The New York State Liquor Authority (SLA) has maintained rigorous enforcement of the Alcoholic Beverage Control (ABC) Law throughout 2025, emphasizing public safety and regulatory compliance. The 2026 State Budget increased the Liquor Authority’s budget by 30%, enabling it to increase its enforcement bureau team devoted to keeping state licensees in compliance with the alcoholic beverage control laws and regulations. This article outlines the prevalent violations charged to licensees and offers guidance on maintaining compliance.
Common Violations Charged to Licensees
In 2025, the SLA has identified several recurring violations among licensees:
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- Sale to Minors: Selling alcohol to individuals under 21 remains a critical offense, often resulting from undercover operations using underage decoys.
- Disorderly Premises: Establishments failing to prevent bar fights and illegal activities, such as drug use or gambling, are cited under this violation.
- Failure to Supervise: Licensees are expected to maintain control over their premises; lapses can lead to charges of inadequate supervision over employees, patrons and daily operations.
- Non-Bona Fide Operations: Operating a bar without serving food or maintaining proper records can result in this charge, indicating the establishment isn’t functioning as a legitimate or compliant business.
- Health and Safety Violations: Operating without valid health permits or failing to adhere to safety regulations are grounds for enforcement actions. This can also include allowing cannabis smoking or vaping at a licensed establishment or selling tobacco products purchased from a reservation.
- Availing: Operating under someone else’s license, especially after the sale or transfer of a business or in situations where the licensed principal is “in name only” while actual operational control and profit sharing involves an unlicensed individual.
Enforcement Process and Penalties
The SLA’s enforcement process typically involves:
- Investigations: Initiated through inspections, undercover operations, or complaints.
- Notices of Pleading: Issued when violations are identified, detailing the charges.
- Hearings: Licensees can plead Not Guilty, No Contest, or Conditional No Contest, leading to hearings or settlements.
Penalties for violations may include:
- Fines: Monetary penalties, which have increased in recent years to deter non-compliance.
- Suspension or Revocation: Temporary or permanent loss of the liquor license.
- Bond Claims: Claims against the licensee’s surety bond to cover penalties.
Compliance Recommendations for Licensees
To mitigate the risk of violations:
- Regular Training: Ensure staff are trained on ABC laws and responsible service practices. This can include training by one of the SLA’s certified ATAP providers or in-house training. Training should be renewed annually, provide to all new hires (including family members working in the business) and periodically tested to be sure it is being followed rigorously.
- Maintain Records: Keep accurate and up-to-date records of operations, finances and compliance measures. Good records are often your best defense in a disciplinary matter or lawsuit. Have written policies and guidelines for employees to follow that document your training and business procedures for maintaining compliance.
- Conduct Self-Audits: Periodically review operations and policies to identify and rectify potential compliance issues. Consider sending in a “customer” to test the employees under different situations. Consult with attorneys specializing in liquor law to identify potential violations and ensure continual compliance.
The SLA’s enforcement activities in 2025 underscore the importance of strict adherence to the ABC Law. Licensees must proactively manage their operations to ensure compliance and avoid penalties that can jeopardize their business.
For personalized assistance with compliance strategies or defense against violations, please contact Attorney Tracy Jong at Tjong@EvansFox.com.
Tracy Jong is a Senior attorney at Evans Fox LLP with 30 years of experience focusing her practice in business law, intellectual property and licensing for alcohol and cannabis. Tracy Jong is a member of the New York Bar and is a registered attorney at the United States Patent and Trademark Office. She can be reached at Tjong@EvansFox.com.
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The content has been prepared for informational purposes only; it should not be construed as legal advice, does not create or constitute an attorney-client relationship, and readers should not act upon it without seeking professional counsel.