​Residents Should Have Say on Sales Tax on Meals

FOR IMMEDIATE RELEASE: July 12, 2021

Contact:
Greg Astley, Director of Government Affairs, ORLA     
503.851.1330 | astley@oregonrla.org

Wilsonville, OR– The Cannon Beach City Council voted to approve a 5% sales tax on meals by a 3-2 vote, leading to a second reading on July 14th, 2021, to either ratify the sales tax or, if it fails, open the door for the City Council to place a measure on the ballot this November. The Oregon Restaurant & Lodging Association (ORLA) opposes the sales tax on meals in Cannon Beach and believes the residents of Cannon Beach deserve to have their voices heard.

“It’s unconscionable Cannon Beach City Council would even think about enacting a sales tax on restaurants after the last 16 months our industry has suffered through but it’s especially troubling they would choose to do so without asking for a vote of the people,” said Greg Astley, Director of Government Affairs for ORLA. “The restaurants fortunate enough to survive the wildfires, ice storms and global pandemic we’ve been through are still struggling to hire enough people to fully re-open and try to recover from their significant financial losses.”

Astley continued, “Although one City Councilor claimed residents would not be affected by the tax and therefore the sales tax on meals should not go to a vote of the people, nothing could be further from the truth. Residents will pay the sales tax on meals every time they go out to eat with friends and family unless they choose to stop patronizing local restaurants in favor of establishments outside the city limits.”

Beyond the obvious unfairness of asking one industry to shoulder the burden of paying for services everyone will benefit from, ORLA has outlined several other reasons why voters should be allowed to weigh in on a sales tax on meals:

• A Sales Tax on Meals Takes Money from Hard Working Restaurant Workers -
  Restaurant workers compete for tip income when taxes appear on receipts. After a year of COVID-19, it is immoral to take household income from frontline workers trying to put food on the table for their families. 
• Restaurants Make on Average 3-5% on Sales -
  A 5% sales tax on meals would result in the City of Cannon Beach making as much money or even more money than the businesses themselves. 
• Administrative Fees Kept by Restaurants Would Not Cover Increased Administrative Costs -
  A new sales tax on meals in Cannon Beach would result in overhauls of payment processing systems as well as ongoing administrative duties. A local restaurant location could expect to pay over $10,000 to upgrade their system and manage recurring tax collection responsibilities. These are costs and managerial duties which will directly result in more industry suffering after 16 months of Covid-19 and higher prices as restaurants will need to pass along these costs to customers.
• There is a Full-Blown Worker Crisis Crippling Local Restaurants -
  Cannon Beach is currently suffering from reduced hours of operation for a number of local restaurants due to a severe workforce shortage. The problem is expected to grow which will most likely impact the consistency and reliability of any new sales tax on meals collected by restaurants.
• Any Time Taxes are Increased, There is a Corresponding Decrease in Sales -
  Increasing taxes drives away sales, which not only reduces collections of the sales tax, but ultimately property and income taxes as well. 
• Unlike Other Solutions, a Meals Tax is a Financially Fragile Fix -
  Restaurant sales tend to plummet during economic downturns, thus becoming an unreliable funding source for the city.

Astley concluded, “At the very least, the people of Cannon Beach deserve to vote up or down on this sales tax on meals. An even better solution for the City of Cannon Beach would be to consider an Economic Improvement District or similar mechanism where the burden of raising revenue falls more broadly than on just the struggling local restaurants.” 

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The Oregon Restaurant & Lodging Association is the leading business association for the foodservice and lodging industry in Oregon, which before COVID-19 provided over 180,000 paychecks to working Oregonians. 

Blueprint includes funded and unfunded tools to accelerate the industry’s economic recovery 

Washington, D.C. (May 26, 2021) - The National Restaurant Association today sent a State and Local Blueprint for Rebuilding to the National Governors Association, the United States Conference of Mayors, and the National Council of State Legislators, encouraging their members keep the restaurant industry at the forefront of their conversations about how to accelerate the recovery of their economies. 

“State and local lawmakers have the power to make a real difference in their local industry’s recovery,” said Mike Whatley vice president for State Affairs and Grassroots Advocacy for the Association. “Decisive action on this proposal would provide critical tools and opportunities for the hardest hit restaurants struggling to find a new normal. They could help address some of our long-term obligations and the recruitment challenge, which we expect will continue into our busiest months later this summer.” 

The Blueprint includes 12 detailed steps lawmakers can take, including: 

• Establishing a state-based restaurant grant fund 
• Protecting vulnerable businesses from unforeseen tax burdens due to federal relief 
• Summer employee recruitment and retention bonus for restaurant & hospitality workers 
• Expanding access to child care for hospitality workers who cannot work from home 
• Permanently expanding outdoor dining 
• Making expanded off-premises alcohol regulations permanent 
• Enact third-party delivery protections for restaurants based upon transparency and permission 

“The Association appreciates the efforts of leaders at the state and local level to work with the restaurant industry throughout the pandemic. Their creativity and commitment to our survival has been vital to the survival of restaurants large and small in every community. As we now begin to rebuild our industry, we encourage all legislative leaders to work with the Association and our 52 state restaurant association partners on ideas to help restaurants thrive once again in the future,” concluded Whatley. 

Read the full letter here. 

For more information about the Association’s advocacy, go to RestaurantsAct.com. 

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About the National Restaurant Association 
Founded in 1919, the National Restaurant Association is the leading business association for the restaurant industry, which comprises 1 million restaurant and foodservice outlets and a workforce of 15.6 million employees. We represent the industry in Washington, D.C., and advocate on its behalf. 

​Hospitality Operators are Encouraged to Help Staff Get Vaccinated 

FOR IMMEDIATE RELEASE: May 11, 2021

Contact:
Greg Astley, Director of Government Affairs, ORLA     
503.851.1330 | astley@oregonrla.org

Wilsonville, OR– Governor Kate Brown’s announcement today that once 70% of the state’s residents 16 and older have received at least one dose of the COVID-19 vaccine she’ll eliminate most statewide restrictions meant to thwart the spread of the disease, is welcome news to Oregon’s hospitality sector.

“Oregon’s hospitality industry has been repeatedly hammered by the openings, closings, and changes to how we can operate over the last 13 months,” said Greg Astley, Director of Government Affairs for ORLA. “Hearing the plan for Oregon’s restaurants to be able to fully reopen and welcome back guests gives hope to those who have remained closed since the beginning of this pandemic and those who have struggled to remain open and keep people employed.”

The Governor’s plan includes the lifting of limits on seating capacity for restaurants, bars, and other venues previously impacted by the risk levels. It also means no counties would remain under the current risk level tiers based on rates of infections.

Physical distancing and face-covering mandates while indoors may still be in place for some time. The Governor has stated she will follow recommendations from the Centers for Disease Control and Prevention as to when face coverings may no longer be required.

“ORLA is encouraging restaurants to help employees find vaccination sites for themselves and their families,” said Astley. “The sooner we can meet the goal of having 70% or more of Oregonians partially vaccinated, the sooner we can open back up our dining spaces and welcome guests back in to share food and make memories with their families and friends.”

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The Oregon Restaurant & Lodging Association is the leading business association for the foodservice and lodging industry in Oregon, which before COVID-19 provided over 180,000 paychecks to working Oregonians. 

Poll shows the vast majority of people are relieved the Governor’s latest indoor dining ban has ended

FOR IMMEDIATE RELEASE: May 7, 2021

Contact:
Greg Astley, Director of Government Affairs, ORLA     
503.851.1330 | astley@oregonrla.org

Wilsonville, OR– A recent poll shows, 88% of Oregonians say they should be able to make their own decision about dining indoors at restaurants as more people become vaccinated. This comes as Gov. Kate Brown ended her ban on indoor dining in 15 counties starting today.

“With Oregonians continuing to get vaccinated each week, my expectation is that we will not return to Extreme Risk again for the duration of this pandemic,” Brown said.

Polling nearly 1,000 Oregonians, between April 26 to May 5, 2021, 88% said they want the option to dine indoors as more than 1 million people have been fully vaccinated in the state. 

“It is clear Oregonians understand what is at stake for their favorite local restaurants,” said Greg Astley, Director of Government Affairs for the Oregon Restaurant & Lodging Association. “We have 88% of survey respondents stating they feel they should have the choice whether to dine inside a restaurant or not right now. The sentiment against indoor dining closures at this stage is clearly reaching a feverish pitch.”

Oregon has already seen more than 1,000 restaurants close because of the pandemic recession. The reopening of indoor dining ahead of the largest sales day of the year – Mother’s Day – will hopefully help some local restaurants continue to survive during this tough time.

“These are the places where you’ve celebrated your birthday, had your first date, and enjoyed Mother’s Day brunch every year. More indoor dining restrictions would result in more permanent closures of these businesses that are part of the fabric of our lives and communities,” said Astley. “Now that everyone older than 16 is eligible, help us move away from future government restrictions by getting vaccinated. And please continue to support local restaurants this Mother’s Day by celebrating at you mom’s favorite place.”

The recent poll we announced today was authored by ORLA and promoted on OregonLive.com.

For more information on the efforts of the Oregon Restaurant & Lodging Association please visit OregonRLA.org. 

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The Oregon Restaurant & Lodging Association is the leading business association for the foodservice and lodging industry in Oregon, which before COVID-19 provided over 180,000 paychecks to working Oregonians. 

The Governor’s announcement ending Extreme Risk in 15 counties will help restaurants at a critical time ahead of Mother’s Day – typically the top sales day of the year.

FOR IMMEDIATE RELEASE: May 5, 2021

Contact:
Jason Brandt, President & CEO, ORLA     
503.302.5060 | jbrandt@oregonrla.org

Wilsonville, OR– Oregon restaurants struggling to survive welcome Gov. Kate Brown’s recent announcement ending the Extreme Risk category for 15 counties, allowing them to resume some indoor dining ahead of their busiest day of the year – Mother’s Day.

On Tuesday, Gov. Brown stuck to her commitment to use statewide metrics announcing that because COVID-19 hospitalization rates have leveled, restaurants and their patrons can return to limited indoor dining starting Friday, May 7. 

“With Oregonians continuing to get vaccinated each week, my expectation is that we will not return to Extreme Risk again for the duration of this pandemic,” Brown said.

This is welcome news to the thousands of local restaurants barely holding on during the pandemic recession.Oregon has seen more than 1,000 restaurants close in the past year.

“With indoor dining coming back online across Oregon, ORLA’s focus now moves to two crucial fronts – supporting efforts to continue relaxing restrictions and finding solutions for lodging and restaurant employers struggling to get their employees back on the schedule,” said Jason Brandt, President & CEO of the Oregon Restaurant & Lodging Association. “The workforce shortage crisis is the challenge of our day outside government restrictions and it’s a national crisis. We look forward to working with our national partners on legislation to turn extended unemployment benefits through September into upfront cash bonuses to accelerate the industry’s recovery.”
 
Restaurant and lodging operations continue to take all necessary precautions to ensure the safety of their employees and customers. Oregon public health officials have confirmed only 3% of the new COVID-19 cases were traced back to restaurants and bars while most of the new cases are attributed to schools. 

“Now that everyone older than 16 is eligible, help us move away from future government restrictions by getting vaccinated. And please continue to support local restaurants this Mother’s Day by celebrating at your mom’s favorite place,” said Brandt.

For more information on the efforts of the Oregon Restaurant & Lodging Association please visit OregonRLA.org. 

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The Oregon Restaurant & Lodging Association is the leading business association for the foodservice and lodging industry in Oregon, which before COVID-19 provided over 180,000 paychecks to working Oregonians. 

Restaurant Operators Remain Baffled by Disproportionate, Inequitable Restrictions 

FOR IMMEDIATE RELEASE: May 3, 2021

Contact:
Jason Brandt, President & CEO, ORLA     
503.302.5060 | jbrandt@oregonrla.org

Wilsonville, OR– This past week, Oregon State Epidemiologist Dr. Dean Sidelinger provided a COVID update to the Oregon Senate Committee on Health Care alongside Oregon Health Authority Director Patrick Allen.

As part of the official testimony, Dr. Sidelinger and Director Allen were asked a series of questions by members of the State Senate serving on the committee. Of particular importance was the answer to a question about environments deemed responsible for increased case counts.

Dr. Sidelinger referenced spread in multiple settings and cited 257 new outbreaks during the course of the past week. He said 30% of cases are attributed to single case outbreaks associated with schools, 12% are attributed to two or more case outbreaks associated with schools, 4.5% of cases are attributed to recreational sports and sports teams, and only 3% are traced back to restaurants and bars. Director Allen also shared 60% of cases are sporadic with no additional information about where they originated.

Testimony continued including a summary statement from Director Allen who stated, “kids going back to school has led to more coronavirus, just not in school. It’s everything around it.”

If restaurants are not a leading cause of spread, owners and operators across the state are baffled why thousands of restaurants in 15 counties have indoor dining bans.

“It is clear from testimony that schools, not restaurants, are driving the overwhelming majority of new COVID cases,” said Jason Brandt, President & CEO of the Oregon Restaurant & Lodging Association. “Nonetheless, restaurants, which are taking the necessary precautions to ensure the safety of their employees and customers dining indoors, are shut down indoors at thousands of locations across 15 counties despite a lack of evidence to suggest they’re the source of spread.  You can’t justify putting thousands of people out of work in an entire sector of the economy when there’s no evidence it’s contributing to the spike in cases. It makes no sense.”

While the Restaurant Revitalization Fund will help some restaurants, the demand and urgency for aid far outpaces the amount of funding available. The Small Business Administration admitted they expect the federal funds to go quickly as restaurants across the country struggle.

For more information on the efforts of the Oregon Restaurant & Lodging Association please visit OregonRLA.org. 

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The Oregon Restaurant & Lodging Association is the leading business association for the foodservice and lodging industry in Oregon, which before COVID-19 provided over 180,000 paychecks to working Oregonians. 

House Vote on Unemployment Insurance Tax Relief Triggers Movement to State Senate

FOR IMMEDIATE RELEASE: April 16, 2021

Contacts:
Greg Astley, Director of Government Affairs, ORLA 
503.851.1330 | astley@OregonRLA.org

Jason Brandt, President & CEO, ORLA
503.302.5060 | jbrandt@oregonrla.org

Wilsonville, OR– The Oregon House of Representatives voted overwhelmingly to move forward with bipartisan legislation which would provide millions in unemployment insurance tax relief for some of Oregon’s hardest hit industries.

House Bill 3389 passed the Oregon House and will now move to the Senate for ongoing deliberation. The bill accomplishes a number of priorities for Oregon’s hospitality industry with the most important component being the removal of 2020 and 2021 employment data from the formula used to determine an employer’s applicable tax rate, starting in 2022.

“We would like thank the leaders who have signed on to support this bill as sponsors and their ongoing work to shepherd it through the legislative process,” said Jason Brandt, President & CEO for the Oregon Restaurant & Lodging Association. “The deferral and forgiveness components could be stronger for this year given the impact of government restrictions on industry employment options. Having said that, the big win will prove to be solving the tax hike problem for years 2022 through 2024.”

Unemployment insurance taxes are paid entirely by Oregon employers to fund Oregon’s Unemployment Insurance Trust Fund which remains the healthiest in the nation. One third of unemployment insurance taxes for 2021 can be deferred for employers with an increased tax rate of half a percent or more. If the employer’s tax rate increased more than 1 percent to 1.5 percent, 50 percent of the deferred tax would be forgiven. For tax rates which increased more than 1.5 percent to 2 percent, 75 percent of the deferred tax would be forgiven. And for employers who had a tax rate increase of more than 2 percent, the full deferred amount would be forgiven.

“We know this legislation if passed has the potential to save hospitality employers tens of millions of dollars this year alone,” said Greg Astley, Director of Government Affairs for the Oregon Restaurant & Lodging Association. “That amount pales in comparison to the real impact of the relief in future years. If we can erase 2020 and 2021 from upcoming calculations as proposed in the legislation, it will have a direct impact on our industry recovery efforts.”

The bipartisan Chief Sponsors of the bill in the house include Representatives Paul Holvey, Daniel Bonham, and John Lively. The bipartisan Chief Sponsors in the State Senate include Senators Bill Hansell and Chuck Riley.

For more information on the efforts of the Oregon Restaurant & Lodging Association please visit OregonRLA.org. 

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The Oregon Restaurant & Lodging Association is the leading business association for the foodservice and lodging industry in Oregon, which before COVID-19 provided over 180,000 paychecks to working Oregonians. 

The tally of restaurant closures grows every month as restrictions continue
 
FOR IMMEDIATE RELEASE: April 12, 2021

Contact:
Greg Astley, Director of Government Affairs, ORLA      
503.851.1330 | astley@OregonRLA.org

Wilsonville, OR– According to CHD Expert, Oregon has lost an additional 190 foodservice locations during March as over a year of lockdowns and restrictions continue to wreak havoc on the state’s hospitality industry.

“We have seen over 200 additional restaurant closures in 2021 on top of the closures experienced in 2020,” said Greg Astley, Director of Government Affairs for the Oregon Restaurant & Lodging Association. “An analysis of data compiled from sources including CHD Expert and active alcohol licenses from the Oregon Liquor Control Commission (OLCC) shows us that we have now experienced a net loss of approximately 600 to 800 permanent closures of restaurants across Oregon.”

CHD Expert data for 2020 shows 1,185 closures of restaurants with 770 openings during the year for a net difference totaling 415 locations. Food service operations serving alcohol have experienced a decrease of 442 locations compared to pre-covid location totals, according to the OLCC.

“Our state leaders in Oregon’s Legislature continue to look for ways to provide assistance to the hard-hit restaurant and lodging sectors,” said Astley. “We would like to recognize State Senators Betsy Johnson and Elizabeth Steiner Hayward for looking at relief options including the creation of a credit to help cover the costs of alcohol licenses for calendar year 2021.”

Read more in a recent OLCC memo to Senators Johnson and Steiner Hayward outlining the costs associated with licensee credits.

“The volatility due to government restrictions in Oregon is clobbering the ability of restaurant owners and managers to provide some scheduling stability for our industry employees,” said Jason Brandt, President & CEO for the Oregon Restaurant & Lodging Association. “We have a perfect storm brewing – growing checking accounts from stimulus funding, increased unemployment benefits for Oregonians, pent up demand for hospitality services from consumers, and frontline workers still pushing through the process of vaccinations. For our consumers out there, please be patient with your favorite local restaurants and lodging establishments. They will continue to do whatever they can within their control to meet your expectations.”

For more information on the efforts of the Oregon Restaurant & Lodging Association please visit OregonRLA.org. 

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The Oregon Restaurant & Lodging Association is the leading business association for the foodservice and lodging industry in Oregon, which before COVID-19 provided over 180,000 paychecks to working Oregonians. 

New ‘Extreme Risk’ Standards Will Result in Indoor Dining Continuity but More Needs to Change
 
FOR IMMEDIATE RELEASE: April 7, 2021

Contact:
Jason Brandt, President & CEO, ORLA      
503.302.5060 | JBrandt@OregonRLA.org      

Wilsonville, OR– The framework for mitigating Covid risk in Oregon across a variety of industries has changed once again with newly established statewide hospitalization metrics among other factors defining Oregon’s new ‘Extreme Risk’ category. As a result, all Oregon counties for the first time in many months will once again have access to indoor dining operations.

“The news this week is bittersweet,” said Jason Brandt, President & CEO of the Oregon Restaurant & Lodging Association. “While five counties moved down in risk (Grant, Malheur, Umatilla, Coos, and Curry), six moved up in risk (Clackamas, Deschutes, Klamath, Linn, Multnomah, and Tillamook) which means moving down from 50% to the dreaded 25% indoor capacity restriction starting Friday, April 9. Anything less than 50% capacity poses ongoing survival challenges for our small businesses.”

In a press release issued by Governor Brown’s office, Oregon’s new extreme risk category includes a new statewide metric: Covid-19 positive patients occupying 300 hospital beds or more, and a 15% increase in the seven-day average over the previous week. As of April 6, Covid-19 related hospitalizations totaled 163 in Oregon.

“We are past due in developing a hospitalization metric as the central tool to determine all county risk levels,” said Brandt. “Over 2 million vaccine doses have been administered in Oregon. The risk associated with each Covid case diminishes with each vaccination and our stringent risk categories have not changed since they were implemented to mitigate the severity of Oregon’s winter surge.”

Concern regarding variants have been commonly cited by health officials as the reason for ongoing economic restrictions as the majority of other states move well past Oregon’s reopening status. According to recent comments by Dr. Dean Sidelinger, initial results show all vaccines to be effective in preventing serious Covid illness even if the virus is still contracted and results in a documented case.

“As we learn about the effectiveness of vaccines in protecting Oregonians against serious illness caused by variants, we should use that crucial information to change the crippling restrictions still being lived out by too many Oregonians,” said Brandt. “After reviewing all the facts, any reasonable person would conclude the vaccines are effective at keeping Oregonians out of the hospital and as a result, our risk metrics and widespread economic restrictions should change accordingly.”

ORLA continues to call for a statewide indoor restaurant capacity of at least 50% including an adoption of physical distancing standards between parties that align with international health guidelines (1 meter or 3.2 feet). 

For more information on the efforts of the Oregon Restaurant & Lodging Association please visit OregonRLA.org. 

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The Oregon Restaurant & Lodging Association is the leading business association for the foodservice and lodging industry in Oregon, which before COVID-19 provided over 180,000 paychecks to working Oregonians. 

DHS considering supplemental H-2B seasonal guest-worker visas

​The Department of Homeland Security is “taking a very close look” at whether to issue supplemental H-2B seasonal guest-worker visas for the coming summer months. H-2B visas are reserved for seasonal jobs outside of the agriculture industry, such as landscaping, resorts, and seafood processing, with demand highest in the spring and summer season.

A recent Cato Institute REPORT entitled, “H-2B Visas: The Complex Process for Nonagricultural Employers to Hire Guest Workers,” correctly concludes that the program is overly complex and burdensome and should be streamlined and reformed to benefit both employers and guest workers alike.

The American Hotel & Lodging Association is part of the H-2B workforce coalition whose focus is on three strategic areas right now:

1. Urging the administration to utilize its authority provided by Congress to issue additional H-2B visas (see attached);
2. Securing similar appropriations language for FY22 that would remove any discretion for the administration (change the word “may” to “shall” issue) and mandate a doubling of the cap;
3. Introduction of bipartisan authorization legislation which would permanently increase the cap while also providing many of the integrity measures being pushed by our opposition (in order to undercut many of their strongest arguments). 

Read the coalition's letter to Secretary Mayorkas on supplemental visas.

Governor Brown Announces Two-Week Extension for Counties Facing Moves Back to Extreme Risk

Today, Governor Brown announced a change to the Extreme Risk category rules impacting counties who move out of Extreme Risk only to face the prospect of entering back into the category two weeks later due to short-term case counts within county boundaries. View the Governor's press release.

“We want to acknowledge the importance of this change and this response to our plea for changes to the 2-week rigmarole being experienced by too many Oregon restaurant workers and their families,” said Jason Brandt, President & CEO for the Oregon Restaurant & Lodging Association. “When we hone in on case counts as more counties enter risk categories that allow for indoor dining, the general public are starting to see firsthand what we have been saying for quite some time – indoor dining can work well and can be embraced while also mitigating virus spread in our communities. Whether our hospitality industry is operating in a low-risk county, extreme risk county, or somewhere in between, small businesses need to know what comes next after the risk categories we’ve been living with for months. Similar to the way our state leaders laid out our plans for vaccine deployment for Oregonians, we hope to learn more soon about when our industry will be given the lifeline they need. And that lifeline has everything to do with clarity about operations beyond the current county by county risk assessment system.”
 
ORLA continues to advocate for a statewide indoor dining policy allowing at least 50% capacity like the vast majority of states across the country followed closely by an elimination of capacity restrictions when every Oregonian who wants a vaccine has access to one.

Contact:
Jason Brandt, President & CEO, ORLA
503.302.5060 | JBrandt@OregonRLA.org

Add Your Video, Get Your Voice Heard

The restaurant industry, more than any other in Oregon and the across the nation, has suffered the most significant sales and job losses since the COVID-19 pandemic began a year ago. State and federal lawmakers want to hear from our restaurant operators and employees about how the pandemic has impacted you and your business, what changes you’ve had to make, and what your outlook is like moving forward.

These are important stories to share and we're helping to ensure they get heard by policymakers.

The National Restaurant Association has created an easy platform for you to record a quick selfie video and share your story. The association will be assembling an advocacy video that illustrates what this industry has endured, why we are not giving up, and what our outlook is moving forward. They will then share the finished video with Congress, policymakers and influencers in Washington. ORLA would also like to share your stories with our state lawmakers.

Please consider adding your voice to this powerful tribute to the hospitality industry.

If you have questions or concerns, you can reach out to your ORLA Regional Representative or contact our Director of Government Affairs, Greg Astley.

Join the National Restaurant Association and the Oregon Restaurant & Lodging Association for a virtual conference on April 20, 2021 

Every spring, the restaurant industry comes together in Washington D.C., to meet with Congress on issues impacting our industry.

The 2021 Public Affairs Conference may look different this year, but it provides the National Restaurant Association and state restaurant associations like ORLA with an opportunity to expand our reach and impact with more attendees and more meetings on Capitol Hill. 

As an industry leader, your attendance is critical to the success of the Conference. With new party leadership in D.C. and our industry suffering from this unprecedented pandemic, our collective voices are needed now more than ever. We have to educate our lawmakers—new and established—on the impact of COVID-19 to our industry and what steps Congress should (or shouldn’t) take to help us survive and then thrive once the pandemic has passed.

Click the Register button below and use the code PAFCMEMBER to receive your member discount. The cost for members is $50 and $75 for non-members.

You will hear from political analysts, industry leaders, and lawmakers on key issues impacting the restaurant industry. If you’ve never attended the conference in the past, this virtual Public Affairs Conference is a great way to get involved for the first time.

If you have any questions, contact ORLA's Director of Government Affairs, Greg Astley.

A Total of 22 of Oregon’s 36 Counties Open for Indoor Dining Friday 

FOR IMMEDIATE RELEASE: February 9, 2021

Contact:
Jason Brandt, President & CEO, ORLA
503.302.5060 | JBrandt@OregonRLA.org

Industry Operator | Dixie Tavern Access:
Dan Lenzen, Co-Owner of Dixie Tavern
503.516.5249 | danl@venturehre.com

Wilsonville, OR– Hundreds of Oregon restaurants will open their doors to indoor dining starting Friday, February 12 as case counts per 100,000 residents drop below the coveted 200 case mark over the course of the previous two weeks in specific counties. As industry suppliers and restaurant owners scramble to safely open for indoor dining, two prevailing issues remain – continuity of restaurant operations and getting employees back on the schedule.

“Today’s announcement represents a significant step in the right direction,” said Jason Brandt, President & CEO for the Oregon Restaurant & Lodging Association. “It’s our job to make sure the Governor’s Office and Oregon’s Legislators understand what we think will happen next because of today’s news. Top on the list are the challenges facing small businesses attempting to manage two weeks of operational certainty at a time which includes finding workers who are trying to pay monthly bills. And we must acknowledge the 14 counties with restaurant operations still trying to survive in the winter with no indoor dining.”

Opening and closing restaurant operations continues to be cited as the number one challenge facing the industry with the biggest issues revolving around worker schedules and forecasting food supply needs in a limited time period once announcements on changes are made.

“It is our job to be there for our workers and we will be doing our best to explain the uncertainty surrounding future work schedules,” said Dan Lenzen, Co-Owner of Dixie Tavern in Portland. “I hope our ability to open indoors represents a turning point allowing us to be open longer than two weeks. To stay in business, we need the ability to safely use some of the space inside our restaurant consistently and provide the jobs that go along with it.”

February 12 appears to represent a key marker in the fight to mitigate virus spread as most Oregonians will now have indoor dining back as an option in their community for the first time in months. Still, restaurant operators in 14 counties continue to rely on Payroll Protection Program funds, limited outdoor operations if available, and takeout/delivery to scrape by. Approximately 38 percent of Oregonians still live in a county where indoor dining is not currently available.

“We continue to be faced with incredible headwinds in the restaurant industry with the ban on indoor dining in Marion County,” said Conrad Venti, Co-Owner of Venti’s Taphouse and Basement Bar. “Every change we have managed as a company has impacted our employees just as much. We have permanently lost several long-term employees, including management, who have chosen to move on to other industries because of the complete instability and continuous changes we’ve had to face in the last year.”

“With recent numbers trending in the right direction I was hopeful we would be inviting our guests and community back in to dine with us, and bringing employees back to work,” said Kevin Boyles, Co-Owner of Sassy Onion Restaurant in Salem. “Being in the extreme risk category while most of the state reopens is even more frustrating knowing my long time customers are able to make a small trip and enjoy a dining experience elsewhere, while my business continues to suffer.”

ORLA is mounting a grassroots effort of industry professionals this week to continue encouraging outreach to Oregon’s Legislators and Governor Brown’s professional staff given the clear divide being experienced in a state with just over half its restaurants open while the others attempt to hold on.

“We know firsthand how difficult it is for Oregon’s restaurant industry to ramp up their businesses two weeks at a time,” said Brandt. “Our goal in facilitating ongoing communication is to provide our elected leaders and their professional staff with the personal stories behind these challenges in hopes of providing more runway and a glide path for work schedules Oregonians can rely on. The easiest way to accommodate this would be to move to a system based on Low, Moderate, and High COVID-19 risk in each county and eliminate the Extreme Risk category altogether. Having three levels of risk instead of four would provide an additional level of flexibility needed as restaurants continue their fight for survival.”

For more information on the efforts of the Oregon Restaurant & Lodging Association please visit OregonRLA.org. 

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The Oregon Restaurant & Lodging Association is the leading business association for the foodservice and lodging industry in Oregon, which before COVID-19 provided over 180,000 paychecks to working Oregonians. According to the Oregon Employment Department’s December data, over 50,000 Oregonians that once had a job in hospitality do not have work available to return to.

Data assessment shows a lack of correlation between economic sanctions and virus mitigation 

FOR IMMEDIATE RELEASE: January 26, 2021

Contact: 
Jason Brandt, President & CEO, ORLA
503.302.5060 | JBrandt@OregonRLA.org

Featured Industry Operator / On-Site Access:
Treva Gambs, Gamberetti’s Italian Restaurants
503.881.5761 | Treva@gamberettis.com

Wilsonville, OR– Oregon’s restaurant and lodging industries continue to suffer greatly according to the latest data made available by the Oregon Employment Department. Leisure and hospitality businesses lost 25,500 jobs in December. An announcement today from the Governor’s office is welcome news for lottery retailers, restaurant operators with functional outdoor dining space, and Oregon’s lodging industry eager to bring amenities including indoor pools and hot tubs back online for their guests. Still, thousands of restaurant operators are not assisted by these helpful modifications if they are not lottery retailers and lack available space for outdoor dining options.

“Oregonians in our industry can’t pay their monthly bills with two weeks of employment certainty at a time,” said Jason Brandt, President & CEO for the Oregon Restaurant & Lodging Association. “The reality of the 2-week county risk category assessments is taking us down a dangerous path where tens of thousands of Oregonians no longer have paychecks again. The lack of continuity in operations is permanently altering too many Oregonian livelihoods. We must open some indoor dining statewide now, and we can do it safely.”

Oregon’s aggressive economic restrictions on one of the state’s largest private sector employers continues to lack data to substantiate the disproportionate sacrifices being endured by these small business operators. According to weekly reports by the Oregon Health Authority and a declaration from Dr. Dean Sidelinger in federal district court, Oregon’s foodservice industry accounts for less than 1 percent of all workplace outbreaks and 4.7 percent of Oregon’s overall outbreaks, respectively. Yet, Oregon’s foodservice operations continue to be shut down in the vast majority of the state.

“It doesn’t make sense to me how I can have all this space to safely spread out my customers in my restaurant and have the government continue to tell me I can’t use it when I know I can do it safely,” said Treva Gambs, owner of Gamberetti’s Italian Restaurants in Salem and Albany. “The discrimination we are facing is keeping me from taking care of my employees and my customers in ways that can really help our communities get through an emotional and depressing time.”

A recent analysis of December data on the status of restaurant closures across states with mask mandates shows no correlation between the number of cases and deaths and the decisions to close indoor dining. The chart below illustrates the lack of connectivity. In addition, the year 2020 included multiple press conferences highlighting the lack of data to close foodservice operations across Oregon. Governor Brown and Dr. Dean Sidelinger shared comments in press conferences on multiple occasions acknowledging the lack of connectivity to the hospitality industry during periods of the year where hospitality businesses remained open and case counts remained low.

Update Jan. 15, 2021: Food Waste Policy Delayed
Effective February 1, 2021 Metro is delaying implementation of the Business Food Waste Requirement by an additional year. The policy, which requires establishment of a business food waste collection program for certain food service businesses, was originally scheduled to begin on March 30, 2020. On September 10, 2020 Metro amended associated administrative rules to delay the effective date by one year to March 30, 2021. After careful consideration of the ongoing effects of COVID-19 on the business community, implementation for the largest businesses will be delayed by an additional year--to March 30, 2022. Administrative rules will again be amended effective February 1. Read rules here.

Update Aug. 25, 2020: ORLA commends Metro for taking action in response to these uncertain times by drafting rules to delay the business food waste requirement by one year. We have submitted comments to Metro asking that the implementation be delayed until all jurisdictions enter into Phase 3. To read our comments, click here. 

Update Sept. 21, 2018: Metro has updated draft administrative rules to guide the implementation of its business food scraps separation policy, adopted by the Metro Council on July 26. The draft administrative rules were available for public comment through Friday, Sept. 28. Read more.

Portland Area Businesses to Be Subject to Food Scrap Policy
As part of ORLA's ongoing engagement with Metro on the food scraps, ORLA President & CEO Jason Brandt and Director of Business Development Marla McColly recently testified at Metro’s public hearing against the proposed food scrap mandate. ORLA and our members have been involved in the past in the voluntary collection of food scraps and we testified to that fact and the fact that participants in the past have exceeded the goals set by Metro. (Read ORLA's comments)

We also raised concerns about the logistics of food scrap collections across the Metro area, about the implementation dates and about issues around public health and safety if food scraps are not picked up in a timely manner. In addition to ORLA there was opposition to the plan from local governments in both Sherwood and Hillsboro, citing the lack of analysis on the costs to implement the new mandate and the ability of local governments (especially in Washington County) to efficiently dispose of food waste. Despite ORLA’s efforts and those of local governments, Metro Council voted in favor of the staff recommendation for a food scrap mandate on a 7-0 vote. 

The mandate is scheduled to start on March 1, 2020 and will be implemented based on the amount of food waste generated by businesses. ORLA will continue to monitor the implementation of this program and provide information to our members. As the program is rolled out, if you experience problems or have concerns, please share those with Greg Astley, ORLA Director of Government Affairs, at Astley@oregonrla.org so we can keep Metro informed as to the effectiveness and success of their mandate.

In the news

• Mandatory scrap food recycling coming to Portland area restaurants - KGW8, 9.18.18
• Metro issues 'fine print' to regulate mandatory food scraps recycling - Portland Tribune, 9.14.18​
• Revised business food scraps rules available for public comment - Metro News, 9.5.18
• ​Starting in 2020, many businesses must keep food out of the garbage - Metro News, 7.27.18

[Announcement 2.2.21] - Oregon OSHA proposes permanent rule addressing COVID-19 in all workplaces
​
Oregon OSHA is proposing a permanent rule that largely maintains – with some improvements – the risk-reducing measures required by the current temporary emergency rule. It would replace the temporary rule, which expires on May 4. The proposed permanent rule will receive virtual public hearings later this month and in early March. Although the rule must be adopted as a permanent rule because the law does not allow a temporary rule to be extended, Oregon OSHA expects to repeal the permanent rule once it is no longer needed to address the coronavirus pandemic. Read more.

Virtual public hearings will be held at 10 a.m. on Feb. 23 and Feb. 26, and at 5 p.m. on March 3 and March 4. ORLA encourages industry members to sign up for the hearings or for commenting on the proposed rule to share your experiences and perspectives. The comment period will close on April 2. Visit the OSHA website for details.

[Update as of 1.11.21] - ​OSHA Puts Pause on Rulemaking

​ORLA, in collaboration with other business groups urged Oregon OSHA to make the temporary Infectious Disease rules permanent (read letter). Given how much time and resources businesses put into complying with the rules, now is not the time to make drastic changes. These temporary rules have only been in place since mid-November, and businesses need time to adjust before adding new regulatory burdens.

On January 11, OSHA backed down and said they will not pursue new changes to rules for COVID. The temporary rules will be the permanent rules until we get through the pandemic and then OSHA will rescind the permanent rule at that time and revisit.

• Visit OSHA's website for more information

[Update as of 12.8.20] - Oregon OSHA Rule Updates: Grace Period Extended, Training Offered 

Grace Period
OR-OSHA will grant a 3-week extension to restaurants, gyms and other businesses impacted by the freeze/the new county risk levels. All other businesses are granted a 1-week enforcement grace period IF they are actively working to comply. Read memo from OR-0SHA.
 
Training Materials
OR-OSHA has released an online interactive education course designed to help employers meet four of the 10 training requirements found in their COVID-19 rules. The 1-hour course begins with an explanation of the dangers of COVID-19 and why the temporary rules were adopted. The course is then divided into four modules: Introduction; Signs, Symptoms and Transmission; Control Measures; and Conclusion. The course is available in both English and Spanish and should be incorporated with your other training planned under the rules. Find English Course and Spanish Course.
 
You can also download the presentation as a PowerPoint (scroll to bottom of page). While not required, OR-OSHA also included a model ‘training verification form’ for employees.
 
OR-OSHA also released completed Exposure Risk Assessment and Infection Control Plans over the weekend:

• Example Risk Assessment for Restaurant
• Example Risk Assessment for Manufacturer
• Example Infection Control Plan for Restaurant
• Example Infection Control Plan for Manufacturer

​Important Timelines to Remember:

• Base Rule: Effective November 16, 2020
  • Physical Distancing
  • Masks
  • Cleaning & Sanitation
  • Poster posted: Posters are available in English here and Spanish here.
• Building Operator Rules: November 23, 2020
• Exposure Risk Assessment: December 7, 2020*
• Infection Control Plan: December 7, 2020*
• Employee Training: December 21, 2020
• Ventilation Requirements (all workplaces): January 6, 2021

 
*Reminder you do not need to submit your Exposure Risk Assessment or Infection Control Plan to OR-OSHA for review. Your Infection Control Plan (if you have more than 10 employees or are an “Exceptional Risk Workplace”) needs to be available in writing to your employees at the workplace.
 
Helpful tools to-date:

• OSHA Poster and in Spanish
• Fillable Exposure Risk Assessment   (fillable version on landing page)
• Infection Control Plan here and in pdf form here
• Model Policy for Notification of Employees when COVID-19 Exposure and in Spanish
• Training Materials:
  • COVID-19 Fact Sheet has been released. Find that here.
  • Online training modules:
    • English Course
    • Spanish Course

[Update as of 11.6.20]
​
The final OSHA Temporary Rule addressing COVID-19 has been released. As a reminder, as Temporary Rules these are allowed to be in effect for 180-days. A discussion about making them permanent (possibly expanded/revised) is expected to begin in the coming weeks.

• View the OSHA Temporary Rule (A1) Mandatory Guidance for Restaurants, Bars, Brewpubs, and Tasting Rooms

 
Effective Date: November 16, 2020 to May 4, 2021

• Physical Distancing
• Masks
• Cleaning & Sanitation 
• Poster posted: Posters are available in English and Spanish

 
Delayed Effective Dates:  

• Building Operators: November 23, 2020
• Exposure Risk Assessment: December 7, 2020
• Infection Control Plan: December 7, 2020
• Employee Training: December 21, 2020
• Ventilation Requirements (all workplaces): January 6, 2021

 
Several resources are now available online under “Documents,” with more on the way in the weeks to come. OSHA also offers consultation services and technical specialists to help employers comply with the requirements.

View the entire Temporary Rule here: https://osha.oregon.gov/OSHARules/div1/437-001-0744.pdf
 
View workplace chart for application here: https://osha.oregon.gov/rules/advisory/infectiousdisease/Documents/Overview-Table-for-Oregon-OSHA-COVID-19-Temporary-Rule.pdf
 
OR-OSHA also released a fillable Exposure Risk Assessment to download – for use by employers in their compliance. We expect additional training tools to be released in the coming weeks including, model Infection Control Plans, videos for use in employee training and a sample/model Employee Notification Policy.
 

Update as of 10.28.20
There is a lot going on right now at the Oregon Occupational Safety and Health Administration (OSHA) and we wanted to provide a direct update to summarize all the activity. There are 3 separate public processes occurring at Oregon OSHA. Please take a look below and click through on any link if the issue is one you wish to provide comment on. If you’re interested in ORLA's perspective on each item, see the “ORLA Notes” with each paragraph below.
 
(1) COVID-19 Temporary Rulemaking

Oregon OSHA has initiated a process to create an infectious disease control standard temporary rule for all workplaces in Oregon. The process has included taking Phase 2 guidelines for our industry from the Oregon Health Authority and housing them at Oregon OSHA in a temporary rule format. By law, temporary rules can last no longer than 180 days.

• ORLA Notes:
  • The OSHA process on this rule was replicating what our industry has already been adhering to in Phase 2 through the Oregon Health Authority guidelines. We have expressed ongoing concerns about the lack of clarity in language to allow for less than 6 feet of distance between parties as one party wearing face coverings briefly walks past other customers already seated. These are logical exceptions to 6 feet of distance between parties while parties are seated and aligns with the current exception needed for staff to deliver food to tables. The other issues of concern relate to the requirement of an “Exposure Risk Assessment” conducted by all employers as well as the development of an “Infection Control Plan.” Employers with more than 10 employees will be required to have both the risk assessment and control plan in writing. 
• OSHA Timeline:
  • They plan to take written stakeholder comments on their final draft through the end of the day on Friday, October 30, and to adopt the rule some time the week of November 2. That rule will take effect 10 days after adoption (although several specific items must be completed between one or two months after adoption, depending upon the specific issue). It will remain in effect 180 days from adoption, unless it is repealed sooner. Oregon OSHA has said they will immediately begin working on a permanent infectious disease rule that will include intermediate requirements specific to COVID-19 – that rulemaking will be subject to the full permanent rulemaking process required by the Administrative Procedures Act, including public comment and public hearings before a final decision is made. Information about this process can be found here. Your comments can be sent via email to: Tech.Web@oregon.gov.

(2) Penalties – Increasing Minimum and Maximum Penalties

At the same time – and completely unrelated to the COVID-19 pandemic or the COVID-19 temporary rulemaking, Oregon OSHA is coming to the end of an eight-month period of public comment on changes to the existing penalty rules, including an increase in the maximum penalties that align Oregon penalties with federal OSHA as directed by both Congress and the Oregon Legislative Assembly.

• ORLA Notes:
  • Regardless of when the process started and the rationale for aligning fines with federal OSHA, no fines should be increased on Oregon’s small businesses in the middle of a pandemic. This is an example of horrible timing and has brought about great frustration amongst operators trying to determine next steps for their business. Increased OSHA penalties are just another unnecessary issue we need you to take action on in opposition. 
• OSHA Timeline:
  • These rules were first proposed on February 26, 2020, with public hearings scheduled in March and April. As the COVID-19 emergency unfolded, Oregon OSHA issued a new proposal that was identical to the first but that extended the comment period. On July 30 and July 31, 2020, Oregon OSHA yet again issued the same proposal and extended the comment period through October 30, 2020. The rule record remains open and will be open through October 30.
  • Both the rulemaking notice and the text of the rule can be found under the notice labeled “*Re-Proposed* Increase of Certain Minimum and Maximum Penalties for Alleged Violations” online here. Your comments can be sent via email to: Tech.Web@oregon.gov.

(3) Employer Knowledge/Employer Responsibility

The Employer Knowledge rulemaking has been on a similar time frame as the Penalties Rulemaking, but they are actually two distinct rulemaking proposals.

In this rulemaking, Oregon OSHA proposes to add two definitions and a paragraph to the Division 1 rules. The Oregon Supreme Court in CBI Services v. Oregon OSHA determined that Oregon OSHA needs to more clearly define how “reasonable diligence” and “unpreventable employee misconduct” are interpreted and applied in enforcement activities and Oregon OSHA believes that such guidance is most appropriately provided through an administrative rule. The proposed additions to the rules are to clarify in general how Oregon OSHA assesses an employer’s reasonable diligence, what constitutes unpreventable employee misconduct, how Oregon OSHA assesses an employer’s knowledge of a violation, and when an employer is and is not responsible for a violation that has occurred on its worksite. After spending several years developing the proposal, Oregon OSHA is coming to the end of an eight-month period of public comment on these proposed changes.

• ORLA Notes:
  • Oregon OSHA has proposed new rules making employers responsible for all unsafe acts of anyone whom the Agency deems to be either an agent of the employer or a supervisory employee. The proposed changes will fundamentally alter the law on how the Agency can satisfy its burden of proving employer knowledge in order to sustain a citation. Oregon OSHA has asserted that these proposed rules were in response to the Oregon Supreme Court’s direction to the Agency in the Oregon Occupational Safety & Health Div. v. CBI Services, Inc., case. In the statement of need for the proposed rules Oregon OSHA asserted that the Supreme Court in CBI requested that the Agency provide guidance to the courts on its interpretation of both “reasonable diligence” and “unpreventable employee misconduct.” Nowhere in the CBI decision did the Court make any mention of unpreventable employee misconduct. 
  • The Supreme Court said in “CBI” it recognized the Oregon Safe Employment Act (OSEA) created a fault-based citation system. This meant that OR-OSHA had the burden to prove that cited employers had either actual or constructive knowledge of the alleged violative conduct or conditions to sustain a citation. “Constructive knowledge” meaning the employer could, with the exercise of reasonable diligence, have known of the violative conduct or conditions.  
  • Second, with regard to constructive knowledge, the Court requested input from Oregon OSHA as to how it interpreted the phrase “reasonable diligence” as used in ORS 656.086(2). This is the statute which implemented the legislative intent to create a fault-based citation system. This request was tied to the appellate court’s duty to review the Agency’s conclusion in a given case that under ORS 654.086(2) a cited employer had “constructive knowledge” of a violation. Rather than simply answer the Court’s constructive knowledge question, OR-OSHA is proposing rules that deem the knowledge of all “agents of the employer” and “supervisory employees” to be “actual knowledge” of the employer itself. The concept of reasonable diligence, of course, is irrelevant in cases where actual knowledge is present. The bottom line is that the proposed rules make employers strictly liable for the unforeseeable unsafe acts of most employees, including all unsafe acts of any employee acting in a supervisory or “lead” role.  
  • Simply put, there is no connection between what the Supreme Court asked OR-OSHA to do in CBI, and what OR-OSHA is attempting to do with its proposed rules. 
• OSHA Timeline:
  • These rules were first proposed on February 26, 2020, with public hearings scheduled in March and April. As the COVID-19 emergency unfolded, Oregon OSHA issued a new proposal that was identical to the first but that extended the comment period. On July 30 and July 31, 2020, Oregon OSHA yet again issued the same proposal and extended the comment period through October 30, 2020. The rule record remains open and will be open through October 30.
  • Both the rulemaking notice and the text of the rule can be found under the notice labeled “*Re-Proposed* Amendments in General Administrative Rules to Clarify Employer’s Responsibilities” online here. Your comments can be sent via email to: Tech.Web@oregon.gov.

Please take action and make a difference if you can.

ORLA in the News with U.S. Department of Labor Final Rule on Tip Pooling
A final rule on tip pooling in the United States was recently released on December 22, 2020 and will go into effect across the country on February 20, 2021. The final rule further establishes the legality of overseeing and managing a tip pool that includes staff who do not customarily and regularly receive tips by directly interfacing with a customer. Managers and supervisors are still prohibited from participating in tip pools. The final rule does define further, explaining as follows:
 
“...the final rule defines a manager or supervisor for purposes of section 3(m)(2)(B) as any employee (1) whose primary duty is managing the enterprise or a customarily recognized department or subdivision of the enterprise; (2) who customarily and regularly directs the work of at least two or more other full-time employees or their equivalent; and (3) who has the authority to hire or fire other employees, or whose suggestions and recommendations as to the hiring or firing are given particular weight. The definition also includes as managers or supervisors any individuals who own at least a bona fide 20 percent equity interest in the enterprise in which they are employed and who are actively engaged in its management.”
 
The one exception to this rule is “a manager or supervisor may keep tips that he or she receives directly from customers based on the service that he or she directly provides.”
 
In summary, the final rule simply codifies our collective win advocating for the importance of tip pools. Pages 11 and 12 of the Rule states:
 
“In 2016, a divided Ninth Circuit panel upheld the validity of the 2011 regulations. See Oregon Rest. & Lodging Ass’n (ORLA) v. Perez, 816 F.3d 1080, 1090 (9th Cir. 2016). Although the Ninth Circuit declined en banc review of the decision, ten judges dissented on the ground that the FLSA authorized the Department to address tip pooling and tip retention only when an employer takes a tip credit. The dissent noted that the Ninth Circuit itself had decided in Cumbie that the FLSA ‘clearly and unambiguously permits employers who forgo a tip credit to arrange their tip-pooling affairs however they see fit.’ … In its 2018 response to the petition for a writ of certiorari in the ORLA case, the government explained that the Department had reconsidered its defense of the 2011 regulations in light of the Ninth Circuit’s ten-judge dissent from denial of rehearing in ORLA and the Tenth Circuit’s decision in Marlow … the Department published in December 2017 an NPRM that proposed to rescind the challenged portions of the regulations.”
 
The actual regulation and a summary of the final rule can be found here: https://www.dol.gov/agencies/whd/flsa/tips.

Restaurant Employee Compensation Tools
With tip pooling being legal with back of the house employees, employers may have questions about what their options are. ORLA launched a Restaurant Compensation Solutions Workgroup to review tools being implemented in restaurant operations across the state, including mandatory service charges, tip pooling policies based on sales that assist in compensating kitchen staff, and dual tip lines notating tip options for both servers and kitchen staff. 

Tip pooling policies should be carefully reviewed with counsel before implementation to ensure compliance with all applicable requirements. For more on this subject, click the links below.

• Tip Pooling/Compensation Solutions (ORLA members only; login required)
• Download ORLA's Tip Pooling Information Sheet 
• NRA Webinar: Tipped Employees and Side Work Under the FLSA

Update: December 2019
​
​A federal spending bill passed in 2018 abolished a 2011 regulation prohibiting tip pooling; managers can now require that servers share tips with kitchen staff in states where employers do not take a tip credit. This change allows tip sharing among both customarily and non-customarily tipped employees in Oregon, including dishwashers and cooks. Managers, supervisors, and owners cannot participate in the tip sharing. A proposed rule to implement the change has been released as of October 7, 2019; comments were due by December 9, 2019. 

One thing this proposed rule seeks to address is that the words “supervisor” and “manager” were not defined in the 2018 spending bill. This is especially important to our industry since many 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.

Employers are to use the “duties test” to determine who qualifies as a supervisor or manager, and establish tip pool eligibility. Essentially, if an employee’s primary or regular duty is not management or supervising, they are still allowed to participate in a tip pool. For details on the standard of the “duties test,” read the U.S. Department of Labor (DOL) Field Assistance Bulletin. 

Prior to this change, the decision to participate in a tip pool was left to employees. For more context on the issue, check out Tipping the Scales (Oregon Business, April 2018). The Bureau of Labor and Industries (BOLI) FAQ may answer any additional questions regarding tips at Oregon.gov/BOLI.

​News/Resources:

• Final Rule: Tip Regulations under the Fair Labor Standards Act (FLSA), U.S. DOL, Dec. 2020
• Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)
• U.S. Department of Labor Issues Notice of Proposed Rulemaking for Tipped Employees, U.S. DOL, Oct. 2019
• WHD Field Assistance Bulletin 2018-3, U.S. Department of Labor, April 2018
• Service Charge Guidance, ORLA, 2019 
• 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

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

This is for general informational purposes only. The information is not, and should not be relied upon or regarded as, legal advice. Please consult with your legal advisors.

Sustaining Operations and Avoiding Closures will Still Prove Challenging

FOR IMMEDIATE RELEASE: December 21, 2020

Contact:
Jason Brandt, President and CEO, ORLA
503.302.5060 | JBrandt@OregonRLA.org

Wilsonville, OR– Today, Congress unveiled a $900 billion relief bill to provide short-term economic relief to the country in the face of the coronavirus pandemic. The plan includes several items that will benefit restaurants and lodging establishments, most importantly a second round of access to the Paycheck Protection Program (PPP), with unique provisions aimed to assist the restaurant and lodging industries, which continue to endure unparalleled job and revenue losses. 

In addition, the Oregon State Legislature is holding a third special session of 2020 and is poised to pass To-Go Cocktails legislation as well as statewide caps on third party technology and delivery expenses charged to restaurants.

“Hospitality operators in Oregon have been pleading for both long-term and short-term economic support,” said Jason Brandt, President & CEO for the Oregon Restaurant & Lodging Association. “Today’s developments will assist restaurant and lodging establishments with their quest to survive. However, it does not change the unsustainable trajectory facing thousands of Oregon small businesses who have ongoing bills for their dining rooms with little to no revenue to cover those expenses.”

Today’s developments in the Oregon Legislature are expected to assist operators in realizing additional revenue for cocktail programs accompanying food purchases for takeout and delivery while also assisting operators with cost control on expenses.

“The progress made today at both the state and federal levels feels like getting a new pair of running shoes,” said Brandt. “There is still a race for survival in conjunction with vaccine distribution and the majority of operators will remain unprofitable. Our reality remains the same – we are attempting to stretch out our cash until we actually get to the light at the end of the tunnel we’ve all been talking about.”

The federal plan announced today targets restaurant and lodging relief with provisions including:

• Enhanced PPP Loan Size: The PPP provides a business with a forgivable loan based on 2.5 times its monthly payroll costs. Restaurants and hotels, however, can seek forgivable loans based on 3.5 times monthly payroll costs. 
• Enhanced Access to PPP: Companies that employ a total of 300 or more employees at all locations (combined) are deemed ineligible for the PPP. Today’s bipartisan plan reflects the reality that many mid-sized and larger restaurant groups are on the verge of bankruptcy and allows restaurants to qualify for PPP as long as they do not employ more than 300 employees at each physical location. 
• Extending CARES Act banking relief through the end of 2021, which will enable hoteliers to seek additional forbearance from their banks on conventional loans

Other provisions in the bill that will benefit hospitality operations include the deductibility of business expenses paid with PPP loans, enhancement of the Employee Retention Tax Credit (ERTC), extension of the augmented Work Opportunity Tax Credit (WOTC), and increased tax deduction for business meals.

###

The Oregon Restaurant & Lodging Association is the leading business association for the foodservice and lodging industry in Oregon, which is comprised of over 10,220 foodservice locations and 2,000 lodging establishments with a workforce of 183,191, and a total economic impact of $13.8 billion in annual sales for Oregon.

Oregon’s Legislature will meet on Monday, December 21 for a one-day Special Session to discuss four specific issues including To-Go Cocktails and Commission Caps on Third Party Deliveries. Read the draft of Legislative Concept (LC 10).  
 
We realize this legislation won’t fix everything so we are still working with the Governor’s office, Oregon Health Authority and Legislators to find ways to re-open dining rooms sooner and safely. You can help by contacting the Governor and your Legislators (find your legislator here) to let them know how little time you have left before you have to close your doors because of the restrictions on indoor dining. 
 
Public hearings have now been posted for Thursday evening (6:00-9:00pm) and Saturday morning (10:00am-1:00pm). You may provide written or oral testimony at these meetings. For more information on these public hearings and to sign up to testify, please visit the following websites:

• Public Hearing: Thursday, December 17, 6:00pm-9:00pm
• Public Hearing: Saturday, December 19, 10:00am-1:00pm

Written Testimony: 

• E-mail: J3SS.exhibits@oregonlegislature.gov
• Mail: Joint Interim Committee on the Third Special Session, 900 Court Street NE, Room 453, Salem, OR 97301
• Testimony is posted online to the Oregon Legislative Information System (OLIS) as part of the legislative record and made publicly available here. 

Oral Testimony (Live Remotely):

• Registration is required to testify by phone or video link. To sign up, either use the online form here OR call 833-588-4500 for assistance. Registration closes at 1 PM on Thursday, December 17, 2020. 
• Public Access Kiosk: For those who do not register to testify or do not have access to testify by phone or video link, a public access kiosk is located outside of the State Capitol Building.
• Please note, testimony is generally limited to 3 minutes so if you plan to testify “in person,” please prepare your remarks in advance to make sure you are heard completely.

Important note about testimony: Neither registration nor use of the public access kiosk is a guarantee that you will be able to testify during the meeting. The chair may determine that public testimony must be limited. For this reason, written testimony is encouraged even if you plan to speak.
 
The Presiding Officers are extending the period for public comment. The public record is open when a meeting is posted until 24-hours after the committee is scheduled to meet. For example, this means written testimony can be submitted now until 6:00pm on Friday for the public hearing on Thursday.

Our Industry Needs Your Voice at the Table! 
We need your voice at the Capitol to help pass this legislation. We need you to share your story of how the shutdowns, freezes and restrictions have impacted you and your employees and why this legislation would help you survive! If you are not already signed up for ORLA’s Text Alerts, please take a minute to text “ORLA” to 52886 today and sign up for important notices regarding key legislation and how you can help.

Thank you in advance for taking action.