Small businesses across the country need thriving associations with competent professional staff who serve as intelligence officers for their respective industries. When the Oregon Restaurant & Lodging Association (ORLA) first came into existence back in 1932 (the two associations merged in 2010), it was clear a unified voice was needed to represent the needs of hospitality businesses across the state. Far too often, elected officials who in many cases serve in a volunteer civic capacity, have little time to become experts on all policy decisions crossing their desk. Imagine a world where elected officials had no organized industry voice to turn to while making policy decisions for their constituents. That world would be rife with unintended consequences and short-sighted decision making.

Although our mission has evolved subtly over time, ORLA remains focused on improving, protecting, and promoting over 10,000 foodservice and 2,500 lodging locations across Oregon. These operations remain in business even after Covid unleashed its ferocious blow on an industry reliant on in person experiences. When considering both openings and closures, we estimate Oregon lost a net of 750 restaurants because of the pandemic, a number much smaller than originally anticipated but still devastating to economic ecosystems across the state.

Of all our existing locations, ORLA currently has a little over 3,000 who have chosen voluntarily to join their statewide association in support of our mission. It is clear the secret is out on Oregon as our population continues to grow with its geographic position between California and Washington. The state benefits greatly from its high qualify of life and diverse topography. You would be hard pressed to find a state with mountain ranges, a world-famous coastline, high deserts, and vast river and lake systems highlighted by the Columbia Gorge. As the state’s population grows so do the opportunities for additional foodservice and lodging pursuits. We are fortunate to have a state association which continues to slowly grow in its size and scope with 16 full time professional staff dedicated to the work.

The hospitality industry here in Oregon is at a crossroads with a growing market of independent small operators determined to provide choice to their guests. The explosion of choice feels like the options we now have when turning on a television. Instead of a handful of channels, we have immediate access to hundreds in addition to what seems like a limitless supply of streaming content. The same dynamics are at play in the hospitality industry. On one hand, lodging brands have greatly expanded to provide more choice for the traveler. On the restaurant side, we continue to see innovative business models emerge including app-based ordering, ping pong bars, and a proliferation of food pods and mobile units. The world looks different when compared to the norm of decades past when the traditional family restaurant dinner was served by the restaurant owners and their staff. 

Online travel agencies (think Expedia and Booking.com) as well as third-party delivery services (like DoorDash and Uber Eats) are creating a highly advanced and complicated environment. Restaurant and lodging establishments have innumerable opportunities to partner with vendors and suppliers in their ultimate goal to make money and provide jobs to others. If an operator is too flippant and not committed to detail, it would be easy to launch a hospitality business without a means for sustaining it. Commission rates for Online Travel Agencies can be considerable for lodging operators and restaurants continue to reel from increasing labor and food costs on top of their own commission payments to third party delivery companies. Too few Americans realize that 95 cents of every dollar they spend in a restaurant goes back into the food, the people, and the place. When you look at the hospitality industry through that lens, one could argue it is one of the more altruistic pursuits an entrepreneur can undertake. Most industries would balk and run the other direction if presented with an average margin of 5% for all their hard work.

The challenges facing operators are real and its our job at ORLA to bring industry transparency to our many elected official relationships. We rely on engaged members to work with our staff to build meaningful, authentic connections with the individuals we elect to office. Without this interplay, there is no connective tissue between the operator struggling to hold onto their limited margin, and the politician looking to raise a new batch of money for their next passion project. Our primary focus at ORLA is building strong working relationships with decision makers in government. By bringing authenticity to the table we are able to lead initiatives to assist our industry in their recovery whether that includes launching legislation allowing a new element to restaurant business models like to-go cocktails, or navigating the legislative system to enact transformative unemployment insurance tax reform for employers. If industry operators need someone to have their back, its our job to be there.

Our expectations for the future center on continued growth and diversification. The Oregon Employment Department projects our industry to be the fastest growing sector through the year 2030. Business models continue to change as operators re-evaluate the labor costs they can afford. With generational change comes the emergence of new trends including the new norm where a customer may not have a server but can still leave a restaurant feeling fulfilled by the high-end food quality and overall experience. Lodging operations are also reinventing themselves with more customized attention to the facilitation of experiences as opposed to the transaction of connecting a guest with a room. We are also starting to see generational change relating to housekeeping services in the wake of climate change with many brands reevaluating protocols for housekeeping services based on the changing perspectives of guests.

Suffice to say a complicated world and a growing array of hospitality options has created an environment whereby the association may now be more relevant than it ever has been. It is our job at ORLA to keep our ear to the ground and stay on top of industry trends and intelligence. It is common for us to share knowledge directly impacting the way an operator makes decisions for their business. It is a true honor to be able to make a real difference in the lives of others. In the association world we have a responsibility to embrace the independence and choice being offered by our members while empowering them to take full advantage of the tools and resources made available to them through their industry associations.

Jason Brandt is the President & CEO of the Oregon Restaurant & Lodging Association. Brandt has served in the role since August 2015 and came to ORLA after serving as the CEO for the Salem Area Chamber of Commerce. Brandt was recently recognized as a recipient of a 40 Under 40 award by the Portland Business Journal for his work representing the hospitality industry during the Coronavirus pandemic.

This editorial was published in Business View Magazine August ​2023 (Volume 10, Issue 8)

Update August 2023:
Although the U.S Department of Labor (USDOL) issued a rule on September 24, 2021 clarifying that managers and supervisors may only keep tips that they receive from customers directly for services that the manager or supervisor directly and “solely” provides, due to increased scrutiny and enforcement by the USDOL, ORLA does not recommend managers and supervisors keep any tips received during service if the establishment has a tip pool system in place.

Because managers and supervisors may set working hours, areas of service, days on or off or other functions related to an employee’s ability to earn tips, to avoid potential lawsuits, fines, penalties or other consequences, ORLA does not recommend managers and supervisors keep any tips received during service if the establishment has a tip pool system in place.

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.”
 
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.

• Access the Tip Pooling/Compensation Solutions (ORLA members only; login required)
• Watch on-demand Webinar: Tip Pools and Surcharges (Restaurant Law Center, March 2023)
  
• Read more on Service Charge Guidance  (ORLA, 2019)

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.

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.

Resources/News:

• Tip Regulations under the Fair Labor Standards Act (FLSA), U.S. DOL
• Tip Pooling With Back-Of-House Is IN (in Most States); Manager and Supervisor Tip-Sharing Is OUT, Davis Wright Tremaine, April 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.

Payroll Tax Referral / Safety Summit / Charity Golf

Salem Payroll Tax Referral – Oregon Business & Industry (our state Chamber of Commerce) is leading an effort to refer a recent 5-4 payroll tax vote of the Salem City Council to the November ballot. This would tax anyone performing work within the Salem city limits at a rate of .814 percent. ORLA has been engaged in this effort through testimony and volunteer signature gathering for effected members within the Salem City limits. Thus far, over 4,000 signatures have been collected to get the payroll tax on the ballot for voter consideration with a goal of 6,000 by August 9 to allow room for collection errors. We haven’t seen a collection effort that has resulted in this many signatures so quickly and our friends at OBI deserve a lot of credit for their efforts. Engage in this effort by visiting letsalemvote.com.
 
Portland Hotel & Restaurant Safety Summit – Downtown Clean & Safe hosted a Portland Hotel and Restaurant Safety Summit at the Nines last week in partnership with ORLA. About 40-50 hospitality industry members were in attendance and armed with concerns and questions. Speakers represented the Portland Police Bureau, mayor’s office, DA’s office, and Multnomah County. Outcomes include the Portland Metro Chamber (formerly the Portland Business Alliance) and ORLA collaborating on drafting 5-6 specific “asks” from the business/hospitality industry that will be presented to city, county, and state leadership. Read more in our new Portland Advocacy Blog.

AAHOA Charity Golf Tournament – The Asian American Hotel Owners Association (AAHOA) is holding a Charity Golf Tournament coming up on August 14 at the Reserve Vineyard & Golf Club in Aloha. One of the four recipients of the funds raised is the Oregon Hospitality Foundation. If your are interested in supporting the charities and can participate on August 14 please visit the Player and Sponsor registration links. 

Oregon has one of the best unemployment insurance (UI) tax systems in the nation. While there are federal requirements all states must follow with their UI trust funds, there is room for state flexibility, and Oregon has taken advantage of this to minimize employer tax rate volatility, protect employers from additional charges, and provide a strong safety net for recessionary times. During strong economic times, the tax schedule increases so we can replenish Oregon’s UI Trust Fund. Once we have strong reserves, the tax schedule drops so employers have lower taxes. Each employer’s individual tax rate is based on the amount of UI benefits their employees receive. 

Also, Oregon’s UI Trust Fund’s reserves earn interest. Over the last 10 years, UI Trust Fund interest added $797 million. That means about 20 percent of the increase in the UI Trust Fund balance in the past 10 years came from interest earned — not employer payroll taxes. Due to Oregon’s self-balancing system, the more interest earned, the more likely we are to have a lower tax schedule. One way to look at it is, with Oregon’s UI tax system, employers only had to pay 80 cents on the dollar for the benefits paid out. During the Great Recession and the COVID-19 pandemic, many states had to borrow money because their UI Trust Funds were not solvent — employers in those states pay more than $1 for each dollar of benefits paid to workers.

Benefits don’t just help laid-off workers. They also support communities and businesses by ensuring that money keeps flowing through the local economy during economic downturns. During the recent Pandemic Recession, Oregon’s UI Trust Fund paid out $859 million in regular UI benefits from April to June 2020 — twice as high as any calendar quarter during the Great Recession. Also, researchers have estimated that every $1 of UI benefits generates about $2 in economic activity in that community. During a recession, this can be a vital support for our economy.

Thanks to Oregon's healthy UI Trust Fund, we did not have to borrow any money during the Pandemic Recession, unlike many other states. Those states also faced borrowing costs, restricted options on policy, and higher federal payroll taxes and surcharges for employers.

While employers in other states saw additional UI taxes and other costs, Oregon has been a careful steward of employers’ tax dollars. With 2021’s House Bill 3389, lawmakers protected employers from increased payroll taxes that might have resulted from the unprecedented number of Oregonians who received UI benefits during the Pandemic Recession and allowed employers to defer or avoid some tax liability. 

In addition to short-term tax relief, HB 3389 extended the look-back period for the fund adequacy percentage ratio from 10 years to 20 years and omitted calendar years 2020 and 2021 from the formula. These changes mean:

• Employers will save around $2 billion in taxes through 2029.
• Businesses get a lower statewide UI tax schedule that collects about 10 percent less overall.
• The UI Trust Fund is better prepar​ed for longer economic cycles.
• The UI Trust Fund remains solvent and maintains benefits to Oregon's workers.

This editorial wss provided by the Oregon Employment Department.

Legislative Progress / ORLA Testimony / Power Outages / Mergers

Senate Activity Spurs Bill Passage - With the Oregon Senate officially back with a quorum to conduct business, there's been a flurry of activity at the Capitol. All 38 budget bills have passed, with over 30 agency or commission budget bills from the House awaiting Senate action. One important piece of public safety legislation that passed the Senate, SB 337, is a funding bill for increased investments to assist with the backlog of officers awaiting training at the state policy academy. The second bill, SB 5532, is the budget bill for the new commission which also passed the Senate. Read the summary from the Oregon State Bar. ORLA's government affairs team is still engaged on several other bills of importance to the hospitality industry; see the latest bill tracking online.

ORLA Testimony - Throughout the year, your association engages on a number of issues with potential impact on hospitality businesses. Our government affairs team is at the table for important discussions with other business organizations, elected leaders, and agency and government representatives, oftentimes providing testimony on behalf of our members. Here's some recent activity:

• ORLA provided testimony in opposition to the Oregon Lottery's proposed rule changes for the weekly sales requirement and limited availability of machines
• ORLA supports reinforcing the importance of further discussion on an alignment in Paid Family Medical Leave Insurance (PFMLI) and Oregon Family Leave Act (OFLA)
• ORLA signed on to a letter with several other business and industry associations in opposition to HB 3409
• ORLA provided testimony at 2 OLCC Commission meetings in opposition to the proposed surcharge on distilled spirits

Be Smart and Prepare for Power Outages - Oregon is experiencing longer and more intense wildfire seasons than ever before. Which is why businesses need to be prepared for potential wildfire and weather-related events as well as the power outages they may cause. ORLA has curated a list of helpful information and resources that provide preventative steps to help minimize disruption in case of a Public Safety Power Shutoff. From training to refrigeration, there are a number of steps you can proactively take now to prepare your staff and business for potential planned (or unplanned) power shutoffs. 

Webinar on Hospitality Mergers and Acquisitions Marketplace - Take a look into hospitality deal activity trends and what you should be doing now to maximize the value of your business. Join this webinar hosted by ORLA to receive industry insight on the status of the hospitality Mergers and Acquisitions marketplace and trends associated with deal structures and valuation. Industry members will also learn how to position a hospitality business to maximize its value to attract investors and buyers. Additional topics will include planning for owner transitions and succession planning, the process of executing a successful transaction, and how to prepare your business for sale.

One Big Night Success / Lottery Rulemaking / Nominate Your Star Employees

​Huge Support Realized at One Big Night: Last night, ORLA held its annual One Big Night dinner and auction presented by Elmer's and Egg N' Joe, raising crucial funds for the Political Action Committee (ORLAPAC). Close to 200 industry members gathered for a fun evening while helping raise serious money for the PAC. This financial support helps further our mission of electing pro-industry legislators to serve in Salem. During the program, we debuted our new advocacy video highlighting what some of our members are saying about the valuable work we do advocating on behalf of the industry. Watch the video.

Proposed Video Lottery Rule Changes: ORLA held a Lottery Subcommittee meeting last month to talk with retailers about the Oregon Lottery's Rule Changes Proposal and prepare for the Lottery's rulemaking meetings. The Lottery in recent years has faced Video Lottery Terminal (VLT) inventory shortfalls combined with budget constraints and outdated equipment management strategies. This led the Lottery to stop processing applications in 2021, and now is proposing rule changes that include pulling machines from low-producing retailers. ORLA submitted written testimony and encouraged retailers to submit their own comments on the proposed rules. We'll keep you posted on the activity.

Webinar to Help Businesses Optimize Their Google Business Profile: How your business appears online matters. It’s the first thing customers see when they search online. Locl helps you simplify Google Business Profile updates, create posts, engage with customer reviews, monitor business performance and act on insights. ORLA is partnering with Travel Oregon and Locl to provide a webinar on June 14 to show how you can use the Locl platform (for free) to save time, gain valuable insights and drive business. Access the toolkit for more information, and register today for the webinar.

Nominate Your Star Employees: Oregon’s hospitality industry is full of amazing individuals who go above and beyond, raising the bar for excellence in service, performance, and commitment to their team, organization, and the industry. Nominations for the statewide ORLA Hospitality Industry Awards seek to recognize some of these outstanding individuals who truly exemplify Oregon hospitality. In addition to the Employee of the Year, we are also accepting nominations for the Restaurateur of the Year, Lodging Operator of the Year, and new this year a Team Leader of the Year (mid-level employee, supervisor, or director). Be sure to submit your nomination by June 30, 2023.

​Liquor Surcharge / Minimum Wage Increase / Award Nominations / Get Involved

Public Comments Requested on 50-cent Surcharge Increase: OLCC is seeking public comment on a possible increase of the current 50-cent surcharge on each bottle of distilled spirits to one dollar per bottle. The Commissioners will listen to verbal comments on this at the April 20, and May 18, 2023 Commission meetings. ORLA is in alignment with the Oregon Beverage Alliance in opposing this increase and encourages industry members to take action and provide input on how this may impact your business' bottom line. 

Oregon's Minimum Wage Climbs: BOLI announced late last week that Oregon's minimum wage will increase by 70 cents per hour on July 1, 2023. State law requires an adjustment to the minimum wage to be calculated no later than April 30 of each year based on annualized inflation rates, rounded to the nearest 5 cents. The consumer price index climbed 5% from March 2022 to March 2023. The minimum wage rates will increase as follows:

• Standard Minimum Wage: $14.20 per hour
• Portland Metro Minimum Wage: $15.45 per hour
• Non-Urban Minimum Wage: $13.20 per hour

Nominate Your Star Employees: Oregon’s hospitality industry is full of amazing individuals who go above and beyond, raising the bar for excellence in service, performance, and commitment to their team, organization, and the industry. Nominations are now open for the statewide ORLA Hospitality Industry Awards which seek to recognize some of these outstanding individuals who truly exemplify Oregon hospitality. In addition to the Employee of the Year, we are also accepting nominations for the Restaurateur of the Year, Lodging Operator of the Year, and new this year a Team Leader of the Year (mid-level employee, supervisor, or director). Submit nominations by June 30, 2023.

New Oregon Hospitality Foundation Workforce Blog: The Oregon Hospitality Foundation (OHF) is laser focused on workforce development initiatives to do what we can to build bridges between hospitality industry employers and workers seeking employment opportunities. In an effort to keep lines of communication open with all industry operators interested in connecting with future employees for their operations, the Foundation has launched a new Workforce Blog. Follow what's happening in workforce development efforts and reach out to us if you're interested in getting involved.

Travel & Tourism Industry Achievement Awards: Travel Oregon announced the recipients of the Oregon Travel and Tourism Industry Achievement Awards during the 2023 Oregon Governor’s Conference on Tourism at the Oregon Convention Center. Read more about all the awards winners.

ORLA Members -Get Involved in Your Association: The Oregon Restaurant & Lodging Association is multi-faceted with a variety of different opportunities for professional development amongst hospitality professionals, including board and committee service, program participation, and networking. For those looking to get involved in some way in their state association, check out the numerous activities and opportunities for you to get involved and make the most out of your membership. 

Legislative Bill Movement / Skills Standards / Celebrating Women Restaurateurs / Webinars & Events

Legislative Bill Updates: ORLA's Government Affairs Committee continues its weekly calls to review and discuss the latest activity from the legislative session. As of today, SB 619 (data privacy) has moved forward with private right of action removed; HB 3308 (alcohol delivery) has moved to rules – this would set up a "server training" program for third-party delivery companies as well as a separation of liability; SB 545 (reusable containers) is expected to pass with legislative intent to make it optional to accept those types of containers. See the latest Bill Tracking online.

Hospitality Industry Standards Feedback Survey: The Oregon Hospitality Foundation has been working with the Oregon Department of Education (ODE) and Education Northwest the past couple months to help identify high school technical skills and standards for employment in the hospitality career cluster. This is critical work in getting our foot back in the door of Oregon high schools and it will also raise awareness about the intentional workforce development work through our Hospitality Foundation. Employers are encouraged to take this survey to help review and validate the technical skills we helped to identify for the ODE. Please provide your input by April 14, 2023.

Biggest Industry Show in the Northwest: The Northwest Food Show kicks off Sunday, April 16 at the Portland Expo Center with hundreds of exhibit booths, emerging products and services, alcohol tasting pavilion, and Trends Center. Just announced are the educational programs in the new Trends Center each day: Explore trends to improve your business, and learn best practices from peers in these interactive presentations, designed to showcase tangible solutions you can implement tomorrow and increase your bottom line. Learn more and register online.

Celebrating Women in Portland's Restaurant Industry: Plans are underway for the Women Who Stir the Pot event May 22, presented by the Portland Kitchen Cabinet and the Oregon Restaurant & Lodging Association. This event will be held at Mother’s Bistro and celebrates women in the restaurant industry, recognizing the contributions they make. Learn more. 

Upcoming Webinars:

• ORLA is co-hosting a webinar on April 24 with Smart City Policy Group on "Short-Term Rentals: Policy and Compliance." Attendees will learn more about compliance success with regards to rules and taxes around vacation rentals and short-term rentals. Registration is complimentary online.
• ORLA Preferred Partner, Risk Strategies’ Fournier Group, will be presenting a webinar at 10:00 am on April 25, "Cybersecurity in Hospitality: Don’t Get Blindsided." Anyone in the industry is welcome to participate in this free webinar by registering online. 

ORLA in the news...

• This tournament is transforming high school students into chefs
• Cannon Beach explores lodging tax increase to help fund projects
• Seaside culinary arts score at state competition
• Oregon restaurant, lodging association urges focus on crime

As always, should you have any questions, please reach out to your Regional Representative. Thank you for staying engaged!

Legislative Update / ORLA in the News / ProStart Championships / New Mattress Stewardship Act

Next Legislative Deadline Approaching: April 4, 2023, is the date bills need to be moved out of policy committees in their chamber of origin. ORLA’s Government Affairs Committee continues with Zoom meetings every Friday morning fostering good discussion and updates on legislative activity. If you are interested in joining, please sign up and we'll connect with you before next week's call. You can find the latest bill tracking on our website. All in all, we’re pleased with where we are in advocating for members at this stage in the session.

ORLA in News: On several occasions these past few weeks ORLA has been tapped for industry perspective on various issues, industry events and insights. Here are some highlights: 

• At Oregon ProStart Championships, high schoolers show off their culinary and business chops (OPB, Mar. 19) - Oregon’s hospitality industry employs more people than any other business sector besides health care. And even during the pandemic — a time that majorly challenged traveling — visitors to Oregon spent nearly $11 billion in the state in 2021. But keeping the industry growing will take skilled workers, which is where ProStart comes in. ProStart is a nationwide career technical education program supported by the Oregon Hospitality Foundation. Ken Henson is vice chair of the Oregon Hospitality Foundation and was the lead culinary judge for the event. He joined OPB’s “All Things Considered” host Crystal Ligori to talk through how the competition played out.
• Portland's Reputation Improving, But Hotel Occupancy Remains Depressed (OregonLive, Mar. 22) - Prospective visitors have a much better impression of Portland than at the end of 2020, according to new survey data, but hotel occupancy and revenues remain far below what they were before COVID-19. Jason Brandt, CEO of the Oregon Restaurant & Lodging Association, said he’s seeing improvement in perceptions of Portland and the hospitality industry. But he said the city needs to do more to make downtown feel welcoming to visitors. “We need a sense of urgency when it comes to guest safety and employee safety,” Brandt said. “If we can really execute on timelines and objectives for creating a consistent, safe and energized downtown core it doesn’t just help the downtown. It helps the surrounding area with repeat business and ongoing recovery of our reputation.”
• Oregon association urges ‘laser-like focus’ on crime for restaurant recovery (KOIN 6, Mar. 26) - Oregon’s restaurant and lodging industry, like many service organizations, struggled during the pandemic. Amid a post-pandemic comeback, the industry faces record-high inflation, labor shortages and in some cases, crime. The Oregon Restaurant & Lodging Association reports 2,000 out of the 10,000 restaurants across the state have closed since the start of COVID, but more than 1,200 have also opened. “There’s a lot of course correction happening right now in the industry,” said Jason Brandt, president and CEO of ORLA. “What we’re seeing is some progress in our ongoing recovery efforts, but we’re not back to 2019 levels and that goes for both the restaurant and the lodging side.” Brandt says there are several factors causing a lack of stability in the restaurant and lodging industries such as soaring food, beverage and food service equipment costs. The ORLA CEO explained this creates barriers for low-level profit margins.
• Cannon Beach explores lodging tax increase to help fund projects (Daily Astorian, Mar. 29) - After cost estimates for the redevelopment of the former elementary school and construction of a new City Hall and police station came in much higher than anticipated, city officials are weighing different funding options, as well as reductions in the scope of the projects. During a City Council work session Tuesday night, options were presented for increasing the city’s lodging tax by 1.5% or 2%, along with options for reducing the scope of the projects. Greg Astley, the director of government affairs for the Oregon Restaurant & Lodging Association, said the tourism industry is still recovering in Oregon. He urged the city to consider cutting back on the projects. “People love Cannon Beach, but they may not love it as much if they don’t feel welcome here,” Astley said. “And when you increase your costs to visitors, whether that be when they go out to have a bite to eat, or whether they come to the hotel, that can be disheartening.”
• ORLA Launches Fourth Year of Leadership Program for Tourism Professionals (ORLA, Mar. 30) - In April, ORLA will launch the fourth-year launch of the Oregon Tourism Leadership Academy (OTLA), developed in partnership with the Oregon Destination Association and Travel Oregon, and led by the industry’s top experts. The annual experiential learning program is targeted to public and private sector tourism professionals who are seeking to polish their leadership and professional skills, continue to grow their career accomplishments, and make positive and lasting contributions to the state’s tourism economy and its success. View a roster for the fourth-year class.

Mattress Stewardship Act: The Department of Environmental Quality is seeking public comment on proposed rules for the Mattress Stewardship Act (SB 1576, 2022). More information on this rulemaking, including the draft rules, can be found on the Mattress Stewardship 2023 Rulemaking web page. DEQ will accept comments by email, postal mail or verbally at the public hearing on Wednesday, April 19, 2023. Start time: 9 a.m.; please register prior to the meeting, using this Zoom link. Send via postal mail to Oregon DEQ, Attn: Rachel Harding/Materials Management, 700 NE Multnomah Street, Suite 600, Portland, Oregon 97232-4100. DEQ will only consider comments on the proposed rules that DEQ receives by 4 p.m., on April 28, 2023.

A Smart Use of Local Lodging Tax Dollars

As of January 1, 2023, a 2% increase in local lodging tax has been in effect in Lane County. How these new revenues will be spent is still undecided. The Board of Commissioners held a meeting back in September to hear public comments in support of proposals including building a new stadium for the Emeralds baseball team and an indoor multi-use stadium.

ORLA’s Director of Government Affairs Greg Astley, along with a few ORLA members, provided testimony at the hearing urging Lane County Commissioners to use any new increase in lodging tax toward an indoor multi-use facility. The following summarizes why we think an indoor facility is a smarter use for those tourism revenues:

As hospitality businesses continue to try and recover from the two and a half years of the global pandemic, the shutdowns that occurred because of that pandemic and the ongoing issues of inflation, rising gas prices and continued supply chain issues, there is a clear need for more stable, year-round revenue from visitors to help that recovery.
 
Summer demand is already high in Lane County as visitors enjoy outdoor recreation, wine tasting, various festivals and sporting events and other activities undertaken during the summer months when the weather is favorable.  During the winter months and shoulder seasons however, especially January through March, visitors are less likely to visit and support our local economy.

Therefore, we believe the best use of any new increase in TLT is growing winter travel demand. TLT reinvested in our challenging winter economy is good for local businesses, from hotels to restaurants and retail and will support year-round employment. Additionally, increasing visitor demand in winter will grow TLT revenue for all recipient programs and jurisdictions.  Finally, increases in TLT should be used in ways relevant to drawing visitors, putting “heads in beds” and continuing to increase overall TLT revenue.

ORLA supports investment in an indoor multi-use sports facility, with the added feature of a hydraulic, banked 200m track. This facility can accommodate a wide range of sports tournaments, events and offer temperature-controlled emergency response in all seasons. This represents a much-needed investment in facilities serving local youth and all ages who participate in healthy activities, while also drawing visitors in winter. The Eugene/Springfield metro area is underbuilt related to active and healthy indoor facility space compared to national averages. Multi-use sports facilities draw visitors, are recession resistant and are good for our community health. 
 
Visitors already know and love Eugene and the surrounding areas of Lane County in summertime.  Investing in an indoor multi-use sports facility will allow them the opportunity to experience it during the winter months and shoulder seasons helping to support local jobs, the local economy and the overall health of the community.  We encourage the use of any increase in the TLT rate to go toward this endeavor.

If you have any questions, please reach out to your Regional Representative Terry Hopkins or Greg Astley. 

Legislative Activity / ProStart Champions / Restaurant Business Conditions Survey

​ORLA Bill Tracking: Today is the day legislative bills need to get scheduled for work sessions or else they get left behind (a.k.a., die). As a reminder, ORLA's bill tracking software serves as a crucial tool in monitoring activity of bills with hospitality impacts and coordinating public testimony in front of committees in representation of the industry. See the latest activity on our Legislative Session page.

Oregon ProStart Champions Head to Nationals: This past Monday, ten high schools competed in the Oregon Hospitality Foundation’s statewide Oregon ProStart® Championships showcasing their skills and teamwork. The culinary challenge for the student chefs was to prepare a three-course gourmet meal with only two butane burners in under an hour. Crook County High School pulled this off with excellence, winning top honors in the culinary competition. On the management side, McMinnville High School took first place earning them a trip alongside Crook County to Washington, D.C. to compete in the National ProStart Invitational May 2-4. ProStart is a nationwide career technical education (CTE) program that prepares high school students with fundamental skills such as communication, teamwork, time management and professionalism needed to enter the workforce. For a quick recap and video capturing some of the action, see the story on Here Is Oregon, "Oregon culinary students go head-to-head in a very polite food fight." For the full results, read our press release.

Survey Shows Oregon Restaurants Still Challenged: The National Restaurant Association recently released key findings from a Restaurant Business Conditions survey conducted in November 2022. Oregon data was extracted to help illustrate what our industry is experiencing locally, including continued elevated costs across all parts of the operation and expected challenges with profitability to remain through 2023. Oregon operators took a number of actions in recent months as a result of higher cost. 78% of restaurants increased menu prices and 48% of restaurants reduced hours of operation. See more insights in Oregon's survey data.

ORLA Day of Advocacy Fosters Relationship Building: Over 300 hospitality industry members, state agency representatives, legislators and staff participated in a day of activities co-hosted by ORLA and AAHOA February 21. The Capitol Day Assembly provided for Q&A sessions with invited representatives from several state agencies. After meetings at the Capitol, attendees enjoyed hosted food and beverages at the Taste Oregon Legislative Reception presented by DoorDash. The reception provided industry members the opportunity to meet our elected leaders face to face in a casual setting. Read more.

Bill Tracking / Third-Party Delivery Fee Cap / Capitol Day

From ORLA's Advocacy Update
The following are just a couple highlights from the bi-weekly Advocacy Update email sent to all ORLA members. This members-only communication dives deeper into some of the bill activity, industry positions, and upcoming work sessions for key legislative bills we're engaged on. If you are a member but are not receiving the Advocacy Update emails, please reach out to Info@OregonRLA.org.

• ORLA Bill Tracking: The state legislature hits its deadline on February 21 to introduce new bills for the year. As of two weeks ago, over 2,200 bills had been introduced. ORLA's bill tracking software serves as a crucial tool in monitoring activity of bills with hospitality impacts and coordinating public testimony in front of committees in representation of the industry. See the latest activity.
• Take Action & Urge Support of HB 2536: In 2020, the Legislature passed HB 3361 protecting restaurants from third-party delivery companies using their menu, logo or pricing information without prior written consent. HB 2536 reinforces those protections and makes it clear the enforcement agency would be the Oregon Health Authority. In addition, it prohibits third-party delivery platforms from charging more than 15% for delivery fees statewide. We need you to share your personal story with legislators and let them know how important passage of this bill would be to helping you survive as you recover.

ORLA Day of Advocacy Fosters Relationship Building
Over 300 hospitality industry members, state agency representatives, legislators and staff participated in a day of activities co-hosted by ORLA and AAHOA February 21. The Capitol Day Assembly provided for Q&A sessions with invited representatives from several state agencies. After meetings at the Capitol, attendees enjoyed hosted food and beverages at the Taste Oregon Legislative Reception presented by DoorDash. The reception provided industry members the opportunity to meet our elected leaders face to face in a casual setting. Read more.

Looking for more advocacy information or wanting to engage a bit more on the issues? ORLA members are welcome to join our weekly Government Affairs meetings (via Zoom) by completing this Contact Us form.

Capitol Day Assembly, Taste Oregon Events Provide Members with Face to Face Connections

[Wilsonville, OR - 2/22/23] – Over 300 hospitality industry members, state agency representatives, legislators and staff participated in a day of activities supporting Oregon's hospitality industry. The morning kicked off with several discussions on industry-related issues during ORLA's Capitol Day Assembly. Attendees engaged with questions for invited representatives from state agencies including Oregon Employment Department, Paid Leave Oregon, Oregon Lottery, and BOLI.

The afternoon was left open for members to meet with legislators and staff in pre-arranged meetings at the Capitol.

The day culminated with the Taste Oregon Legislative Reception co-hosted by ORLA and AAHOA and presented by DoorDash. This favored legislative event provided a unique opportunity for industry operators to meet face to face with their legislators in a casual forum, conducive for building connections over some great food and beverage. 

“ORLA’s partnership with AAHOA is of crucial importance as we work to mobilize our very busy members in support of Oregon’s hospitality industry,” said Jason Brandt, President & CEO, Oregon Restaurant & Lodging Association. “Our Taste Oregon reception is one of the ways we create value for our members across the state. Without a doubt, relationships matter.”

Attendees from both ORLA and AAHOA had the opportunity earlier in the day to hear more about ORLA's legislative agenda and discuss talking points on some of the key issues that have potential impact on restaurant and lodging operators.

A huge thank you to the restaurant and beverage companies who provided great tastes including:

• 360 Vodka
• Adam's Rib Smoke House
• Blue Star Donuts
• Five Farms Irish Cream
• Gamberetti's Italian Restaurant
• Geppetto's Italian Restaurant
• Grain Station Brew Works
• Great Harvest Bread Co.
• South Salem High School Culinary Program
• Sunriver Resort’s ACF Apprenticeship Program
• Swire Coca-Cola, USA
• Willamette Valley Vineyards

For more information on ORLA's legislative priorities, or to view bill tracking, visit OregonRLA.org.

Meet Your Elected Leaders / Service Animals / Small Business Grants

Capitol Day & Taste Oregon
With a record number of new legislators in Salem, in addition to a new Governor and a few agency heads, now's the time to engage in opportunities to meet face to face with these elected leaders and help them understand our unique industry issues. There's a full menu of activities with ORLA and AAHOA's Capitol Day and Taste Oregon events presented by DoorDash in Salem on Tuesday, February 21, 2023. You are encouraged to participate in one or more of these activities with multiple chances to tell your story and discuss issues of importance with our elected leaders. Take a look at the day's schedule and plan to join us for some or all the activities. While these events are free to attend, an RSVP is required.

California FAST Act Update
It was an incredibly busy Fall for ORLA’s colleagues down in California as the state association worked alongside the National Restaurant Association to submit over one million voter signatures to stall the implementation of the FAST Act passed by the state legislature. In short, Californians will get the opportunity to either affirm the decision of their legislature or vote against it in November 2024. Until voters decide, we will not see the FAST Act take effect in California. Expect to see an expensive and hard hitting opposition campaign during the 2024 election season for our neighbors to the south. ORLA’s Government Affairs Committee will be following the issue closely as policy issues in California and Washington tend to find their way to Oregon.

A Miniature Horse Walks into a Bar...
Hospitality industry members have been experiencing more situations with customers walking into restaurants and hotels with "service animals" that may not actually be trained as such. We've reposted our Boiled Down podcast episode on the subject for some good reminders on what questions business owners and employees can legally ask customers. A local employment law attorney helps shed light on the dos and don’ts of service animals in your establishment. For additional resources, including downloadable posters for your place of business, visit ORLA's web page on compliance.

New Small Business Grant Applications
Business Oregon has partnered with the CCD Business Development Corporation to offer $3 million in Statewide Small Business and Microenterprise Grant Assistance (SBMA). This program is funded with federal grant funds from the Oregon Community Development Block Grant program CARES Act funding for communities affected by COVID-19. The application process opens January 23 and closes February 7, 2023. The grant applications are open to microenterprises (5 or fewer employees) or small business (more than five employees) that meet the eligibility requirements.

Oregon Governor’s Conference Registration Open
The 2023 Oregon Governor’s Conference on Tourism will be in Portland April 3-5, 2023. This is your opportunity to join your travel and tourism colleagues at Oregon's largest tourism gathering of the year. Keynote speakers and breakout session details are still to come but will focus on objectives aligned with Travel Oregon's 10-Year Strategic Vision, which includes experiences, equity, economy and environment. For more information and to register, visit Travel Oregon's industry site.

Questions on Oregon Restaurant & Lodging Association's advocacy work? Contact Director of Government Affairs, Greg Astley or visit our Advocacy page.

Oregon is officially gearing up for another Legislative Session in Salem with newly elected legislators hoping to make a difference for their constituents. As is typical with elections, results rarely if ever align on all fronts with your personal preferences. Regardless of the election outcomes this past Fall, it is our job at the association to build effective working relationships with leaders from both parties.

We had a very tangible return on investment recently which most likely stood out to you as a hospitality operator to prove how ORLA advocacy and relationship building efforts can drive bottom line results for your business – House Bill 3389 in the 2021 Legislative Session.

Restaurant and lodging businesses become members of ORLA because they understand the importance of industry representation and intelligence gathering. There are of course other reasons to join ORLA but for me, House Bill 3389 takes the cake. Our hope is the updates below showcase why it is of crucial importance for us to continue to band together to protect, improve, and promote Oregon’s hospitality industry.

What Was House Bill 3389?
House Bill 3389 was collaborative legislation passed in 2021 to provide short- and long-term pandemic tax relief to Oregon employers while protecting the Unemployment Insurance Trust Fund. This important bill provided assistance to Oregon employers in several ways:

• It extended the “look back period” used to determine the Unemployment Compensation Trust Fund solvency level from 10 years to 20 years.
• It kept employers’ Unemployment Insurance tax experience rating the same, through 2024, as what was used to determine the pre-pandemic 2020 tax rates.
• It deferred up to one-third of 2021 taxes until June 30, 2022 and provided forgiveness of penalties and interest accrued during that time for employers meeting certain criteria.
• It enabled some employers to be eligible for full or partial forgiveness of their deferrable 2021 Unemployment Insurance taxes.

Combined, the short- and long-term provisions of House Bill 3389 provide significant relief to Oregon employers.

• In 2021, after the bill passed, more than 4,000 employers took advantage of the option to defer tax payments. That resulted in approximately $1.1 million in interest and penalty forgiveness.
• Through the bill’s short-term provisions, the Oregon Employment Department (OED) has provided Unemployment Insurance tax forgiveness to more than 19,000 employers and has issued more than $43.3 million in payments to eligible employers. The refunds issued varied widely in amount due to Oregon’s wide range of eligible employers, from very small businesses to larger corporations.
• In 2022, most employers, about 125,000, saw a decrease in their tax rate from the prior year as a result of the passage of House Bill 3389.
• Looking longer term, from 2021 to 2029, these changes are estimated to save Oregon employers $2.2 billion in unemployment insurance taxes.

Doing our Part to Protect the Integrity of the Unemployment Insurance Trust Fund
If you and others you know experienced setting up numerous job interviews for open positions only to have no one show up, you’re not alone. ORLA has been actively working with OED to make sure we’re doing our part as employers to share intelligence about job recruitment efforts. The goal is to make sure recipients of unemployment insurance benefits are actively looking for work and willing to accept work while also protecting the solvency of the trust fund which makes unemployment benefits widely available for those who qualify and need assistance during times of professional transition.

The Oregon Employment Department relies on employers to help identify potential fraud and other issues with the Unemployment Insurance system. The current best route for employers to report people who do not show up for work when they are offered a job, turned down an offer of work, or who do not come back after being recalled from a temporary layoff is through the utilization of the following public website at: bit.ly/OEDrefuse.

For other types of suspected fraud, the Oregon Employment Department has another, more general form (so some questions may not apply to all scenarios) at bit.ly/OEDfraud.

Employers can also report suspected UI fraud to the department’s Fraud Hotline at 1.877.668.3204. | Jason Brandt, President & CEO, ORLA

With the new year around the corner, hospitality employers should be aware requirements coming into play in 2023.

• Oregon's new Paid Family and Medical Leave Insurance program (PFMLI) goes into effect January 1, 2023.
• A new Paid Leave notice for all Oregon employers goes into effect January 1, 2023, requiring employers to post a new model notice poster at each work site and provide it electronically or by mail to any remote workers.
• Under the Oregon retirement plan mandate, also known as OregonSaves, all employers in Oregon are required to facilitate OregonSaves if they don't offer a retirement plan for their employees; deadline for businesses with 3-4 employees must register by March 1, 2023, and those with 1-2 employees, by July 31, 2023.
• Read more about 5 Key 2022 updates to Form I-9 Compliance.

Close to 120 bills were passed in the 2022 short legislative session earlier this year. While some have already gone into effect, an additional 20 new laws go into effect January 1, 2023. Read more on OregonLive.com. The laws most relevant for our industry include:

• Senate Bill 1586 expands Oregon’s Workplace Fairness Act to make it unlawful for an employer to require former employees to enter into an agreement that would prevent them from disclosing discrimination and harassment. A similar law already covered current and prospective employees. The law also prohibits employers from including provisions in agreements that would prevent the disclosure of the amount or fact of a settlement, unless an employee requests that provision. 
• House Bill 4075 makes it easier for crime victims, including small businesses that are burglarized, to receive restitution for economic damages in part by ensuring that victims are paid in full before convicted criminals pay court fines. 
• House Bill 4086 makes key changes to the state’s workers’ compensation laws by broadening the definition of a beneficiary and a dependent when considering eligibility for benefits. Under the new law, the definition of a dependent is broadened to include individuals whose close association with a worker is equivalent to a family relationship, among others. Dependents who are noncitizens living outside the United States and spouses “living in a state of abandonment” are also no longer excluded from being beneficiaries, either. 

Want to stay informed with ORLA's activity in the 2023 Legislative Session? Visit our website to view our legislative framework for the upcoming session, subscribe to email alerts and updates, and sign up to be a Hospitality Advocate.

From the Desk of Jason Brandt, ORLA President & CEO

The Oregon Restaurant & Lodging Association (ORLA) is your statewide partner tasked with important work to advocate on your behalf. We continue to stay focused on our mission of improving, protecting, and promoting our state’s hospitality industry. Recently, ORLA shared the latest updates on some of the notable outcomes during this past year as outlined below. While we are confident our members recognize the importance of being an active member of their statewide association, our hope is that more industry members see the value in joining their peers and assisting the association in achieving greater outcomes in the years ahead. 

Recently, ORLA has:

• Successfully passed House Bill 3389 in the 2021 Oregon Legislature which resulted in 19,000 employers receiving Oregon Employment Department relief checks totaling $43.3 million. The legislation was historic and has also resulted in 125,000 employers across Oregon realizing a decrease in their tax rate for 2022. Unemployment insurance tax experience ratings will stay the same through 2024 thanks to the legislation. Overall, House Bill 3389 is expected to save Oregon employers $2.2 billion in unemployment insurance taxes through 2029.
• Entered a new partnership with Adesso Capital to assist restaurant and lodging members in processing their amended quarterly payroll tax forms to maximize federal employee retention tax credit money. Adesso can walk you through the entire process with a free consultation, so you know how much money you’re entitled to. It is very common to receive more than $100,000 back in tax credits as a hospitality operator disproportionately impacted by the pandemic. If you haven’t filed, you can get started at: www.adessocapital.com/partner/orla.
• Submitted over 10 public records requests of local government jurisdictions who collect a local lodging tax from our industry. It’s important that we stand together in making sure industry tax dollars are being spent in accordance with state law and that our dollars are maximizing opportunities to assist restaurant and lodging establishments with their ongoing recovery through strong tourism promotion campaigns.
• Launched a new workforce data tool to run customized reports for ORLA members at the city, county, and state levels by industry job type to keep up with ongoing changes in market rate compensation. These customized reports are included in your membership and are extraordinarily helpful in times like these.

If you're not already a member, please consider joining ORLA today. This organization exists for you and more than ever we need to stand together to protect the industry and the crucial contributions it makes to local economies around the State of Oregon. | Jason Brandt, President & CEO

SBA Announces $83M in New RRF Grants
Our partners at the National Restaurant Association (NRA)  just announced that the U.S. Small Business Administration (SBA) is releasing $83 million in Restaurant Revitalization Fund (RRF) dollars, which will fund the 169 applications at the front of the application queue. Operators receiving funds should receive notification today. Funds should be released within the next week and must be used before the RRF program expires in March 2023.

More details can be found from the NRA here. SBA’s release can be found here.

Today's press release from the National Restaurant Association:

Washington, D.C. (Nov. 23, 2022) – Today, the Small Business Administration (SBA) announced the release of $83 million dollars in unobligated Restaurant Revitalization Fund (RRF) grants to 169 operators with pending applications.
 
The National Restaurant Association has been requesting these funds be released, and Executive Vice President of Public Affairs Sean Kennedy made the following statement in response:
 
“The SBA’s action represents the final chapter of our nearly three-year effort to secure dedicated federal pandemic relief dollars for local restaurants. Today’s announcement is great news for those 169 operators fortunate enough to receive an RRF grant, but hundreds of thousands more are struggling with uncertainty.
 
“We must continue to look forward because the enormous challenges of the industry will continue beyond today. From the recruitment of employees to the constantly rising costs for food, running a restaurant right now is a daily struggle. There are steps the government can take to support restaurants in every community, and we will continue to press for solutions at the federal, state, and local level.”
 
According to the SBA, the grants are being released to operators in the order their applications were received. Operators receiving funds should receive notification today and SBA will begin transmitting the grants next week. They have until March 2023 to spend the money.
 
The Association was first to lay out the plan for a restaurant industry recovery fund to Congress in April 2020. Congress eventually set aside $28.6 billion dollars for the RRF in the American Rescue Plan Act. After this money was distributed, more than 177,000 applications were left in limbo at the SBA.
 
The Government Accountability Office (GAO) released a report in July, noting SBA was holding unobligated RRF funds and the Association was first to send a letter to SBA Administrator Isabella Casillas Guzman requesting that the unobligated money be released to unfunded applicants.
 
The restaurant industry was the hardest hit by the pandemic. In the initial shutdowns, more than eight million industry employees were laid off or furloughed. The industry still has not recreated 565,000 jobs lost at that time, which is the largest current employment deficit caused by the pandemic among all U.S. industries. More than 90,000 restaurants closed permanently or long-term because of the pandemic. 

​Advocating for Third Party Delivery Fee Caps
ORLA has been participating in the drafting and adoption of a permanent third-party delivery fee cap for the City of Portland along with other stakeholders and the Mayor’s office in a transparent collaboration with input from all sides. See the latest draft here.
 
During the pandemic, the city of Portland adopted a temporary 10% cap on third-party delivery fees to help restaurants. This past June, ORLA was instrumental in securing an extension of the cap another eight months. Now, the city is looking to adopt a permanent cap of 15% along with protections for restaurants. The ordinance is consistent with similar approaches taken in recent months by Seattle and San Francisco and its provisions offer strong protections and support to restaurants and food carts.  
 
This approach also reduces the likelihood of continued consumer-facing fees or constrained delivery radiuses that may negatively impact restaurant sales. Additionally, this policy will require food service platforms to provide a reasonable level of service at or below a 15% commission rate in the City. It also seeks to protect restaurants from being penalized or otherwise disadvantaged from opting into the 15% capped rate. The cap on takeout commissions will be 4% under this policy.    
 
Other notable protections and operational standards that support local restaurants and food carts include:

• Requires food delivery platform to notify all currently contracted restaurants in writing that they have an option to select the 15% or lower capped fee once this policy is adopted. This notification must be available in multiple languages reflective of the Portland community.
• The included language requires platforms to clearly define and explain all fees and commissions associated with contracted services, including the transaction fees that may be passed on from payment processors to restaurants by platforms. Transaction fees may not be more than the platforms themselves are charged by payment processors, and this rate must be able to be clearly communicated in restaurant contracts and substantiated upon request.
• Third party food platforms shall not disclose any info about a restaurant, including its menu or contact information, without the restaurant’s consent.
• Delivery platforms shall not restrict the prices that a restaurant may charge for food and/or beverages.
• There is a strong enforcement mechanism in this ordinance including fines for non-compliance. Current complaints may be filed here, and similar recourse will be available in the future following the adoption of this ordinance.

 
ORLA is pleased to have been instrumental in the creation of this new policy to protect restaurants and consumers.

Next Steps: The final ordinance language will be filed with the Council Clerk. This item has been scheduled for a first reading as a time-certain item at the Portland City Council meeting on 10:40am on Wednesday, December 7. Following the first reading, it would move to a second reading and vote for adoption on Wednesday, December 14. 
 
Contact Greg Astley, ORLA Director of Government Affairs if you are interested in providing public testimony on December 7.

Election Recap: Many Close Races, Some Still Too Close to Call
[Numbers updated 11/6/22 from original post on 11/14/22]
​
Voter turnout in Oregon for midterm general elections is typically around 70%. The results below were pulled from the Secretary of State’s site as of 3:45 p.m. Tuesday, November 15, 2022, and reflect a 62% turnout.
 
This is the first Oregon Election where ballots did not have to be received by 8:00 pm on election day, but did need to be postmarked by election day. So, there is no historical perspective if this might benefit one party over the other. 
 
On the Federal side, Oregon gained an additional Congressional seat. Although that race, the 6th Congressional, is still too close to call, it looks like the Republicans in Oregon will gain at least one seat in Congress, the redrawn 5th Congressional District. 
 
In the Governor’s race, Christine Drazan has conceded the race to Tina Kotek. Betsy Johnson conceded on Election Day after the initial returns.
 
It appears most of the Senate races are known at this time. The Democrats held a 18-12 super majority which at this point seems to be reduced to at least 17-13, with the only race still up for grabs being the Oregon City-Gladstone seat held by Republican Bill Kennemer. Kennemer and challenger Mark Meek (D) are locked in a tight race with Meek leading by 0.68% or just 397 votes. This seat is in Clackamas County so there should be a fair number of votes still to count. 
 
The House has more races where it is too soon to call. The Democrats currently hold a 37-23 super majority. Democrats appear to have enough seats to retain control with 32 races that seem to be settled. The Republicans should win 23 seats for sure. That leaves five seats up for grabs and too close to call still.  Democrats would have to win four of the five to hold the super majority in the House. 

Governor: 

• Kotek (D) – 47.10% – Difference between Kotek & Drazan = 67,365 votes
• Drazan (R) – 43.44% – Drazan has conceded
• Johnson (I) – 8.62%

 
BOLI: 

• Stephenson – 60.86% – Difference = 319,556 votes        
• Helt – 38.49%

 
CD4: 

• Hoyle (D) – 50.91% – Difference = 25,866 votes
• Skarlatos (R) – 42.9% – Skarlatos has conceded

 
CD5:

• Chavez-Deremer (R) – 50.91% – Difference = 6924 votes
• McLeod-Skinner (D) – 48.82% – McLeod-Skinner has conceded

 
CD6:

• Salinas (D) – 49.79% – Difference = 5404 votes
• Erickson (R) – 47.76%

 
M111 (Health Care as Right):

• No – 50.65% – Difference = 23,185 votes
• Yes – 49.35% 

 
M112 (Slavery Language in Constitution):

• Yes – 55.66% – Difference = 201,231 votes
• No – 44.34%

 
M113 (Legislative Absences):

• Yes – 68.31% - Difference = 653,534 votes
• No – 31.69%

 
M114 (Gun Sales):

• Yes – 50.90% - Difference = 32,630 votes
• No – 49.10%

 
State Senate: 
Current balance is 18 D, 11 R, 1 I.  If those currently leading below hold, balance would be at 17 D, 12 R, 1 I. It appears to be down to one competitive race – SD20. 
 
SD3:

• Golden (D, Inc.) – 51.79% - Difference = 2341 votes
• Sparacino (R) – 48.09%         

 
SD10: 

• Patterson (D, Inc.) – 53.42% - Difference = 3938 votes
• Moore-Greene (R) – 46.44%                        

 
SD11 (open seat):

• Thatcher (R) – 52.68% - Difference = 2318 votes
• Walsh (D) – 47.08%

 
SD13 (open seat):

• Woods (D) – 57.59% - Difference = 8646 votes
• Velez (R) – 42.32%

 
SD16 (open seat): 

• Weber (R) – 56.60% - Difference = 9362 votes
• Busch (D) – 43.26%

 
SD20:

• Meek (D) – 50.28% - Difference = 397 votes
• Kennemer (R, Inc.) – 49.60%

 
SD26 (open seat): 

• Bonham (R) – 59.04% - Difference = 11,914 votes
• Mason (D) – 40.83%

 
State House: 
Current balance is 37 D, 23 R.  If those currently leading below hold, balance would be at 35 D, 25 R. There are several very tight races left.
 
Pretty Wide Margins...
 
HD12 (open seat): 

• Conrad (R) – 57.53% - Difference = 5212 votes
• Emmons (D) – 42.36%

 
HD19 (open seat):

• Anderson (D) – 54.21% - Difference = 2344 votes
• Sullivan (R) – 45.65%

 
HD21 (open seat):

• Mannix (R) – 51.67% - Difference = 1552 votes
• Navarro (D) – 45.44%

 
HD22 (open seat):

• Cramer (R) – 51.80% - Difference = 630 votes
• Medina (D) – 48.00%

 
HD24 (open seat):

• Elmer (R) – 55.64% - Difference = 2929 votes
• Ernst (D) – 44.23%

 
HD31 (open seat): 

• B. Stout (R) – 59.44% - Difference = 6758 votes
• Sorace (D) – 40.33%

 
A Little Closer...
 
HD7:

• Lively (D, Inc.) – 51.68% - Difference = 1112 votes
• A. Stout (R) – 47.72%

 
HD32 (open seat): 

• Javadi (R) – 51.26% - Difference = 912 votes
• Laity (D) – 48.59%

 
HD40 (open seat):

• Hartman (D) – 50.21% - Difference = 161 votes
• Baker (R) – 49.69%

 
HD48 (open seat):

• H. Nguyen (D) – 51.39% - Difference = 681 votes
• Masterman (R) – 48.47%

 
HD49:

• Hudson (D, Inc.) – 52.08% - Difference = 905 votes
• Lauer (R) – 47.70%

 
HD50:

• Ruiz (D, Inc.) – 51.70% - Difference = 836 votes
• Salvador (R) – 48.10%

 
HD52 (open seat):

• Helfrich (R) – 52.50% - Difference = 1611 votes
• Long (D) – 47.37%

 
HD53 (open seat):

• Levy (D) – 50.33% - Difference = 278 votes
• Sipe (R) – 49.56%

 
Other State House Races of Note
These races include restaurant operators running for public office (McEntee, Nguyen, Bynum).
 
HD10:

• Gomberg (D, Inc.) – 56.77% - Difference = 5026 votes
• McEntee (R) – 43.10%

 
HD38: (open seat)

• D. Nguyen (D) – 68.07% - Difference = 13,363 votes
• Firmin (R) – 31.86%

 
HD39:

• Bynum (D, Inc.) – 54.86% - Difference = 2632 votes
• Haynes (R) – 44.98%