Friday, September 12, 2025

The Cracker Barrel Controversy: A Business and Trademark Lawyer's Prespective

By Eric D. Morton

I am writing from the perspective of an attorney who practices business law and intellectual property - particularly trademark law.  In over 37 years of law practice, I have represented many hundreds of small and medium sized businesses.  In addition to business matters, I have advised my clients on branding and trademarks.  I filed scores of trademark applications. I have litigated trademark disputes. I taught trademark law and supervised the trademark clinic at California Western School of Law.

As such, I am very disturbed by the recent hysteria about the attempt by Cracker Barrel to rebrand. Recently, Cracker Barrel announced that it was changing its longtime trademark.  It dropped picture of man with a barrel and the words "Old Country Store" from its logo. It retained the words "Cracker Barrel".  The image below on the left is the old trademark; the one on the right the new one.


Right-wing influencers throughout the Internet called the rebrand woke.  They created a storm of controversy throughout the right-wing social media world in which thousands of individuals savagely criticized Cracker Barrel and its executives. 

The right-wing activist Christopher Rufo wrote:  “It’s not about this particular restaurant chain — who cares — but about creating massive pressure against companies that are considering any move that might appear to be ‘wokification.”  Sean Davis, the chief executive of The Federalist, a right-wing website, wrote, “Cracker Barrel’s CEO and leadership clearly hate the company’s customers and see their mission as re-educating them with the principles of gay race communism.”  One wrote: “The Barrel must be broken."

Cracker Barrel's sales dropped and its publicly traded stock declined. President Trump weighed in and demanded a return of the old logo. Cracker Barrel immediately did so.

This is insane.  Major companies update their branding all the time. When they do, large, publicly traded companies like Cracker Barrel do not  rebrand lightly or because they are "woke".  They spend a lot of time and money on brand consultants, market research, surveys, focus groups, 

I know of a regional healthcare chain spent $950,000.00 on a simple trademark.  I have small business client that owned a trademark registration, and the .com domain for, a two word trademark.  A Fortune 500 company paid my client $1 million for the trademark and the domain in order to use them in an advertising campaign. I am certain that company spent many millions more in market research before approaching my client.

Cracker Barrel's stock has steadily lost value in the past four years.  In April 2021, its stock sold for $175.00 a share.  In April 2025, its stock was at $33.00.  Cracker Barrel's net income similarly declined.  Obviously, something wasn't working and its board of directors no doubt demanded that something be done to reverse the fortunes of the company.  

After much market and customer research (and considerable expense), the officers of the company decided to simplify the company's trademark in order to broaden market appeal. This was the start of a slow change in the trade dress of the company's restaurants and changes to its products, in conjunction with different marketing approaches.

Cracker Barrel's research probably showed that some customers would not like the change but in the long-term it would be worthwhile. This change was not "woke" but a standard business practice. 

After announcing the change, Cracker Barrel was hit by the fire-storm and immediately caved.  Cracker Barrel is now stuck with an undesirable and outdated logo. Its directors and officers will no doubt be too intimidated to make any changes to the look their restaurants and products, or their marketing. Cracker Barrel's net income, stock value and market share will continue to decline.

Everyone in business world should be deeply concerned. Until now, this incident would have been unthinkable. We cannot let this become normal. 


Thursday, September 11, 2025

California Employers Must Provide Retirement Plan Access

 


California Employers Must Provide Retirement Plan Access

As of December 31, 2025, all California employers with at least one employee must either offer their employees a qualified retirement plan or enroll their employees in the state-sponsored CalSavers program.

All private-sector employers in California who have at least one W-2 employee and do not offer a qualified retirement plan must comply. The rollout was phased by employer size over several years:

Businesses with 1–4 employees: Must register or certify their exemption by December 31, 2025.

Businesses with 5 or more employees: The deadline was June 30, 2022. Businesses that have not complied are now subject to penalties.

What is CalSavers?

CalSavers is a state-sponsored retirement savings program designed for workers whose employers do not offer a qualified retirement plan, such as a 401(k) or SEP IRA. The program provides employees with an easy, automatic way to contribute to an Individual Retirement Account (IRA) directly from their paycheck.

The program was established to close the retirement savings gap in California, where many workers—especially those at small and mid-sized businesses—have historically lacked access to employer-sponsored retirement plans.

Employer Responsibilities

California law requires that employers with five or more employees take one of two actions:

  1. Offer a Qualified Retirement Plan
    Employers may choose to establish a private retirement plan, such as a 401(k), 403(b), SIMPLE IRA, or SEP IRA. Doing so satisfies the state requirement, and those businesses are not required to participate in CalSavers.
  2. Register with CalSavers
    If a company does not sponsor its own retirement plan, it must register with CalSavers and facilitate employee participation. This involves uploading employee information to the CalSavers portal and ensuring payroll deductions are processed each pay period. Importantly, employers do not contribute to the program or manage investment options; their role is limited to facilitating payroll deductions.

Key Features of CalSavers

  • Automatic Enrollment: Eligible employees are automatically enrolled at a default contribution rate (currently 5% of gross pay) unless they opt out or select a different rate.
  • Portability: Accounts are owned by the employees, so savings remain with them even if they change jobs.
  • No Employer Fees: Employers are not charged to participate in the program.
  • Investment Options: Employees choose from a menu of professionally managed investment funds.

Compliance Deadlines and Penalties

Employers who fail to comply with the law may face financial penalties. The state can assess fines for each eligible employee if an employer does not provide a retirement plan or register with CalSavers within the required time frame.

Benefits for Employers and Employees

For employers, CalSavers offers a simple way to meet the state’s legal requirements without the administrative complexity of managing a private retirement plan. For employees, the program provides a convenient path to saving for retirement, helping to build long-term financial security.

More information is available at the California EDD website

Final Thoughts

If you are an employer in California, it is critical to act now to ensure compliance. Review your current retirement plan offerings—or, if you do not yet have one, register your business with CalSavers. By taking these steps, you not only meet your legal obligations but also empower your employees to take charge of their financial future.

Eric D. Morton is the principal attorney at Clear Sky Law Group, P.C. He can be reached at 760-722-6582, 510-556-0367, or emorton@clearskylaw.com

Thursday, October 31, 2024

Corporate Transparency Act


 Before the end of 2024, corporations and limited liability companies must comply with the Corporate Transparency Act.  Read more here.

Tuesday, January 31, 2023


 Failing to update a website's privacy policy can lead to serious legal trouble.  Our latest Sky Report article. 

Friday, October 28, 2022


 Independent Sales Representatives pose unique legal challenges to companies that hire them. Read our article here.