With the new year around the corner, hospitality employers should be aware requirements coming into play in 2023.
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:
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. The Oregon Restaurant & Lodging Association (ORLA) keeps members informed and educated on important issues impacting the hospitality industry. If you are not yet a member of ORLA, please consider joining the association in order to access the latest industry intelligence for businesses like yours. Visit our Membership page or reach out the ORLA Regional Representative nearest you.
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:
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. About the National Restaurant Association
Founded in 1919, the National Restaurant Association is the leading business association for the restaurant industry, which comprises nearly 1 million restaurant and foodservice outlets and a workforce of 14.5 million employees. Together with 52 State Associations, we are a network of professional organizations dedicated to serving every restaurant through advocacy, education, and food safety. Contact: Vanessa Sink | vsink@restaurant.org 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:
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. The Oregon Restaurant & Lodging Association (ORLA) keeps members informed and educated on important issues impacting the hospitality industry. If you are not yet a member of ORLA, please consider joining the association in order to access the latest industry intelligence for businesses like yours. Visit our Membership page or reach out to an ORLA Regional Representative nearest you.
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:
BOLI:
CD4:
CD5:
CD6:
M111 (Health Care as Right):
M112 (Slavery Language in Constitution):
M113 (Legislative Absences):
M114 (Gun Sales):
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:
SD10:
SD11 (open seat):
SD13 (open seat):
SD16 (open seat):
SD20:
SD26 (open seat):
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):
HD19 (open seat):
HD21 (open seat):
HD22 (open seat):
HD24 (open seat):
HD31 (open seat):
A Little Closer... HD7:
HD32 (open seat):
HD40 (open seat):
HD48 (open seat):
HD49:
HD50:
HD52 (open seat):
HD53 (open seat):
Other State House Races of Note These races include restaurant operators running for public office (McEntee, Nguyen, Bynum). HD10:
HD38: (open seat)
HD39:
ORLA keeps members informed and educated with the latest information, industry intelligence and research via several channels. In addition to the blog, members receive more comprehensive insights via the monthly Insider e-newsletter and access to the Member Portal with data and research.
Not a member yet? Visit our Membership page or reach out the ORLA Regional Representative nearest you. Homeless Camping Ban / Lottery Retailer Meeting / Restaurant Revitalization Funds An End to Unsanctioned Camping in Portland Portland City Council approved a plan to ban unsanctioned camping whereby Portlanders experiencing homelessness will be moved from undesignated areas to available shelter locations. ORLA Government Affairs Coordinator Makenzie Marineau testified in favor of the proposal last week. In addition, we provided testimony at the Multnomah County Commission meeting in support of a good neighbor agreement between the County and businesses surrounding their new Behavioral Health and Resource Center located behind the Benson Hotel. ORLA Lottery Subcommittee Relaunches Next week we're relaunching our Lottery Subcommittee made up of ORLA members who rely on solid working relationships with Oregon Lottery staff and the Oregon Lottery Commissioners. If you’re a Lottery Retailer and would like to be involved, reach out to ORLA’s Director of Government Affairs Greg Astley with any questions. The subcommittee will be focusing on preparing for the next negotiation on commission rates with lottery staff, the potential for geocached in-game sports betting exclusive to bars/restaurants with retailer licenses, and progressive jackpots for ORLA members on video lottery terminals. Those issues and more will keep the group moving forward through 2023. Association, Sponsors Urge SBA to Release Last $180M in RRF The 4 sponsors of the RESTAURANTS Act (which became the RRF) sent a letter to the Small Business Administration this week demanding answers about the $180M in unobligated RRF money. U.S. Reps Brian Fitzpatrick (PA-01) and Earl Blumenauer (OR-03) and Sens. Roger Wicker (MS) and Kyrsten Sinema (AZ) wrote a letter to Isabel Guzman, administrator of the SBA, urging for a release of all unobligated funds from the RRF no later than Nov. 14, 2022. The National Restaurant Association has been working with Congress since July to urge SBA to disburse the funds, citing over 177,000 restaurant applicants who are desperately waiting for word on whether they will ever receive funding. Read the latest letter. AHLA Honors Native American Heritage Month November is National Native American Heritage Month, and AHLA is honoring the rich history and cultures of American Indian, Alaska Native and Native Hawaiian communities in the United States. The association has developed educational resources to support your individual DE&I learning journey:
Restaurant Operator Survey for November As the National Restaurant Association and state restaurant associations continue to advocate on behalf of the industry, please help us quantify and further illustrate how current business conditions are impacting the restaurant industry. The Association Research Group developed a brief survey designed to collect important data to inform our ongoing advocacy activities. Restaurant operators: Please take a few minutes to complete the survey. ORLA keeps members informed and educated with the latest information, industry intelligence and research via several channels. In addition to the blog, members receive more comprehensive insights via the monthly Insider e-newsletter and access to the Member Portal with data and research.
Not a member yet? Visit our Membership page or reach out the ORLA Regional Representative nearest you. Paid Leave Info | UI Refund Checks | Proposed Labor Rule
Oregon Employment Department Refund Checks ORLA's biggest win during Covid at the state level was in House Bill 3389 where unemployment insurance (UI) tax reform passed. 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:
More Independent Contractors May Become Employees - Proposed Labor Rule Earlier this week, the U.S. Department of Labor issued a proposed rule focused on classifying more workers as employees rather than independent contractors. The rule would 1) rescind the current independent contractor rule and 2) utilize a new “economic realities” test to determine if a worker is truly an independent contractor. This test includes factors such as investment, control, opportunity for profit or loss, and whether the work is integral to the employer’s business. The Department intends to identify more workers as employees, and therefore eligible for standard minimum wage, overtime, and other protections through the Fair Labor Standards Act. In the press release, the Department says misclassification affects a “wide range of workers in the home care, janitorial services, trucking, delivery, construction, personal services, and hospitality and restaurant industries.” Comments on the proposed rule are due by November 28. For more insight on the potential impacts of this rule, read a recent editorial regarding California's law. Oregon Paid Leave As you are well aware, Oregon’s Paid Family and Medical Leave Insurance program (PFMLI) goes into effect January 1, 2023, and is funded by employer and employee contributions. Employers with less than 25 employees are not required to contribute to the program, but their employees are. Employers will be required to participate in the program or provide an equivalent plan. ORLA is actively looking into private sector solutions for the industry and will keep you posted. In the meantime, ORLA developed a PFMLI one-pager that helps answer some questions regarding Oregon’s new Paid Leave program. You can also find this on OregonRLA.org here:
Restaurant Economic Insights The latest insights from the National Restaurant Association shows overall consumer spending in restaurants trended higher in August, inflation-adjusted (real) sales remained down from early-summer levels. Eating and drinking places registered total sales of $86.2B on a seasonally adjusted basis in August. In inflation-adjusted terms, that was $1.3B below the recent peak registered in May 2022. As always, if you have any questions, feel free to reach out to your Regional Representative. Industry Champions / Local Lodging Tax / New GA Team Member
Statewide Hospitality Awards ORLA honored four industry members during the Hospitality Conference in Eugene on September 11, 2022. These awards recognize the outstanding contributions of individuals and businesses serving the hospitality industry and communities throughout the state. Congratulations to the Employee of the Year Jodi Doud (Southern Oregon Elmer's), Lodging Operator of the Year Nick Pearson (Jupiter & Jupiter NEXT), Restaurateur of the Year Emma Dye (Crisp), and Allied Member of the Year Matthew D. Lowe (Jordan Ramis PC). View video profiles of this year’s recipients. Protecting Local Lodging Tax Dollars ORLA's government affairs team is working closely with our leadership teams and operators to review how local lodging taxes are being spent in jurisdictions across the state. Over the past fiscal year, ORLA has filed over 10 public records requests to evaluate the use of lodging tax dollars collected by local governments. Turnover within government positions just like in the private sector result in the need for ongoing education of the state rules governing local lodging taxes. Watch ORLA's explainer video how local lodging taxes must be expended in accordance with Oregon's state law. New ORLA GA Team Member Makenzie Marineau joins ORLA with experience in the non-profit world along with government relations, communication and volunteer engagement skills. Along with expertise in government affairs, she has years of experience working within the hospitality industry in Oregon. In her role as Government Affairs and Regional Leadership Teams Coordinator, Makenzie will be helping the association and its members achieve success through the development and ongoing oversight of regional groups of restaurants and lodging operators as well as programs to benefit the hospitality industry. She will serve as the lead government affairs staff member in the Portland Metro region and will provide administrative support for regional leadership teams outside of the region. As always, if you have any questions about industry issues, please reach out to your Regional Representative or email us. Gubernatorial Candidate Events / Oregon PFML / ORLA Conference
Gubernatorial Candidate Events The Oregon Beverage Alliance (OBA) is hosting three events with Oregon’s Gubernatorial candidates coming up in the next several weeks. This is a unique opportunity for our industry to have an audience with the future Governor to talk specifically about the hospitality sector, our force as an economic driver for the state, and the importance of considering the impact of policy decisions on our sector. Having a large presence at these events will help ensure that Oregon’s next Governor understands the depth, diversity, and strength of our voice. These events provide a forum for open dialogue on issues of importance to our group. The events are all free of charge and will be held at Columbia Distributing, 27200 SW Parkway Ave, in Wilsonville, Oregon.
Oregon's Paid Family Medical Leave Program Oregon’s Paid Family and Medical Leave Insurance program (PFMLI) goes into effect January 1, 2023, and is funded by employer and employee contributions. Employers with less than 25 employees are not required to contribute to the program, but their employees are. Employers will be required to participate in the program or provide an equivalent plan. ORLA is actively looking into private sector solutions right now. Here are some key dates:
Still Time to Register for the Conference ORLA is excited to have both Chip Rogers, President & CEO of the American Hotel & Lodging Association and Michelle Korsmo, President & CEO of the National Restaurant Association joining us in person as keynote speakers at the ORLA Hospitality Conference in Eugene. This will mark the first time in ORLA’s history where both national CEOs will be present for a gathering of our members. All details relating to the conference can be viewed on our designated conference site. View the “Sessions” tab on the following website to review the flow of the conference and reach out with any questions. This is a great time to bring key staff and those you’re looking to develop as part of your long term sustainability plan for your operation. Third Party Deliver Fee Cap / Hotel Loading Zones
Recently, the Oregon Restaurant & Lodging Association (ORLA) went to bat on a couple of issues affecting restaurants and lodging properties in Portland and we came away with two huge wins! On the restaurant side, ORLA was instrumental in securing an extension of the 10% Delivery Fee Cap for an additional eight months. The ordinance takes effect June 29 when the ordinance from 2020 was set to expire. ORLA will now work with restaurant owners, the City of Portland, the third party delivery companies and other stakeholders on a proposal around a permanent delivery fee cap within the city limits. A huge thanks to the restaurant operators who testified and shared their stories to City Council. On the lodging side, ORLA reached out and communicated with Commissioner Hardesty’s office about proposed changes to hotel loading zones that would have turned the current 15-minute zones into 3-minute zones. Our discussions were successful in maintaining the 15-minute loading zones. ORLA pointed out that as Portland hotels continue to recover from the last two and a half years, making it more difficult and less welcoming for visitors to enjoy our city is the opposite of what we need to be doing. Advocacy on behalf of the hospitality industry and our members is at the core of what we do at ORLA and we appreciate your involvement and your support as we continue to fight on your behalf. Questions? Contact ORLA Regional Representative Steven Scardina or ORLA Director of Government Affairs Greg Astley. Alcohol Tax / Commission Caps on 3rd Party Deliveries / PFMLA / Tip Pooling Resources
Fighting Oregon Alcohol Tax Increases Here's a quick update on our ongoing fight to protect the industry from increased beverage taxes in Oregon. Our next fight against increased alcohol taxes will surely come up yet again in the 2023 Legislative Session. Our friends at Quinn Thomas have been working hard to keep our organizational alliance intact as well as help identify messaging relating to some of the ongoing problems with Oregon’s broken addiction treatment and recovery system. This analysis on Alcohol Price Elasticity helps shed more light on the lack of correlation between increased alcohol taxes and decreases in alcohol use. Upcoming Vote on Capping Third Party Delivery Fees at 15% Portland City Council will vote on June 15 to cap delivery fees for restaurants from third party platforms at fifteen percent. If approved, the ordinance would take effect June 29, 2022 when the emergency order capping delivery fees at ten percent expires. In addition to the fifteen percent delivery fee cap, the ordinance would allow third party delivery platforms the ability to charge:
The ordinance also prohibits:
Paid Family Leave Concerns You may recall a tough fight in the 2019 Oregon Legislative Session on Paid Family Leave. The new labor law passed before Covid and has been in hibernation mode behind the scenes as the Oregon Employment Department worked to get their ducks in a row for a 2023 launch. Of course we had this little thing called Covid which upended our world and unfortunately those unexpected challenges have not changed the state’s plan to fully implement their “Paid Leave Oregon” program in 2023. The Paid Leave Oregon programs latest round of rules addresses a variety of issues including appeals, wages, benefits, and equivalent plans. ORLA’s statewide business partner OBI has participated in the rulemaking advisory committee and submitted comments on behalf of the business community. We continue to worry about the confusion this will create for employers and employees that are also subject to the Oregon Family Leave Act and the federal Family and Medical Leave Act. OBI hopes to introduce legislation in the 2023 session to address this issue. Key date: The 1% payroll tax will begin on January 1, 2023. Employees pay 60% of the tax and employers pay the remaining 40%. However, employers with less than 25 employees are not required to contribute to the program, but their employees are. Alternatively, employers can opt to provide a private equivalent plan through insurance or by self-insuring, rather than participate in the state program (ORLA is actively looking into private sector solutions right now – any progress will move through our ORLAMS board process). Employees will be eligible to file claims under both the state and private plans in September 2023. Webinar on Tip Pooling & Overtime Compliance ORLA hosted a webinar June 2 on “How to Ensure You’re in Compliance with Overtime and Tip Pooling.” Representatives from the Department of Labor, Wage & Hour Division Portland District covered these topics and more, including fielding several situational questions from industry members. The following resources were shared:
For questions, call the WHD toll free and confidential information helpline at 1-866-4US-WAGE (1-866-487-9243), or the Portland District office directly at 503-326-3057. You can also call or visit the nearest Wage and Hour Division Office. For a copy of the webinar presentation slides, please email Lori Little. Have any questions? Feel free to reach out to ORLA Government Affairs via email. RRF / Elections / Liquor Privatization...
Restaurant Revitalization Fund (RRF) Senate Vote – Oregon Senators Voted Yes Yesterday, the U.S. Senate was unable to overcome a filibuster on a motion to begin debate on a $48 billion bill that would have replenished the Restaurant Revitalization Fund (RRF). The vote to invoke cloture and overcome the filibuster failed by a vote of 52-43 (60 votes were needed to prevail). Read the press release from the National Restaurant Association for more information. Highlights of the vote from yesterday:
Primary Election Roundup There has been an increase in the number of industry members who have expressed a willingness to run for office. ORLA members Cheri Helt (BOLI Commissioner candidate), Daniel Nguyen (State Rep Candidate), Janelle Bynum (Current State Rep), and former ORLA staff member Christine Drazan are all working to bring more industry expertise to our policy making decisions. Here are a few highlights from this week’s primary election on state races:
Portland Lodging Alliance (PLA) Statement on Portland City Budget ORLA was involved in group discussions on the City of Portland's budget earlier this week. Generally, the high level social service and public safety investments and content within the budget seem on point. What continues to plague Portland are the deficiencies in management and a desire by our members to see consistent progress on the streets. One of ORLA’s local groups is called the Portland Lodging Alliance and current ORLA Board Members George Schweitzer and Daryn White Cyrus sit on the PLA Steering Committee. Joining them in leadership are Brandon Carter of the Bidwell downtown and Martin McAllister who runs the waterfront Marriott Hotel. This coming week the Portland Lodging Alliance is submitting comments on Mayor Wheeler’s proposed budget to the City through their online public comment portal. Liquor Privatization Off the November Ballot There’s one less thing to worry about on the November ballot now that the Northwest Grocers Association have pulled their initiative petition from the signature gathering process to qualify as a state measure. Initiative Petition 35 would have opened the door to liquor sales in grocery stores here in Oregon. Although the convenience may seem enticing on its surface there are far ranging implications if the current alcohol system were to be disrupted with cost escalations on liquor inevitable for ORLA members. See the story summing it all up here on OPB. ORLA has been an active part of the opposition campaign to this effort ever since our Government Affairs Committee voted unanimously to oppose these efforts when this was attempted the last time. Have any questions? Feel free to reach out to us via email. Paid Family Leave / Governor's Race / 'Hospitality is Working'
Paid Family Leave Rulemaking Paid Family Leave passed in the long legislative session of 2019 before Covid and has been in a delayed planning state ever since. The law is now getting more attention as the Oregon Employment Department and their new Paid Family Medical Leave Insurance Division (PFMLI) work to launch the new program in 2023. The program is ambitious and requires a 60/40 percent employee/employer split in contributions to a new fund for specific family and medical leave needs. ORLA’s Director of Government Affairs serves on the rulemaking committee; we'll keep members informed of paid family leave updates. Governor’s Race & GOP Polling Recent polling for the Governor’s Race shows former Oregon Restaurant Association staffer Christine Drazan may have a good shot at securing the GOP nomination for Governor in the upcoming primary. Most political pundits continue to believe the Democrat primary win will go to Tina Kotek although Tobias Read has been making a considerable push to gain more favor within the party. Hospitality is Working Campaign The American Hotel & Lodging Association (AHLA) relaunched its Hospitality is Working campaign seeking to reignite travel nationwide and showcase the economic and community benefits hotels provide in neighborhoods across the country. Hospitality is Working showcases the broad range of benefits hotels provide the communities they serve while highlighting the industry’s strong commitment to investing in its workforce, providing quality career opportunities, and protecting employees and guests as more and more Americans begin to travel. The campaign will include television and digital advertising as well as AHLA events around the country alongside local hoteliers, economic development organizations and community groups. Have questions? Give us a call at 503.682.4422 or email us if you have any questions. Happy Friday! PAC Auction / OLCC Presentation / Lodging Tax Accountability One Big Night in Less than 2 Months ORLA's largest fundraiser of the year will be here in less than 2 months. One Big Night will be held at the Portland Doubletree Hotel, Tuesday, June 7.
Presentation to OLCC Commission ORLA representatives had an opportunity to present an industry update to the seven-member OLCC (Oregon Liquor and Cannabis) Commission last week. The presentation focused on the importance of OLCC staff extending liquor service footprints outdoors through a user friendly online process during Covid, their approach to license fee flexibility, and the emergence of to-go cocktails as another sales opportunity permanently available to the industry in Oregon to increase sales. We also flagged both ongoing inflation concerns and the importance of Economic Injury Disaster Loan extensions in helping our industry just barely keep our heads above water. ORLA remains focused on explaining the nature of invisible piles of debt on the shoulders of our operators while we all start seeing restaurants busy and even bustling. Today's sales numbers hopefully serve as a constant reminder that ongoing relief is necessary and warranted. Industry Coverage in The Hill The Hill published an op-ed from Sean Kennedy, Executive Vice President of Government Affairs for the National Restaurant Association. Sean hit the mark in covering what the industry needs to get back on track. It was a timely article right before industry operators head to DC this week. Accountability for Local Governments on Local Lodging Taxes ORLA remains committed to doing what we need to do in getting local governments to commit to transparency in how they spend industry tax dollars. We are currently in the middle of a disagreement with staff from one city in the Willamette Valley on how much of their lodging tax money is restricted for tourism promotion and facilities. A multitude of other local governments are also on our list in our pursuit of additional transparency. Have questions? Give us a call at 503.682.4422 or email us if you have any questions. | ORLA Local Lodging Tax Watchdog Work / The Fate of RRF / Workforce Storytelling / 77% of the Way
Yesterday, the House of Representatives approved a bill to replenish the Restaurant Revitalization Fund (RRF). Details on what to expect in DC as well as other updates from the week are below. Don’t forget to sign up and support our largest ORLAPAC fundraiser of the year, One Big Night. If you haven’t already, register to attend and/or consider donating an auction package and help us make a difference in the upcoming election cycle in support of our industry recovery efforts. Local Lodging Tax Watchdog Work ORLA’s successful win in court at both the Circuit Court and Oregon Court of Appeals level has helped usher in a new chapter of relevance for the association in ramping up our watchdog role for our lodging members and the broader tourism industry. As a reminder, ORLA won on all counts against the City of Bend which helped cement our legal standing in holding local governments accountable for how they expend local lodging tax dollars even though ORLA itself does not collect local lodging taxes directly. With the help of legal counsel, ORLA is actively seeking more transparency in the Cities of Gladstone, Gresham, Cannon Beach, and Albany. Watch ORLA's explanatory video as a refresher on how local lodging taxes are to be spent. This video has proven to be a helpful resource to help educate newly appointed local elected leaders or city administrative staff so please share with your contacts whenever helpful. The Fate of RRF Replenishment As anticipated, the U.S House of Representatives passed H.R. 3807 - replenishment of the Restaurant Revitalization Fund. The challenge of getting replenishment over the finish line continues to be in the Senate. On Tuesday, Senator Ben Cardin (D-MD) introduced The Small Business COVID Relief Act of 2022 (SBCRA) (S. 4008). The SBCRA would allocate $40 billion for RRF replenishment and $8 billion for other small businesses impacted by COVID. It would partially offset (pay for) the $48 billion through $5 billion in unspent Payroll Protection Program funds. In the interim, we will encourage Senate Republicans and Democrats to reach an agreement on replenishing the RRF. The largest hurdle remains overcoming vast differences between the parties on whether the spending must be paid for, and how. If you haven't already, tell Senators to replenish the RRF. A special thanks to a contingent of ORLA current and past board members for joining ORLA President & CEO Jason Brandt and ORLA Director of Government Affairs Greg Astley at the National Restaurant Association Public Affairs Conference coming up at the end of this month in Washington D.C. RRF, as well as several other key issues will be a part of our discussions as we meet with lawmakers. Workforce Storytelling We have a big challenge at our doorstep which revolves around reclaiming the narrative around jobs and careers in the hospitality industry. There are incredible stories all around us about the positive and lasting impact hospitality jobs have for Oregonians from all backgrounds. The Spring edition of the Oregon Restaurant & Lodging Association magazine focuses in on the importance of mentors and the opportunities we all have to do more in sharing the opportunities in our industry with both high school and community college students. On page 24 is our Industry Champions article, The Essential Role Of Industry Mentors For High School Culinary Classrooms, where four of our ProStart mentors were interviewed. They each had great stories to tell, worthy of a broader share than just in print, so we repurposed the article as a blog post as well. 77% of the Way Back The hardest hit sector, accommodation and food services, has regained 77% of the many jobs lost in the initial COVID crisis. In addition, the following article is featured on the Oregon Employment Department’s website regarding youth employment trends in our industry. It’s worth a read to learn about our history and our efforts to regain traction in employing high school youth over the course of the past decade. Oregon OSHA Fixes Workforce Housing Caps ORLA has been advocating for our hospitality businesses who provide housing for workers as a benefit of employment. This predominately impacts our resort members who leverage visas and provide work experience to citizens from other countries with those opportunities ramping up in the Spring and Summer seasons. Thankfully Oregon OSHA has answered the call to repeal the Covid rule that capped the amount of workers we were allowed to house in each dwelling unit due to concern over Covid spread. This will greatly assist members in controlling costs associated with the number of vacation homes/dwelling units that must be rented out for the purposes of workforce housing. Give us a call at 503.682.4422 or email us if you have any questions. | ORLA RRF Replenishment / OSHA Updates / H-2B Visas / US Labor Department Investments
We are seeing signs of sales getting close if not reaching pre-pandemic levels for some Oregon operators. Of course sales numbers don’t tell the whole story for our restaurants given the cost of goods and the ongoing impacts of a marketplace driven by historic leverage in the hands of employees. On the lodging side it continues to be a tale of two realities with operators seeming to do quite well in secondary markets with Portland still working to find its footing with the delay in corporate/conference travel. Spring/Summer live events and the return of the full fledged Rose Festival events for a month from late May through late June will certainly help Portland turn the page. RRF Replenishment Votes Possible in House, Senate The U.S. House of Representatives is expected to vote on legislation to replenish the Restaurant Revitalization Fund as early as this Wednesday. Details on the size of the bill, and whether it is funded with new government spending or reallocating existing federal dollars remain unknown. Meanwhile, if the Senate is able to reach agreement on legislation to fund COVID treatment programs, Democrats are expected to offer an amendment to replenish the RRF. Senate Republicans have been clear in calling for any COVID spending to be fully offset by cuts in other government programs, and will vote against RRF replenishment if this condition is not met. ORLA has been working with the National Restaurant Association on your behalf to urge that Congress not treat the 177,000 restaurants waiting for COVID grants as hostages to battles over government spending. The National Restaurant Association sent a letter to the Hill this morning in support of RRF votes and posted a press release urging support from Congress. We will keep you informed if a vote occurs and when the next grassroots activation will launch. OSHA Update on Workforce Housing One of the many unintended consequences of agency rules during Covid was the impact of workforce housing restrictions on our resort communities around the state. Oregon OSHA was focused on preventing the spread of Covid in agricultural worker housing specifically, but their rules also prevented resorts around Oregon from housing hospitality employees within residential vacation homes. The Covid rule limited the number of workers who can be housed in resort vacation homes–and those limits did not exist for vacation travelers from different households using those same homes. ORLA pointed out this inequity over the course of the past week and thankfully Oregon OSHA responded. OSHA just released a Workplace Advisory Memo on April 1, 2022, that removes these workforce housing limitations in our industry. H-2B Visas American Hotel & Lodging Association President & CEO Chip Rogers (who will be joining us in person at September’s ORLA Hospitality Conference in Eugene) shared the following good news this week on H-2B Visas. A number of ORLA members utilize Visas for seasonal employment needs and expanding capacity has been a priority for the industry. The Department of Homeland Security (DHS) and Department of Labor (DOL) announced they would make available an additional 35,000 H-2B visas for the second half of fiscal year 2022 (FY22), which begins April 1. Of these, 23,500 visas will be available for returning workers, while 11,500 are reserved for nationals of Haiti, Honduras, Guatemala, and El Salvador. In December, for the first time ever the Departments released an additional 20,000 H-2B visas for the first half of the fiscal year. These additional visas will provide critical help to seasonal resorts as we enter the busy summer travel season, and they suggest that the Biden Administration recognizes the acute workforce shortage we are facing. AHLA will continue to push for legislation and policies that will help fill open jobs and keep us on the road to recovery. US Labor Department Investments This week the National Restaurant Association shared more details on President Biden’s federal budget proposal which includes an 18% increase in U.S. Department of Labor funding from 2022 levels ($2.2 billion more) with $400 million proposed to go towards the hiring of additional staff within the department’s workforce protection agencies. Here are the cliff notes from the administration's proposals that are more industry specific: Labor & Workforce
Food Supply Chain and Competition
Technology and Competition
Access to Credit
Healthcare
For more information: We look forward to sharing more about workforce development efforts in future reports. There is a lot of work going into improving connections between industry operators and high school/community college classrooms. Give us a call at 503.682.4422 if you have any questions. | ORLA Food Scrap Policy, Customer Entitlement, and March Madness Business Food Scraps Policy In Play – Implementation of a regional food scraps separation requirement went into effect March of this year and many businesses within the Portland Metro boundary will need to comply by 2023. Originally scheduled to begin in March 2020, the requirement was delayed by two years due to the impacts of COVID-19 on the region’s residents and businesses. The earliest any business must be in compliance is March 2023 and all businesses generating more than one 60-gallon roll cart of food scraps a week must be in compliance by September 30, 2024. View more information about the requirement and how to access resources for implementation on Metro’s website at Oregonmetro.gov/foodscraps. Multnomah County Candidates Forum April 20 – There continues to be a lot at stake in Portland with how we are managing safety and security issues as we start getting a taste for what Spring and Summer looks like in the Portland region with the activity surrounding March Madness. Some of you are seeing sales numbers returning to acceptable levels as of this month for the first time in a long time. One of our goals is to not let our elected leaders off the hook in understanding the significance of our debt loads just to get to the point where we could be open and start seeing customer demand improve again. ORLA is co-hosting along with several other business organizations an upcoming forum on April 20 focused on Multnomah County Commissioner candidates. Visit Portland Business Alliance's website for details. OTLA 3rd Year Class Launch – This past week the 3rd year class for the Oregon Tourism Leadership Academy (OTLA) gathered in Sunriver immediately following the Oregon Governor's Tourism Conference. ORLA had the chance to sponsor one of the keynote sessions at the Conference and showcase a new promotional video to bring more awareness to the Oregon Tourism Leadership Academy and opportunities for tourism professionals to get more involved in the program. Subscribe to updates on OTLA and view the new video. Customer Entitlement? – A 2022 pilot study from OSU Cascades Hospitality Management program shared by the program's director, Todd Montgomery, confirmed what they have been hearing during focus groups and personal interviews for years: entitled customer behavior is getting worse, and it is impacting the desire of hospitality workers to stay in the industry. OSU Cascades will present a white paper on all of their results in the coming months where they will address workers perceptions of what is driving these customer entitlement events. In the meantime, you can view their latest infographic. Learn more about how the Oregon Restaurant & Lodging Association is protecting and promoting Oregon's hospitality industry at OregonRLA.org. Below are some highlights from the 2022 Regular Session. A more comprehensive list of bills ORLA tracked can be found in the Bill Tracking Report.
SB 1514 – Pay Equity Originally a placeholder bill, ORLA monitored this bill as it became a vehicle to extend the ability of employers to offer hiring and retention bonuses. Because of the pandemic and government shutdowns of Oregon restaurants, many operators found themselves needing to offer hiring and retention bonuses to staff or prospective staff. The extension allows for businesses to continue to offer these bonuses without running afoul of Oregon’s Pay Equity Law until September 28, 2022, or 180 days beyond the expiration of the Governor’s Emergency Declaration which occurs April 1, 2022. HB 4015 – Entrepreneurial Loans ORLA supported this bill to help expand eligibility for state entrepreneurial loans and raise the per-loan limit from $500,000 to $1 million. This bill passed and was signed by the Governor on March 2, 2022, becoming effective immediately. HB 4101 – Smoking Bill ORLA initially opposed this bill which would have increased the distance from businesses at which someone could smoke from 10 to 25 feet. After an amendment in the House excluding OLCC-licensed businesses was passed, ORLA was neutral on the bill, but it died in the Senate. HB 4152 – Franchise Bill This was essentially the same bill that was introduced last session. ORLA opposed this bill which, among other provisions, would have allowed franchisees to use the brand name but nothing else related to the brand identity, quality, or reputation. Although the bill died in committee, we do expect the bill to return in the future and there is the possibility an interim legislative session committee or workgroup might review this issue. HB 4153 – Creative Opportunity Fund This bill established an “Opportunity Fund” equal to a dedicated two percent portion of the overall Oregon Production Investment Fund (OPIF) each year that could then be used for workforce development, employment training and mentorship, project and filmmaker grants, content and creator development, small business and regional production development, amongst other things. ORLA supported the bill for the economic and tourism opportunities available when these investments occur. The bill passed the House and Senate and as of this writing, was waiting for the Governor’s signature. Questions? Contact ORLA Director of Government Affairs, Greg Astley. This week, Congress finally reached a bipartisan agreement on their annual spending bill. However, the agreement is silent on replenishing the Restaurant Revitalization Fund (RRF), meaning no new funds will be directed to complete the mission and fund the 177,000 applications still pending. Over 2,500 of those applications still pending are here in Oregon. We are waiting for the dust to settle in Washington to identify if there are other avenues to replenish this much-needed program. Unfortunately, this decision from Congress is a huge blow to our efforts and the path forward is very uncertain. From the start of this pandemic, ORLA and our partners at the National Restaurant Association have pursued an “all-of-the-above” strategy for the industry, diving into every issue at the federal, state, and local level that could help or hurt us. From cocktails-to-go to worker shortages, we have had a seat at the table for every major policy debate underway and we will continue to advocate on behalf of our industry and its members. You’ll be hearing more from us and the National Restaurant Association on the outlook for RRF, but in the meantime, there are plenty of other issues we will be focused on and we will continue to need your input and your help along the way. If you have any questions, please reach out to your Regional Representative or ORLA Director of Government Affairs, Greg Astley. The Oregon Health Authority (OHA) announced today Oregon will remove general mask requirements for indoor public places no later than March 31. This would include restaurant customers and employees. OHA shared in a release, "By late March, health scientists expect that about 400 or fewer Oregonians would be hospitalized with COVID-19, the level of hospitalizations the state experienced before the Omicron variant began to spread. Mask requirements for schools will be lifted on March 31." State health officials say Oregon "needs to keep mask requirements in place for now as COVID-19 hospitalizations crest and Oregon’s health care system strains to treat high numbers of severely ill patients." Officials at OHA also filed a permanent rule requiring masks indoors in public places. This new rule replaces a temporary rule that expires tomorrow, February 8. As a reminder, the filing of a permanent rule was the only way health officials could extend the current temporary mask rule past its expiration date and until mask rules would no longer be needed to reduce transmission of COVID-19 and prevent the Omicron crisis from further overwhelming Oregon’s health care system. For questions or for more information, contact your Regional Representative. |
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