Lori Little of Oregon Restaurant & Lodging Association Graduates from Institute for Organization Management
A Leadership Training Program Produced by the U.S. Chamber of Commerce Foundation
[July 27, 2017 - Wilsonville, OR] – Institute for Organization Management, the professional development program of the U.S. Chamber of Commerce Foundation, is pleased to announce that Lori Little, IOM, Director of Communications for the Oregon Restaurant & Lodging Association, has graduated from the program and has received the recognition of IOM. Awarded to all graduates of the Institute program, the IOM Graduate Recognition signifies the individual’s completion of 96 hours of course instruction in nonprofit management. In addition, participants can earn credit hours toward the Certified Chamber Executive (CCE) or Certified Association Executive (CAE) certifications. Nearly 1,000 individuals attend Institute annually.
“Institute graduates are recognized across the country as leaders in their industries and organizations,” said Raymond P. Towle, IOM, CAE, the U.S. Chamber Foundation’s vice president of Institute for Organization Management. “These individuals have the knowledge, skills, and dedication necessary to achieve professional and organizational success in the dynamic association and chamber industries.”
Since its commencement in 1921, the Institute program has been educating tens of thousands of association, chamber, and other nonprofit leaders on how to build stronger organizations, better serve their members and become strong business advocates. Through a combination of required courses and electives in areas such as leadership, advocacy, marketing, finance, and membership, Institute participants are able to enhance their own organizational management skills and add new fuel to their organizations, making them run more efficiently and effectively.
Institute for Organization Management is the professional development program of the U.S. Chamber of Commerce Foundation. It is the premier nonprofit professional development program for association and chamber professionals, fostering individual growth through interactive learning and networking opportunities.
The Oregon Restaurant & Lodging Association is the leading business association for the foodservice and lodging industry in Oregon, which is comprised of over 9,000 foodservice locations and 2,200 lodging establishments with a workforce of 164,800, and a total economic impact of $8 billion - making it the cornerstone of the economy, career opportunities and community involvement. The association works to advocate, protect, train and promote the foodservice and lodging industry.
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.
The regional government is now 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.
Read more in the Portland Tribune.
NRA filed a supplemental brief with SCOTUS, reinforcing Tenth Circuit’s ruling “conflicts directly” with Ninth Circuit decision on tip pooling
UPDATE August 2, 2017: The National Restaurant Association filed a supplemental brief reinforcing the Tenth Circuit Court’s decision invalidating barring employers from including non-tipped workers in tip pools. The Tenth Circuit’s ruling explicitly rebuked the earlier decision out of the Ninth Circuit, with the Tenth Circuit panel saying that the US Department of Labor exceeded its authority by issuing the rule and that restaurants didn’t owe workers tips that never belonged to them. In a brief on Wednesday, the National Restaurant Association and the other groups said the Tenth Circuit’s ruling “conflicts directly” with the Ninth Circuit decision at issue and underscores the need for the US Supreme Court to intervene, review and issue a final ruling.
On July 20, 2017 it was announced that the U.S. Department of Labor intended to issue a Notice of Proposed Rulemaking in August to rescind the current restrictions on tip pooling by employers. "The announcement this week by the DOL is an absolute game changer," said Jason Brandt, President & CEO of ORLA. “This is a welcome relief to Oregon employers in the hospitality industry who have been handcuffed by a 2016 appellate court decision barring them from utilizing tip pools.”
Additionally, the Department of Labor and the Department of Justice have asked for another extension in the legal case challenging the tip pooling regulation and now have until September 8, 2017. ORLA, along with the National Restaurant Association and others, filed a Cert Petition asking the U.S. Supreme Court to hear the case. Our hope is that the Supreme Court will still hear the case in order to prevent any future administration from reissuing such a rule and to address concerns regarding retroactive liability for our members from private lawsuits for the period the rule was purportedly in place.
The DOL's agenda reflects an agency’s intentions to act in the next 12 months, and is subject to change. Continued caution with respect to tip pooling policies is advised until a final ruling is decided. Read more from Fisher Phillips.
On June 30, 2017 the U.S. Court of Appeals for the Tenth Circuit ruled tips belong to the employer, who can presumably either keep them or distribute them in whole or part to employees as it sees fit. This directly conflicts with the Ninth Circuit’s decision last year in Oregon Restaurant and Lodging Ass’n v. Perez, (9th Cir. 2016), pet for cert. filed, (Jan. 19, 2017) and likely sets up a showdown this fall in the U.S. Supreme Court.
On January 19, 2017, the NRA's Restaurant Law Center filed a Cert Petition asking the U.S. Supreme Court to hear a case, National Restaurant Association, et al. v. U.S. Department of Labor, brought by the National Restaurant Association (NRA), the Oregon Restaurant & Lodging Association (ORLA), the Alaska Cabaret, Hotel, Restaurant and Retailers Association, and the Washington Hospitality Association. The case challenges the Department of Labor’s anti tip pooling stance that prevents cooks and dishwashers from receiving tips.
Tip Pooling Options to Consider:
Tipped employees are those who customarily and regularly receive more than $30 per month in tips. Tips are the property of the employee; only tips actually received by the employee may be counted in determining whether the employee is a tipped employee. The requirement that an employee must retain all tips does not preclude a valid tip pooling or sharing arrangement among employees who customarily and regularly receive tips. Learn more in the Fair Labor Standards Act (FLSA).
Given the current uncertainty regarding a final decision from the Court on tip pooling in Oregon, ORLA recommends consideration of the following options.
1. Eliminate tip pooling with BOH employees immediately.
By immediately reverting to tip pools that only include “customarily and regularly tipped employees” restaurateurs are choosing to avoid any additional liability that could be brought forward by a private lawsuit.
UPSIDE: Protecting yourself from any private claims instigated by employees against your restaurant who feel their tips are now being pooled unlawfully. Only you can determine the real risk being avoided here.
DOWNSIDE: If the case is heard by the Supreme Court and ruled in our favor, tip pooling with BOH employees would remain legal. If that happens and you have already changed your policy to eliminate BOH tip pooling, then it may be more difficult to change the policy yet again to the original policy you had in place before the most recent ruling.
2. Keep tip pooling in place with BOH employees until ORLA hears from the U.S. Supreme Court.
Because the Ninth Circuit Court denied our rehearing and a motion for a stay was granted, you have until at least December 5 to comply with the Department of Labor rules regarding tip pooling. Our stay remains in effect until we hear from the Supreme Court. This means you have until the mandate is lifted to fully comply with the rules and eliminate BOH involvement.
UPSIDE: You have time to inform, educate and put into practice a new tip pooling system that does not include BOH employees.
DOWNSIDE: A private claim could be instigated by employees against your restaurant who feel their tips are now being pooled unlawfully. Only you can determine the extent of that risk.
3. Eliminate tips altogether.
UPSIDE: Tipping continues to invite litigation in the court system. Replacing tipping with service charges and/or menu price increases and moving to more standardized wages across the entire restaurant operation provides a compensation model less likely to draw challenges from lawyers or organized labor.
DOWNSIDE: Oregonians are
accustomed to tipping and may be displeased with mandatory service charges. In addition, front-of-the-house workers could feel demoralized and frustrated by this different approach that results in less pay overall.
4. Consider alternative ways to share tips.
Examples include adding a kitchen gratuity line to checks or using a tip jar (if the jar stipulates that the tips are for all employees - or shared amongst all employees).
UPSIDE: Restaurateurs can give their customers a choice about whether the tip that they provide goes only to the server, or if they want the tip (or a portion of) to go to the kitchen staff.
DOWNSIDE: Customers are not accustomed to seeing more than one tip line on a check and may feel obligated to add more than they are comfortable with.
Q: What if my servers decide they want to voluntarily tip-out to the BOH employees? Is that allowed?
A: Yes, voluntary tipping-out is allowed. To protect your restaurant however, ORLA recommends servers be asked to provide management with a signed note or letter created by the server stating they are voluntarily tipping out to BOH employees. As a side note, voluntary tip pools are frequently under scrutiny and challenged as not being truly voluntary. A signed document alone will not ensure that someone cannot still challenge that type of tip-out as involuntary.
For additional questions, contact Greg Astley, Director of Government Affairs, at 503.682.4422.
July 20, 2017 - DOL intends to issue a Notice of Proposed Rulemaking to rescind the current restrictions on tip pooling by employers. SCOTUS granted DOL an extension through September 8, 2017.
May 3, 2017 - SCOTUS issued an Order, further extending DOL's timeline through July 10, 2017.
Mar. 2017 - SCOTUS granted DOL an extension through May 11, 2017.
Jan. 2017 - We submitted a petition for rehearing to the U.S. Supreme Court.
Sept. 2016 - The 9th Circuit denied our petition for a rehearing, however, 10 judges issued a blistering dissent.
Feb. 2016 - The 9th Circuit reversed their position and ruled in favor of the DOL, ignoring their own precedent in the Woody Woo case.
2013 - We won again in federal district court.
2010 - We won a decisive victory on this issue in Cumbie v. Woody Woo Inc., before the 9th Circuit Court of Appeals.
ORLA Advocacy: Promoting and Advocating for Tourism Investment Plans
ORLA helped protect lodging tax revenues by opposing legislative bills that would have allowed cities to use these revenues for purposes other than intended. Read more on the 2017 Legislative Session update.
HB 2267, from Oregon’s 2003 Legislative Session, was designed to raise revenue for the promotion of tourism in Oregon. First, the bill instituted a 1 percent statewide lodging tax on all lodging properties in Oregon. This money was dedicated to the promotion of tourism through Travel Oregon, acting as Oregon’s tourism department. Second, the bill required any local governments with a lodging tax in place to determine what percentage was currently being used for tourism promotion and maintain at least that level in the future. The percentage is not allowed to decrease. The bill also required any local government that institutes a local lodging tax in the future to use at least 70 percent of the new revenue for tourism promotion. No more than 30 percent of the new revenue can be used for general funds or other non-tourism functions.
The Oregon Restaurant & Lodging Association worked with Local governments to clarify collection laws around Online Travel Companies. This should bring in millions of dollars more annually for tourism promotion.
ORLA is also involved in efforts to attract events to Oregon that bring visitors and promote the state. Some examples in recent history were helping to pass legislation that added money to improve college athletic programs and allowing for NCAA March Madness games to be played in Oregon, and protecting tax credit programs that bring film and video production to Oregon.
ORLA must ensure that these state statutes remain in place. Any lodging taxes, state or local, need to bring travelers and businesses to Oregon. All retail businesses profit from increased travel; additionally, local government must be encouraged to keep promotional dollars directed to these efforts. Finally, there are always opportunities to attract more events like feature films, major sporting events, concert venues, and wine tours that benefit the industry as a whole. ORLA will work to enhance these efforts, which bring people to Oregon and encourage Oregonians to travel more in and around the state.
Oregon Restaurant & Lodging Association supports current laws that protect lodging tax dollars going to tourism promotion and tax credits that encourage film and video attraction to Oregon. ORLA believes in protecting the dedicated tourism funds to ensure they continue to be allocated to tourism promotion at the state and local levels. This effort will benefit all retail businesses and local economies throughout our state.