Minimum wage, tips as wages and training wage hearing
A big thanks to three WRA members who testified this week during a House Labor Committee hearing on four minimum wage-related bills. These members clearly articulated how the state’s climbing minimum wage has impacted their businesses. We applaud Karissa Bresheare, owner of the Gourmet Latte coffee stands throughout Western Washington; Dan Sutton of Cottage Inn in Wenatchee; and Travis Rosenthal, owner of Tango in Seattle for traveling to Olympia and making a compelling case before the Committee. The WRA also is appreciative of Rep. Cary Condotta, (R-12th) sponsor of the bills, and of Rep. Mike Sells (D-Everett), the chair of the House Labor Committee, who agreed to hold this hearing. Although these bills will not make it through the legislative process, we are pleased that this topic is being discussed for the first time in many years. Moving forward, the WRA is committed to ensuring this issue remains visible.

Statewide mandatory paid sick leave bills die in committee
SB 6229 and HB 2508, companion bills in the Senate and House that would have mandated every employer in the state (with more than four full time employees) provide paid sick/safe leave days for employees, did not move out of their committee of origin by today’s policy bill cutoff and will no longer be considered this session. The WRA opposed both bills during their committee hearings and had a restaurant operator testify when the Senate bill was heard last week. Although both bills are technically dead for this year, the language contained within them could potentially be amended into a another bill that survived today’s cutoff.  Therefore, your GA team will be watching all related bill titles moving forward to make sure this does not happen.

Plastic bag ban bills and to-go packaging bills do not survive policy cutoff
The myriad of bills in the Senate and House dealing with plastic bags and to-go packaging did not move out of committee by today’s policy cutoff and will no longer be considered this session. The concepts within these bills come both from national and local (Seattle) efforts to reduce what goes into our waste stream. Although we will not be debating the merits of these proposals for the remainder of the session, these conversations will continue in our communities, and the WRA will remain a productive contributor in these conversations.

Several alcohol bills will survive cut-off, others will not
Committees in both the Senate and House considered the following alcohol bills dealing with licensing that will continue through the legislative process:
SB 6076 – Creating a Senior Center License
SB 6060 – Allowing Spas to Serve Beer & Wine
SB 5650 – Allowing Craft Distilleries to sell their own spirits at farmers markets
SB 6196 – Allowing microbreweries to identify themselves on private labels
HB 2179 – Concerning objections to liquor licenses
HB 2179, which was introduced by Rep. Jeff Morris after a liquor license was denied to a applicant based on their ethnicity, would change how local governments provide input into the licensing process. The WRA will work closely moving forward to ensure changes will not impact the length of time licensure takes, and make certain input from local government is based on public safety rather than personal biases.

The following bills regarding sampling/tasting of alcohol were considered and will move forward:
SB 6475 – Changing the criteria for the beer and wine tasting endorsement for grocery stores
SB 6477 – Concerning spirit sampling in former contract liquor stores
The following bills regarding the collection of taxes will continue:
HB 2758/ SB 6571 – Strengthening the Department of Revenue’s ability to collect spirit taxes.

The following bills did not move forward, but were considered:
HB 2425 – Concerning the sampling of spirits
HB 2426 – Prohibiting the issuance of spirits retail licenses to certain membership organizations
HB 2626 – Regulating sales and samplings by manufacturers of liquor
SB 5258 – Concerning methods of payment for purposes of the alcohol beverage control statutes
HB 2249/SB 6366 – Creating a theater license
Two additional bills relating to the structure of the board have been introduced and not heard in committee  – however, they are “necessary to implement the budget” and are not subject to cut off dates.
HB 2723 – Creating the office of alcohol beverage control
SB 6554 – Consolidating the liquor control board into the gambling commission

Governor proposes to eliminate the Liquor Control Board
Last week, HB 2723 was introduced by Rep. Sam Hunt, (D-22) by request of the governor, and would eliminate the Liquor Control Board.
The 223-page bill proposes to replace the Liquor Control Board with the “Office of Beverage Control”, and rather than a three-person professional board, would be directed by and executive director appointed by the governor, and confirmed by the Senate. Initial review of the bill indicates this proposal simply transfers all powers of the board to the office of beverage control. The WRA Government Affairs Committee will review the proposal and take a position next week.

Restaurant industry registers support for tax extenders
This week, the National Restaurant Association’s David Koenig, vice president of tax and profitability, called for the extension of several tax provisions, in the Senate Finance Committee hearing, “Extenders and Tax Reform: Seeking Long-Term Solutions.” Read on.

Don’t miss this week’s DineNW podcast
This week will talk with the CEO of the Tacoma Pierce County Chamber of Commerce, Tom Pierson, as well Joe Murphy of Airfactz, a company providing background checks for restaurants. The show continues with visits from Twokoi, a Tacoma sushi institution, and the iconic Harmon Brewing Company. Listen now.
48 million to rely on delivery from restaurants for Super Bowl
The restaurant industry estimates that 48 million Americans will order takeout or delivery food from a restaurant while watching the professional football championship game on Super Bowl Sunday, February 5. In addition, 12 million are expected to visit a restaurant or bar to watch the big game. New National Restaurant Association research also shows that salsa/dips/spreads, chicken wings and pizza are considered must-have foods on game day. Read on.

Unfortunately, a report from the Associated Press on Tuesday evening did not accurately reflect the position the WRA articulated during the hearing. The following provides the necessary context:

• The WRA does not support policy changes that would result in current employees wages being reduced. In fact, none of the bills before the committee would have resulted in a person’s wages being reduced. In the report to the Committee on HB 2497, which relates to tipped employees, Committee staff clearly stated that an amendment was pending on the bill to make it prospective only, and that it would not apply to current employees.
• The WRA pointed out to the Committee that, on average, there are three fewer jobs per location in Washington restaurants than the national average, a figure which accounts for roughly 40,000 jobs statewide. The panel of restaurant owners reiterated that 44 other states allow for variances for tipped employees, and that Washington has the highest minimum wage in the nation.

Unfortunately, the AP story created the impression that Anton told the Committee, “…Washington restaurants would likely hire 40,000 additional workers if waiters’ pay was cut sufficiently,” indicating that the WRA might support such a reduction. Not only did Anton not say this, but he repeated twice during testimony that the WRA would support no reduction in current employees’ pay.

The Washington Restaurant Association is eager to work with lawmakers and stakeholders on this important issue, and strongly believes that a workable solution for Washington employees and employers can be found.

“Tax reform presents an opportunity to provide taxpayers with certainty, simplicity, and fairness, while encouraging economic growth and job creation,” said Koenig. “Done properly, a comprehensive and nuanced review of the tax system would eliminate those tax policies that detract from these objectives, while promoting those that advance them. Specifically, the U.S. economy would benefit from reform efforts that make permanent the 15-year depreciation schedule for leasehold improvements, restaurant improvements and new construction, and retail improvements, which would advance these goals. We also urge continued support for the Work Opportunity Tax Credit, the deduction for donations of food inventory, and an increase in the deduction for business meals. These provisions provide significant benefits to the economy and should be continued as permanent aspects of the tax code. Moreover, we urge immediate and seamless extension of expired tax provisions, which is essential to continuing the tax relief and access to capital that is critical to our nation’s economic and financial recovery.”

Read the Association’s full statement for the record here.

(Source: National Restaurant Association)

“Sporting events and great food go hand in hand, so it is no surprise that millions of Americans will incorporate restaurants into their plans for watching the professional football championship game this year,” said Hudson Riehle, senior vice president of the Research and Knowledge Group for the National Restaurant Association. “When it comes to favorite game-watching foods, dips, chicken wings and pizza top the list. But, about 2 out of 5 individuals who plan to watch the big game say that healthful food items are a must on their table that day.”

The Association’s research shows that 31 percent of individuals who plan to watch the big game at their own home or someone else’s home expect to order restaurant takeout or delivery. Younger adults (18 to 34 years old) and individuals with children are more likely to order restaurant food for game day gatherings, at 52 percent and 40 percent, respectively.

In addition, individuals on the West Coast are more likely to watch the big game at a restaurant or bar, at 9 percent compared with 4 percent on the East Coast, likely because of the earlier kick-off time in the Pacific time zone.

When it comes to food for the big game on February 5, 69 percent of survey respondents said that salsa, dips or spreads are must-haves. Sixty-three percent said chicken wings are must-haves, 61 percent said pizza, 50 percent said desserts, and 49 percent said subs/sandwiches. In addition, 42 percent said that healthful food items are a must on their game day table.

The National Restaurant Association surveyed 1,014 American adults on January 19-22 about their dining plans for the professional football championship game on February 5, 2012. Projections are based on economic analysis and research conducted by the National Restaurant Association.

(Source: National Restaurant Association)

• HB 2496 which would change the current index that the minimum wage is adjusted against to the Consumer Price Index (CPI).
• HB 2497 which would allow for a modest level of tips to be credited against wages to the level of the federal minimum wage;
• HB 2498 which would freeze the minimum wage when the unemployment rate exceeds 7.5%; and
• HB 1258 which would allow for a training wage for a specified period of time.

The WRA is grateful to Rep. Mike Sells (D-Everett), the Chair of the House Labor Committee who has agreed to hold a hearing on this collection of bills. Although the WRA does not believe these bills will move through the process, we are pleased that, for the first time in many years, the Legislature is opening up this topic.

The WRA is assembling a panel of restaurateurs from across the state to speak to the Committee. WRA members can also send us comments which we will give to the Committee at the hearing.

State-wide mandated paid sick leave bills heard this week

SB 6229 and HB 2508, identical (companion) bills in the Senate and House, were heard in their respective Labor Committees on Tuesday and Wednesday of this week. The companion bills are almost identical to what was adopted in city of Seattle last September. Both hearings were well-attended with small business owners and representatives of different industries testifying in opposition to the bills, including Boeing, National Federation of Independent Business, NW Grocery Association, small retailers and service-oriented businesses throughout Washington state.

Your GA team was fortunate to have a WRA member, Karissa Bresheare, in town to join us in offering testimony at Tuesday’s Senate hearing. Karissa did a wonderful job explaining how our industry has a well-functioning system in place of shift trading that allows our employees to stay home will sick without loss of pay. Karissa also made it clear to legislators that restaurant owners and operators do not allow sick employees to work in our establishments, pointing out that not only does shift trading take care of this problem but also that allowing a sick employee to work in a restaurant is against both state and county health department law. We want to extend a huge “Thank You!” to Karissa for her willingness to represent our industry at Tuesday’s hearing. We will stay actively engaged with both bills as this debate continues through the session. A fiscal analysis has been requested for both bills and therefore, if moved out of their respective Labor Committees, these bills should still have to be discussed in each chamber’s fiscal committee before moving forward for serious consideration by the full Legislature.

Liquor Control Board adopts training requirements for retailers

Initiative 1183 requires spirits retail licensees to have adequately trained employees who engage in the sale of spirits, through a “responsible vendor program” established, by rule, by the board,  and includes training centered around the “prohibitions against sale of spirits to individuals who are underage or visibly intoxicated.”

On Wednesday, the Liquor Control Board adopted requirements for the Responsible Vendor Program, and agreed the MAST program will meet the training requirements passed by voters to ensure safe alcohol sales. The WRA agrees this training, which our industry has relied on to maintain safe alcohol sales, is appropriate for the new role retailers will take on. Additionally, we look forward to the new opportunity this provides for the Association’s Education Foundation, as providers of the MAST program.

Thanks for a great Hill Climb & Taste Our Best 2012

WRA members gathered Monday in Olympia, where they grouped up to discuss industry-specific challenges in meetings with more than 100 state legislators. Members were urged to thank legislators for their leadership during last session on issues such as unemployment insurance reform, employee meal tax exemption and for allowing joint tourism promotions between wineries and restaurants. The show of gratitude served as a platform for restaurateurs to appeal for continued improvement of business conditions for Washington state’s largest private industry–one that garners some $649 million in annual state tax revenue.

Members asked lawmakers to reevaluate the state’s automatic escalator on minimum wage and shared detailed accounts of how labor costs have created an ongoing struggle for maintaining staffing levels, profitability and employee benefits in their businesses. Similarly, restaurateurs expressed concern over Senate Bill 6229/ House Bill 2508–a current piece of legislation that aims to mandate paid sick leave in Washington businesses. Members talked about how employees are able to achieve time off by shift-swapping, and encouraged legislators to get a better handle on the potentially debilitating effects this bill could have on employers if passed.

The day concluded with the WRA’s annual Taste Our Best legislative reception, one of the most highly anticipated events every session among legislators and their staffs. The evening showcased a delectable sampling of some of Washington’s finest restaurant beverages and cuisines. Thank you to all WRA members and sponsors who made Hill Climb & Taste Our Best 2012 such a success.

Listen to this week’s DineNW radio show
This week on DineNW, the WRA had Larry Treleven, Vice President at Sprague Pest Solutions, and Melanie Corey-Ferini, owner of Dynamik Space. It was a nice way to end the month of January, which brought other esteemed guests like King County Executive Dow Constantine, Federal Way Mayor Skip Priest, and Pierce County Councilman Dick Muri. DineNW has also promoted local restaurants Café Indochine, Teatro ZinnZanni, Toulouse Petit, Joeseppi’s, 13 Coins, Palisade, Duke’s and many others. To book your restaurant and tell the show’s 10,000 listeners to eat at your place, please contact Shawn Sullivan at 206.696.5794. The show airs every Wednesday at noon on KLAY 1180 AM, streaming live at www.klay1180.com, or you can listen to previous shows by visiting wra.podbean.com. To subscribe to the podcast of the show via iTunes, click here.

Hill Climb 2012 a successful platform for restaurateurs
Restaurateurs from across gathered on Monday morning for a briefing on the day’s Hill Climb agenda and a closer look at the WRA’s legislative agenda this session. Members were urged to thank legislators for their leadership during last session on issues such as unemployment insurance reform, employee meal tax elimination and for allowing joint tourism promotions between wineries and restaurants. The show of gratitude served as a platform for restaurateurs to appeal for continued improvement of business conditions for Washington state’s largest private industry–one that garners some $649 million in annual state tax revenue. By the end of the day, dozens of Washington restaurant industry professionals had met with state legislators to discuss the issues and challenges the industry faces. The day concluded with the WRA’s annual Taste Our Best legislative reception, one of the most highly anticipated events every session among legislators and their staffs.Read the full article here.

Restaurant industry responds to State of the Union
In reaction to President Barack Obama’s 2012 State of the Union address, the National Restaurant Association called for the advancement of several pro-growth policies to allow the restaurant industry—the nation’s second-largest private-sector employer and creator of 230,000 net jobs in 2011—to continue its position as a leading job producer and engine of economic success. “As the national economy continues to slowly climb from the deepest downturn since the Great Depression, the U.S. restaurant industry also is on the road to recovery,”  aid Dawn Sweeney, President and CEO of the National Restaurant Association. “The federal government should provide long-term certainty, such as depreciation schedules that give restaurant industry and retailers the certainty they need to help spur investment and construction.” Read the full article here.

“After adding an impressive 230,000 jobs in 2011, the strongest gain since 2006, America’s restaurant industry is expected to outpace the overall economy in job growth in 2012,” said Dawn Sweeney, President and CEO of the National Restaurant Association. “Restaurants provide jobs in every state and every Congressional district. Throughout the economic downturn, we have been one of the few industries that has continued growing, providing quality jobs that lead to fulfilling careers in our industry and others. We are 13 million jobs strong, and with the right policies, America’s restaurants will be able to create even more jobs and provide greater opportunities to more Americans.

“We applaud the President for recognizing the need to address comprehensive immigration reform now. The Association supports sensible, comprehensive reform that combines worksite enforcement and strong borders with workforce and immigration policies and a visa system that meets U.S. worksite needs. This is an issue that requires bipartisan solution, and although difficult, must continue to be a high priority for federal officials. The patchwork quilt of state regulations is increasingly difficult for business owners and operators to navigate. Congress must ensure that any mandatory E-Verify program is efficient and easy to use by employers of every size. Also, businesses must be able to use the H-2B visa program without new red tape.

“And we appreciate the President’s commitment to energy efficiency, which is critical for commercial and retail establishments as well as manufacturing – and can return equal or more savings.

“As the national economy continues to slowly climb from the deepest downturn since the Great Depression, the U.S. restaurant industry also is on the road to recovery. The federal government should provide long-term certainty, such as depreciation schedules that give restaurant industry and retailers the certainty they need to help spur investment and construction.”

The restaurant industry is the nation’s second-largest private-sector employer, providing jobs to nearly 13 million people, or one in every 10 workers.

(Source: National Restaurant Association)

Restaurateurs gathered on Monday morning for a briefing on the day’s agenda and a closer look at the WRA’s legislative agenda this session. Members were urged to thank legislators for their leadership during last session on issues such as unemployment insurance reform, employee meal tax elimination and for allowing joint tourism promotions between wineries and restaurants. The show of gratitude served as a platform for restaurateurs to appeal for continued improvement of business conditions for Washington state’s largest private industry–one that garners some $649 million in annual state tax revenue.

Members asked lawmakers to reevaluate the state’s automatic escalator on minimum wage and shared detailed accounts of how labor costs have created an ongoing struggle for maintaining staffing levels, profitability and employee benefits in their businesses. Similarly, restaurateurs expressed concern over Senate Bill 6229–a current piece of legislation that aims to mandate paid sick leave in Washington businesses. Members talked about how employees are able to achieve time off by shift-swapping, and encouraged legislators to get a better handle on the potentially debilitating effects this bill could have on employers if passed.

The day concluded with the WRA’s annual Taste Our Best legislative reception, one of the most highly anticipated events every session among legislators and their staffs. The evening showcased a delectable sampling of some of Washington’s finest restaurant beverages and cuisines. Participants included Adesso, Anthony’s Hearthfire Grill, Anthony’s Homeport, Azteca Mexican Restaurants, Budd Bay Cafe, Indian Summer Golf & Country Club, Native New Yorker, Olive Garden (Darden Restaurants), Outback Steakhouse, River’s Edge, Starbuck’s, Metropolitan Grill, Washington Wine Institute, Washington Beer and Xinh’s Clam and Oyster House.

Thank you to all sponsor, participants, WRA members and employees who made Hill Climb & Taste Our Best 2012 such a success.

To view a photo gallery of the day’s events, click here.

Workers’ comp and Retro debated in Committee        
Retro – HB 2207, which would enhance the claims management authority for scheduling independent medical examinations for Retrospective Rating programs, was heard in the House Labor committee on Tuesday.  The bill, which is championed by a number of Retro groups, was criticized by organized labor and trial attorneys – prompting some lawmakers to ask if the bill would be acceptable if it tightened restrictions on Retro groups. The WRA has remained neutral on this bill because we feared it could be a legislative tool to undermine Retrospective Rating programs. The WRA team will continue to monitor this bill closely.
Workers’ compensation – two bills ( HB 2431, HB 2359), which would begin to undermine the significant reforms passed in 2011 for new statewide medical provider networks and add new reporting burdens, were heard in the House Labor committee this week. Both bills are vigorously opposed by the broad business community, including the WRA.
Interestingly, in 2011, major reforms were passed for both unemployment insurance and workers’ compensation. Hence, coming into the 2012 session, the leaders from both sides of the aisle in these committees had an agreement that UI and workers’ compensation bills would not be debated this year. To date, there are no major UI-related bills introduced, but that agreement seems to be in jeapardy in the House. In fairness, it may be a bit early to tell, but we should have a better sense following the February 3 cut-off.

I-1183 reviewed in by House Ways and Means Committee        
The House Ways and Means Committee took an entire hearing to review progress in implementing I-1183, and to listen to stakeholders’ views on tax, fees and other fiscal issues related to the initiative. The WRA was invited to appear before the committee, and reiterated the following three points:
·    Acknowledged the work the Liquor Control Board has done in implementing I-1183 in the face of massive internal change at the agency.
·    Pointed out the pitfalls of some of the ideas being floated to “reform’ the liquor tax code; in particular, how some of the ideas could transfer taxes to the wholesale marked from the retail market.
·    Encouraged the Legislature to let the initiative be implemented, and then revisit potential changes based on actual experience in the future.
At the hearing, the Department of Revenue identified a legitimate issue that they need legislative guidance on. Under the current system, the state liquor stores have collected all state liquor taxes and remitted tax revenues to the state. Under a privatized system, however, distributors and retailers are accountable for collecting the state taxes and remitting them to the state. The Department of Revenue is now accountable for those collections, not the Liquor Control Board.  The WRA will be working with DOR to ensure a seamless process for on-premise retaliers. The bottom line is that on-premise retailers must know that their supplier has, indeed, collected all state taxes. If not, the on-premise retailer can be held accountable for those taxes.