The Oregon Restaurant & Lodging Association (ORLA) has hired Nicole Peterson as its new Government Affairs Coordinator. Peterson will be the new steward of the Portland Kitchen Cabinet and its steering committee, focusing on grassroots engagement with restaurateurs and supporting their community building efforts.

“We are excited to have Nicole join our team at ORLA to add crucial capacity for our ongoing work in the Portland restaurant marketplace. Business models and paths to sustainability are changing rapidly and there are many opportunities to bring the strengths of restaurants to more Portland community conversations,” said Jason Brandt, President & CEO.

Nicole previously worked as a Research Assistant for a state and local government affairs team in Illinois and worked on a variety of issues from happy hours to baseball stadium renovations. Since moving to Oregon, she has worked in local government, giving her a broader understanding of the issues from the governing body perspective. She received her bachelor’s degree in Social Policy from Northwestern University.

In her new role with the Portland Kitchen Cabinet, Nicole relishes the opportunity to help Portland restaurants and the broader community gather, collaborate, and flourish by providing more opportunities for community engagement and advocacy for the industry. This group of informed, active and motivated hospitality community members serve as industry ambassadors with policymakers, opinion leaders, community leaders and partner organizations. With more than 100 members, the Portland Kitchen Cabinet is a proud partner of the Oregon Restaurant & Lodging Association and the National Restaurant Association.

On June 30, the Oregon Legislature officially came to a close. The 2019 session was marked by hyper-partisanship, two walkouts by Senate Republicans and dozens of new laws affecting the hospitality industry. Several key bills will affect how restaurants and lodging properties conduct business in the near future. Watch for ORLA's full recap of the session coming soon to the Advocacy page.

Here are a few quick updates:

HB 2005 – Paid Family and Medical Leave

• Hard cap of 12 weeks paid leave + 4 weeks unpaid (if OFLA eligible) with 2 additional weeks for complicated medical pregnancy 
• Must be employed for 90-days before job protections kick in 
• 1% Premium split 60% worker and 40% employer 
• Employers with less than 25 employees don’t pay the “employer premium” (40% of 1% of payroll)
• Statewide preemption on all paid family and medical leave related issues.

Effective date is September 28, 2019 with rule making being completed by September 1, 2021 and contributions beginning January 1, 2022.  Employees may begin using the benefit January 1, 2023.

SB 90 – Plastic Straws on request
Plastic straws in restaurants are now only available “on request” unless a customer is using the drive through and then employees may ask the customer if they would like a straw. Effective as of June 13, 2019.

HB 2509 – Plastic Bag Ban
Single use disposable plastic bags are banned from restaurants and grocery stores.  Retailers may charge for paper bags. Effective date is January 1, 2020.

HB 3137 – Collection of local lodging taxes by Oregon Department of Revenue
Provides that transient lodging tax becomes due when occupancy of transient lodging with respect to which tax is imposed ends. This bill will help eliminate the issue of properties collecting and remitting the lodging tax to the state and then if a customer cancels, having to go back and recover the lodging tax paid in order to refund the customer the tax. Effective date January 1, 2020.

SB 248 – Increase in certain fees charged by OLCC
Fees for OLCC licenses will double effective July 1, 2019. Negotiated separately from this bill is the option to renew an OLCC alcohol license every two years instead of annually. 

  Engage en·​gage | \ in-ˈgāj  , en-\transitive verb
  1: to offer (something…) as backing to a cause or aim… to expose to risk for the attainment or support of some end (Merriam-Webster)
 
WORKFORCE.  Whenever you hear this word now among our industry it seems attached to another word, “lack.” Lack of recruits. Lack of skills. Lack of commitment.

Is this situation hopeless? It may seem that way to those who have not yet engaged in the myriad of ways hospitality industry partners have become involved in addressing these ‘lack of’ challenges. A few examples of partnerships ORLAEF is involved with may be inspirational!

RECRUITING AND BUILDING A PIPELINE Oregon has more than 3,000 high school students involved with ProStart. Without industry involvement and encouragement to pursue foodservice careers, the result of these students’ experience in the two-year culinary and management program could be just the memory of a fun elective course and a personal skill-builder.  In many states, however, this foodservice career exploration program has become an effective pipeline for future employees.

How to engage? For example, Sysco Portland realized that its foodservice clients cannot succeed without a healthy workforce, and so have made supporting ProStart and other culinary training programs a top priority via sponsorship, mentorship, and scholarships! Learn more about their ideas by listening to a recent Boiled Down podcast, #22-The Future Workforce, at OregonRLA.org/podcast.

Engagement can take many forms. Think about an adult that inspired you, a teacher, an employer, a coach—today’s youth need mentors just as much, if not more, than previous generations. I asked Irina Bakun, a former ProStart student herself, culinary school graduate, and chef why she volunteered to mentor students who were planning to compete in our state competition. Her response was enlightening as she noted the positive effects not only for the students, but for herself.

“Working with high school students is exciting. They keep you on your feet, they really test your knowledge and communication methods. A surprising by-product is that mentoring helped me polish my training skills. From personal experience as a ProStart student on a team that had a mentor, I know firsthand that the more students are engaged with professionals the better they can understand the demands of a professional schedule, what working in a kitchen is like and the skills they will be expected to have when they leave the classroom and enter the restaurant industry. Working together can forge a meaningful bond that can create rewarding lifelong relationships,” Irina explained. “Recently, a student that I mentored three years ago called and asked for a reference. It was great to hear he was still cooking and fact that I was still on his radar and he wanted my opinion and support!”

BUILDING SKILLS “Hire for attitude, train for skill” is a popular adage. Perhaps it feels more challenging when the pipeline feels dry, however. Going to the source, worksource agencies that is, may help. Kristin and Drew Roslund, owners of the Overleaf Lodge & Spa, took a leadership role by engaging with ORLAEF and the Oregon Coast Visitors Association to create a pilot training program targeting to unemployed residents in Lincoln County. The program uses internationally accredited skill-building curriculum to help participants better qualify and prepare for work in the hospitality industry. Scholarships, funded through Travel Oregon, also pay for participants to earn their certifications as Certified Guest Service Professionals, one of our industry’s most important skills.

In Portland, Travel Portland is also seeking to take an active role in helping stakeholders with workforce challenges and invited ORLAEF to exhibit at a recent Opportunity Youth Job Fair. One result, thanks to funding from Worksystems, Inc. in Portland, is that 200 youth took ORLA’s food handler course and are now applying for jobs! Worksystems is also now committing to using the Guest Service Gold Tourism training curriculum for the hundreds of youth who are seeking skills and jobs that it serves.

INCREASING EMPLOYEE COMMITMENT Decreasing turnover can have a big effect on the bottom line. ORLAEF was curious about best practices being used in Oregon that were having a positive effective on employee satisfaction which tracked to increased commitment and retention. We commissioned OSU Hospitality Management Department’s research team to do a study to identify and interview companies that we're seeing results from innovative programs. These practices, captured via video interviews, are encouraging. Employee engagement tactics range from offering soft-side benefits, to supporting associate wellness programs, to nurturing a family-friendly company culture, to sharing leadership roles. Become inspired by viewing these videos at OregonRLA.org/workforcepractices.

Albert Einstein is widely known with the quote,“The definition of insanity is doing the same thing over and over again but expecting different results.” Tired of the hearing the same workforce “lack of” words? Engage with ORLA’s Education Foundation as we seek to support innovative solutions to our industry’s workforce challenges. | Wendy Popkin
 
Wendy Popkin is the Executive Director for ORLA’s Education Foundation (ORLAEF), a nonprofit foundation dedicated to supporting the educational and training needs of the hospitality industry. Wendy is a 30+-year career veteran who describes herself as “fanatically enthusiastic about helping others enjoy the same type of fabulous career opportunities I have enjoyed in the hospitality industry.”  www.OregonRLA.org/EdFoundation

Discussions on Cannabis Tourism and Licensing Fee Increase

On a quarterly basis, ORLA has the opportunity to participate in meetings with the Oregon Liquor Control Commission (OLCC) to address issues impacting our industry. As members often have questions relating to licensing and other liquor or marijuana issues, ORLA appreciates the open lines of communications with the agency and the Commissioners.

Cannabis Tourism
At a recent OLCC Commissioners meeting, ORLA presented on cannabis tourism and the challenges our industry faces with OLCC licensees not being able to host cannabis events on site without giving up their OLCC license. Executive Director Steve Marks clarified that OLCC licensees are not able to hold cannabis-related events as the agency has defined a licensee’s entire property as being part of the license.

ORLA asked for consideration and discussion around the issue as cannabis-related tourism is a growing segment of the industry. Commissioner Matt Maletis reinforced the opportunities available to cannabis-related tourism and expressed his appreciation for ORLA addressing the issue.

License Fees
At the request of Governor Kate Brown for the Oregon Liquor Control Commission (OLCC), SB 248 was introduced which would increase all licensing fees including those for breweries, wineries, distilleries and retailers. The increase is needed to upgrade technology and software for the agency to help increase efficiency and productivity. ORLA has been in discussions with the OLCC about the increase and received assurances from the agency that as part of the increased fees, OLCC would make a change in administrative rules to allow for two-year licenses.  

The two-year license is something ORLA has heard members are interested in to help them save time and money by only having to apply for renewals every two years instead of annually.  
​
There would be exceptions to the two-year license offering which may include first-time applicants and applicants who have had a violation in the last 12 months. Details are still being worked on at this time and ORLA will share updates with members as they come.   
If you have questions relating to OLCC licensing or other issues, feel free to reach out to me at Astley@OregonRLA.org. | Greg Astley

The hospitality industry and the state of Oregon lost a great champion when State Senator Jackie Winters passed away from lung cancer on May 29, 2019.  

Beloved by all in the Capitol for her sense of fairness and justice, Sen. Winters began her political career in 1969 when, at the request of Governor Tom McCall, she was recruited to be supervisor of the Office of Economic Opportunity’s New Resources Program. 

In 1979 she was appointed Ombudsman by Governor Victor Atiyeh. During her tenure in that office, she helped create the Oregon Food Share Program, the first statewide non-profit food sharing network, which continues today serving Oregon’s neediest families. 

In 1985, Jackie opened her first Jackie’s Ribs restaurant in Salem. Over time, she and her family expanded to include three restaurants, two franchises, catering services and numerous appearances in national Bar-B-Q Cook-offs. 

Winters was elected to the Oregon House of Representatives in 1998 and became the first African-American Republican ever to serve in the Oregon Legislative Assembly. She was re-elected to this office in 2000 and then to the Oregon State Senate in 2002 where she served until her passing. 

On November 15, 2017, Winters was elected as Senate Minority Leader to replace Ted Ferrioli. She became the first black legislative caucus leader in the state.

Jackie was an integral part of the Oregon Restaurant Association’s advocacy work as she served on the Government Affairs Committee and was part of the ORA’s Regional Board.  

​[Update May 7, 2019] 
Menu Labeling Compliance Guideline​

Today marks the first anniversary of menu labeling compliance and begins official enforcement of the law. Restaurants with 20 or more locations operating under the same name, should currently be complying with menu labeling regulations. However, during the past year, the Food and Drug Administration (FDA) focused on education and worked with establishments to help them comply with the menu labeling regulations.

The National Restaurant Association developed resources to help members understand the regulations and comply; download the Menu Labeling Compliance Guide. 


[Posted May 7, 2018]
Menu Labeling Regulations Effective 

The final rules for menu labeling apply to restaurants and similar retail food establishments if they are part of a chain of 20 or more locations, doing business under the same name, offering for sale substantially the same menu items and offering for sale restaurant-type foods. Read the latest update on guidance for the rule: FDA Finalizes Guidance to Help Food Establishments Meet Menu Labeling Requirements.

The FDA has stated their intention to educate restaurants and foodservice establishments during this first year of implementation without issuing penalties. 

In May 2017, based on comments received, FDA is extending the compliance date for menu labeling requirements from May 5, 2017 to May 7, 2018. This extension allowed for further consideration of what opportunities there may be to reduce costs and enhance the flexibility of these requirements beyond those reflected in the final rule. For more information see, the Federal Register Notice Announcing the May 7, 2018 Compliance Date. 

See also National Restaurant Association's issue paper on Menu Labeling.

NOTE: This position statement was drafted by local restaurateurs and foodservice operations doing business in Hood River County and as a result reflects the official position of our statewide association on their behalf.

Hood River County needs a solution to their budget shortfall, but this is an ill-conceived way to do it. There is still a three-year runway to find a financial solution and this measure is fundamentally flawed. Measure 14-66 is bad for Hood River County for the following reasons:

Bad for Businesses
- Entire tax burden carried by just one business segment – this is not a fair tax.
- Restaurants are seasonal and already struggle in the winter.
- Already hit by massive cost increases from higher minimum wages and unequal share of business property taxes.
- Restaurant sales taxes are shown to shift demand to large corporate chains and grocery stores, hurting local restaurants and farms.
- Tax is complex and hard for small restaurants to implement and comply with.

Bad for Workers
- Will reduce overall income and overall employment opportunities.
- Will reduce tip income as customers will tip less to offset additional tax cost.
- Restaurant employees already struggle with affordable housing and this will compound that, especially in winter months.

Bad for Residents
- Residents will shoulder most of the tax burden as they eat in restaurants all year long. Tourism is only a factor for a few months of the year.
- Residents want to support and access local farmers and locally sourced food. This tax creates a headwind for that.
- Restaurant sales plummet during economic downturns, making this an unstable source of income for the county.

Let’s ask Hood River County to bring a fair and sustainable option for raising these funds.

NoSalesTaxOnMeals

Best Practices for Reducing Employee Turnover, an Oregon Perspective

The Bottom Line. Those are perhaps the three most powerful words in any industry, but especially in hospitality where profitability margins can be paper-thin. While competitive wage, insurance, and health costs seem uncontrollable, the cost of recruiting and training new employees due to turnover can be minimized. Turnover cost savings drop to the bottom line the same as increasing sales or prices. The strategy of focusing on employee retention rates can also have a longer-term effect on overall labor costs, and the increased capabilities that veteran employees provide can positively affect guest loyalty and therefore increased profitability.

Pay Now or Pay Later. “Those managers who understand the value of employee retention and structure their organizations’ compensation systems and management practices to reinforce retention will outperform the competition… Any company that is experiencing a high degree of turnover is incurring unnecessary financial costs as well as decreases in service quality and the quality of work life.” (The Cost of Turnover: Putting a Price on the Learning Curve, The Cornell Hotel and Restaurant Administration Quarterly, 2000) 

Ideas That Work. ORLA’s Education Foundation commissioned Oregon State University’s Hospitality Management department to conduct research to identify and highlight organizations in Oregon who have created innovative practices that have resulted in improved employee retention. The study’s format is user-friendly and is presented as a series of short video interviews with eight companies who recognized the need to transform their view of the company’s relationship with their employees. Take a look at the videos posted on ORLA’s website at OregonRLA.org/workforce.
 
Todd Montgomery M.B.A, the research project’s lead, explained that they discovered a key commonality among each employer, “Leaders implementing best practices realize the current labor market and trends are unsustainable. Adapt or die, literally.” While best practices highlighted in this study range from first year engagement tactics to experiential training, and data-driven employee culture that leverages technology to mentorship programs, there were several common threads recognized among the companies interviewed. Commonalities include;

1. There was a recognized need to change human resource and management practices in order to increase retention.
2. The organizations regarded employees as partners.
3. Leaders realized that an employee who felt that they were treated well gave consistently better service to the organization’s customers.
4. An effort was made to integrate perspective from outside the hospitality industry and was deemed valuable and essential in challenging and changing the organization’s status quo.  
5. Managers expressed authentic concern and the desire to care for people, both their employees and their customers.
6. In addition to profit goals, the organization was motivated to serve a higher purpose in its business and to operate their companies “the right way.” 

The Application. While all of this sounds intriguing, we recognize that the “Bottom Line” is how much money these types of practices can save. While interviewees in our study weren’t asked to share their own financial results for proprietary reasons, here’s a sample of what Cornell found in the study referenced above when turnover costs were calculated using Separation, Recruiting, Selection, Hiring, and Lost Productivity factors for the following positions:

These numbers represent the average cost of turnover by position for two different hotels. The costs associated with turnover were higher than previous estimates, taking into consideration training and lost productivity due to a learning curve.

We hope that you find our new work helpful as you consider your own operations and workforce challenges you may be facing. We welcome your comments as well as suggestions for other best practice research your organization would find valuable. Feel free to reach out via email at WPopkin@OregonRLA.org | Wendy Popkin 

Wendy Popkin is the Executive Director for ORLA’s Education Foundation (ORLAEF), a nonprofit foundation dedicated to supporting the educational and training needs of the hospitality industry. Wendy is a 32-year career veteran who describes herself as “fanatically enthusiastic about helping others enjoy the same type of fabulous career opportunities I have enjoyed in the hospitality industry.” 

Business Association Letter to the Revenue Committees

​The Oregon Restaurant & Lodging Association is one of 22 business associations who signed the following letter submitted to the revenue committees on March 21, 2019.

As representatives of Oregon’s leading private-sector employers, we recognize that the Legislature intends to pass significant new taxes this year, most of which will fall on Oregon’s businesses, small and large.

As we consider tax proposals, our organizations will be guided by the following principles:

1. Gross receipt taxes are bad for consumers. The pyramiding characteristics of a GRT distort the true tax rate, unfairly impacting some products and industries more than others. With a GRT, many products can be taxed multiple times before they reach the final consumer, resulting in higher prices that will be borne by allOregonians on such critical items as food.
2. Short-term and long-term stable funding for schools is critical, but cost control must be part of the plan. We support targeted investments to improve education outcomes, but new revenue is only part of the equation. Tax increases must be accompanied by cost control, starting with PERS, which has been draining money away from classrooms for years. Schools will not be helped unless the ever-increasing PERS burden is addressed. Before raising taxes on any Oregonians, the Legislature must act to control costs.
3. Tax reform requires a comprehensive review for business and employees. We will participate in conversations about tax reform that take a broad view of Oregon’s tax system rather than focusing singularly on one new tax concept. And we ask for recognition that any major tax reform will require a years-long transition, with thoughtful planning and execution for all parties.
4. New taxes should be fairly assessed. We will consider tax options that are broad based, recognize the needs of low-margin businesses and maintain a level playing field when it comes to competitive relationships.
5. Reforms should have a positive effect on Oregon’s economy. We will insist that the impact to Oregon’s economy, and particularly the ability of private-sector businesses to grow and retain jobs, be considered carefully, not only in terms of a new tax proposal, but also in light of the cumulative costs of all of the legislation expected to be passed in 2019. As the state economists warn of an economic slowdown in 2020, the potentially negative impact of major tax increases must be weighed.
6. We will oppose a gross receipts tax. As representatives of the business community, we are making a good-faith effort to understand the tax proposals on the table during this legislative session, so that we can participate in conversations effectively and ensure the impact to Oregon’s employers are understood. We request that the Legislature keep our principles in mind as they develop a revenue package and that they include us, as representatives of the private-sector employer community, in those discussions.

Nine Schools Competed in Oregon Restaurant & Lodging Association Education Foundation’s Statewide Competition Showcasing the Hospitality Industry’s Future Chefs

The challenge for the student chefs was to prepare a three-course gourmet meal with only two butane burners in under an hour. Willamette High School pulled this off with excellence, taking first in the culinary competition at the ORLAEF ProStart Invitational, sponsored by Sysco Portland. South Salem High School placed first in the management competition, developing a concept for a new restaurant and presenting it to judges from the industry and post-secondary education.
 
Willamette High School’s winning menu included ricotta mascarpone quail egg ravioli, pan seared wild Sockeye salmon with a fish velouté sauce and rosemary Parmigiano-Reggiano polenta, and mascarpone vanilla bean panna cotta.

Both first place teams will head to the 2019 National ProStart Invitational® May 8-10, 2019, in Washington, D.C. on sponsorship from ORLAEF. These Oregon champions also receive a share of over $547,500 in scholarships from local and national culinary schools to help further their careers in the restaurant and foodservice industry. 

“It is with great pleasure Sysco Portland is once again the leading sponsor of the ORLAEF ProStart program,” said Bobbie McDonald, Vice President of Merchandising & Marketing at Sysco Portland. “These young culinarians from our state are building skills that are foundational to their careers in the hospitality industry. This year we are extremely excited to announce the additional support of honoring two students with a scholarship to help guide them on their culinary journey.”
  
Final results for the culinary competition:

• First Place: Willamette High School
• Second Place: McNary High School
• Third Place: North Salem High School
• Fourth Place: Seaside High School
• Fifth Place: McMinnville High School

 
Final results for the management competition:

• First Place: South Salem High School
• Second Place: Century High School
• Third Place: Willamette High School

 
Additional awards presented at the event:

• Oregon ProStart Student of the Year – Shane Wilder, Willamette High School
• Oregon ProStart Mentor of the Year – Irina Bakun, McNary High School
• Oregon ProStart Teacher of the Year – Chef Laura Hofer, South Salem High School

A huge thank you to all the judges for this year's Oregon ProStart Invitational! They participate because they believe in these students, and want to celebrate their successes. 

2019 VOLUNTEERS

Eric Aebi, Ethos Hospitality
Dori Brattain, Bread & Salt Catering
Rachel Leo, The Leo Company
Angela Miles, Travel Salem
Pat Morrill, SAIF
Paul Paz, Waiters World
Tamara Roberts, Martin North
Pat Snyder, Industry Representative
Holly Stirnkorb, Metro
Anne Walton, Zena Learning Center
Students from Cascade Culinary Institute

2019 JUDGES
​
Hans Afshar, CEC, Bentleys Grill
Chris Allen, CEC, Food Services of America
Matthew Anderson, Ecolab
Matt Bennett, Sybaris Bistro
Ryan Bleibtrey, Sysco Portland
Barry Bowers , Pro Chefs Oregon
Kara Campuzano, Salem Convention Center
Michael Chamberlain-Torres, Hospitality by Torres, LLC
Soraida Cross, Bentleys Grill
Glenn Dettwiler, CEC, Le Mieux Foods
Andrew Farr, University Club of Portland
James Nowlan Fowler, Devil's Food Catering
Natalie Frajola, Pro Chefs Oregon
Treva Gambs, Gamberetti's
Seth Gruschow, Togather Restaurant Consultants
Sergio Gutierrez , Ecolab
Ken Henson, Pelican Brewing Company/Meridian Restaurant + Bar/Stimulus Bakery
Erik Jarvey, Ecolab
David Jenks, Sysco Portland
Kevin Jordan, Restaurant Professional
Josh Kolb, Ecolab
Sam La Duca, CHE, COCC - Cascade Culinary Institute
Douglas Lang, Oregon Health and Sciences University
Karen Malody, Culinary Options Consultancy
Tim McDonald, Food Services of America
Steve Moore, Philadelphia's Steaks & Hoagies
Ken Narcavage, Oregon Culinary Institute
Dennis Prime, Sysco Portland
Rex Robertson, Little Lois Cafe
Janel Rupp, CFSP, Performance Reps NW
Cory Schreiber, CEC, Sysco Portland
Thomas Semke, Newport Meat Pacific NW
Jay Skowron, Hospitality Defender, LLC
Samuel T. Spencer, CEC, American Culinary Federation
Mark Swenson, Shepherd's Grain
Jordan Snyder, Gecko Hospitality
David Trask, COCC- Cascade Culinary Institute
Randy Torres, CEC, Oregon Coast Culinary Institute
Brian von Eggers, CEC, American Culinary Federation
​Chad Warneke, Sysco Portland
Laura Williams, CEC, Oregon Coast Culinary Institute
Justin Wilson, Newport Meat Pacific NW
Eric Wynkoop, Rouxbe
Anjali Wynkoop , Oregon Culinary Institute

Lottery App: The Oregon Lottery has released a new smartphone app providing players with a way to scan tickets to see if they are winners, finding the closest Lottery retailer, and giving players information about Oregon Lottery games and promotions. In addition to the game-related features, the Lottery has purposefully included responsible gaming aspects in the mobile app. 

Sports Betting: Back in May 2018, the U.S. Supreme Court ruled that states could offer sports betting, overturning an earlier decision by the Third Circuit Court of Appeals prohibiting such activity. Oregon was one of four states outside of Nevada that were grandfathered in to allow sports betting under the Professional and Amateur Sports Protection Act, which was deemed unconstitutional by the Supreme Court last May.

With that decision by the U.S. Supreme Court, the Oregon Lottery has decided to bring sports betting to the state ahead of the 2019 NFL season. To start, players will be able to place bets via a mobile app and will only be able to pick the winners of one sporting event or another, either outright or against the spread. Additional betting options are planned to be rolled out at a later stage. 

The app will also accept bets on other professional sports but gambling on collegiate sports will not be available via the app. The Oregon Lottery’s future plans include the authorization of in-game wagering at betting kiosks located at bars and restaurants around the state. 

March 2019 - Now that tip pooling is legal with back of the house employees, ORLA has launched a Restaurant Compensation Solutions Committee to review various tools being implemented in restaurant operations across the state. These tools include 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.

ORLA is in the process of exploring these various options with a plan to upload examples of these various solutions in the coming months. Stay tuned for more information this Summer and Fall.

> Download ORLA's Tip Pooling info sheet
> NRA Webinar: Tipped Employees and Side Work Under the FLSA
​
June 2018 - Employers are once again allowed to expand tip pools and share tips among a broader range of employees including back-of-the-house employees. ​Although the Supreme Court denied our certiorari petition in the National Restaurant Association et al v. U.S. Department of Labor et al case, the decision leaves in place a lower court ruling affirming the tip rule’s legality.
​
A federal spending bill passed March 23rd abolished a 2011 federal regulation that prohibited tip pooling in all circumstances with non-customarily tipped employees. Employers are once again allowed to expand tip pools and share the tips among a broader range of employees in states where employers don’t take a tip credit. This change now allows tip sharing among both customarily and non-customarily tipped employees, including dishwashers and cooks.

However, there is one area still of concern to our industry, the words “supervisor” and “manager” were not defined in this spending bill. A number of industry members 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.

The Department of Labor (DOL) is moving forward with the process to roll-back the Obama-era rule with its recent release of a Field Assistance Bulletin (FAB), which provides our industry with much needed clarity. The FAB instructs employers to use the “duties test” to determine who qualifies as a supervisor or manager, and establish tip pool eligibility. Essentially, if an employee earns most of their pay through tips, but also has a limited supervisory role, they are still allowed to participate in a tip pool. 

Given the ambiguity from DOL, tip pooling policies should be carefully reviewed with counsel before implementation to insure compliance with all applicable requirements.  

​News/Resources:

• WHD Field Assistance Bulletin 2018-3
• Service Charge Guidance, ORLA 
• Tip Pooling Options to Consider, ORLA
• Tip Pooling With Back-Of-House Is IN (in Most States); Manager and Supervisor Tip-Sharing Is OUT, Davis Wright Tremaine, April 2018
• Tip Pool Victory Bridges Heart-Of-House Wage Gap in Restaurant Industry, ORLA, March 2018
• DOL Plans to Rescind the 2011 Restrictions, Jason Brandt, ORLA
• Tip-Pooling Restrictions Slated To Be Rescinded, Fisher Phillips
• Restaurant Law Center Takes the Fight to the Courts, The Hill, Jan. 2017
• Rehearing Denied on Challenge to DOL Tip-Pooling Rule, Bloomberg BNA, Sept. 2016

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

​Oregon Restaurant & Lodging Association (ORLA) announced the 2019 state winners of the National Restaurant Association Educational Foundation’s (NRAEF) Restaurant Neighbor and Faces of Diversity Awards. Three restaurants, Block 15 Brewing Company (Corvallis), Bentley’s Grill (Salem), and Mo’s Restaurants were named state winners for the Restaurant Neighbor Award. Luis Perez, franchise owner/operator of Elmer’s Breakfast-Lunch-Dinner in Corvallis, was named Oregon’s Faces of Diversity winner.

“The involvement and dedication these restaurants have shown in support of local philanthropy is commendable and exemplifies the spirit of our industry and our state,” said Jason Brandt, ORLA President & CEO. “It’s our honor to recognize these restaurants along with one restaurateur who has achieved success through perseverance and passion.”

Nine out of 10 restaurants give back to their communities through charitable activities. Restaurants also play an important role in providing a ladder of opportunity for millions of Americans to achieve the American Dream.

Each year, the NRAEF recognizes restaurants around the country for outstanding community service, diversity and lifetime achievement. These prestigious national awards honor restaurants that go above and beyond in supporting their community and inspiring others with their stories of success. 

All state winners were forwarded to NRAEF in consideration for national awards to be announced mid-March. Three national Restaurant Neighbor Award winners will receive a $10,000 award to help support their favorite charity or community project. National winners of the Faces of Diversity Award will have a $2,500 scholarship awarded in their name to an aspiring student from their state. In addition to the award, the national winners will be flown to Washington, DC to receive the award at a special banquet on March 27, 2019.

Oregon’s award recipients will be formally recognized among their peers at ORLA’s Hospitality Industry Awards presentation during the annual Convention, this year in Seaside, September 16-17, 2019. 

For more information on Oregon's Restaurant Neighbor Awards, visit OregonRLA.org/restaurant-awards. 

The Oregon Legislature is considering HB 3023 which will create statewide standards for rideshare companies, drivers, and vehicles in Oregon. ORLA supports this bill as it sets standards for driver background checks, vehicle safety, and insurance - important factors in providing affordable and safe transportation options.

• Read ORLA's letter to the House Committee on Business and Labor and House Leadership.
  
  

This is just one of hundreds of bills ORLA is engaged and/or monitoring. You can track our progress on priority bills throughout the legislative session on ORLA's website at OregonRLA.org/billtracking.

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.

House Bill (HB) 2020, the “Cap and Trade” bill, would raise prices on users of natural gas which include restaurants, lodging properties and manufacturers around the state. This legislation could increase the cost of living for Oregonians by $50 to $125 a month, give appointed officials the authority to increase taxes without a vote of the people or Legislature and drive thousands of jobs away from the state.

Oregon is one of the lowest carbon emitting states in the nation, and we’re getting lower. We just enacted ground-breaking new climate policies on transportation and electricity generation, we should give these new laws a chance to work.

Without an exemption for natural gas, hotels and restaurants will pay significantly more money. Along with increases in minimum wage, paid sick leave and possibly paid family leave, the hospitality industry is being crushed under over-burdensome regulations and there is no sign it’s going to end anytime soon.

Please consider emailing members of the Joint Committee on Carbon Reduction and let them know you oppose HB 2020 which will hurt your business and increase prices to customers. Urge them to Vote “No.”

• Senator Michael Dembrow, Co-Chair
• Representative Karin Power, Co-Chair
• Senator Cliff Bentz, Co-Vice Chair
• Representative David Brock Smith, Co-Vice Chair
• Senator Lee Beyer, Member
• Senator Fred Girod, Member
• Senator Jeff Golden, Member
• Senator Alan Olsen, Member
• Senator Kathleen Taylor, Member
• Representative Daniel Bonham, Member
• Representative Shelly Boshart Davis, Member 
• Representative Ken Helm, Member
• Representative John Lively, Member
• Representative Pam Marsh, Member

To submit testimony to Joint Committee on Carbon Reduction:

• jccr.exhibits@oregonlegislature.gov

ALERT 2.12.19 - The Joint Committee on Carbon Reduction announced four public hearing dates for House Bill 2020 - tell your lawmakers that we can’t afford cap and trade.

ORLA encourages restaurants and hotels to testify at the hearings about how this would impact their operations. More information about the proposal as well as talking points are available upon request. If you are interested in providing testimony, contact Greg Astley, ORLA Director of Government Affairs, at 503.851.1330.

The joint committee will host public hearings where Oregonians will be able to voice their opinions and ask questions about the bill. Additionally, there will be a public hearing on February 25 where the Salem-based committee will accept live, remote testimony from around the state. 

Reasons to Oppose House Bill 2020: Cap and Trade:

• Restaurant owners would pay more for food products—especially homegrown Oregon products, natural gas and propane.
• NW Natural gas estimates that the average small commercial price would go up as much as 60% if cap and trade passes. Download the NW Natural flyer on the Cap & Trade program

The five dates and locations are listed below: 

• Springfield: Friday, February 22 – Springfield City Hall, Council Chamber (12-3 pm) 
• Medford: Saturday, February 23 – Central Medford High School Auditorium 815 South Oakdale Avenue Medford, OR (9 am-12 pm) 
• Remote: Monday, February 25 – Remote testimony (live video feed from various rural locations), Oregon State Capitol (TBD) 
• The Dalles: Friday, March 1 – The Dalles Civic Auditorium, Community Room (12-3 pm) 
• Bend: Saturday, March 2 – Central Oregon Community College, Cascade Hall, Room 246-248 (9 am-12 pm) 

These feedback opportunities are in addition to two public hearings on February 15 and 18 in Salem before the committee.

High school teams from around the state will compete in statewide culinary and management competitions at Oregon Restaurant & Lodging Association Educational Foundation’s 2019 ORLAEF ProStart Invitational, sponsored by Sysco. Culinary students prepare a three-course gourmet meal in 60 minutes in front of a crowd using only two butane burners, without access to running water or electricity. Management teams will develop a restaurant concept and present to a panel of judges at a simulated business exposition in the management competition. 

2019 INVITATIONAL TEAMS:

Century High School, Hillsboro
Teacher: Kristi Moe
Mentor: Keith Folkestad, Old Spaghetti Factory
Culinary Team: Lauryn Richardson, Markus Cadiz, Maliya Saephanh, Marvin Madarang, Bethany Gold
Management Team: Marc Velicaria, Damon Latimer-Marquez, Anthonette Molo

Crook County High School, Prineville
Teacher: Macy Hagensee
Mentor: Doug McFarland, Brasada Ranch
Culinary Team: Tabitha Post, Samantha Bond, Mackenzie Sutherlin, Carlos Vaca, Hayden Benson

McMinnville High School, McMinnville
Teacher: Krista Carpino
Culinary Team: Bryan Lara-Barragan, Harper Eacret, Finn Reuter, Melea Wilder, Ryan Bebout
Management Team: McKenna Carlson, Ricardo Morales, Ailie Johnson

McNary High School, Keizer
Teacher: Wendy Bennett
Mentors: Irina Bakun, former ProStart student and Austin Stinson, Sybaris
Culinary Team: Madelyn Hurst, Rebecca Hall, Isaac Mallery 

Newberg High School, Newberg
Teacher: Jane Eilert
Mentor: Val Daniel, Newberg School District Nutritional Services
Culinary Team: Rohan Hansen, Aiden Hansen, Sean Vriese, Jadon Lutz, Calista Mault
Management Team: Payton Madarieta, Donovan Lewis

North Salem High School, Salem
Teacher: Maryann Davis
Mentor: Alejandro Hernandez
Culinary Team: Ester Angulo, Melissa Salgado, Ashley Smith, Carmen Guerro, Josh Black

Seaside High School, Seaside
Teacher: Chelsea Archibald
Mentor: John Newman, Newmans 988 and Geoff Gunn, Pacific Way Café
Culinary Team: Gavin Meyer, Mason Shamion, Cyrus Knox, Luis Moreno, Shelby Rhodes

South Salem High School, Salem
Teacher: Laura Hofer
Culinary Team: Kristen Derting, Helen Taylor, Max Rock, Anthony Salisbury
Management Team: Samantha Martin, Connor Richman, Malachai Carter

Willamette High School, Eugene
Teacher: Martha Humphreys
Mentor: Cole Barnhardt, former ProStart student
Culinary Team: Shane Wilder, Logan Weller, Samantha Thompson, Makayla Schweitzer
Management Team: Jessica Barnhardt, Miriam Gutierrez, Taylor Woolett, Makenzie Crawford, Kacie Padilla

For more information, visit the ProStart Invitational page. If you'd like to volunteer at the event and be a judge, complete the application form or contact Wendy Popkin for more information.

​Protecting Our Industry

• Protecting Dedicated Local Lodging Tax Funds for Tourism Promotion and Facilities
  Since lodging tax reforms in 2003, Oregon has seen the power of tourism and its positive economic impact for the people of our state. Tourism continues to produce results for us as an export economy. According to a report by Longwoods International, every dollar we invest outside of Oregon in tourism promotion results in $237 in visitor spending and $11 in local and state tax revenue. Our achievements in tourism must be nurtured and continued strategic promotions will be necessary to encourage domestic and international travelers to choose our great state for their next professional or personal experience.

• ​The Details Behind Paid Family Leave
  The number one labor policy priority for Democrats in control of the Legislature will be passing paid family leave legislation in Oregon which already exists in both California and Washington. Paid family leave will require a great deal of attention to detail as Oregon’s structure for creating a viable system will differ from that of our neighbors. ORLA believes in the concept of paid family leave and would like to work with legislative leadership to find a way to set up an employee paid system providing financial security for both planned and unexpected immediate family circumstances which require time away from work.

• Statewide Approach to Single-Use Disposables
  ORLA is a staunch proponent of laws which treat all Oregonians equally. We commonly refer to this work as establishing preemptions in an effort to create consistency in business. The City of Portland has passed an ordinance for on-demand plastic straws and single-use plastics (SUDs) like utensils for to-go orders. For Portlanders and ORLA members in the marketplace, this is good news compared to outright bans on these products. Given interest amongst legislators, ORLA will discuss options for creating a permanent model for plastic use at the statewide level to avoid the inconsistent policies that will otherwise pass at local levels of government across the state. 

• Protecting Oregonians from “Home Commercial Kitchens”
  A new law passed in California allows for the limited sale of food products to the public using home kitchens. ORLA will fight against these pursuits as a matter of health and safety for the general public. Stringent health and safety regulations are in place for a reason and maintaining these commitments for all food sales to the public will be a top priority.

• Short-Term Rental Safety and Code Compliance
  ORLA continues the important work of reining in illegal hotels which continue to host guests without complying with safety regulations applying to the rest of the hospitality industry. Online Travel Agencies (or OTAs) should require all hosts on their website to prove safety compliance with the designated local jurisdiction and also prove appropriate home insurance coverage for accommodating out of town guests in exchange for money.
  
  > Read ORLA's position statement on Reining-In "Illegal Hotels"

• Opposing a .05 Blood Alcohol Content Threshold
  The 2019 Oregon Legislature is contemplating the creation of a stricter standard for automatic “driving under the influence of intoxicants” (DUII) citations by lowering the current automatic citation standard of .08 blood alcohol content (BAC) to .05. ORLA opposes such a proposal for reasons including: The biggest growth in impaired drivers by far is marijuana users; the .05 proposal does nothing to make Oregon's streets safer; Traffic safety statistics do not support the NTSB’s .05 BAC argument. The current system is working. The National Highway Traffic Safety Administration is successfully implementing several strategies and programs aimed at decreasing drunk-driving fatalities on our nation’s roadways by 51 percent since 1982. In addition, drunk-driving fatalities involving persons under 21 have decreased 80 percent.
  ​
  > Read ORLA's position statement on the BAC Threshold

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.