired from a competitor. The card must be renewed every 2 years.
We see this as being quite an expensive requirement for most retailers, from Wal-Mart to mom and pop stores. Given the turnover among clerks, compliance could be costly and difficult.
The big question is how closely Memphis enforces the new law. The Memphis Alcohol Commission does not have enforcement officers and must rely on police or other city officials to enforce the beer laws. It is possible that the new law will be largely ignored without consequence.
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