Oregon’s lodging tax investments could be drastically reduced if Senate Bill 595 passes.
If successful, SB 595 would eradicate the critical lodging tax reforms of 2003 by taking 30% of our industry’s 70% of any new or increased lodging tax implemented since July 2, 2003, and allowing local governments to redirect those funds for “affordable workforce housing” projects. The result would allow only 40% of new or increased local lodging taxes to be protected for tourism promotion and tourism-related facilities. ORLA was at the table in November supporting Measure 102, giving communities across Oregon greater flexibility to create the workforce housing they need. ORLA continues to be willing and ready to engage in productive conversations about alternative solutions that can benefit communities and foster economic development without targeting one industry. The Senate Committee on Housing held a public hearing for SB 595 on February 18. We need lodging industry members to take action now! Email members of the Senate Committee on Housing and tell them how important the 70% protections are to growing Oregon’s tourism economy. Urge them to consider alternatives to workforce housing initiatives. • Senator Shemia Fagan, Chair: sen.shemiafagan@oregonlegislature.gov • Senator Dallas Heard, Vice-Chair: sen.dallasheard@oregonlegislature.gov • Senator Jeff Golden, Member: sen.jeffgolden@oregonlegislature.gov • Senator Tim Knopp, Member: sen.timknopp@oregonlegislature.gov • Senator Laurie Monnes Anderson, Member: sen.lauriemonnesanderson@oregonlegislature.gov Read more about the bills ORLA is engaged and/or tracking this session at OregonRLA.org/billtracking. If you have any questions on this bill, please reach out to me via email at JBrandt@OregonRLA.org or call me directly at 503.302.5060.
Protecting Our Industry
During this session ORLA will be tracking several bills and engaging on those particularly to the hospitality industry. Members are encouraged to stay informed and engaged on the issues by subscribing to ORLA communications. If you have any questions, contact Greg Astley, Director of Government Affairs, at Astley@OregonRLA.org. ORLA Advocacy: Seeking Smarter Approaches
The debate over minimum wage has been front and center in the media this past year, both nationally and in Oregon. In March of 2016, Governor Kate Brown signed into law a new 7-year minimum wage escalation plan for Oregon with the first of seven minimum wage increases effective July 1, 2016. The plan includes 3 regions with different escalation methodologies over the course of those seven years. For more information, see Oregon's Minimum Wage Escalation Plan. Oregon is above the national average in unemployment rates, and for minor-aged workers, it’s even higher. While the rhetoric swirls on all sides of the minimum wage discussion, raising the minimum wage actually gives little buying power. Rather, it creates a reduction in available hours among lower skilled workers, and the goods and services they use increase in cost. Research shows that raising the minimum wage hurts the least-skilled and least-experienced jobseekers the most. Read more about how raising the minimum wage hurts the least-skilled and least-experienced jobseekers the most. Additionally, watch The Real Faces of the 'Fight for $15' on YouTube. Boosting Employment Opportunities for Younger Workers Oregon added tens of thousands of new jobs while recovering from the Great Recession of the 21st Century, but recent job growth completely overlooked younger workers. There were actually fewer workers from the age group 14 to 21 years in 2012 than in 2010, according to a study done by the Oregon Employment Division entitled “Endangered: Youth in the Labor Force.” Yet studies have consistently shown that when teenagers enter the job market earlier in life, their earning potential increases over their lifespan. Additional increases in the minimum wage, over and above current indexing, will create employee management concerns and potential pricing increases in the very industries that have long been training grounds for employees newly entering the workforce. Compromise and Economic Strength is the Answer If backers of higher minimum wages want to help those living solely on minimum wage, they should address the issue through the legislative process and work towards meaningful compromise. There are provisions in the Federal Fair Labor Standards Act, and in more than 40 states currently, that would help businesses manage their hours through the consideration of tipped employees and minor-aged workers. Most people listed as minimum wage workers in Oregon are either tipped employees making and reporting over $20 per hour in combined income, or are minors who live with their parents and are gaining much-needed work experience. If the legislature worked in concert with Oregon’s business community to grow the economy, all citizens would benefit. The focus needs to be on income growth and job creation through a prosperous economy; that’s how government benefits too through increased revenues and lower unemployment. ORLA’s Policy on Minimum Wage The Oregon Restaurant & Lodging Association (ORLA) supports efforts to remove the annual indexing, or at the least add language that considers economic factors like unemployment rates. ORLA is opposed to any increases in the minimum wage that do not take into account the factors of entry level workers or tipped employees. For more information, see Oregon's Minimum Wage Escalation Plan. View a map of 2018 minimum wage rates across the country. Oregon's Minimum Wage Continues to Rise
The 7-year minimum wage escalation plan for Oregon went into effect with the first increases on July 1, 2016. The plan includes 3 regions with different escalation methodologies over the course of those 7 years. The wage scale is as follows: STANDARD: Includes portions of Multnomah / Clackamas / Washington Counties not within the Portland Urban Growth Boundary as well as Marion, Clatsop, Polk, Josephine, Jackson, Deschutes, Lincoln, Benton, Linn, Lane, Tillamook, Yamhill, Columbia, Hood River, and Wasco Counties. • July 1, 2016: $9.75 • July 1, 2017: $10.25 • July 1, 2018: $10.75 • July 1, 2019: $11.25 • July 1, 2020: $12.00 • July 1, 2021: $12.75 • July 1, 2022: $13.50 PORTLAND METRO: The Portland Metro rate applies to employers located within the urban growth boundary (UGB) of the metropolitan service district. This includes portions of Multnomah / Clackamas / Washington Counties and cities including Portland, Gresham, Troutdale, Fairview, Hillsboro, Beaverton, Tigard, Tualatin, Sherwood, Forest Grove, Wilsonville, Lake Oswego, West Linn, Oregon City, Gladstone, Happy Valley, Milwaukie, and Damascus. Use Metro's Urban Growth Boundary lookup tool to determine if your address is within the UGB. • July 1, 2016: $9.75 • July 1, 2017: $11.25 • July 1, 2018: $12.00 • July 1, 2019: $12.50 • July 1, 2020: $13.25 • July 1, 2021: $14.00 • July 1, 2022: $14.75 The Urban Growth Boundary is expanded through the process outlined in Title 14 of the Urban Growth Management Functional Plan. The process involves a needs assessment every 6 years, and as-needed review based on local jurisdiction input on a more frequent basis. For questions about the process of UGB expansions, contact Tim O’Brien at Metro. NONURBAN: Includes Baker, Coos, Crook, Curry, Douglas, Gilliam, Grant, Harney, Jefferson, Klamath, Lake, Malheur, Morrow, Sherman, Umatilla, Union, Wallowa, Wheeler counties. • July 1, 2016: $9.50 • July 1, 2017: $10.00 • July 1, 2018: $10.50 • July 1, 2019: $11.00 • July 1, 2020: $11.50 • July 1, 2021: $12.00 • July 1, 2022: $12.50 ORLA will continue to educate Oregon’s lawmakers on the value of tip credit as a solution to bring stability to the industry and solve wage inequality issues. |
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