It has long been held that federally recognized Native American tribes are considered sovereign nations that hold the right to self-government within the boundaries of their tribal lands. This includes the right to engage in economic activity on reservation lands, specifically gambling.

While tribal casinos are largely thought of as competition only to state lotteries, the truth is they enjoy a competitive advantage in comparison to other hospitality industry businesses as well. Oregon has some of the highest labor costs in the nation, and the rising costs associated with employee benefits is creating an escalating challenge for Oregon’s restaurant and lodging properties.

Local economic impact of additional casino location proposals is and will continue to be of serious concern to ORLA members. Our position since April of 2008 has been as follows: Changes to current federal and state gaming policies should not be made for the purpose of allowing off-reservation casinos, tribal or private.

For more information on ORLA’s policy relating to casinos, please contact Greg Astley.

Best Practices and Tools for Recruiting and Retaining Employees

Here’s the good news: year over year, 2016 to 2017, the hospitality industry ranked second for job growth in Oregon at a rate of 3.9 percent. The challenge: how do we fill the 210,000 jobs we have?

With Oregon unemployment at a historic low of 4.1 percent, everyone is lamenting about the difficulty in finding employees. March’s 2018 Oregon Economic and Revenue Forecast notes that “…the tight labor market is resulting in faster wage gains here in Oregon than in the typical state.” Business owners expressed concern about recent legislation to increase minimum wage, but many have told me they are now offering above minimum wage in competitive attempts to attract workers. 

Retention Trouble
Nationwide, an almost unbelievable and very disheartening and expensive fact - 72.5 percent of people left their foodservice or hospitality positions in 2017. While we struggle with the high cost of hiring associates, the conversation is also turning to the high cost of losing employees. Training time, costly product and customer service mistakes, and overtime paid to cover unfilled positions are direct hits to the bottom line.

I was fascinated to find a Turnover Cost Calculator with a shocking example. For a business that had 150 employees, and a turnover rate of ‘only’ 11 percent, a reduction in turnover of 20 percent would save an estimated $313,000 annually in training and opportunity costs. Check it out and use this template to estimate your own potential savings: bit.ly/TurnoverCostCalculate.

Emerging Best Practices Addressing the Employment Challenge
While some managers interpret that the current generation lacks a focus on and commitment to employment and loyalty, others are finding creative and successful ways to help fill positions and reduce turnover by addressing the priorities of today’s employee. 

I think Jack Altman, CEO of Lattice, summed it up well when he wrote “Younger workers… prioritize things like personal growth and career opportunity over income and job security. Giving your employees authentic opportunities for growth is something you have to build into the fabric of your company.” You can read more at bit.ly/2sHIfee.

Interpretation. We, as an industry, can find ROI in nurturing employees’ values to attract and retain them by offering pathways and assistance to help them meet their goals.  One way to do this is via education and training. 

“Train people well enough so they can leave, treat people well enough so they don’t want to.” - Richard Branson

There is growing proof that this approach is working, and that the investment pays off. CNBC does a nice round-up at http://cnb.cx/2JFBt2i where they note;

• “College tuition assistance programs are one of the most successful tactics for getting employees to stick around. Starbucks has found that education benefits kept baristas behind the counter longer… employees enrolled in its college program were 1.5 times more likely to stay with the brand and are being promoted at 2.5 times the rate of those that are not enrolled.”
• McDonalds is slashing eligibility requirements and more than tripling its benefit. "We know that people stay with us longer when they participate in these programs," says Rob Lauber, chief learning officer at McDonald’s... "And people that stay longer deliver a better customer experience for us."

Though these large-scale programs may seem out of reach to smaller operators, the concept can be replicated by following the type of advice advocated by Jack Altman. 

• When promoting your positions, illustrate a pathway for growth within your organization as well as the industry. Chipotle does a great job with this concept, see an example at Careers.chipotle.com/career-path. For foodservice operators, the National Restaurant Educational Foundation offers a great interactive tool at Careerpath.chooserestaurants.org. The American Hotel & Lodging Association Educational Foundation also features a helpful resource at bit.ly/WorldofOpportunity. 
• You can help potential applicants understand what they will learn and how the experience can be applicable to other job and life goals even if they don’t express a desire to stay in the industry. Needs ideas? I had fun searching for ‘Skills I Learned from my Restaurant / Hospitality Job” where I found pages ranging from a sarcastic but authentic testimonial at bit.ly/2l2Splj to thoughtful reflection at  bit.ly/15FoodServiceSkillsForLife to a more academic approach at  bit.ly/HospitalityLifeSkills. Also consider sharing testimonials from past employees about the value of their experience with you.
• Build a relationship with your local community college or university and consider offering tuition assistance. You can find your area’s state schools offering at bit.ly/OregonCollegeTrainingPrograms. They are also experts at helping your employees find and follow a career path with resources such as MyPathcareers.org. By building these relationships you can also help your employees discover resources that include GED assistance to basic skills tutoring, as well as potential financial assistance. This type of support is a proven valuable recruitment and retention tool!
• Offer and potentially fund skills-based training to help employees join and advance within your organization. Affordable and internationally accredited online courses for line employees such as restaurant server, front desk representative, kitchen cook, housekeeping attendant, and security office are offered via the American Hotel & Lodging Educational Foundation at ahlei.org/Certifications/Line-Employees. Remember the Oregon-customized guest service class is available at OregonGuestService.com.

More Tools on the Horizon!
ORLA’s Education Foundation partnered with the Oregon Coast Visitors Association and the owners of the Overleaf Lodge & Spa, Kristin and Drew Roslund, this year to secure grants from Travel Oregon and the Siletz Tribal Charitable Contribution Fund. Funds awarded were used to pilot a workforce development program in Waldport. The target was recruitment and retention via a program that offered free skills-based certifications. 

From this effort we developed an encouraging relationship with enthusiastic partners at WorkSource Oregon in Lincoln County. WorkSource Oregon is a network of public and private partners who work together to “effectively respond to workforce challenges through high-quality services to individuals and business, resulting in job attainment, retention, and advancement.” They are the agencies most in touch with untapped populations who could help fill those 210,000 jobs and provide critical support for both the employee and employer in that effort.

Our next step is to expand our partnerships and phase-in a more comprehensive program. We believe the model has potential to replicate throughout the state, and our hope would be to leverage available state and federal training funds and Oregon Employment Department staff expertise to help serve industry’s workforce needs. An unexpected benefit was learning about the resources WorkSource offers to our employees, previously unknown to most of us! These include funding and staff support for employees such as uniform purchase, housing and transportation vouchers, and skills and mental health counseling.

We are encouraged by the potential to offer hospitality business partners more active assistance with our industry’s workforce challenge and our organizations will be providing regular updates and resources. | Wendy Popkin, ORLAEF

Wendy Popkin is the Executive Director for ORLA’s Education Foundation (ORLAEF), a nonprofit foundation dedicated to supporting the educational and training needs of the hospitality industry. Wendy is a 32-year career veteran who describes herself as “fanatically enthusiastic about helping others enjoy the same type of fabulous career opportunities I have enjoyed in the hospitality industry.” 
​

​June 27, 2018 - A measure strengthening Oregon’s required supermajority in order to increase state revenue appears that it is headed to the ballot in November. The measure clarifies that changes in tax rates, exemptions, or elimination of credits or deductions require at least three-fifths support in each chamber of the legislature. 

A coalition of small business groups turned in over 174,000 signatures supporting the measure by the end of June. The coalition believes that tax and fee increases should receive support from at least three-fifths of the legislature as voters intended when they passed Ballot Measure 63 in 1998.

​Do you think raising taxes on your family and homegrown Oregon companies should be as easy to approve as declaring marionberry pie the official state pie?

We didn’t think so.

The bar should be higher for the legislature to approve taking more of your hard-earned paycheck. Tax increases should always be the last option—never the first.

We have a solution. We need you to visit EndEasyTaxHikes.com/orla right now to add your name to a citizen initiative petition to prevent the legislature from using gimmicks and loopholes to raise taxes easily.

At EndEasyTaxHikes.com/orla, you can download and sign a petition—it will only take you three minutes. The website includes easy instructions to help you get signatures from your family members and colleagues as well.

With your help, ORLA and thousands of other Oregonians will place Initiative Petition 31 on the ballot this November to end easy tax hikes.

Background:

Ten years ago Oregonians smartly passed a constitutional amendment requiring any tax increase be approved by a supermajority of both the State House and State Senate. Now, since our state legislature can't get a supermajority to vote for a tax increase, they are creating and increasing "assessments" and "fees" that are really tax increases - because they only need a simple majority to implement and raise fees and assessments. We need you to visit EndEasyTaxHikes.com/ORLA and add your name to a citizen initiative petition to prevent the legislature from using gimmicks and loopholes to raise taxes easily. It's time to put a stop to this… a tax is a tax.

We are no longer accepting speaker proposals for 2018 ORLA Convention.

Oregon's Minimum Wage Continues to Rise

The 7-year minimum wage escalation plan for Oregon went into effect with the first increases on July 1, 2016. The plan includes 3 regions with different escalation methodologies over the course of those 7 years. The wage scale is as follows:

STANDARD: Includes portions of Multnomah / Clackamas / Washington Counties not within the Portland Urban Growth Boundary as well as Marion, Clatsop, Polk, Josephine, Jackson, Deschutes, Lincoln, Benton, Linn, Lane, Tillamook, Yamhill, Columbia, Hood River, and Wasco Counties.

• July 1, 2016: $9.75
• July 1, 2017: $10.25
• July 1, 2018: $10.75
• July 1, 2019: $11.25
• July 1, 2020: $12.00
• July 1, 2021: $12.75
• July 1, 2022: $13.50

PORTLAND METRO: The Portland Metro rate applies to employers located within the urban growth boundary (UGB) of the metropolitan service district. This includes portions of Multnomah / Clackamas / Washington Counties and cities including Portland, Gresham, Troutdale, Fairview, Hillsboro, Beaverton, Tigard, Tualatin, Sherwood, Forest Grove, Wilsonville, Lake Oswego, West Linn, Oregon City, Gladstone, Happy Valley, Milwaukie, and Damascus. Use Metro's Urban Growth Boundary lookup tool to determine if your address is within the UGB. 
​
• July 1, 2016: $9.75
• July 1, 2017: $11.25
• July 1, 2018: $12.00
• July 1, 2019: $12.50
• July 1, 2020: $13.25
• July 1, 2021: $14.00
• July 1, 2022: $14.75

The Urban Growth Boundary is expanded through the process outlined in Title 14 of the Urban Growth Management Functional Plan. The process involves a needs assessment every 6 years, and as-needed review based on local jurisdiction input on a more frequent basis. For questions about the process of UGB expansions, contact Tim O’Brien at Metro.

NONURBAN: Includes Baker, Coos, Crook, Curry, Douglas, Gilliam, Grant, Harney, Jefferson, Klamath, Lake, Malheur, Morrow, Sherman, Umatilla, Union, Wallowa, Wheeler counties.
• July 1, 2016: $9.50
• July 1, 2017: $10.00
• July 1, 2018: $10.50
• July 1, 2019: $11.00
• July 1, 2020: $11.50
• July 1, 2021: $12.00
• July 1, 2022: $12.50

ORLA will continue to educate Oregon’s lawmakers on the value of tip credit as a solution to bring stability to the industry and solve wage inequality issues. 

Deschutes County Circuit Court Case No. 17CV41968

On September 26, 2017, the Oregon Restaurant and Lodging Association, BHG Bend, LLC, and Wall Street Suites, LLC (together, the “Plaintiffs”) filed suit against the City of Bend alleging that the City’s recently enacted Ordinance NS-2291 violated ORS 320.350(3) by impermissibly lowering the amount of room tax revenue expended to fund tourism promotion.  Through their Complaint, the Plaintiffs sought (1) a declaration from the Court that NS-2291 violated ORS 320.350(3), and (2) an injunction preventing the City from enforcing NS-2291 and ordering the City to expend room tax revenue in accordance with ORS 320.350(3).

The City answered, denying that NS-2291 violated ORS 320.350(3).  The City’s sole affirmative defense was that the Plaintiffs each lacked standing to challenge the validity of NS-2291.   After limited discovery was concluded, Plaintiffs and Defendants filed cross-motions for summary judgment.  On May 8, 2018, the parties’ motions were heard by the Hon. Judge Beth Bagley.  Plaintiffs were represented by Josh Newton.  The City was represented by Ian Leitheiser.

On May 23, 2018, Judge Bagley read the Court’s decision from the bench.  The Court found that each of the Plaintiffs had standing to challenge NS-2291.  The Court then found that by enacting NS-2291, the City violated ORS 320.350(3) by lowering the room tax revenue expended on tourism promotion below the rate agreed upon by the City prior to the enactment of ORS 320.350(3).  Karnopp Petersen is in the process of preparing an order and judgment to be entered in the action.

Once the final judgment is entered, the City may appeal the Court’s decision.  The City will have 30 days from the date the final judgment is entered to file its Notice of Appeal. 

ORLA thanks the firm Karnopp Petersen LLP for their excellent representation in this case.

Related News:

• Statewide Hospitality Association Files Suit to Defend Tourism Investments

Oregon Restaurant & Lodging Association Takes Legal Action Against the City of Bend to Protect Lodging Tax Dollars Intended for Tourism Promotion

Update May 23, 2018 -  A Deschutes County judge ruled that the City of Bend broke the law by redirecting restricted lodging tax dollars to street maintenance. As a result of the court hearing, $350,000 that had been reallocated to road repairs will be directed back to tourism promotion. ORLA thanks the firm Karnopp Petersen LLP for their excellent representation in this case.


On May 8, 2018, the Judge heard arguments from the city’s attorney and an attorney representing the Oregon Restaurant & Lodging Association and two local hotels that sued the city in September.

The Oregon Restaurant & Lodging Association (ORLA) filed a lawsuit September 26, 2017, against the City of Bend for diverting the City’s room tax revenues away from tourism promotion and reducing the allocation for tourism promotion below what is required by law. 

ORLA is challenging the validity and implementation of a recent Bend City Ordinance which amends the percentage of room tax revenue the City spends on the promotion of tourism and improperly diverts restricted room tax revenues to road maintenance. 

“Cities must follow the restrictions in place for disbursement of the lodging tax revenues they collect,” said ORLA President & CEO Jason Brandt. “Unfortunately, Ordinance NS-2291 results in Bend being out of compliance with state law. The vast majority of tourism revenues in Bend can already be spent on general fund purposes so we hope our lawsuit results in acknowledgment from the courts that this recent act is in violation of Oregon law and must be undone.”

Bend City Ordinance NS-2291 violates state law (Oregon Revised Statue 320.350) in one or more of the following ways:

a) 9% of the City’s 10.4% city room tax rate has a set of restrictions for appropriate use of those funds. Within the 9% city room tax rate, the City is statutorily required to spend 30 percent on tourism promotion and tourism related facilities.

b) The remaining 1.4% city room tax rate is subject to a statutorily required 70% investment in tourism promotion and tourism related facilities. 

“Lodging operators should be recognized as financial partners of local governments,” said Brandt. “As tourism becomes more successful, so does the tax revenue provided to local governments to invest in the projects important to local residents.” 

A report from Longwoods International shows for every $1 invested in tourism promotion, $237 is generated in economic impact and $11 in tax revenue to the benefit of Oregon residents.  

ORLA is engaged on a state and local level, helping local municipalities realize that shifts in tourism promotion investments can do more harm than good. Brandt argues there is a direct correlation between tourism promotion and a community’s own tax revenue. “Tourism promotion dollars are crucial to keeping Oregon’s visitor destinations top of mind. Local communities stand to lose significant tax dollars for their general funds if tourists choose to travel elsewhere.”

In 2003, the Oregon State Legislature passed HB 2267, mandating 70% of new or increased local lodging taxes be directed to tourism promotion or tourism related facilities. At that time, the City made the commitment to fund tourism promotion with 30% of the initial 9% tax rate in Bend. In 2013, the City’s residents approved Measure 9-94, which increased the City’s room tax rate from 9% to 10.4%. That 1.4% increase in tax rate is subject to the restrictions established in HB 2267. This past May the City passed an ordinance, in violation of the law, changing the allocation of tourism dollars. 

“The City claims their new allocation of lodging tax dollars still follows state law. This is incorrect,” said Brandt. “There is an error in the total investment they are required to make in tourism promotions and/or facilities.”

The hospitality industry sees transportation investments as a crucial contributor to Oregon’s continued economic success. ORLA looks forward to working with Bend and other communities to help identify appropriate revenue streams to fund transportation investments including the unrestricted portion of lodging taxes.

For more information, contact ORLA President & CEO, Jason Brandt, at 971.224.1501.

The Oregon Restaurant & Lodging Association represents approximately 2,500 members, and advocates for over 9,900 foodservice locations and 2,200 lodging establishments in Oregon. The foodservice and lodging industry is responsible for 173,700 jobs bringing in over $10.8 billion in annual sales and generates over 54% of the annual tourism dollars spent in Oregon.
​
Related News:

• Summary of Oregon Restaurant and Lodging Association, et. al. v. City of Bend
• Judge: Bend Broke Law by Using Hotel Tax to Fix Roads
• City, Lodging Lobby Clash in Court Over Use of Hotel Tax

Update: Portland Mayor Ted Wheeler’s office recently announced a plan to increase the Portland business tax from 2.2% to 2.6% to pay for an additional 58 officers in the police budget. That number was reduced to 49 new officers, however the City Council agreed to hire 55 officers by the 2019-20 budget year. The tax was something of a surprise to us but does not in any way diminish our commitment to increasing the number of police officers in Portland.

The Portland Business Alliance (PBA) is supporting the increase on business taxes and agreed to step up on this tax increase in order to help address Portland’s top issue of homelessness, which impacts businesses and livability throughout the city. The additional revenue will be targeted toward measurable outcomes. 

Like the Portland Business Alliance, ORLA is supportive of the focused efforts on homelessness, providing community-based policing and targeting measurable outcomes. Visitors to and residents of Portland should feel safe to walk the streets, day or night, and should believe Portland to be a place welcoming their presence and patronage. 

​Support for Portland Policy Bureau's Budget Request
As the City of Portland continues to be a preferred destination for many visitors regionally, nationally and internationally, it’s important they feel safe while staying in our hotels, eating at our restaurants and enjoying all we have to offer in the hospitality industry.

With the 2018-2019 budget season well underway, the Mayor’s Office is encouraging constituents with public safety concerns to give testimony in support of Portland Police Bureau’s budget request for additional officers. 
 
The Portland Police Bureau is struggling to fulfill its mission to serve and protect due to a lack of funding and resources. As both the population of Portland and the number of visitors grows, they are being asked to do more with less. There are the fewer officers in the bureau than there were a decade ago, despite a 10 percent increase in Portland’s population. Consequently, the bureau continues to face challenges in patrol staffing, which has led to declining response times. In the last five years, total 911 call volume has increased by over 22%. These calls include a 97% increase in stolen vehicle calls, 64% increase in unwanted persons calls and a 32% increase in disorder calls.

Mayor Wheeler is proposing adding 93 additional sworn positions and 9 additional non-sworn positions at a cost of $12.3 million and a one-time funding request of $8.8 million which includes $2.6 million for technology replacement and $3.8 million for facilities enhancements. ​This budget request would increase the number of officer positions by approximately 10 percent--on par with Portland’s growth.

Key Points to the Proposal
The Police Bureau's budget requests for additional ongoing resources will advance the bureau’s mission and goals to provide 21st Century Policing services, to support organizational excellence and inclusion, and to rebuild their units to deliver community policing. Priorities include: 

• 21.0 FTE sworn positions to enhance the bureau’s ability to create walking beats and other dedicated, community-based units to address neighborhood problems and livability issues for an ongoing cost of $2.5 million and a one-time cost of $0.8 million. Investment in these functions will address issues such as derelict recreational vehicles (RVs), business owner complaints, and zombie homes before they become a call for service. 
• Re-establish ongoing funding of $1.5 million for the Service Coordination Team to provide supportive housing, drug and alcohol treatment services, and employment readiness support for mostly houseless persons. Ongoing resources were eliminated from this program late in the budget process last fiscal year. This request ensures continuation of the program servicing homeless persons with addictions and criminal history.
• 2.0 FTE sworn positions, 1.0 FTE nonsworn professional position, and contracted services for two clinicians to expand the Behavioral Health Unit (BHU) to serve more individuals in behavioral crisis resulting from known or suspected mental illness and or drug and alcohol addiction for an ongoing cost of $0.5 million and a one-time cost of $82,000.
• 64.0 FTE sworn positions to provide for a consistent rotation of Police Officer trainees who are ready to become fully-deployable officers at a rate that matches the bureau’s average attrition rate.
• 6.0 FTE sworn positions and 2.0 FTE nonsworn professional positions to enhance and support the bureau’s Emergency Management Unit (EMU) to address service delivery to emergency events including natural disasters, demonstrations and permitted events for an ongoing cost of $1.0 million ongoing and a one-time cost of $0.3 million.
  
  

​View the full Portland Police Bureau Budget Request Memo to see additional budget priorities.
Read more on ORLA's engagement in Portland's homeless issues.

​Share Your Testimony
We want to show the Mayor we support his priorities to increase public safety and police accountability to enhance livability. Submit your testimony online or attend a public hearing. If you send an email, please Cc: Astley@OregonRLA.org on your message to the City Budget Office so we can share our industry's collective feedback. 

​Menu Labeling Regulations Effective May 7, 2018
The final rules for menu labeling apply to restaurants and similar retail food establishments if they are part of a chain of 20 or more locations, doing business under the same name, offering for sale substantially the same menu items and offering for sale restaurant-type foods. Read the latest update on guidance for the rule: FDA Finalizes Guidance to Help Food Establishments Meet Menu Labeling Requirements.

The FDA has stated their intention to educate restaurants and foodservice establishments during this first year of implementation without issuing penalties. 

In May 2017, based on comments received, FDA is extending the compliance date for menu labeling requirements from May 5, 2017 to May 7, 2018. This extension allowed for further consideration of what opportunities there may be to reduce costs and enhance the flexibility of these requirements beyond those reflected in the final rule. For more information see, the Federal Register Notice Announcing the May 7, 2018 Compliance Date. 

See also National Restaurant Association's issue paper on Menu Labeling.

​Metro, the agency that manages systems for handling and transporting solid waste, wants to transform how the Portland area handles food waste in an effort to convert our food scraps into renewable energy instead of burying them in a landfill.

• Update: July 19, 2018 Metro Council will consider a proposed ordinance that would require the collection of food scraps from certain types of foodservice businesses in the city of Portland. ORLA had the opportunity to review the updates to the proposed code and draft administrative rules relating to food scraps. While we continue to support the merits of a food waste collection program, we believe any mandate on 'all food-related businesses' will bring with it tremendous responsibility and unforeseen challenges (read ORLA’s comments).
• If the proposed code language is adopted, the largest food service businesses will be required to separate their food scraps from other garbage starting in 2020, and smaller food service businesses will be phased into the policy over the following three years.
  

In 2016, the Metro Council directed staff to investigate ways to do that. In fall 2017, Metro sought public comment on an initial policy proposal to keep more food scraps from restaurants, grocery stores, and other food service businesses out of landfills and put to better use creating energy, compost or other valuable products. The regional government is in the process of seeking a private company to build a plant that breaks down food waste and turns it into biogas, electricity, or compost.

ORLA is engaged in these discussions, anticipating that many restaurant owners will oppose the new mandates that would produce operational challenges.

Metro has developed a guide for businesses to reduce food waste, focusing on prevention, donation, and composting strategies. Learn more about Metro's campaign at FoodWasteStopsWithMe.org.

Read more on Metro's website
Read more in the Portland Tribune

The Oregon Restaurant and Lodging Association (ORLA) invites all Oregonians to join it in celebrating National Park Week, which runs through Sunday, April 29.

The week was designed to celebrate the important role played by national parks in our state and country.
Oregon’s national park sites offer some of the best-in-class experiences for all visitors. From the stunning beauty of Crater Lake, the John Day Fossil Beds, and Oregon Caves, to the cultural significance of Lewis and Clark National Historical Park and Old Chief Joseph’s Grave Site, national parks in Oregon entertain, educate, and enrich visitors from around the world.

Those visitors are important to the state and Oregon restaurant and lodging establishments.

In 2016, more than 1 million people visited national park sites in Oregon. The National Park Service (NPS) estimates that those visitors spent $97.5 million in communities with proximity to national parks. That spending supported 1,640 jobs and added a cumulative benefit of $138.4 million to the state economy – money that helps ORLA members and our overall economy.

Our organization supports more than 9,900 foodservice locations and 2,200 lodging establishments in Oregon. The foodservice and lodging industry is responsible for 173,700 jobs, and brings in more than $10.8 billion in annual sales and generates more than 54 percent of the annual tourism dollars spent in Oregon.

We know how important national park visitors are to those numbers, which is why we are taking the opportunity during National Park Week to encourage Congress to give the parks service the funds it needs to address critical infrastructure repairs.

Nationwide, the National Park Service (NPS)has maintenance needs totaling $11.6 billion, largely due to aging infrastructure and inconsistent federal funding. These needs  include impassable trails, deteriorating historic buildings, crumbling roads, and degraded water and electrical systems. The estimated price tag to address repairs within park sites in Oregon is more than $105 million and growing. This backlog impedes NPS’ ability to keep its sites safe and accessible for visitors.

It is in the best interest of Oregon’s tourism economy to keep our tourist draws open for business, and our parks are no exception. If national parks are closed and/or if the visitor experience is subpar, repeat visitors are less likely.

The good news is that our Oregon congressional delegation understands that protecting national parks is important to our economy as well as to our culture and history. Oregon Reps. Kurt Schrader and Suzanne Bonamici and U.S. Sen. Jeff Merkley all are supporting bills designed to create dedicated funds for NPS to draw down its deferred maintenance backlog.

Oregon's congressional delegation’s commitment to restore our parks will preserve these national treasures for generations to come, create jobs, and protect local and state economies that depend on parks for their livelihood. 

We thank them for their leadership.

Oregon Restaurant & Lodging Association’s Tradeshow Offers Attendees Exclusive Experience with a New Virtual Sales Tool
 
The Northwest Food Show, April 22-23 at the Portland Expo Center, will premiere the exclusive Virtual Reality Dome by Visiting Media, demonstrating how some Oregon businesses are already using immersive content to promote their businesses. This incredible interactive technology will help restaurants reach a customer base that is driven by new experiences. 

This is the first time tradeshow attendees will experience immersive content like 360˚ video, aerial photography, virtual reality, and 3D-modeling via the TrueTour® platform in a life-sized, portable virtual reality dome. Visiting Media developed TrueTour®, a revolutionary visual sales and marketing tool, to help businesses connect with their guests and potential customers on a whole new level.  

“Virtual reality can be a stunningly effective storyteller, adding an immersive and emotional component that showcases what’s unique to Oregon,” said Jason Brandt, President & CEO of Oregon Restaurant & Lodging Association (ORLA). “We are excited to partner with Visiting Media to provide this innovative solution to our hospitality members who are looking for more effective ways to reach their customers.” 

Visiting Media’s VR Dome is a 200° spherical projection dome with a built-in spherical 4K projector covering every inch of the dome’s interior with vivid lifelike imagery. TrueTour® projects 360° photography, 360° videography, 3D modeling and other virtual and augmented reality content, controlled and navigated with arm and hand gestures by the dome’s occupants. This creates a thrilling game-like immersive experience into any business presented upon the screen.  

The Northwest Food Show, presented by the Oregon Restaurant & Lodging Association, is a two-day tradeshow held April 22-23, 2018, at the Portland Expo Center. Celebrity chef Rick Bayless, winner of Bravo’s Top Chef Masters, headlines the event with a chef demonstration. The Show will also have James Beard Award-winning chefs Andy Ricker from Pok Pok and Greg and Gabrielle Quiñónez Denton, the owners of Ox, on the Chef’s Stage on Monday. More information on the Show, including the schedule of cooking demonstrations, Tasting Pavilion, and educational sessions, can be found at www.nwfoodshow.com. 

This event is only accessible to restaurant and foodservice industry-related businesses and is not open to the public.  
 
Media passes for the show are available upon request; contact Trey Carscadon at 503.201.4669.  

SB 1528B negates state income tax relief for Oregon’s small businesses
  
The following business groups today expressed their disappointment in Gov. Kate Brown’s signing of Senate Bill 1528, which increases taxes on small business by more than $1 billion over six years. Statements follow.
 
Associated Oregon Loggers
Oregon-Columbia Chapter of Associated General Contractors
Oregon Farm Bureau Federation
Oregonians for Food & Shelter
Oregon Power Sports Association
Oregon Restaurant & Lodging Association
Oregon Seed Council
Oregon Small Woodlands Association
Oregon State Association of Plumbing-Heating-Cooling Contractors
Oregon Vehicle Dealers Association
National Association of Insurance and Financial Advisors-Oregon
NFIB/Oregon
Northwest Auto Trades Association
 
Jason Brandt, President & CEO for the Oregon Restaurant & Lodging Association:
“As Oregonians running restaurants and lodging establishments continue to assess their tax liability under the new federal reforms, one thing is painfully clear – there will be no state income tax relief for Oregon’s small businesses. Oregon had an opportunity to replicate and amplify the successes of federal tax reform by connecting to the new 20 percent deduction on pass-through business income – which would have happened automatically, without passing a single bill this year. This is a very unwelcome and disappointing development. Raising revenue should require a supermajority vote of Oregon’s legislature. ORLA will be actively involved in campaign activity this summer and fall to give Oregonians the opportunity to vote for an end to easy tax hikes.”
 
Anthony Smith, Oregon state director for the National Federation of Independent Business:
“Lower taxes mean more opportunities for entrepreneurs to make investments in their businesses, their communities, and their employees. NFIB remains committed to preserving every possible benefit from federal tax reform because the Tax Cuts and Jobs Act has led to a significant surge in Small Business Optimism across the nation, reaching some of the highest levels on record. Unfortunately, Oregon has chosen a different path. Today’s signing of SB 1528 marks a significant step backwards for our state’s entrepreneurs.
 
Cathi Webb, Executive Director for the Northwest Auto Trades Association:
“It’s sad to see Oregon moving in the wrong direction. We were once a leader in recognizing the importance of providing tax relief to our homegrown, main street businesses. Now, Congress and the White House have raised the bar with an inclusive policy that lowers taxes for nearly every S-corp, partnership, LLC, and sole proprietorship. We could have done the same. We didn’t.”
 
Jonathan Sandau, State Government Affairs for the Oregon Farm Bureau Federation:
“The state’s decision to decouple from the federal tax code jeopardizes our local farmers’ economic competitiveness by blocking the full benefits that could have been realized from federal tax reform. By keeping those dollars on the farm, Oregon’s small farming and ranching families had an opportunity to engage on a level playing field to provide healthy, responsibly grown food to our local markets.”
 
Jim Geisinger, Executive Vice President for Associated Oregon Loggers:
“The state asks small businesses to pay more and more of the state’s obligations while making it more and more difficult to make a buck to tax! They can’t have it both ways!”
 
Roger Beyer, Executive Director for the Oregon Seed Council:
“For Oregon’s family owned farms this is a real blow. Unlike many other businesses, farms cannot pick up and leave the state if it is unprofitable to continue doing business. The state has increased the cost of producing seed significantly in recent years and today, the Governor showed us where her loyalties lie. This was a missed opportunity for Oregon.”
 
Background
According to the non-partisan Legislative Revenue Office, SB 1528B raises $244.4 million in 2017-19, $376.7 million in 2019-21, & $427.4 million in 2021-23, a total of more than $1 billion in additional revenue that was not part of the most recent state revenue forecast.
 
The U.S. Small Business Administration reports that Oregon has over 350,000 small businesses, accounting for 99.4 percent of all businesses in the state and employing more than half of the state’s private sector workforce. The median income for individuals self-employed at their own incorporated businesses was $44,147 in 2015. For individuals self-employed at their own unincorporated firms, this figure was $20,672, including all income sources.

About the Oregon Restaurant & Lodging Association
The Oregon Restaurant & Lodging Association serves to protect and promote Oregon’s hospitality industry, representing approximately 2,500 members, and advocating for over 9,900 foodservice locations and 2,200 lodging establishments across the state. The foodservice and lodging industry is responsible for 173,700 jobs bringing in over $10.8 billion in annual sales and generates over 54% of the annual tourism dollars spent in Oregon.

About the National Federation of Independent Business
Celebrating its 75th anniversary, the National Federation of Independent Business has taken the message from Main Street to the halls of Congress and all 50 state legislatures since 1943. NFIB annually surveys its members on state and federal issues vital to their survival as America's economic engine and biggest creator of jobs. NFIB’s educational mission is to remind policymakers that small businesses are not smaller versions of bigger businesses; they have very different challenges and priorities. 

If you have questions or concerns, contact Jason Brandt, President and CEO, Oregon Restaurant & Lodging Association, 503.682.4422, JBrandt@OregonRLA.org.

UPDATE June 27, 2018 - Employers are once again allowed to expand tip pools and share tips among a broader range of employees including back-of-the-house employees. ​Although the Supreme Court denied our certiorari petition in the National Restaurant Association et al v. U.S. Department of Labor et al case, the decision leaves in place a lower court ruling affirming the tip rule’s legality.

> Download ORLA's Tip Pooling info sheet
​
A federal spending bill passed March 23rd abolished a 2011 federal regulation that prohibited tip pooling in all circumstances with non-customarily tipped employees. Employers are once again allowed to expand tip pools and share the tips among a broader range of employees in states where employers don’t take a tip credit. This change now allows tip sharing among both customarily and non-customarily tipped employees, including dishwashers and cooks.

However, there is one area still of concern to our industry, the words “supervisor” and “manager” were not defined in this spending bill. A number of industry members have hybrid approaches to their service positions. Supervisors and managers in some of Oregon’s smallest restaurant operations commonly serve guests and have participated in front-of-the-house tip pools as a part of a team approach to foodservice.

The Department of Labor (DOL) is moving forward with the process to roll-back the Obama-era rule with its recent release of a Field Assistance Bulletin (FAB), which provides our industry with much needed clarity. The FAB instructs employers to use the “duties test” to determine who qualifies as a supervisor or manager, and establish tip pool eligibility. Essentially, if an employee earns most of their pay through tips, but also has a limited supervisory role, they are still allowed to participate in a tip pool. 

Given the ambiguity from DOL, tip pooling policies should be carefully reviewed with counsel before implementation to insure compliance with all applicable requirements.  

​News/Resources:

• WHD Field Assistance Bulletin 2018-3
• Service Charge Guidance, ORLA 
• Tip Pooling Options to Consider, ORLA
• Tip Pooling With Back-Of-House Is IN (in Most States); Manager and Supervisor Tip-Sharing Is OUT, Davis Wright Tremaine, April 2018
• Tip Pool Victory Bridges Heart-Of-House Wage Gap in Restaurant Industry, ORLA, March 2018
• DOL Plans to Rescind the 2011 Restrictions, Jason Brandt, ORLA
• Tip-Pooling Restrictions Slated To Be Rescinded, Fisher Phillips
• NRA Law Center, Tip Pooling Lawsuit, National Restaurant Association
• Restaurant Law Center Takes the Fight to the Courts, The Hill, Jan. 2017
• Rehearing Denied on Challenge to DOL Tip-Pooling Rule, Bloomberg BNA, Sept. 2016

For additional questions, contact Greg Astley, Director of Government Affairs, at 503.682.4422.

Rollout complete in approximately 8,500 restaurants, including Portland concluding with the rest of participating U.S. restaurants by May

Today, McDonald’s USA announced that fresh beef, cooked right when ordered, in all Quarter Pounder and Signature Crafted Recipe burgers is now available across approximately 8,000 restaurants in select markets including Portland and is on track for rollout to all participating restaurants in the contiguous U.S. by early May*.
 
The move to fresh beef quarter-pound burgers is the latest in McDonald’s food journey to build a better McDonald’s. It’s also one of the latest customer-led initiatives in the U.S. that builds on several other recent milestones, including All Day Breakfast, committing to only sourcing cage-free eggs by 2025 in the U.S. and serving chicken not treated with human antibiotics**.

“The switch to fresh beef quarter-pound burgers is the most significant change to our system and restaurant operations since All Day Breakfast,” said McDonald’s USA President Chris Kempczinski. “Over the past two years, we have been listening to our customers and evolving our business to build a better McDonald’s. We are proud to bring our customers a hotter and juicier quarter-pound burger at the speed and convenience they expect from us.”
 
In March 2017, McDonald’s USA announced the switch to fresh beef, cooked right when ordered, quarter-pound burgers as a part of a broader commitment to bring customers more craveable and delicious food offerings. Over the next month, the company will be rapidly completing the transition to fresh beef quarter-pound burgers, cooked right when ordered, with full rollout to participating restaurants by early May. 
 
The test markets in Dallas and Tulsa found customers love the hotter and juicier*** fresh beef quarter-pound burgers – the company saw 90 percent customer satisfaction from customers who order the burgers, and 90 percent intent to repurchase.
 
“We know our food is what matters most to customers, and we’re excited to serve fresh beef, cooked right when ordered, in our Quarter Pounder burgers at Northwest restaurants,” said Val Hadwin, McDonald’s Owner Operator. “Customers now have more reasons to enjoy their favorite burgers at the speed, value and convenience of McDonald’s.
 
All McDonald’s fresh beef quarter-pound burgers use 100 percent beef with absolutely no fillers, additives or preservatives. Quarter-pound burgers include the Quarter Pounder with Cheese®, Double Quarter Pounder with Cheese® and Signature Crafted Recipe® burgers.

* Not available in Alaska, Hawaii or US Territories.
** Farmers still use ionophores, a class of antibiotics that are not prescribed to people, to keep chickens healthy. 
*** Compared to prior ¼ lb. beef patty.
 
About McDonald's of Oregon and SW Washington
McDonald’s of Oregon and SW Washington is comprised of 183 franchised restaurants owned and operated by 35 local owner/operators. For more information visit www.mcdonalds.com, or follow us on Twitter (@McDonaldsNW) for updates on our business, promotions and products. Download our app at McD.to/GetApp.

Oregon restaurants can now share tips with heart-of-the-house employees
 
A federal spending bill passed March 23 abolished a 2011 federal regulation that prohibited tip pooling in all circumstances with non-customarily tipped employees. Now, employers are once again allowed the opportunity to expand tip pools and share the tips among a broader range of employees in states where employers don’t take a tip credit.
 
This change now allows tip sharing among both customarily and non-customarily tipped employees, including dishwashers and cooks.
 
The new legislation also makes it clear that tips belong to the workers who receive them and that owners, managers and supervisors are prohibited from sharing in tip pools.
 
“We believe team environments within restaurants lead to customer satisfaction and business success,” said Jason Brandt, president & CEO of the Oregon Restaurant & Lodging Association (ORLA). “Last week’s congressional action affirms what our industry knows to be true – the dining experience is made possible by wait staff, cooks, bussers, dishwashers and other hard-working employees who now have the opportunity to share in the success of great customer service through the sharing of tips.”
 
The association looks forward to receiving further guidance and clarification from the U.S. Department of Labor.
 
To learn more, read Key Issue: Tip Pooling Updates.

11 Schools Competed in Oregon Restaurant & Lodging Association Education Foundation’s Statewide Competition Showcasing the Hospitality Industry’s Future Chefs and Innovators
 
The challenge for the student chefs in the culinary competition was to prepare a three-course gourmet meal with only two butane burners in under an hour. Willamette High School pulled this off with excellence, winning top honors in the culinary competition at the ORLAEF ProStart Invitational, sponsored by Sysco. Bend High School took champion title in the management competition where students developed and presented a new restaurant concept to judges from industry and post-secondary education. The event was hosted by the Education Foundation of the Oregon Restaurant & Lodging Association (ORLAEF) on March 18, 2018 in Salem, Oregon.
 
ProStart, one of the nation’s largest industry-supported career and technical education (CTE) programs, teaches high school students culinary and management skills needed by restaurant, hospitality, and foodservice employers. Focused on culinary techniques and restaurant management skills, this competency-based curriculum also includes real-life restaurant experiences. The ORLAEF ProStart Invitational is the capstone of this two-year program, providing a public opportunity for students to showcase what they have learned. Top competitors in the event receive a share of over $675,000 in scholarships and prizes from local and national culinary schools to help further their careers in the restaurant and foodservice industry. 

“Sysco Portland is proud to partner with ORLAEF in support of ProStart,” said Bobbie McDonald, Vice President of Merchandising & Marketing at Sysco Portland. "These young culinarians from our state are building skills that are foundational to their careers in the hospitality industry. We applaud their enthusiasm and can’t wait to serve them in the future.”
 
Final results for the culinary competition:

• First Place – Willamette High School
• Second Place – Bend High School
• Third Place – McMinnville High School​

Final results for the management competition:

• First Place – Bend High School
• Second Place – South Salem High School
• Third Place – McMinnville High School

Additional awards presented at the event:

• Foster Farms Student of the Year – Cole Barnhardt, Willamette High School
• Teacher of the Year – Sheri Carson, Roseburg High School
• Mentor of the Year – Doug MacFarland, Brasada Ranch, Crook County High School

 
“The atmosphere at this event was electric,” said Wendy Popkin, executive director of ORLAEF. “The ProStart program does a remarkable job preparing high school students with fundamental skills such as communication, teamwork, time management and professionalism needed to enter the workforce.” 
 
The teams from Bend High School and Willamette High School will head to the 2018 National ProStart Invitational® April 27-29, 2017, in Providence, RI.  Contact Popkin for information about how you can support local Oregon students on their journey to the national competition.
 
Currently 38 Oregon schools, with more than 3,000 students participate in the ProStart training program. Internationally, ProStart includes 137,300 students in 1,768 schools and technical centers across the United States, Guam, Europe, and Asia.
 
About ORLAEF
 
As the philanthropic foundation of the Oregon Restaurant & Lodging Association, ORLAEF supports and promotes diverse career, educational, and public service opportunities within the hospitality industry to create a vibrant industry that contributes to Oregon’s economic livelihood and its citizens’ quality of life. Oregon’s restaurant and foodservice industry is comprised of over 9,900 foodservice locations and has a total economic impact of $10.8 billion - making it the cornerstone of the economy and one of the state’s largest employers.

2018 ORLAEF ProStart Invitational – Participating Schools
 
Culinary Competition

• Bend High School
• Crook County High School
• Grants Pass High School
• McMinnville High School
• McNary High School
• Mountain View High School
• North Salem High School
• Roseburg High School
• Willamette High School

 
Management Competition

• Bend High School
• McMinnville High School
• Pendleton High School
  
• South Salem High School
• Willamette High School
  

View photos from event on Flickr.

79th Legislative Assembly Garnered Real Outcomes

The “short” Oregon Legislative session officially ended March 3, 2018. The Government Affairs team at ORLA worked diligently to pass several pieces of good legislation and prevent more damaging laws from passing. Working collaboratively with other groups and organizations, some of whom we have not partnered with before, ORLA finished up a very successful short session on behalf of our industry partners.

Here is an update on a few of the bills ORLA was working on and tracking:

HB 4120A – Relating To Short-Term Intermediary Lodging Tax Payments
In 2003, the Tourism Investment Program (HB 2267) was adopted, establishing the statutory framework for the transient lodging tax program. Third-party intermediaries have always played a role in short-term lodging and that role has increased as new short-term lodging models emerged in the marketplace and consumers more frequently turned to multiple online platforms to compare prices and make their vacation plans.

In 2013, we believe the Legislature passed bills intending to treat short-term rental intermediaries the same as traditional hotels, motels and other lodging establishments who pay the transient lodging tax to the state, counties and cities.

Unfortunately, some of these third-party short-term rental intermediaries have refused to pay taxes unless a voluntary collection agreement is signed and even then, the agreement stipulates no sharing of data between the short-term rental intermediary and the city or county. Cannon Beach recently rejected a voluntary collection agreement due to a lack of transparency and the inability to properly audit, thereby ensuring they were receiving the correct amount of transient lodging tax. 

The need to statutorily clarify that short-term rental intermediaries are responsible for collecting and remitting the transient lodging taxes was reinforced in 2016 by the HB 4146 Work Group and as a result, HB 2049 was introduced in the 2017 session. 

This session, ORLA worked with the League of Oregon Cities and State Representative Pam Marsh (D–Ashland) to help introduce HB 4120A, which requires short-term intermediaries like Airbnb to collect lodging taxes when they’re already collecting the lodging stay payment. After passing out of committee, HB 4120A was supported widely through a bipartisan vote (52-8) in the State House of Representatives. The bill then moved over to the Senate and to the Senate Finance and Revenue Committee where State Senator Mark Hass (D-Beaverton) led the committee in support of a 5-0 vote recommending passage to the rest of the Senate. Another member of the Senate Committee, State Senator Alan DeBoer (R-Ashland), carried the bill on the Senate floor to a 26-1 vote for a major hospitality win. The bill is now headed to the Governor’s desk for signing.

HB 4088 – Relating To Music Licensing
ORLA, working in partnership with the Oregon Winegrowers and with the support of music licensing company BMI, introduced HB 4088 to help regulate how music licensing companies can engage lodging and restaurant operators about the playing and/or performing of copyrighted music.

The bill prohibits certain activities by, and specifies additional duties for, performing rights societies in notifying business proprietors concerning proprietors' duties with respect to performing copyrighted musical works and in negotiating contracts for paying royalties for performing copyrighted musical works.

Essentially, the bill states:

A performing rights society may not enter into, or offer to enter into, a contract under the terms of which a proprietor must pay royalties unless the performing rights society, at least 72 hours before entering into the contract, provides to the proprietor or an employee of the proprietor:

(a) Information, at the proprietor’s request, as to whether specific copyrighted musical works are in the repertoire of the performing rights society;
(b) An opportunity to review, electronically and free of charge, the most current available list of the performing rights society’s members or affiliates, and the most current available list of the musical works that the performing rights society licenses, in a format that the proprietor can search by title, publisher and performing artist; and
(c) A schedule of rates and terms under which the performing rights society will collect royalties under the contract, including the terms of any sliding scale or schedule for any increase or decrease of the rates for the duration of the contract.
 
Further, a performing rights society or any agent or employee of a performing rights society may not:

(1) Enter onto the premises of a proprietor’s business to discuss or inquire about a contract under which the proprietor will pay royalties without first:
(a) Providing identification to the proprietor or the proprietor’s employees; and
(b) Specifying the purpose of the entry;
(2) Use abusive, profane or obscene language when communicating with a proprietor or the proprietor’s employees;
(3) Communicate with a proprietor or the proprietor’s employees in person or by telephone in locations or at times other than in the proprietor’s place of business during regular business hours unless the proprietor’s place of business is not open to the public and the proprietor or an employee, agent or representative of the proprietor agrees to communicate in a different location or at a different time;
(4) Communicate with a proprietor or the proprietor’s employees after receiving notice from the proprietor’s attorney that the performing rights society or an agent or employee of the performing rights society must address communications to the proprietor’s attorney, except that a performing rights society or an agent or employee of the performing rights society may communicate directly with the proprietor or the proprietor’s employees if the attorney fails to respond to communications for a period of 60 days or more;
(5) Engage in any coercive conduct, act or practice that is substantially disruptive to a proprietor’s
business;
(6) Use or attempt to use any unfair or deceptive act or practice in negotiating with a proprietor
 
The bill was passed out of the House Business and Labor Committee and was carried on the House floor by State Representative Denyc Boles (R-Salem), passing 59-0 with one excused. On the Senate side, after passing out of the Senate Business and Transportation Committee, it was carried by State Senator Rod Monroe (D-Portland). It then passed the Senate 29-0 with one excused. The bill is now awaiting a signature by the Governor.
 
HB 4054 A – Relating to the Removal of Personal Property (i.e., homeless camps)
Although not a partner on this bill, ORLA was supportive of its passage. 

The bill which specifically allows the Department of Transportation to enter into an intergovernmental agreement with cities with a population of 500,000 or greater (i.e., Portland) creates an avenue for the city to continue their important work in cleaning up homeless camps regardless of whether the land is owned by the city or state.

The bill cuts down the number of days from 22 to 2 for notification purposes.

This bill passed 58-0 in the House with two excused and 27-0 in the Senate with three excused. It is now headed to the Governor’s desk for signing.