Oregon Restaurant & Lodging Association

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  • About ORLA
    • Contact Us
    • ORLA Board
    • Foundation Board
    • ORLAMS Board
    • ORLA Staff
    • Restaurant Facts
  • Membership
    • Reopening Safely >
      • Commitment to Safety Seal
    • Restaurant Benefits >
      • OR Restaurant Covid Assistance
    • Lodging Benefits >
      • Update Your Lodging Listing
    • Allied Benefits
    • Cost-Saving Member Programs >
      • ASCAP
      • BMI
      • Dell
      • First Data
      • GNSA
      • Guardian Group
      • Liberty Mutual
      • Office Depot
      • ORLA 401K
      • SAIF
      • UnitedHealth Group
      • Hospitality Hub
  • Advocacy
    • COVID-19 Resources & Announcements
    • FAQ / Industry Guidance (COVID-19)
    • ORLA Relief Efforts
    • ORLA Outcomes
    • Relief for Employers & Employees
    • Federal Action
    • 2021 Legislative Framework >
      • 2020 Legislative Framework
    • Lottery
    • Meet the Team
    • ORLAPAC >
      • Donate to PAC
    • Portland Kitchen Cabinet
    • Receipt Message
    • Take Action
    • Tip Pooling
  • Foundation
    • Donate
    • Oregon Travel Gifts Fundraiser
    • Foundation Board
    • Guest Service Training >
      • Guest Service Gold®
      • Guest Service During Covid
    • Hospitality Help Fund >
      • Takeout And A Movie
      • Restaurant Fund Application
    • ProStart >
      • ProStart Invitational
      • ProStart Resources
    • Workforce >
      • Best Practices
  • Training
    • Alcohol Server Training
    • Crisis Services and Training
    • Food Handler Training
    • Guest Service Gold®
    • Oregon Tourism Leadership Academy
    • ServSafe®
    • Webinars & Workshops
    • Workforce Development
  • News & Events
    • Subscribe
    • Awards >
      • Hospitality Industry Awards
      • Restaurant Awards
    • Boiled Down Podcast
    • Calendar
    • Digital Publications
    • PRESS RELEASES
    • Chair's Getaway
    • NW Food Show
    • One Big Night
    • OREGON PROSTART INVITATIONAL
    • Taste Oregon
    • Webinars & Workshops
  • Resources
    • Advertise With Us
    • Buyer's Guide
    • Compliance & ADA
    • Cost-Saving Programs
    • Crisis Services & Training
    • Disasters and Workplace Security
    • FAQs
    • Federal & State Agencies
    • Lodging Listings
    • OR Restaurant Covid Assistance
    • Receipt Message
    • Sustainability >
      • Reducing Food Waste
    • Tourism Partners

Key Issue: Tip Pooling

12/28/2020

57 Comments

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

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

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

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

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

One thing this proposed rule seeks to address is that the words “supervisor” and “manager” were not defined in the 2018 spending bill. This is especially important to our industry since many have hybrid approaches to their service positions. Supervisors and managers in some of Oregon’s smallest restaurant operations commonly serve guests and have participated in front-of-the-house tip pools as a part of a team approach to foodservice.

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

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

​News/Resources:
  • Final Rule: Tip Regulations under the Fair Labor Standards Act (FLSA), U.S. DOL, Dec. 2020
  • Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)
  • U.S. Department of Labor Issues Notice of Proposed Rulemaking for Tipped Employees, U.S. DOL, Oct. 2019
  • WHD Field Assistance Bulletin 2018-3, U.S. Department of Labor, April 2018
  • Service Charge Guidance, ORLA, 2019 
  • Tip Pooling With Back-Of-House Is IN (in Most States); Manager and Supervisor Tip-Sharing Is OUT, Davis Wright Tremaine, April 2018
  • Tip Pool Victory Bridges Heart-Of-House Wage Gap in Restaurant Industry, ORLA, March 2018

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

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

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57 Comments

Oregon Hospitality Industry Continues Push for Midnight Curfew and 100-Person Cap Removal

10/28/2020

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Safe Adjustments Needed to Regulations for Restaurant and Lodging Establishments

Wilsonville, OR– The Oregon Restaurant & Lodging Association is convinced two key regulations are ready for adjustments based on recurring COVID-19 weekly workplace outbreak reports. The weekly reports, available through the Oregon Health Authority (OHA) website, consistently show negligible outbreaks occurring in foodservice and lodging operations.

“We review the weekly reports from OHA religiously and can see the care being taken by our operators in controlled and highly regulated environments they manage,” said Jason Brandt, President & CEO for the Oregon Restaurant & Lodging Association. “It is time, regardless of county phase, to allow operators the ability to stay open until midnight and to allow larger venues with ample square footage more flexibility in safely managing their capacity.” 
 
Currently, the Oregon Health Authority requires all foodservice operations in Oregon to close at 10pm regardless of their current phase of operation. In addition, all foodservice and event venues including lodging event space must limit their indoor capacity to 100 people including staff. 

“On the surface we realize a 100-person limitation sounds like an appropriate preventative measure to mitigate virus spread in Oregon,” said Brandt. “However, large scale venues have the ability to provide ample physical distance between associated parties of 10 or less and can accommodate more employees with hours while still operating safe, controlled environments.”

ORLA is focused on facilitating communication between the Governor’s office and small businesses operating restaurants and lodging establishments across Oregon. A recent push this past week to communicate stories with the Governor’s office resulted in over 100 small business stories being shared about how a midnight curfew would help save restaurants. ORLA hopes to share similar stories about the impact of the 100-person indoor cap as well and the ripple effect it has on local economies throughout the state.

“Some of the loudest voices in our industry on the importance of removing the 100-person indoor cap rule are coming from businesses who don’t have space to accommodate over 100,” said Brandt. “This showcases the ripple effect that hits smaller businesses when larger venues can’t accommodate larger groups in a community. Without the additional flexibility there is less activity and commerce in local communities and our operators rely on that foot traffic to stay afloat.”

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

###

The Oregon Restaurant & Lodging Association is the leading business association for the foodservice and lodging industry in Oregon, which before COVID-19 provided over 180,000 paychecks to working Oregonians. Currently, approximately 55,000 of those workers, or 30%, do not have work available to return to.

​
Contact:
Jason Brandt, President & CEO, ORLA
503.302.5060 | JBrandt@OregonRLA.org
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The Health Economic Assistance Liability Protection and Schools (HEALS) Proposal

7/30/2020

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Document
More information is now available on the “Health, Economic Assistance, Liability Protection, and Schools (HEALS) Act” released earlier this week by Senate Republicans. As a reminder, the House introduced the HEROES Act proposal in May, which passed along party lines. Discussions are expected to now begin in earnest as Congress faces the July 31 deadline for enhanced pandemic unemployment insurance benefits.

Part of the Republican proposal would reduce these benefits from $600 per week to $200 per week on top of state administered aid until the end of September at which time the maximum benefit will be 70% of the recipient current wages -- but this will be a starting point for the negotiations.    
 
Read the National Restaurant Association’s summary of the proposal and the American Hotel and Lodging Association’s analysis of the HEALS Act.
 
Many of the hospitality industry’s priorities are included in the HEALS Act, including: 
  1. PPP Recapitalization: Eligible small businesses with 300 employees or less and that show significant year over year revenue decline (currently 50%) will be eligible for a second PPP Loan. The NAICS Code 72 exemption language for Hospitality and Food Service, originally included in the CARES Act, is included in the Small Business proposal.  Additionally, there is increased funding for the SBA 7(a) program, which is targeted towards “recovery sector businesses.” 
  2. Liability Protections: The “SAFE TO WORK Act” introduced by Senator John Cornyn (R-TX) provides liability protections for employers, schools and health care providers. This Act also provides limited liability protection for businesses until October 1, 2024. 
  3. Targeted Tax Provisions: The expansion of the Employee Retention Credit (ERC) and Work Opportunity Tax Credit (WOTC), and a per employee credit for enhanced cleaning and acquisition of PPE in the Finance proposal. 
  4. Business Meal & Entertainment Deduction: Supporting Americans Restaurant Workers Act: Senator Tim Scott (R-SC) introduced a separate bill which would fully reinstate the business meal and entertainment deduction. 

If you haven't yet, please take action on the National Restaurant Association's Blueprint for Restaurant Revival and/or the American Hotel and Lodging Association's Hotel Priorities Day of Action, thank you!  



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Nearly Three Out of Four Oregonians Support “To-Go Cocktails” During Pandemic

7/30/2020

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Infographic
Restaurants and Bars Among Hardest Hit by COVID-19 Pandemic
​
[Wilsonville, OR] – The Oregon Restaurant & Lodging Association (ORLA), in partnership with the National Restaurant Association, recently completed a statistically significant survey around To-Go Cocktails, drinks made with distilled spirits for takeout, pickup or delivery to go along with meals purchased by guests.

The survey, conducted July 3-6th, shows 72% or nearly three in four Oregonians, said they would favor a proposal allowing customers to purchase cocktails or mixed drinks (made with distilled spirits) with their takeout and delivery food orders from restaurants. This is in addition to beer and wine, which is currently allowed.

Support is highest among those between the ages of 24-39 at 83%, with respondents between the ages of 58-74 showing the least support at 66%. Twenty-eight percent of adults said they strongly favor the proposal.  Fifty-nine percent of Oregon adults said they purchased takeout or delivery food from a restaurant for dinner during the week before they were surveyed.

ORLA President and CEO Jason Brandt said, “This is so encouraging for our members who have struggled just to stay open and keep people employed.”

Brandt continued, “This has been an incredibly difficult time when restaurants and bars have struggled to deal with the challenges of being shut down, having to pivot to offer only takeout, pickup or delivery and then trying to invite guests back into dining rooms and make them feel safe and comfortable. Knowing almost three out of four Oregonians support the option to purchase cocktails or mixed drinks to go with their meals means some restaurants and bars who might have previously had to close down actually have a chance to make it now.”

Allowing customers to purchase cocktails or mixed drinks (made with distilled spirits) for pickup, takeout or delivery requires a statutory change, meaning the Oregon Legislature would need to make the change to state law. Thirty other states currently offer To-Go Cocktails including Washington and California.

“From a public safety perspective, if more businesses are able to offer the service of delivery of alcohol to their customers, the need for those customers to physically go into stores and businesses is reduced, thus reducing the risk of community spread of COVID-19,” said Brandt.

Recognizing the need to help those who may have difficulty with alcohol addiction, ORLA’s website outlines a number of resources available to individuals, as well as training information to aid in prevention. More information on these resources and trainings can be found at OregonRLA.org/crisis-services-and-training.

For more information please contact Greg Astley, ORLA Director of Government Affairs at 503.851.1330.

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ORLA Board Votes to Support Governor’s Tourism Bill

12/9/2019

 
At their most recent meeting, the Oregon Restaurant & Lodging Association (ORLA) Board of Directors voted unanimously (with 1 abstention) to support a legislative bill which will originate from Governor Brown’s office in support of a permanent 1.8% statewide lodging tax rate during the 2020 Oregon Legislative Session. Revenue raised by the statewide lodging tax is invested in Travel Oregon’s efforts to strengthen the economic impact of our state’s tourism industry. Oregon’s statewide lodging tax is currently collected at a rate of 1.8% with a reduction in the rate scheduled to take effect as of July 1, 2020 to a permanent rate of 1.5%.

“We appreciate Governor Brown’s proactive outreach to meet with ORLA and some of our key lodging stakeholders in person to discuss the merits of keeping the statewide lodging tax rate at 1.8% permanently,” said Jason Brandt, President & CEO of ORLA. “Our goals for lodging tax rate structures in Oregon are two-fold – protecting all statewide lodging tax resources to create return on investment for the industry through the efforts of Travel Oregon and protecting local lodging tax reforms passed in the 2003 Legislative Session.”

Oregon continues to experience healthy growth in tourism spending logging our ninth consecutive year of industry growth in 2018. Compared to 2017, visitor spending was up 4.2% reaching a record $12.3 billion. Industry employment was also up year over year by 2.9% to approximately 115,400. Year over year, hotel room revenue increased by 4.4% as well.

“We have seen firsthand what strategic investments in tourism promotion can do when industry tax dollars are put to their most effective use,” said Brandt. “With many other competing priorities in the Capitol, it is essential the association protects the appropriate use of these dollars at both the local and state levels. The economic impacts we are seeing are significant not just for our industry but for our public sector partners as well.”

The U.S. Travel Association tracks statewide economic impact throughout the country and assists states in quantifying the value of year over year tourism growth. The most recently available data notates Oregon’s tourism growth at 5.3% when comparing 2016 to 2017, further substantiating the value of healthy tourism growth for Oregon’s public sector. From 2016 to 2017, Oregon experienced visitor spending growth of $652 million. That increase in spending and associated payroll income tax increases equates to as many as 410 firefighter positions, 380 police officer positions, or 380 teacher positions.

ORLA continues to focus on the protection of local lodging tax dollars for tourism promotion and tourism related facilities in addition to support given to Governor Brown’s upcoming legislative bill for the statewide resource. Oregon’s local lodging tax structure can be complicated with over 110 different city and county jurisdictions collecting a transient lodging tax outside of the 1.8% statewide tax. Important guidelines have been in place for the past 16 years for how local lodging tax dollars can be spent. To clarify those parameters, ORLA recently produced a new instructional video to assist all stakeholders and the general public in better understanding the rules which govern local lodging tax resources.

The new video specific to local lodging taxes (not to be confused with Oregon’s 1.8% statewide lodging tax) can be viewed here:
  • Oregon Lodging Tax Defined (video)

For more information about the Oregon Restaurant & Lodging Association’s policies on transient lodging taxes, please reach out to Greg Astley, ORLA’s Director of Government Affairs, at astley@oregonrla.org via email.

Key Issue: Short-term Rentals

9/30/2019

8 Comments

 
ORLA Advocacy:
​Leveling the Field on Short-term Rentals


Short-term rental companies like Airbnb claim they simply help regular folks occasionally rent out a spare room in their home to make some extra money. A growing body of research reveals a significant – and rapidly growing – portion of Airbnb’s revenue in major U.S. cities, including Portland, is driven by commercial operators who rent out more than one residential property to short-term visitors, essentially operating just like a hotel. Closing this 'illegal hotel loophole" is the only way for state and local governments to protect communities and ensure a fair and competitive travel marketplace. 

ORLA is engaged in several discussions with cities and counties across the state addressing short-term rental issues. In February 2018, Portland settled a longstanding lawsuit with the vacation rental website HomeAway and its affiliates over unpaid lodging taxes. The settlement requires HomeAway to begin collecting city and county lodging taxes on behalf of its Portland customers, and will allow customers to register for a short-term rental permit online. Read more. Update: As of September 2019, the City of Portland and Airbnb have reached an agreement to share data on rentals to allow the City to enforce its permitting requirements. A ruling earlier in 2019 by the U.S. Court of Appeals for the Ninth Circuit upheld the City of Santa Monica’s short-term rental ordinance against a challenge by Airbnb, leaving the door open for other municipalities to adopt similar ordinances. This new agreement between Airbnb and the City of Portland is expected to reduce the number of unpermitted rentals. 

Key Findings
CBRE Hotels’ Americas Research released a new analysis, Hosts with Multiple Units – A Key Driver of Airbnb Growth, which adds to the overwhelming weight of evidence showing that short-term rental companies, specifically Airbnb, are providing a platform for commercial operators to run illegitimate, unregulated and often illegal hotels in communities across the country.

Some of the data revealed in the study showed:  
  • In the U.S., hosts renting out two or more entire-home units generated nearly $2 billion in revenue in 2016. In the 13 markets highlighted, revenue reached $700 million.
  • 81% of Airbnb’s U.S. revenue – $4.6 billion – comes from whole-unit rentals (those rentals where the owner is not present during the time of the rental), rising from 78% in the prior year. 
  • Each of the 13 cities studied saw an increase in the total number of listings by multi-unit hosts. 
  • In almost every market examined in the report, the percentage of revenue from multi-unit hosts increased from 2015 to 2016.
  • Revenue growth for entire-home properties increased by an average of 76% in the 13 markets studied. 

Another report, Airbnb Agreements with State and Local Tax Agencies, reveals how Airbnb agreements create risks of reduced compliance with lodging tax laws, with state and local tax laws more generally, and with local land use, housing and building safety laws.

Both reports, along with additional research, are available to ORLA members in the Resource Library of the Member Portal (log in required):
  • Hosts with Multiple Units – A Key Driver of Airbnb Growth
  • Airbnb Agreements with State and Local Tax Agencies

Establishing Oregon’s Compliance Framework
Oregon should pass legislation that requires short-term home rental properties to register with their local taxing authority before they are marketed through online exchange sites. Additionally, for jurisdictions that have a business licensing program in place, operators should secure the proper licenses. While state law needs to acknowledge that some smaller municipalities do not have the resources to carry out inspections for consumer protection, the law can define when and where such inspections are appropriate.

During the business registration process, operators should also show that they have notified their insurance carrier and lending institution that a commercial transaction is occurring on the premises. In areas where there aren’t enough local resources to monitor safeguards, insurance carriers will most likely require coverage for protection and liability – beyond a customary homeowner policy. And finally, operators should report and remit their room tax collections.

Short-term Rental Tools and Information
As part of the ongoing effort to fight back against Airbnb’s litigation threats against cities and states that pursue short-term rental regulations, Santa-Monica based law-firm Zacks Freedman & Patterson has released fact sheets on their website summarizing the legal rebuttal arguments made in the recent op-ed in Law360 (attached) by managing shareholder Andrew Zacks entitled, “The Law Will Not Help Airbnb Evade Rental Ordinances.”

Related Short-term Rental News
Albany moves to include Airbnb in transient lodging tax
Josephine County Ballot measure asks lodging tax advisory question  
Most Airbnbs in Salem are unlicensed nearly two years after the city approved licensing rules
Portland, vacation rental site HomeAway settle dispute over lodging taxes
Reining-in Illegal Hotels 
Airbnb has secret tax deals around the nation
Airbnb brings change to vacation-rental marketplace

Portland
> ORLA's Position Statement on Short-Term Rentals

Reining in “Illegal Hotels” 
Across Oregon there is growing concern that some home sharing platforms are enabling the proliferation of “illegal hotels,” where commercial operators list multiple units in the same region of the state or list units for extended periods of time without consideration for both local and state law. This unregulated commercial activity often compromises consumer safety, impacts affordable housing supply across Oregon and endangers the character and security of residential neighborhoods. 
8 Comments

70/30 Split Protecting Lodging Tax Investments Threatened

2/18/2019

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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.
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2019 ORLA Legislative Framework

2/5/2019

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COMPONENTS TO ORLA'S ADVOCACY EFFORTS THIS SESSION

With a Democrat supermajority in both the Oregon House and Senate, ORLA’s Policy Committee will be fine tuning the hospitality industry’s approach to the 2019 Oregon Legislative Session which began officially on Tuesday, January 22.


The following are potential components to ORLA’s advocacy work inside the halls of our capitol building.
​

Helping The Hospitality Industry Succeed
  • ​Following Seattle’s Lead on a Tip Credit
    Restaurant operators are continuing to face significant pressures and slim profit margins (especially in full-service models) due to an ever-increasing minimum wage that does not consider tip income. ORLA is currently undertaking a study to research the current ranges of hourly income being earned by tipped workers to assist legislators in understanding the discrepancy in wages between the front and back-of-the-house. Tip pooling in Oregon for back-of-the-house workers is a major win for the industry, but a tip credit can more accurately provide income equality for Oregon’s restaurant industry. In Seattle, some employers have access to a $2.50 tip credit if they offer health insurance to their employees. We would like to see Oregon’s legislators consider a similar scope for the sustainability of the full-service restaurant model.​
ORLA GA Team

ORLA's Government Affairs Team consists of a group of professionals dedicated to promoting and protecting the food service and lodging industry.
MEET THE ADVOCACY TEAM
​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.

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Key Issue: Lodging Taxes

12/1/2018

 
​ORLA Advocacy: Promoting and Advocating for Tourism Investment Plans

[updated 12.9.19] ORLA continues to help protect lodging tax revenues by opposing legislative bills that would have allowed cities to use these revenues for purposes other than intended. Read the latest here:

  • ORLA Board Votes to Support Governor’s Tourism Bill, Dec. 9, 2019
  • Oregon Lodging Tax Defined (video), Nov. 13, 2019

Background
HB 2267, from Oregon’s 2003 Legislative Session, was designed to raise revenue for the promotion of tourism in Oregon. First, the bill instituted a 1 percent statewide lodging tax on all lodging properties in Oregon. This money was dedicated to the promotion of tourism through Travel Oregon, acting as Oregon’s tourism department. Second, the bill required any local governments with a lodging tax in place to determine what percentage was currently being used for tourism promotion and maintain at least that level in the future. The percentage is not allowed to decrease. The bill also required any local government that institutes a local lodging tax in the future to use at least 70 percent of the new revenue for tourism promotion. No more than 30 percent of the new revenue can be used for general funds or other non-tourism functions.

The Oregon Restaurant & Lodging Association has worked with Local governments to clarify collection laws around Online Travel Companies. This should bring in millions of dollars more annually for tourism promotion.

ORLA is also involved in efforts to attract events to Oregon that bring visitors and promote the state. Some examples in recent history were helping to pass legislation that added money to improve college athletic programs and allowing for NCAA March Madness games to be played in Oregon, and protecting tax credit programs that bring film and video production to Oregon.

Issue
ORLA must ensure that these state statutes remain in place. Any lodging taxes, state or local, need to bring travelers and businesses to Oregon. All retail businesses profit from increased travel; additionally, local government must be encouraged to keep promotional dollars directed to these efforts. Finally, there are always opportunities to attract more events like feature films, major sporting events, concert venues, and wine tours that benefit the industry as a whole. ORLA will work to enhance these efforts, which bring people to Oregon and encourage Oregonians to travel more in and around the state.

Position 
Oregon Restaurant & Lodging Association supports current laws that protect lodging tax dollars going to tourism promotion and tax credits that encourage film and video attraction to Oregon. ORLA believes in protecting the dedicated tourism funds to ensure they continue to be allocated to tourism promotion at the state and local levels. This effort will benefit all retail businesses and local economies throughout our state.

Oregon’s Thriving Tourism Industry Supports Measure 102

9/18/2018

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Yes on 102
Hospitality workers make our thriving tourism industry possible. For every dollar we invest in tourism promotion, $237 comes back to Oregon in visitor spending—in addition to $11 in local/state tax revenues for important community priorities—according to third party research by Longwoods International. However, restaurant and lodging employees from Ashland to Portland, Coos Bay to Bend, are finding it more difficult to find housing close to their place of work. 
 
Due to rising housing costs, these hard-working Oregonians are finding it more difficult to secure housing options that meet their needs. The result is long distance and congestion-filled commutes that mean less time spent with families and more money spent on transportation. Hard-working Oregonians should be able to afford to live near their job, but a lack of affordable housing options across the state is making that more difficult.
 
Across Oregon, there is an opportunity to lift the ban to public-private housing development partnerships that assist in solving the challenges we face. Support for Measure 102 will give local governments the opportunity to create comprehensive workforce housing proposals and present them for consideration to local voters. We believe communities deserve the right to vote on housing proposals that, if planned appropriately, can stimulate local economic growth while adding to the quality of life for hospitality workers and their families.
 
Measure 102 is an important, bipartisan measure that will give communities across Oregon greater flexibility to create the housing they need. By allowing local governments to partner with non-profit and private housing providers, any bond dollars they raise specifically for affordable housing will be able to go further, creating more affordable homes. This measure is a small tweak that will have a big impact in the lives of Oregonians.

​Please join us in voting Yes for Measure 102.

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Key Issue: Minimum Wage Increases

8/1/2018

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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. 
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Key Issue: Minimum Wage Escalation Plan

6/1/2018

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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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Support Portland Police Bureau's Budget Request

5/11/2018

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Update: Portland Mayor Ted Wheeler’s office recently announced a plan to increase the Portland business tax from 2.2% to 2.6% to pay for an additional 58 officers in the police budget. That number was reduced to 49 new officers, however the City Council agreed to hire 55 officers by the 2019-20 budget year. The tax was something of a surprise to us but does not in any way diminish our commitment to increasing the number of police officers in Portland.

The Portland Business Alliance (PBA) is supporting the increase on business taxes and agreed to step up on this tax increase in order to help address Portland’s top issue of homelessness, which impacts businesses and livability throughout the city. The additional revenue will be targeted toward measurable outcomes. 

Like the Portland Business Alliance, ORLA is supportive of the focused efforts on homelessness, providing community-based policing and targeting measurable outcomes. Visitors to and residents of Portland should feel safe to walk the streets, day or night, and should believe Portland to be a place welcoming their presence and patronage. 

​Support for Portland Policy Bureau's Budget Request
As the City of Portland continues to be a preferred destination for many visitors regionally, nationally and internationally, it’s important they feel safe while staying in our hotels, eating at our restaurants and enjoying all we have to offer in the hospitality industry.

With the 2018-2019 budget season well underway, the Mayor’s Office is encouraging constituents with public safety concerns to give testimony in support of Portland Police Bureau’s budget request for additional officers. 
 
The Portland Police Bureau is struggling to fulfill its mission to serve and protect due to a lack of funding and resources. As both the population of Portland and the number of visitors grows, they are being asked to do more with less. There are the fewer officers in the bureau than there were a decade ago, despite a 10 percent increase in Portland’s population. Consequently, the bureau continues to face challenges in patrol staffing, which has led to declining response times. In the last five years, total 911 call volume has increased by over 22%. These calls include a 97% increase in stolen vehicle calls, 64% increase in unwanted persons calls and a 32% increase in disorder calls.

Mayor Wheeler is proposing adding 93 additional sworn positions and 9 additional non-sworn positions at a cost of $12.3 million and a one-time funding request of $8.8 million which includes $2.6 million for technology replacement and $3.8 million for facilities enhancements. ​This budget request would increase the number of officer positions by approximately 10 percent--on par with Portland’s growth.

Key Points to the Proposal
The Police Bureau's budget requests for additional ongoing resources will advance the bureau’s mission and goals to provide 21st Century Policing services, to support organizational excellence and inclusion, and to rebuild their units to deliver community policing. Priorities include: 
  • 21.0 FTE sworn positions to enhance the bureau’s ability to create walking beats and other dedicated, community-based units to address neighborhood problems and livability issues for an ongoing cost of $2.5 million and a one-time cost of $0.8 million. Investment in these functions will address issues such as derelict recreational vehicles (RVs), business owner complaints, and zombie homes before they become a call for service. 
  • Re-establish ongoing funding of $1.5 million for the Service Coordination Team to provide supportive housing, drug and alcohol treatment services, and employment readiness support for mostly houseless persons. Ongoing resources were eliminated from this program late in the budget process last fiscal year. This request ensures continuation of the program servicing homeless persons with addictions and criminal history.
  • 2.0 FTE sworn positions, 1.0 FTE nonsworn professional position, and contracted services for two clinicians to expand the Behavioral Health Unit (BHU) to serve more individuals in behavioral crisis resulting from known or suspected mental illness and or drug and alcohol addiction for an ongoing cost of $0.5 million and a one-time cost of $82,000.
  • 64.0 FTE sworn positions to provide for a consistent rotation of Police Officer trainees who are ready to become fully-deployable officers at a rate that matches the bureau’s average attrition rate.
  • 6.0 FTE sworn positions and 2.0 FTE nonsworn professional positions to enhance and support the bureau’s Emergency Management Unit (EMU) to address service delivery to emergency events including natural disasters, demonstrations and permitted events for an ongoing cost of $1.0 million ongoing and a one-time cost of $0.3 million.

​View the full Portland Police Bureau Budget Request Memo to see additional budget priorities.
Read more on ORLA's engagement in Portland's homeless issues.

​Share Your Testimony
We want to show the Mayor we support his priorities to increase public safety and police accountability to enhance livability. Submit your testimony online or attend a public hearing. If you send an email, please Cc: Astley@OregonRLA.org on your message to the City Budget Office so we can share our industry's collective feedback. 
Submit Testimony
Attend a Hearing:

Budget Committee Hearing
May 10, 2018, 6:00pm - 8:30pm
Council Chambers, Portland City Hall
1221 SW 4th Ave., Portland, OR 97204 

​Council Action to Approve City Budget 
May 16, 2018, 2:00pm
Council Chambers, Portland City Hall
1221 SW 4th Ave., Portland, OR 97204

Related News:
Hospitality Business Leaders Act on Portland’s Homeless Issues
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​ORLA Advocacy: 2018 Priorities

1/11/2018

2 Comments

 

A Powerful Voice on Key Industry Issues

ORLA’s government affairs team is dedicated to promoting and protecting the foodservice and lodging industries of Oregon. By advocating for public policies that sustain our industry, and by working on behalf of local businesses, we are the voice of hospitality at the local, state and national levels.
 
Fighting Against Additional Labor Regulations
Small businesses in Oregon are still adjusting to increasing minimum wage rates, paid sick leave, and Oregon’s new scheduling law. As a result, ORLA will fight any attempts to implement Paid Family Leave during the 2018 session. Laws relating to Paid Family Leave are currently on the books in both Washington and California and Oregon’s legislative leadership have signaled an interest in implementing paid family leave legislation.
 
Fair Payment of Lodging Taxes by Lodging Intermediaries
ORLA, in partnership with the League of Oregon Cities, will be pursuing a legislative fix to make sure online travel platforms like Airbnb pay all applicable lodging taxes when they are collecting payment for the lodging stays. The legislative fix would treat online travel platforms the same way as other lodging companies collecting revenue for lodging stays including other online travel companies like Expedia and Priceline.
 
Advocating for Oregon’s Tourism Investment Plans
ORLA continues to fight for the appropriate use of lodging tax dollars at the local, county, and statewide levels as required by law. Since July 1, 2003, 70% of any new or increased portion of lodging taxes must fund tourism promotion or tourism related facilities. The remaining 30% can be spent on general fund expenses as designated by the taxing jurisdiction. ORLA believes in the full preservation of the 2003 law and will protect its integrity as one of our most crucial tools in growing and enhancing Oregon’s tourism export economy.
 
Fighting for Tip Pooling
Tip pooling has become a legal spider web, given the complicated state-by-state variations. In a move to further clarify the law, restaurant industry trade associations filed a lawsuit against the U.S. Department of Labor (DOL) asserting the DOL has overstepped its bounds in revising regulations on tip pooling. Although the DOL has announced they propose to rescind the regulations that bar tip sharing, we continue to work with the National Restaurant Association and other partners to take our case to the U.S. Supreme Court.
 
Ensuring Fairness for Short-Term Rentals
Illegal short-term rentals endanger customers’ lives, ignore existing laws and it’s unknown whether they are reporting and remitting the proper lodging taxes. The State of Oregon should pass legislation that requires short-term home rental properties to register with their local taxing authority before they are marketed through online exchange sites. Additionally, for jurisdictions that have a business-licensing program in place, operators should secure the proper licenses and report and remit their room tax collections.
 
Music Licensing
In partnership with Oregon Winegrowers, ORLA will be pursuing stronger protections for restaurant operations against predatory music licensing investigators. In order to make sure restaurants are paying appropriate fees for licensed music playing in their establishment, music licensing companies enlist the help of investigators who have been reported to harass and threaten restaurant operators. ORLA is interested in tightening up rules and regulations for how operators can be approached about their music licensing arrangements to assist in the amicable resolution of laws governing the commercial use of copyrighted music.
 
Advocating for Comprehensive Immigration Reform
Comprehensive immigration reform must include all aspects of immigration issues—border security, worker supply and employee verification—which means that Congress is the only political body which can actually solve the immigration problem. State and local governments only make a solution more complex by trying to pass their own laws. ORLA is opposed to random, individual pieces of immigration reform and supports Congress working together on a national level to enact comprehensive reform.
 
Defending Lottery Retailers and Commission Rates
ORLA is the only major trade association in the state that has defended lottery retailers since the introduction of video lottery in Oregon. ORLA defends commission rates and protects against extreme regulatory attacks, such as increased casino expansions off tribal reservations. ORLA is supportive of gaming as entertainment, adjunct to the hospitality industry.
 
Protecting Small Businesses from Local Jurisdictional Control
One of the biggest threats to independent businesses in Oregon is the desire by local governments to control private employer-employee relationships. By creating laws that mandate employee benefits within the boundaries of a city or county, businesses face a patchwork of regulations that differ from one location to another, and workplace fairness is compromised. ORLA believes that enacting a preemption that labor practices are set at the state level gives businesses stability and offers a better environment for economic growth.
 
Strengthening Oregon’s Roads and Bridges
ORLA believes in the importance of a comprehensive transportation plan that funds needed infrastructure projects throughout Oregon. The flow of people, goods, and services is crucial to the success of Oregon’s hospitality industry and the experience of Oregon’s visitors.
 
Stay up-to-date at OregonRLA.org/GA.
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