ORLA Update for June 2024

Connecting and Building a Stronger Industry Together!

The past few months have been a whirlwind of activity at ORLA! We've hosted Regional Meetings and events across the state, creating exciting opportunities for you to connect face-to-face with industry colleagues and leadership.

But our work goes beyond events. Your dedicated ORLA team tirelessly advocates for your business, fosters the next generation of hospitality professionals, and provides valuable resources to support your success.

Together, we're making a difference. We're protecting, improving, and promoting Oregon's vibrant hospitality industry.  Thank you for being a member and fueling our efforts!

Not a member yet? Join us and connect with your industry community. We're here for you!

What You Need to Know About the DOL Overtime Rule
The first increase in the DOL Overtime Final Rule is scheduled to take effect July 1 and increases the salary threshold to determine whether employees are exempt from overtime pay under the Fair Labor Standards Act (FLSA). 

• Provisions include:
  • Standard Salary Threshold Increase: Effective July 1, 2024, the standard salary threshold will increase to $844 per week ($43,888 annually). It will rise again on January 1, 2025, to $1,128 weekly ($58,656 annually).
  • Highly Compensated Employee (HCE) Threshold Increase: The salary threshold for HCEs will be $132,964 annually starting July 1, 2024, and will increase to $151,164 on January 1, 2025.
  • Automatic Updates: Starting July 1, 2027, the earnings thresholds will be automatically updated every three years based on wage data.
• What Operators Should Do Now:
  • Review Job Duties: Ensure employees are correctly classified as exempt or non-exempt based on their job duties. Refer to this DOL fact sheet for guidance on determining exempt status. (See also: Final Rule on Overtime Protections and Small Business Compliance Guide)
  • Review Payroll Records: Identify salaried exempt employees with wages below the new threshold. For these employees, you might consider 1) Raising their salary above the new limit or 2) Changing their status to non-exempt and properly tracking hours to pay overtime when appropriate.
  • Consult Counsel: Consult with an employment attorney licensed in your state to determine how best to comply with the Final Rule and all applicable state and local rules.

Take note, lawsuits including challenges by the Restaurant Law Center are seeking to invalidate and set aside the Final Rule, potentially impacting its implementation.

Resources for Hotels on DOL Overtime Rule:

• AHLA Webinar (recorded video)
• AHLA Webinar Presentation

Understanding Oregon Workforce Diversity
Oregon Hospitality Foundation (OHF) is conducting a survey to understand diversity perceptions within the state's hospitality industry. The initiative aims to improve company culture through workforce dynamics research (read blog). Participation in the ongoing survey is encouraged.

Oregon Hill Runners to Help Drive Policy
ORLA's Hill Runner project is officially underway to recruit and engage 180 ORLA members in building relationships with their respective State Representative or State Senator. ORLA has contracted with Ramsey Cox, an experienced media relations and public affairs consultant to assist us in securing hill runners this fall. Ramsey has worked with ORLA in the past on a few key priorities, such as fighting alcohol tax increases, repealing pandemic restrictions, and protecting energy choice.

Member Benefit: New Wage Reports Available
ORLA members have access to industry intelligence by logging in to the Member Portal. Find updated wage reports with regional breakdowns for Oregon’s 7 tourism regions, inclusive of most job types in restaurant and lodging operations. Once logged in, navigate to the Resource Library.

Two Salem H.S. Teams Place in Top 10 Nationally
Oregon’s top two ProStart teams in the state competed at the National ProStart Invitational end of April in Baltimore. The team from McNary High School placed sixth out of 48 teams in the culinary competition and Salem’s CTEC team (pictured) placed eighth out of 48 teams competing in the restaurant management competition. These teams earned the trip to Nationals by taking top honors at the Oregon Hospitality Foundation’s annual Oregon ProStart Championships in March.

Upcoming Events & Meetings:

• 6/26/24 – ORLA Virtual Meeting for Members
• 7/22/24 – ORLA Open Golf Tournament
• 9/22/24-9/23/24 – ORLA Hospitality Conference 

Looking to get more involved in ORLA activities? Check out our website for details.