With the new year around the corner, hospitality employers should be aware requirements coming into play in 2023.
Close to 120 bills were passed in the 2022 short legislative session earlier this year. While some have already gone into effect, an additional 20 new laws go into effect January 1, 2023. Read more on OregonLive.com. The laws most relevant for our industry include:
Want to stay informed with ORLA's activity in the 2023 Legislative Session? Visit our website to view our legislative framework for the upcoming session, subscribe to email alerts and updates, and sign up to be a Hospitality Advocate. The Oregon Restaurant & Lodging Association (ORLA) keeps members informed and educated on important issues impacting the hospitality industry. If you are not yet a member of ORLA, please consider joining the association in order to access the latest industry intelligence for businesses like yours. Visit our Membership page or reach out the ORLA Regional Representative nearest you.
From the Desk of Jason Brandt, ORLA President & CEO
The Oregon Restaurant & Lodging Association (ORLA) is your statewide partner tasked with important work to advocate on your behalf. We continue to stay focused on our mission of improving, protecting, and promoting our state’s hospitality industry. Recently, ORLA shared the latest updates on some of the notable outcomes during this past year as outlined below. While we are confident our members recognize the importance of being an active member of their statewide association, our hope is that more industry members see the value in joining their peers and assisting the association in achieving greater outcomes in the years ahead. Recently, ORLA has:
If you're not already a member, please consider joining ORLA today. This organization exists for you and more than ever we need to stand together to protect the industry and the crucial contributions it makes to local economies around the State of Oregon. | Jason Brandt, President & CEO SBA Announces $83M in New RRF Grants Our partners at the National Restaurant Association (NRA) just announced that the U.S. Small Business Administration (SBA) is releasing $83 million in Restaurant Revitalization Fund (RRF) dollars, which will fund the 169 applications at the front of the application queue. Operators receiving funds should receive notification today. Funds should be released within the next week and must be used before the RRF program expires in March 2023. More details can be found from the NRA here. SBA’s release can be found here. Today's press release from the National Restaurant Association: Washington, D.C. (Nov. 23, 2022) – Today, the Small Business Administration (SBA) announced the release of $83 million dollars in unobligated Restaurant Revitalization Fund (RRF) grants to 169 operators with pending applications. The National Restaurant Association has been requesting these funds be released, and Executive Vice President of Public Affairs Sean Kennedy made the following statement in response: “The SBA’s action represents the final chapter of our nearly three-year effort to secure dedicated federal pandemic relief dollars for local restaurants. Today’s announcement is great news for those 169 operators fortunate enough to receive an RRF grant, but hundreds of thousands more are struggling with uncertainty. “We must continue to look forward because the enormous challenges of the industry will continue beyond today. From the recruitment of employees to the constantly rising costs for food, running a restaurant right now is a daily struggle. There are steps the government can take to support restaurants in every community, and we will continue to press for solutions at the federal, state, and local level.” According to the SBA, the grants are being released to operators in the order their applications were received. Operators receiving funds should receive notification today and SBA will begin transmitting the grants next week. They have until March 2023 to spend the money. The Association was first to lay out the plan for a restaurant industry recovery fund to Congress in April 2020. Congress eventually set aside $28.6 billion dollars for the RRF in the American Rescue Plan Act. After this money was distributed, more than 177,000 applications were left in limbo at the SBA. The Government Accountability Office (GAO) released a report in July, noting SBA was holding unobligated RRF funds and the Association was first to send a letter to SBA Administrator Isabella Casillas Guzman requesting that the unobligated money be released to unfunded applicants. The restaurant industry was the hardest hit by the pandemic. In the initial shutdowns, more than eight million industry employees were laid off or furloughed. The industry still has not recreated 565,000 jobs lost at that time, which is the largest current employment deficit caused by the pandemic among all U.S. industries. More than 90,000 restaurants closed permanently or long-term because of the pandemic. About the National Restaurant Association
Founded in 1919, the National Restaurant Association is the leading business association for the restaurant industry, which comprises nearly 1 million restaurant and foodservice outlets and a workforce of 14.5 million employees. Together with 52 State Associations, we are a network of professional organizations dedicated to serving every restaurant through advocacy, education, and food safety. Contact: Vanessa Sink | vsink@restaurant.org Advocating for Third Party Delivery Fee Caps ORLA has been participating in the drafting and adoption of a permanent third-party delivery fee cap for the City of Portland along with other stakeholders and the Mayor’s office in a transparent collaboration with input from all sides. See the latest draft here. During the pandemic, the city of Portland adopted a temporary 10% cap on third-party delivery fees to help restaurants. This past June, ORLA was instrumental in securing an extension of the cap another eight months. Now, the city is looking to adopt a permanent cap of 15% along with protections for restaurants. The ordinance is consistent with similar approaches taken in recent months by Seattle and San Francisco and its provisions offer strong protections and support to restaurants and food carts. This approach also reduces the likelihood of continued consumer-facing fees or constrained delivery radiuses that may negatively impact restaurant sales. Additionally, this policy will require food service platforms to provide a reasonable level of service at or below a 15% commission rate in the City. It also seeks to protect restaurants from being penalized or otherwise disadvantaged from opting into the 15% capped rate. The cap on takeout commissions will be 4% under this policy. Other notable protections and operational standards that support local restaurants and food carts include:
ORLA is pleased to have been instrumental in the creation of this new policy to protect restaurants and consumers. Next Steps: The final ordinance language will be filed with the Council Clerk. This item has been scheduled for a first reading as a time-certain item at the Portland City Council meeting on 10:40am on Wednesday, December 7. Following the first reading, it would move to a second reading and vote for adoption on Wednesday, December 14. Contact Greg Astley, ORLA Director of Government Affairs if you are interested in providing public testimony on December 7. The Oregon Restaurant & Lodging Association (ORLA) keeps members informed and educated on important issues impacting the hospitality industry. If you are not yet a member of ORLA, please consider joining the association in order to access the latest industry intelligence for businesses like yours. Visit our Membership page or reach out to an ORLA Regional Representative nearest you.
Election Recap: Many Close Races, Some Still Too Close to Call [Numbers updated 11/6/22 from original post on 11/14/22] Voter turnout in Oregon for midterm general elections is typically around 70%. The results below were pulled from the Secretary of State’s site as of 3:45 p.m. Tuesday, November 15, 2022, and reflect a 62% turnout. This is the first Oregon Election where ballots did not have to be received by 8:00 pm on election day, but did need to be postmarked by election day. So, there is no historical perspective if this might benefit one party over the other. On the Federal side, Oregon gained an additional Congressional seat. Although that race, the 6th Congressional, is still too close to call, it looks like the Republicans in Oregon will gain at least one seat in Congress, the redrawn 5th Congressional District. In the Governor’s race, Christine Drazan has conceded the race to Tina Kotek. Betsy Johnson conceded on Election Day after the initial returns. It appears most of the Senate races are known at this time. The Democrats held a 18-12 super majority which at this point seems to be reduced to at least 17-13, with the only race still up for grabs being the Oregon City-Gladstone seat held by Republican Bill Kennemer. Kennemer and challenger Mark Meek (D) are locked in a tight race with Meek leading by 0.68% or just 397 votes. This seat is in Clackamas County so there should be a fair number of votes still to count. The House has more races where it is too soon to call. The Democrats currently hold a 37-23 super majority. Democrats appear to have enough seats to retain control with 32 races that seem to be settled. The Republicans should win 23 seats for sure. That leaves five seats up for grabs and too close to call still. Democrats would have to win four of the five to hold the super majority in the House. Governor:
BOLI:
CD4:
CD5:
CD6:
M111 (Health Care as Right):
M112 (Slavery Language in Constitution):
M113 (Legislative Absences):
M114 (Gun Sales):
State Senate: Current balance is 18 D, 11 R, 1 I. If those currently leading below hold, balance would be at 17 D, 12 R, 1 I. It appears to be down to one competitive race – SD20. SD3:
SD10:
SD11 (open seat):
SD13 (open seat):
SD16 (open seat):
SD20:
SD26 (open seat):
State House: Current balance is 37 D, 23 R. If those currently leading below hold, balance would be at 35 D, 25 R. There are several very tight races left. Pretty Wide Margins... HD12 (open seat):
HD19 (open seat):
HD21 (open seat):
HD22 (open seat):
HD24 (open seat):
HD31 (open seat):
A Little Closer... HD7:
HD32 (open seat):
HD40 (open seat):
HD48 (open seat):
HD49:
HD50:
HD52 (open seat):
HD53 (open seat):
Other State House Races of Note These races include restaurant operators running for public office (McEntee, Nguyen, Bynum). HD10:
HD38: (open seat)
HD39:
ORLA keeps members informed and educated with the latest information, industry intelligence and research via several channels. In addition to the blog, members receive more comprehensive insights via the monthly Insider e-newsletter and access to the Member Portal with data and research.
Not a member yet? Visit our Membership page or reach out the ORLA Regional Representative nearest you. Homeless Camping Ban / Lottery Retailer Meeting / Restaurant Revitalization Funds An End to Unsanctioned Camping in Portland Portland City Council approved a plan to ban unsanctioned camping whereby Portlanders experiencing homelessness will be moved from undesignated areas to available shelter locations. ORLA Government Affairs Coordinator Makenzie Marineau testified in favor of the proposal last week. In addition, we provided testimony at the Multnomah County Commission meeting in support of a good neighbor agreement between the County and businesses surrounding their new Behavioral Health and Resource Center located behind the Benson Hotel. ORLA Lottery Subcommittee Relaunches Next week we're relaunching our Lottery Subcommittee made up of ORLA members who rely on solid working relationships with Oregon Lottery staff and the Oregon Lottery Commissioners. If you’re a Lottery Retailer and would like to be involved, reach out to ORLA’s Director of Government Affairs Greg Astley with any questions. The subcommittee will be focusing on preparing for the next negotiation on commission rates with lottery staff, the potential for geocached in-game sports betting exclusive to bars/restaurants with retailer licenses, and progressive jackpots for ORLA members on video lottery terminals. Those issues and more will keep the group moving forward through 2023. Association, Sponsors Urge SBA to Release Last $180M in RRF The 4 sponsors of the RESTAURANTS Act (which became the RRF) sent a letter to the Small Business Administration this week demanding answers about the $180M in unobligated RRF money. U.S. Reps Brian Fitzpatrick (PA-01) and Earl Blumenauer (OR-03) and Sens. Roger Wicker (MS) and Kyrsten Sinema (AZ) wrote a letter to Isabel Guzman, administrator of the SBA, urging for a release of all unobligated funds from the RRF no later than Nov. 14, 2022. The National Restaurant Association has been working with Congress since July to urge SBA to disburse the funds, citing over 177,000 restaurant applicants who are desperately waiting for word on whether they will ever receive funding. Read the latest letter. AHLA Honors Native American Heritage Month November is National Native American Heritage Month, and AHLA is honoring the rich history and cultures of American Indian, Alaska Native and Native Hawaiian communities in the United States. The association has developed educational resources to support your individual DE&I learning journey:
Restaurant Operator Survey for November As the National Restaurant Association and state restaurant associations continue to advocate on behalf of the industry, please help us quantify and further illustrate how current business conditions are impacting the restaurant industry. The Association Research Group developed a brief survey designed to collect important data to inform our ongoing advocacy activities. Restaurant operators: Please take a few minutes to complete the survey. ORLA keeps members informed and educated with the latest information, industry intelligence and research via several channels. In addition to the blog, members receive more comprehensive insights via the monthly Insider e-newsletter and access to the Member Portal with data and research.
Not a member yet? Visit our Membership page or reach out the ORLA Regional Representative nearest you. ![]() ORLA Regional Meetings / Oregon Paid Leave / Hiring Practices / Feeding Kids Healthy Options Want a Seat at the Table? Join us at a Regional Meeting ORLA members are encouraged to attend one of the 11 regional meetings taking place across the state between November–January. We're hosting these meetings for members and new legislators before they go to Salem in February for the 2023 Legislative Session. Regardless of how the 2022 election turns out, we will have a new Governor, a new Bureau of Labor and Industries Commissioner, and a record number of new faces in our State House and State Senate. We need to make sure our elected officials understand our industry issues and can be partners with us in improving the climate for small businesses in Oregon. While these hosted events are free for members to attend, an RSVP is required. Are You Ready for Paid Leave Oregon? Oregon’s new paid family and medical leave insurance program, Paid Leave Oregon, will soon become operational. Employers must submit payroll contributions to fund the program beginning Jan. 1, and employees can start applying for benefits on Sept. 3. Many employers are still weighing whether to participate in the state-administered leave program or an equivalent program offered by an insurance provider. As a reminder, ORLA is actively looking into private sector solutions for an equivalent plan and will keep members posted. In the meantime, we have developed a one-pager that outlines key dates and helps answer some questions regarding Oregon’s new program. In addition, Oregon Business & Industry hosted a webinar this week with Laura Rosenbaum, an employment attorney with Stoel Rives, and Jessica Bolar, senior product manager for paid family and medical leave with The Standard and covered much of what employers need to know. Top 5 Ways to Beat the Hiring Crisis (webinar) Today's job market is exceedingly competitive. Almost every restaurant/hotel is struggling to stay staffed, and they're all looking for someone who is ready to return to work. With so much demand, you'll need a major competitive advantage if you want a chance at landing applicants. ORLA recently co-hosted a webinar presented by our allied member, Workstream, covering tactics used by top industry leaders to successfully staff their locations during the current hiring crisis. To watch the recorded webinar, click here. Leisure travel driving recovery U.S. hotel leisure travel revenue will be up 14% this year over 2019 levels, while hotel business travel revenue will come within 1% of 2019 levels, according to a new analysis by AHLA and Kalibri Labs. Surging demand has created historic career opportunities for employees, with growing wages, increased flexibility, and expanded benefits. However, the projections are not adjusted for inflation, and real hotel revenue recovery will likely take several years. Promote Better-for-You Meals with Kids LiveWell℠ The National Restaurant Association is expanding its Kids Live Well (KLW) program and making it easier for restaurants to offer and promote better-for-you meals to parents and children dining out. The association has created educational resources for restaurants to support these healthier food options. KLW is a voluntary initiative to help restaurants craft healthier kids’ meal options that meet the latest nutrition criteria established by registered dietitians in collaboration with public health and consumer advocates. To learn how you can participate and access resources, visit Restaurant.org. ORLA keeps members informed and educated with the latest information, industry intelligence and research via several channels. In addition to the blog, members receive more comprehensive insights via the monthly Insider e-newsletter and access to the Member Portal with data and research.
Not a member yet? Visit our Membership page or reach out the ORLA Regional Representative nearest you. Paid Leave Info | UI Refund Checks | Proposed Labor Rule
Oregon Employment Department Refund Checks ORLA's biggest win during Covid at the state level was in House Bill 3389 where unemployment insurance (UI) tax reform passed. House Bill 3389 was collaborative legislation passed in 2021 to provide short- and long-term pandemic tax relief to Oregon employers while protecting the Unemployment Insurance Trust Fund. This important bill provided assistance to Oregon employers in several ways:
More Independent Contractors May Become Employees - Proposed Labor Rule Earlier this week, the U.S. Department of Labor issued a proposed rule focused on classifying more workers as employees rather than independent contractors. The rule would 1) rescind the current independent contractor rule and 2) utilize a new “economic realities” test to determine if a worker is truly an independent contractor. This test includes factors such as investment, control, opportunity for profit or loss, and whether the work is integral to the employer’s business. The Department intends to identify more workers as employees, and therefore eligible for standard minimum wage, overtime, and other protections through the Fair Labor Standards Act. In the press release, the Department says misclassification affects a “wide range of workers in the home care, janitorial services, trucking, delivery, construction, personal services, and hospitality and restaurant industries.” Comments on the proposed rule are due by November 28. For more insight on the potential impacts of this rule, read a recent editorial regarding California's law. Oregon Paid Leave As you are well aware, Oregon’s Paid Family and Medical Leave Insurance program (PFMLI) goes into effect January 1, 2023, and is funded by employer and employee contributions. Employers with less than 25 employees are not required to contribute to the program, but their employees are. Employers will be required to participate in the program or provide an equivalent plan. ORLA is actively looking into private sector solutions for the industry and will keep you posted. In the meantime, ORLA developed a PFMLI one-pager that helps answer some questions regarding Oregon’s new Paid Leave program. You can also find this on OregonRLA.org here:
Restaurant Economic Insights The latest insights from the National Restaurant Association shows overall consumer spending in restaurants trended higher in August, inflation-adjusted (real) sales remained down from early-summer levels. Eating and drinking places registered total sales of $86.2B on a seasonally adjusted basis in August. In inflation-adjusted terms, that was $1.3B below the recent peak registered in May 2022. As always, if you have any questions, feel free to reach out to your Regional Representative. Industry Champions / Local Lodging Tax / New GA Team Member
Statewide Hospitality Awards ORLA honored four industry members during the Hospitality Conference in Eugene on September 11, 2022. These awards recognize the outstanding contributions of individuals and businesses serving the hospitality industry and communities throughout the state. Congratulations to the Employee of the Year Jodi Doud (Southern Oregon Elmer's), Lodging Operator of the Year Nick Pearson (Jupiter & Jupiter NEXT), Restaurateur of the Year Emma Dye (Crisp), and Allied Member of the Year Matthew D. Lowe (Jordan Ramis PC). View video profiles of this year’s recipients. Protecting Local Lodging Tax Dollars ORLA's government affairs team is working closely with our leadership teams and operators to review how local lodging taxes are being spent in jurisdictions across the state. Over the past fiscal year, ORLA has filed over 10 public records requests to evaluate the use of lodging tax dollars collected by local governments. Turnover within government positions just like in the private sector result in the need for ongoing education of the state rules governing local lodging taxes. Watch ORLA's explainer video how local lodging taxes must be expended in accordance with Oregon's state law. New ORLA GA Team Member Makenzie Marineau joins ORLA with experience in the non-profit world along with government relations, communication and volunteer engagement skills. Along with expertise in government affairs, she has years of experience working within the hospitality industry in Oregon. In her role as Government Affairs and Regional Leadership Teams Coordinator, Makenzie will be helping the association and its members achieve success through the development and ongoing oversight of regional groups of restaurants and lodging operators as well as programs to benefit the hospitality industry. She will serve as the lead government affairs staff member in the Portland Metro region and will provide administrative support for regional leadership teams outside of the region. As always, if you have any questions about industry issues, please reach out to your Regional Representative or email us. Gubernatorial Candidate Events / Oregon PFML / ORLA Conference
Gubernatorial Candidate Events The Oregon Beverage Alliance (OBA) is hosting three events with Oregon’s Gubernatorial candidates coming up in the next several weeks. This is a unique opportunity for our industry to have an audience with the future Governor to talk specifically about the hospitality sector, our force as an economic driver for the state, and the importance of considering the impact of policy decisions on our sector. Having a large presence at these events will help ensure that Oregon’s next Governor understands the depth, diversity, and strength of our voice. These events provide a forum for open dialogue on issues of importance to our group. The events are all free of charge and will be held at Columbia Distributing, 27200 SW Parkway Ave, in Wilsonville, Oregon.
Oregon's Paid Family Medical Leave Program Oregon’s Paid Family and Medical Leave Insurance program (PFMLI) goes into effect January 1, 2023, and is funded by employer and employee contributions. Employers with less than 25 employees are not required to contribute to the program, but their employees are. Employers will be required to participate in the program or provide an equivalent plan. ORLA is actively looking into private sector solutions right now. Here are some key dates:
Still Time to Register for the Conference ORLA is excited to have both Chip Rogers, President & CEO of the American Hotel & Lodging Association and Michelle Korsmo, President & CEO of the National Restaurant Association joining us in person as keynote speakers at the ORLA Hospitality Conference in Eugene. This will mark the first time in ORLA’s history where both national CEOs will be present for a gathering of our members. All details relating to the conference can be viewed on our designated conference site. View the “Sessions” tab on the following website to review the flow of the conference and reach out with any questions. This is a great time to bring key staff and those you’re looking to develop as part of your long term sustainability plan for your operation. Affordable Housing / Economic Report / Per Diem Increase / Oregon Hospitality Heroes
‘People for an Affordable Oregon’ Involvement ORLA is part of a broader business coalition challenging the latest rulemaking conducted by the Department of Land Conservation and Development (DLCD) without appropriate levels of public input. There’s potential that legal action may result out of this movement: the business coalition challenging the lack of public process within the rulemaking effort and municipalities questioning DLCD’s authority over local zoning controls. To learn more about this developing issue visit: Operators Endure Weaker Business Conditions The costs of goods restaurateurs need most have continued to accelerate, and according to a new survey released today by the National Restaurant Association, 46% of operators say business conditions are worse now than they were 3 months ago. More than 80% of operators say the cost of food, labor and occupancy are higher than 2019; 94% say operating costs in general are higher. 85% report profits are down. See full survey results and the press release. GSA Increases Per Diem rate The FY2023 standard per diem rate will increase to $157 for the continental U.S., and rates for the 316 non-standard areas will be at or above FY2022 rates, the General Services Administration (GSA) announced this week. This is extremely welcome news for the hospitality industry as our recovery continues. By increasing the standard rate and setting a floor at pre-pandemic rates for NSAs, GSA has ensured fair increases in markets that warrant them while also avoiding hurting hotels in markets that have taken longer to recover. See Oregon rates. ORLA Hospitality Award Winners We will celebrate four hospitality heroes Sunday evening, September 11 at our Awards Dinner during the annual Conference in Eugene. Congratulations go to Nick Pearson (Jupiter & Jupiter NEXT) as the Lodging Operator of the Year, Emma Dye (Crisp) as the Restaurateur of the Year, Jodi Doud (Elmer's Roseburg) as Employee of the Year; and Matthew D. Lowe (Jordan Ramis) as the Allied Partner of the Year. As always, please let us know if you have any questions by emailing info@oregonrla.org. In the News / Sports Economy / Reigniting Travel / Worker Shortage
ORLA's professional staff is in full swing as we turn the corner on event season and gear up for our final productions – Swig & Savor August 12 at the Nines in Portland and the ORLA Hospitality Conference at the Graduate Hotel in Eugene in September. See below for our latest association updates: Media Coverage – State of Sport The Portland market and secondary markets in Eugene and Bend are working collectively to amplify the State of Sport within Oregon’s economy. Findings of a recent report launched intentionally in advance of the World Athletic Championships in Eugene elevates the identity we have in Oregon around sports and recreation companies. Of course the hospitality industry benefits greatly as we continue to develop a more comprehensive identity around sports and recreation. The Oregon Hospitality Foundation, ORLA’s 501 c(3) arm, financially supported the creation of the study and continues to be involved in the ongoing task force work. Here are some of the media pickups resulting from the collaborative work.
Reigniting Travel Press Event Chip Rogers, President & CEO of the American Hotel & Lodging Association joined ORLA alongside Travel Portland and the Portland Business Alliance in holding a press event July 22 about reigniting travel in the Portland region. Here’s a sample of some of the coverage:
Where Have All the Workers Gone? Almost everyone in the industry still needs more help to meet demand. And there are some misunderstandings about how much our workforce has been effected by Covid compared to trends that started long before the pandemic hit. If you haven’t already, read the Wall Street Journal's article, The ‘Great Resignation’ Started Long Ago, it’s worth your time. Something to ponder: "There are more than 11 million job openings in the U.S. but only six million unemployed workers. So what’s happening?" ORLA Hospitality Conference Both Chip Rogers, President & CEO of the American Hotel & Lodging Association and Michelle Korsmo, President & CEO of the National Restaurant Association will join us in person as keynote speakers at the ORLA Hospitality Conference in Eugene. This will mark the first time in ORLA’s history where both national CEOs will be present for a gathering of our members. This is a great time to bring key staff and those you’re looking to develop as part of your long term sustainability plan for your operation. Questions? Give us a call at 503.682.4422 or email us. Industry Awards / Whiskey Event / Sports Economy / Job Fairs
Award Nominations ORLA's Hospitality Conference in Eugene will include recognition for our Restaurateur Of the Year, Lodging Operator of the Year, Employee of the Year, and Allied Member of the Year. Nominations are open until end of day on Monday, July 11 so please submit a nomination form if you know of a deserving candidate. Swig & Savor ORLA’s public-facing high-end Swig & Savor liquor event has opened ticket sales! This is a unique event featuring top-shelf whiskies for tastings, educational seminars, and allocated and rare products–an opportunity that does not currently exist in the Pacific Northwest market. VIP participants will automatically entered into a raffle with drawings for hard-to-get allocated bottles. Sports Economy and Jobs The Oregon Hospitality Foundation contributed to the production of the economic report released last week by the Portland Business Alliance in partnership with U.S. Bank. Oregon: The State of Sport highlights the economic power and competitive advantage in Oregon stemming from the athletic, outdoor, team, and recreation industries. The report’s initial focus was on the Portland Metro area, Eugene, and Bend, but there is widespread recognition that Oregon’s strength in this space is truly statewide. The report articulates what many of us already knew: if you want to be in this ecosystem as an entrepreneur, employee, or even customer…Oregon is the place to be. The report and key findings can be found here. Youth Job Fair The Oregon Hospitality Foundation will be doing more work to elevate workforce development efforts from partners and stakeholders around the state in the coming years. We look forward to documenting our success in getting industry professionals sharing their stories in high school and community college classrooms, assist with lining up student job shadow experiences with industry professionals, and build out more options for educators to take their students on experiential field trips of industry businesses when it makes sense. Our work also includes shining a brighter light on youth job fairs and other events focused on connecting employers with prospect employees. Questions? Send us an email or give us a ring at 503.682.4422. Third Party Deliver Fee Cap / Hotel Loading Zones
Recently, the Oregon Restaurant & Lodging Association (ORLA) went to bat on a couple of issues affecting restaurants and lodging properties in Portland and we came away with two huge wins! On the restaurant side, ORLA was instrumental in securing an extension of the 10% Delivery Fee Cap for an additional eight months. The ordinance takes effect June 29 when the ordinance from 2020 was set to expire. ORLA will now work with restaurant owners, the City of Portland, the third party delivery companies and other stakeholders on a proposal around a permanent delivery fee cap within the city limits. A huge thanks to the restaurant operators who testified and shared their stories to City Council. On the lodging side, ORLA reached out and communicated with Commissioner Hardesty’s office about proposed changes to hotel loading zones that would have turned the current 15-minute zones into 3-minute zones. Our discussions were successful in maintaining the 15-minute loading zones. ORLA pointed out that as Portland hotels continue to recover from the last two and a half years, making it more difficult and less welcoming for visitors to enjoy our city is the opposite of what we need to be doing. Advocacy on behalf of the hospitality industry and our members is at the core of what we do at ORLA and we appreciate your involvement and your support as we continue to fight on your behalf. Questions? Contact ORLA Regional Representative Steven Scardina or ORLA Director of Government Affairs Greg Astley. Inflation / Job Loss / Travel Forecast
More than two years into the pandemic and we're still realizing the effects of Covid on travel, supply of goods, and inflation. We appreciate the work our national partners do to provide valuable insights and data highlighting the ongoing economic issues facing our industry. RESTAURANTS This week, the National Restaurant Association released an updated summary of the Misery index based on the May jobs and sales reports. While job growth is still slow, sales are continuing to grow. American restaurant owners and operators are experiencing the impact of several global factors influencing food supply. The war in Ukraine, India’s record heat wave, and delayed planting in China last year mean that wheat is in short supply. With wholesale food prices already up nearly 18% in the last 12 months, the growing list of unavailable or items in short supply is adding pressure to an already strained industry. Highlights from the June 2022 Misery Index:
LODGING A recent survey commissioned by the American Hotel & Lodging Association (AHLA) shares how new concerns about gas prices and inflation are impacting Americans’ travel plans in a variety of ways. Majorities say they are likely to take fewer leisure trips (57%) and shorter trips (54%) due to current gas prices, while 44% are likely to postpone trips, and 33% are likely to cancel with no plans to reschedule. 82% say gas prices will have at least some impact on their travel destination(s). The survey of 2,210 adults was conducted May 18-22, 2022. Other key findings include:
AHLA recently relaunched its Hospitality is Working campaign with a focus on reigniting travel across the nation and highlighting hotels’ positive economic impact in cities across the country. With travel ramping back up, hotels have embarked on an unprecedented hiring spree to recruit hundreds of thousands of workers for more than 200 hotel career pathways. Bottom line, restaurant and lodging operators are feeling the same economic pressures that our customers and guests are, and we’re always going to work hard so we can keep serving them, our employees, and our communities. Stay strong, serve well! ERC Eligibility / National CEO Presence / Board Nominations
Eligibility Clarification for 2021 Q3 Employee Retention Tax Credits The law states there are two criteria by which an employer may qualify for the Employee Retention Credit:
AHLA and NRA CEOs to Speak at ORLA's Hospitality Conference Mark your calendars and plan on attending the ORLA Hospitality Conference September 11-12 in Eugene. We are excited to host both CEOs from our national affiliates for the first time at an ORLA event. Michelle Korsmo, President & CEO for the National Restaurant Association and Chip Rogers, President & CEO for the American Hotel & Lodging Association will be speaking in person during the kickoff lunch on Sunday. This is a rare opportunity to hear insights directly from these industry leaders on legislative activity in Congress, industry trends, emerging issues, and projected industry recovery. In addition to the general sessions, we have eight breakout sessions including two that will offer a deeper dive on restaurant and lodging advocacy. ORLA Board Nominations Committee Convenes in July Active ORLA members provide the backbone for all association efforts and we remain fortunate in having committed restaurant, lodging, and allied members who serve on ORLA’s Board of Directors. The ORLA Board is made up of 10 restaurant member representatives, 10 lodging member representatives, and 3 Allied member representatives. Board members serve 3 year terms and attend 4 board meetings each year. Those serving are eligible to serve two consecutive terms before reaching their term limit. For ORLA’s upcoming fiscal year beginning October 1 there are 3 openings on the board due to term limits – 1 restaurant, 1 lodging, and 1 allied position. If you are interested in being considered for ORLA Board service please reach out to ORLA President & CEO Jason Brandt. Sysco Sponsors Teacher Flex Fund Thanks to our partners at Sysco, the Oregon Hospitality Foundation had the opportunity to extend a small grant application in support of the ProStart program across the state. The Oregon ProStart Teacher Flex Fund encouraged teachers to apply for a $500 grant for to prepare for the 2022–2023 school year. At the teacher's discretion, these funds can be spent on much-needed products or equipment within the classroom to help facilitate their culinary program. Allocations from the $5,000 Flex Fund were made on a first come, first serve basis, and will be dispersed later this month. To learn more about how ProStart is helping foster our next generation of industry leaders, or to see how you can support this valuable career technical education program, visit OregonRLA.org/prostart. Questions? Feel free to contact your association. Alcohol Tax / Commission Caps on 3rd Party Deliveries / PFMLA / Tip Pooling Resources
Fighting Oregon Alcohol Tax Increases Here's a quick update on our ongoing fight to protect the industry from increased beverage taxes in Oregon. Our next fight against increased alcohol taxes will surely come up yet again in the 2023 Legislative Session. Our friends at Quinn Thomas have been working hard to keep our organizational alliance intact as well as help identify messaging relating to some of the ongoing problems with Oregon’s broken addiction treatment and recovery system. This analysis on Alcohol Price Elasticity helps shed more light on the lack of correlation between increased alcohol taxes and decreases in alcohol use. Upcoming Vote on Capping Third Party Delivery Fees at 15% Portland City Council will vote on June 15 to cap delivery fees for restaurants from third party platforms at fifteen percent. If approved, the ordinance would take effect June 29, 2022 when the emergency order capping delivery fees at ten percent expires. In addition to the fifteen percent delivery fee cap, the ordinance would allow third party delivery platforms the ability to charge:
The ordinance also prohibits:
Paid Family Leave Concerns You may recall a tough fight in the 2019 Oregon Legislative Session on Paid Family Leave. The new labor law passed before Covid and has been in hibernation mode behind the scenes as the Oregon Employment Department worked to get their ducks in a row for a 2023 launch. Of course we had this little thing called Covid which upended our world and unfortunately those unexpected challenges have not changed the state’s plan to fully implement their “Paid Leave Oregon” program in 2023. The Paid Leave Oregon programs latest round of rules addresses a variety of issues including appeals, wages, benefits, and equivalent plans. ORLA’s statewide business partner OBI has participated in the rulemaking advisory committee and submitted comments on behalf of the business community. We continue to worry about the confusion this will create for employers and employees that are also subject to the Oregon Family Leave Act and the federal Family and Medical Leave Act. OBI hopes to introduce legislation in the 2023 session to address this issue. Key date: The 1% payroll tax will begin on January 1, 2023. Employees pay 60% of the tax and employers pay the remaining 40%. However, employers with less than 25 employees are not required to contribute to the program, but their employees are. Alternatively, employers can opt to provide a private equivalent plan through insurance or by self-insuring, rather than participate in the state program (ORLA is actively looking into private sector solutions right now – any progress will move through our ORLAMS board process). Employees will be eligible to file claims under both the state and private plans in September 2023. Webinar on Tip Pooling & Overtime Compliance ORLA hosted a webinar June 2 on “How to Ensure You’re in Compliance with Overtime and Tip Pooling.” Representatives from the Department of Labor, Wage & Hour Division Portland District covered these topics and more, including fielding several situational questions from industry members. The following resources were shared:
For questions, call the WHD toll free and confidential information helpline at 1-866-4US-WAGE (1-866-487-9243), or the Portland District office directly at 503-326-3057. You can also call or visit the nearest Wage and Hour Division Office. For a copy of the webinar presentation slides, please email Lori Little. Have any questions? Feel free to reach out to ORLA Government Affairs via email. RRF / Elections / Liquor Privatization...
Restaurant Revitalization Fund (RRF) Senate Vote – Oregon Senators Voted Yes Yesterday, the U.S. Senate was unable to overcome a filibuster on a motion to begin debate on a $48 billion bill that would have replenished the Restaurant Revitalization Fund (RRF). The vote to invoke cloture and overcome the filibuster failed by a vote of 52-43 (60 votes were needed to prevail). Read the press release from the National Restaurant Association for more information. Highlights of the vote from yesterday:
Primary Election Roundup There has been an increase in the number of industry members who have expressed a willingness to run for office. ORLA members Cheri Helt (BOLI Commissioner candidate), Daniel Nguyen (State Rep Candidate), Janelle Bynum (Current State Rep), and former ORLA staff member Christine Drazan are all working to bring more industry expertise to our policy making decisions. Here are a few highlights from this week’s primary election on state races:
Portland Lodging Alliance (PLA) Statement on Portland City Budget ORLA was involved in group discussions on the City of Portland's budget earlier this week. Generally, the high level social service and public safety investments and content within the budget seem on point. What continues to plague Portland are the deficiencies in management and a desire by our members to see consistent progress on the streets. One of ORLA’s local groups is called the Portland Lodging Alliance and current ORLA Board Members George Schweitzer and Daryn White Cyrus sit on the PLA Steering Committee. Joining them in leadership are Brandon Carter of the Bidwell downtown and Martin McAllister who runs the waterfront Marriott Hotel. This coming week the Portland Lodging Alliance is submitting comments on Mayor Wheeler’s proposed budget to the City through their online public comment portal. Liquor Privatization Off the November Ballot There’s one less thing to worry about on the November ballot now that the Northwest Grocers Association have pulled their initiative petition from the signature gathering process to qualify as a state measure. Initiative Petition 35 would have opened the door to liquor sales in grocery stores here in Oregon. Although the convenience may seem enticing on its surface there are far ranging implications if the current alcohol system were to be disrupted with cost escalations on liquor inevitable for ORLA members. See the story summing it all up here on OPB. ORLA has been an active part of the opposition campaign to this effort ever since our Government Affairs Committee voted unanimously to oppose these efforts when this was attempted the last time. Have any questions? Feel free to reach out to us via email. Paid Family Leave / Governor's Race / 'Hospitality is Working'
Paid Family Leave Rulemaking Paid Family Leave passed in the long legislative session of 2019 before Covid and has been in a delayed planning state ever since. The law is now getting more attention as the Oregon Employment Department and their new Paid Family Medical Leave Insurance Division (PFMLI) work to launch the new program in 2023. The program is ambitious and requires a 60/40 percent employee/employer split in contributions to a new fund for specific family and medical leave needs. ORLA’s Director of Government Affairs serves on the rulemaking committee; we'll keep members informed of paid family leave updates. Governor’s Race & GOP Polling Recent polling for the Governor’s Race shows former Oregon Restaurant Association staffer Christine Drazan may have a good shot at securing the GOP nomination for Governor in the upcoming primary. Most political pundits continue to believe the Democrat primary win will go to Tina Kotek although Tobias Read has been making a considerable push to gain more favor within the party. Hospitality is Working Campaign The American Hotel & Lodging Association (AHLA) relaunched its Hospitality is Working campaign seeking to reignite travel nationwide and showcase the economic and community benefits hotels provide in neighborhoods across the country. Hospitality is Working showcases the broad range of benefits hotels provide the communities they serve while highlighting the industry’s strong commitment to investing in its workforce, providing quality career opportunities, and protecting employees and guests as more and more Americans begin to travel. The campaign will include television and digital advertising as well as AHLA events around the country alongside local hoteliers, economic development organizations and community groups. Have questions? Give us a call at 503.682.4422 or email us if you have any questions. Happy Friday! PAC Auction / OLCC Presentation / Lodging Tax Accountability One Big Night in Less than 2 Months ORLA's largest fundraiser of the year will be here in less than 2 months. One Big Night will be held at the Portland Doubletree Hotel, Tuesday, June 7.
Presentation to OLCC Commission ORLA representatives had an opportunity to present an industry update to the seven-member OLCC (Oregon Liquor and Cannabis) Commission last week. The presentation focused on the importance of OLCC staff extending liquor service footprints outdoors through a user friendly online process during Covid, their approach to license fee flexibility, and the emergence of to-go cocktails as another sales opportunity permanently available to the industry in Oregon to increase sales. We also flagged both ongoing inflation concerns and the importance of Economic Injury Disaster Loan extensions in helping our industry just barely keep our heads above water. ORLA remains focused on explaining the nature of invisible piles of debt on the shoulders of our operators while we all start seeing restaurants busy and even bustling. Today's sales numbers hopefully serve as a constant reminder that ongoing relief is necessary and warranted. Industry Coverage in The Hill The Hill published an op-ed from Sean Kennedy, Executive Vice President of Government Affairs for the National Restaurant Association. Sean hit the mark in covering what the industry needs to get back on track. It was a timely article right before industry operators head to DC this week. Accountability for Local Governments on Local Lodging Taxes ORLA remains committed to doing what we need to do in getting local governments to commit to transparency in how they spend industry tax dollars. We are currently in the middle of a disagreement with staff from one city in the Willamette Valley on how much of their lodging tax money is restricted for tourism promotion and facilities. A multitude of other local governments are also on our list in our pursuit of additional transparency. Have questions? Give us a call at 503.682.4422 or email us if you have any questions. | ORLA |
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