Hospitality Industry FAQs (COVID-19)


GENERAL GUIDANCE

What kind of relief is available for employers and employees? 
I’ve heard that the CARES Act provides forgivable loan opportunities for small businesses. How does that program work? 
  • The Paycheck Protection Program (PPP) may be entirely forgivable if the business brings back employees or restores wages. The U.S. Chamber of Commerce has developed a guide and checklist on the PPP; read more here.

I’ve heard the Families First Coronavirus Response Act requires employers to provide paid leave to employees unable to work due to COVID-19. If an employee was laid off before the bill’s effective date on April 1st, 2020 and they are no longer employed, would the past employer be liable for paid leave?  
  • We have been advised that the new federal law provisions regarding paid leave would not apply to laid off workers if the business is closed, whether the closure occurs before or after April 1, the effective date of the law date. To read more on this, read Fisher Phillips’ discussion of the Department of Labor’s guidance on the new law. 
  • The Department of Labor has a number of helpful FAQs on their website, which can be found here. Additional questions and answers have been provided by law firm Fisher Phillips found here. 

What are some of the options I have for my business during this time regarding employment? 
NW Employer Solutions, LLC, developed a presentation on Innovative Legal Solutions for Employers (COVID-19 Options) that addresses these options, including definitions of workforce reductions, unemployment options, and new legislation (E-PSL and EFML). Download presentation slides.

What do employers do regarding salary employees and pay if the business needs to close for a duration of time? 
  • For guidance on exempt employees, please see this post from Littler regarding furloughs and other temporary responses to coronavirus.  

Do you have any recommendations for how businesses can manage communications around COVID-19, particularly if an employee or customer is diagnosed with the virus? 
  • The following link provides crisis communications recommendations for hotels but also includes valuable information for restaurant owners: Hotel Marketing During the Coronavirus Crisis. If you need additional assistance, please don’t hesitate to reach out to our team at ORLA.

If I have businesses under separate entities, should I file for multiple SBA disaster relief loans? Where is the money coming from? 
  • Operators can file for multiple SBA disaster loans if they have different LLCs as long as each has their own EIN. The money is coming from the US Treasury. 

I’ve chosen to close my business permanently. What are the steps I need to take for that? 
  • If you choose to close your business permanently, the Secretary of State outlines the steps for making a permanent closure.
What can I do to help? 
  • Text “ORLA” to 52886 to receive the latest text updates and calls-to-action to support our industry. See below for industry-specific directions.​
RESTAURANT GUIDANCE

What is the Governor’s directive on restaurants and dining rooms?  
  • Effective March 17th, Governor Brown has ordered all dining rooms across Oregon to close over a four-week period. No onsite consumption of food or beverages is allowed. Delivery and takeout will still be allowed. Read the Executive Order here. 

What is the penalty for staying open?  
  • Refusal to comply with this executive order will result in a Class C misdemeanor. In Oregon, the maximum penalty is a $1,250 fine and/or 30 days in jail. 

Who is enforcing the Executive Order? 
  • Law enforcement will be responsible for ensuring compliance with the Executive Order.

Are individuals allowed to go into restaurants, order takeout food, and wait there for it? 
  • Yes – however businesses must implement social distancing of at least six feet between customers “ordering, waiting, or in line.” 

For many restaurants, takeout or delivery only is not a sustainable business model; how do I address my labor needs this way? 
In some especially rural areas, restaurants may be the only place residents get their meals. What do our options look like as we switch to delivery and take out only? 
  • We understand that in many rural communities, the only way to access food outside of the home is in a restaurant. We encourage your team to take advantage of the delivery and take out model by delivering food to customers car-side or utilizing current employees to serve as delivery drivers.  ​
  • The following video includes recommended best practices for restaurants during this time: Boosting Sales: Takeout & Delivery Ideas that Work. 

How do we reach our clientele that is not Internet-savvy and may not be able to navigate delivery services through businesses like Grubhub, Caviar, etc.? 
  • If your business isn’t compatible with existing delivery services, we encourage you to engage customers by posting your menu online, on your social media channels or outside your restaurant and requesting that customers place orders over the phone or over the counter for takeout.  

Are there any recommended best practices to ensure social distancing and safety while operating on a takeout/delivery-only model?  
  • Yes, many restaurants are implementing “contact-less” pickup for pre-paid orders and delivery service drivers. Orders are placed on a shelf in the restaurant’s lobby, empty dining room or near the door so customers and drivers picking up orders have minimal contact with restaurant staff or other customers. 
  • The National Restaurant Association launched two new training videos on ServSafe Takeout and Delivery: COVID-19 Precautions. These videos are offered complimentary, on demand, in both English and Spanish.

How do you recommend we let our customers know that we’re open for takeout and delivery?  
  • Your restaurant’s social media channels and website are great tools to share information with your customers including temporarily adjusted hours, special takeout/delivery menus or other services you may be providing.  
  • The Portland Business Journal is offering a free service to restaurants where they can post to-go menus or information about other offerings. To utilize this resource, click here.  

What other creative ways are restaurants providing services to customers at this time?  
  • Some restaurants are enhancing revenue and providing much-needed services for customers by selling basic grocery items such as toilet paper, cleaning supplies and pantry staples. Others are offering meal kits or ready-to-bake items. Some of these creative tactics are outlined here. 

Can restaurants sell uncooked meat products to help supplement shortages in grocery stores? What about bulk items?  
  • Yes, this is allowed when sold to the end consumer (retail) with proper labeling, handling and cooking instructions. The meat sold needs to have been USDA inspected (from the restaurant’s supplier) and may be repackaged. If you are planning to vacuum seal the raw meat, you are required to have a HACCP plan (this is spelled out in rule). It would be safer not to vacuum package the meat. As long as the annual sales for raw meat do not exceed food for immediate consumption, restaurants do not need an ODA meat sellers license and may sell uncooked meat under their current license. Verbiage for safe handling of raw meat instructions can be found here. For more guidance on raw and bulk items, click here.

If I am not serving food or drinks, can I still operate Lottery if it’s fewer than 10 people and someone is available to cash out tickets? 
  • No - all dining rooms are closed at this time and the statewide network of Video Lottery terminals is disabled as of 5pm on March 17, 2020. 

Can I offer growlers fills as part of our delivery service? What steps may I need to take to expand alcohol delivery?​
  • As of March 19, 2020, the OLCC has announced that licensees that currently have an Off-Premises license – or a license that includes Off-Premises Sales Privileges with Same-Day Delivery, now have approval to make delivery of malt beverages, wine and cider to customers curbside. OLCC has also created a streamlined application process for existing Limited On-Premises Sales and Full On-Premises Sales Licensees (restaurants & bars) to start selling malt beverages, wine and cider to go. Qualified licensees can apply for a “90-day Authority To Operate” (ATO) with an Off-Premises Sales license. The link to start the application is found here.   
  • Sales of alcoholic beverages for off-premises consumption have to comply with ORS chapter 471. For the OLCC’s guide to alcohol delivery, please click here. 
  • ORLA is advocating legislators for the right to sell alcohol, including mixed drinks, as take-out, curbside pickup or delivery as part of our efforts to facilitate job protection and business continuity. We will provide updates as they become available.

I have decided to close. What are some best practices for closing procedures? 
Can I suspend my liquor liability insurance while my dining room is closed to save on costs? 
  • We have been advised by OLCC that if restaurants or bars choose to suspend their liquor liability insurance during a temporary closure, the business’ liquor license will be cancelled. That business would need to file a new liquor license application and fees upon reopening. We are in communication with OLCC and will provide updates as they become available. ​
What can I do to help? Where can I share the impacts that coronavirus is having on my business? 
  • To take action on the local/state level, click here; for our federal efforts, visit here.
  • While ORLA continues to advocate on behalf of restaurant and lodging owners among policymakers and officials at the state and local level, we encourage you to continue to share your story wherever you feel comfortable. The James Beard Foundation is collecting testimony from chefs and restaurant operators nationwide: https://www.surveymonkey.com/r/89C7L9B. The Foundation aims to provide valuable information to legislators drafting emergency and longer-term legislation that would help mitigate the economic impact of the coronavirus (COVID-19) response. 
QUICK LINKS

- ORLA CEO Updates
- COVID-19 Resources & Information
- FAQs for the Hospitality Industry
- Relief Efforts for Employers/Employees
- ORLA Relief Efforts for Hospitality
​- Reducing Food Waste Resources

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WEBINARS: Calendar | Recordings

COVID-19 Employment Update: Employer Rights and Responsibilities - Register to access recording
LODGING / HOTEL GUIDANCE

How can hotels best protect their guests during this time?
Can hotels still offer continental breakfast? What if guests take it back to their room? 
  • All food at hotels must be “to go” orders, which means they can be enjoyed in the privacy of hotel rooms but not in continental breakfast areas or other gathering places. 

How does “Stay Home, Save Lives” impact Oregon lodging properties? 
  • Lodging operations remain open with the exception of public and private campgrounds. Hotels, motels, bed and breakfasts, and RV Parks providing shelter for emergency responders, health care specialists, and other workers not banned by today’s Executive Order may remain open in service to these guests. Social distancing protocols must be enacted for all lodging establishments who are choosing to stay open. Failure to comply with the Governor’s Executive Order could result in immediate closure by government officials. Pools and spas are not allowed to be open at this time. Pools, spas, and fitness centers are not allowed to be open at this time.

Are hotels required to provide full refunds to guests who need to cancel their travel plans? 
  • At this time, hotels are not required to provide full refunds for cancellations. Hotels may continue to adhere to their existing cancellation policies. 

I’ve heard Multnomah County and Clackamas County have issued hotel vouchers to help slow the spread of coronavirus. What does this mean for hotels? 
  • Yes, on March 17, Chair Deborah Kafoury issued additional emergency measures that gave direction on vouchers for hotels and motels in Multnomah County. These vouchers will be subsidized by the County or a County contractor. If these vouchers are presented at your business, you and your staff are required to accept them. Clackamas County has issued a similar directive. 

Are there efforts to commandeer private property at this point in Oregon? 
  • Multnomah County did declare in its announcement that they reserved the right to “act on appropriate requests for compensation, commandeer or utilize any private property if deemed necessary to cope with the emergency.” Clackamas County has issued a similar directive. We will keep you alerted to any other declarations such as these. ​
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I may want to serve as a lodging property for individuals with vouchers or lease my property to the government to aid with the COVID-19 crisis. Where can I learn more?
  • As this crisis progresses, Oregon public health officials may have lodging needs for various members of the community. Please contact npeterson@oregonrla.org if you are interested in such opportunities.  
  • If you are interested in leasing your property to the federal government to help serve Oregonians during the COVID-19 crisis, please fill out the following online form: https://forms.gle/PfQfqkHMPbF5KMGi6 

I saw that President Trump directed the Department of Housing and Urban Development (HUD) to suspend residential evictions and foreclosures through April. Does this apply to commercial properties such as hotels? 
  • No – HUD has confirmed that this does not apply to hotels. 

Which local governments have required hotels and lodging facilities to close due to COVID-19?  
  • Clatsop County has required closure of all hotels, campgrounds, short-term rentals and homestay lodging with limited exceptions. Read the public announcement here. 
  • Curry County's order would not apply to cities that have passed their own resolutions. The City of Gold Beach passed an order on March 24 that closed transient lodging facilities within the city limits. The City of Brookings passed a similar order on March 26. According to Smith, the City of Port Orford was meeting on March 27 to consider a similar order.  
  • Tillamook County has required closure of all transient lodging facilities including but not limited to, motels, hotel, short-term vacation rentals, bed and breakfasts, RV parks, and campgrounds with limited exceptions. Read the Board of Commissioners Statement. 
  • Wallowa County is requesting voluntary closure of all motels, B&Bs and other overnight lodging and discouraging visitors from outside the county. 
  • The City of Astoria has required closure of all hotels, short-term rentals and homestay lodging within the city limits with limited exceptions. See the Mayor’s message here. 
  • The City of Bandon is restricting rental of all lodging facilities with limited exceptions. 
  • The City of Brookings is restricting rental of all lodging facilities with limited exceptions. 
  • The City of Cannon Beach has implemented an Evacuating Visitors Resolution. 
  • The City of Coos Bay is restricting rental of all lodging facilities with limited exceptions.  
  • The City of Gold Beach is requiring the closure of all lodging facilities within the city limits.
  • The City of Hood River is requiring the closure of all transient lodging facilities and campgrounds. 
  • The City of Manzanita has required that all hotels within the city limits close with limited exceptions. 
  • The City of Warrenton has required that all hotels within the city limits close with limited exceptions. 
 
Where can I share information on how the coronavirus is impacting my business and what can I do to advocate for the lodging industry as we look toward recovery? 
  • At this time, we encourage you to reach out to your state representatives and share with them the challenges you are facing. To act on a local/state level, please click here; for our federal efforts, click here.