2015 edition of Washington State Visitors’ Guide driving travelers throughout Washington State.

Strong lodging industry is outperforming growth in national economy.

Creation of stronger, unified hospitality association moves forward with signing of memorandum of understanding.

Prom season challenges properties to review policies to protect against damage and possible claims of discrimination.

Seattle’s new wage theft law requires employers to post written notices in languages commonly spoken at their workplace.

Stan Bowman joins WLA as the association’s new president and CEO.

(April 1, 2015) Stan Bowman, a skilled executive and policy advocate with a strong background in legislative and regulatory affairs in both Washingtons, is WLA’s new president and chief executive officer. He replaces Jan Simon who retired on March 31 after leading WLA for 15 years.

Stan has more than 20 years’ experience in association management and public affairs and served as executive director and lead lobbyist for the American Institute of Architects Washington Council from 2004 to 2014. He also brings extensive experience advocating for the hospitality industry. He was the director of government affairs for the Washington Restaurant Association (WRA) from 2001 to 2004, leading a team responsible for lobbying, grassroots advocacy, public relations and coalition development. During his tenure, he oversaw the passage of many new laws benefitting the hospitality industry including landmark unemployment insurance reform, unclaimed property reform that saves the industry tens of millions of dollars each year and the adoption of the national model FDA Food Code for use in our state.

His career started in the other Washington for members of Congress and associations. In 2014, he founded Bowman Association & Advocacy Management, which offers operational management and government relation services to nonprofits. Stan holds Bachelors of Arts degrees in political science and communications from Northwestern College in Iowa.

As WLA’s new president & CEO, Stan’s responsibilities include advancing the plan to partner with WRA in creating a combined hospitality association. The WLA Board of Directors has been in discussions with WRA on combining the two associations into one organization in order to deliver even greater results to members and the industry.

“It is an important time for WLA, and we are extremely fortunate to have Stan lead our staff. He has many years of high level of association management experience, a deep knowledge of Washington State politics and an understanding of the hospitality industry,” says Matt Van Der Peet, WLA’s chair elect and general manager at Sheraton Seattle Hotel.

If you would like to contact Stan, please click here to email or call 206-306-1001.

Read about Jan Simon’s retirement.

Learn more about the establishment of a new hospitality association.

City of Seattle releases final administrative rules, an FAQ and workplace poster as first wage increases go into effect on April 1 under Minimum Wage Ordinance.

(March 31, 2015) The new Seattle Office of Labor Standards (OLS) has released the final Administrative Rules for the City of Seattle’s complicated new Minimum Wage Ordinance just prior to the first wages increases going into effect on April 1. OLS has also released an expanded Frequently Asked Questions (FAQ) and a workplace poster, which complies with the notice and posting requirements of the ordinance.

Businesses in Seattle with more than 500 employees and franchisees, regardless of their size, must begin paying employees a minimum wage of $11 an hour on April 1. They will have three years to reach the $15 minimum wage if they do not provide health care coverage and seven years if they do. Businesses with 500 or fewer employees that pay a flat hourly rate and do not offer health insurance benefits must also start paying a minimum of $11 an hour on April 1 and reach $15 by January 1, 2019. There are separate phase-in schedules for small businesses that pay health benefits and/or report employee tips to the IRS.

The Seattle Hotel Association and the Seattle Restaurant Alliance with support from WLA and the Washington Restaurant Association were successful in their efforts during the rulemaking process to have service charges recognized as commissions. As defined in the rules, service charges paid to the employee may be considered commission and therefore counted as wages. However, the rules also stipulate that employers in the food/hospitality industry must disclose the amount of the service charge payable to the employee on the menu and on an itemized receipt.

The Final Administrative Rules released on March 27 provide clarification on the following topic areas:

SHRR 90-060 Minors Employers can pay 85% of the hourly rate required by the ordinance for employees under 16 years of age.

SHRR 90-070 Service Charges Service charges (e.g. automatic charges at restaurants or banquet facilities) are not tips, but can be considered commissions to meet Seattle minimum wage requirements above the state’s minimum wage. Employers in the food/hospitality industry must disclose the amount of the service charge payable to the employee on the menu and on an itemized receipt.

SHRR 90-080 Work Study Individuals performing under a work study agreement are not covered by the ordinance. The rules define work study as a job placement program that provides students in secondary and/or post-secondary educational institutions with employment opportunities for financial aid and/or vocational training.

SHRR 90-100 Joint employers The payment rate for employees that are jointly employed by one or more employers (e.g. temporary workers) will be determined by the employer with the most employees. For example, a temporary worker who is provided by a small staffing agency to a large employer must be paid at the Large Employer (Schedule 1) rate, even though the staffing agency is “small.”

Employers can also get clarification on the ordinance in an expanded FAQ and fact sheets available on OLS’s website. Also available is a workplace poster, which includes information employers must provide to employees. Although employers are required to provide the information in English, Spanish and any other language commonly spoken by employees at the particular workplace, OLS has not yet provided translations of the poster. It has announced that posters will be available in a variety of languages in the near future.

Final Administrative Rules

Frequently Asked Questions

Fact Sheet for Large Employers (501 or more employees)

Fact Sheet for Small Employers (500 or fewer employees)

Workplace Poster

April 14 Presentation and Panel Discussion on Minimum Wage Requirements

There will be a presentation for employers on the Minimum Wage and Administrative Wage Theft Ordinances by Karina Bull, interim director for the Seattle Office of Labor Standards Tuesday, April 14, from 7:30 to 9:30 a.m. in the Bertha Landes Room at Seattle City Hall. The event will also inlcude a panel discussion with Evelyn Mendoza, human resources director at Uwajimaya; Molly Moon Neitzel, owner and CEO of Molly Moon’s Homemade Ice Cream; and Nicole Vallestero Keenan, policy director of Puget Sound Sage. Sponsors include WorkSource Seattle-King County Business Services Team, the Seattle Office of Economic Development, and the Seattle Office for Civil Rights. This event is free, but registration is required. Click here to register.

Lawsuit Against Discriminatory Treatment of Franchisee in Ordinance

On the legal front, the International Franchise Association (IFA) and five franchisees are suing the City of Seattle in federal court over the ordinance’s illegal discrimination against franchisees by improperly treating them as large, national companies regardless of their size. Although businesses with fewer than 500 employees have up to seven years to phase in the $15 hour wage, franchisees must follow the three-year, large business phase-in schedule even though they are independent small businesses. The IFA request for a preliminary injunction was recently denied by U.S. District Judge Richard A. Jones, and IFA and the five franchisees are now appealing the judge’s decision to the United States Court of Appeals for the Ninth Circuit. WLA has been a strong supporter of this legal challenge and will continue to keep its members apprised of its progress. Learn more here.

Legislative Update: Bills under consideration in Olympia that could impact your business.

With Washington lawmakers past the midway point in the 2015 Legislative Session, WLA continues to work in Olympia to advance the interests of the state’s lodging industry. Our lobbying team, with support from WLA’s grassroots action network, is actively tracking bills that matter to our industry and educating legislators on the impact specific bills will have on lodging owners, operators and employees. Our members have also been active, contacting their legislators in response to our action alerts.

Close to 3,000 policy bills were introduced this year. Only those that passed out of their chamber of origin by the midterm cutoff on March 11, or have been deemed “necessary to implement the budget” (NTIB), remain under consideration by the Legislature. All together 327 bills passed off the House floor to move forward in the committee process in the Senate. 352 bills that were successful in the Senate moved to the House committee process. The session is scheduled to end April 26, although at least one special session is possible. Here is a review of key bills:

Minimum Wage Increase
The willingness of the Democrat-controlled house to pass union-backed bills is a hallmark of this legislative session. HB 1355, which would increase the minimum wage to $12 an hour over a four-year period, passed the House on a partisan 51-46 vote with all Democrats voting yes. The bill increases the minimum wage to $10.00 an hour on January 1, 2016, then to $10.50 in 2017 and $11.00 in 2018, reaching $12.00 on January 1, 2019. This represents a 27% increase from Washington’s current minimum wage of $9.47 and is 65% higher than the federal minimum wage of $7.25. The bill sets the wage for workers ages 16 to 18 at 85% of the adult minimum wage. If the bill goes into law, in 2020 the Department of Labor & Industries will resume annual minimum wage increases in accordance with the Consumer Price Index.

Speaker Frank Chopp (D-Seattle) and Governor Jay Inslee (D) lauded the bill’s passage in the House as one of the most important milestones of the session. Washington State already has the highest state minimum wage in the country, and WLA and other business groups expressed concern that the increase will cost jobs and hurt the economy, with small business, agriculture and workers entering the labor market expected to be particularly hard hit by an increase. The lack of a training wage is also expected to increase the already high youth unemployment rate. The bill was determined necessary to implement the budget (NTIB) and is continuing through the legislative process.

Paid Sick and Safe Leave
HB 1356, establishing minimum standards for paid sick and safe leave, also passed the House with the support of all 51 Democrats and uniform opposition from Republicans. It requires employers with more than four full-time equivalent employees to provide paid leave to employees for:

1. Specified medical reasons relating to an employee’s or a family member’s health.

2. Reasons permitted under existing law requiring unpaid leave for purposes related to domestic violence, sexual assault, and stalking.

3. Closure of the employee’s place of business or child’s school or place of care due to specified public health emergencies.

The paid sick and safe leave requirements do not apply to employees covered by a bona fide collective bargaining agreement in which the requirements are expressly waived in clear and unambiguous terms. While proponents of the bill argue that it promotes public health by encouraging sick workers to stay home, a recent Freedom Foundation analysis of numerous studies found that mandatory paid sick leave does not reduce the frequency of employees coming to work sick. However well intentioned, this bill will increase the cost of doing business and will ultimately hurt businesses, employees and the economy.

The Senate, with its narrow Republican majority, is less likely to pass paid sick and safe leave legislation. The bill is under consideration in its Commerce & Labor Committee.

Tourism Marketing Act
One of WLA’s legislative priorities for 2015 is the establishment of a sustainable, industry-based funding model for statewide tourism promotion that is supported by all sectors which benefit from tourism. HB 1938 and SB 5916 accomplish this by creating the Washington Tourism Marketing Authority as a public entity to manage financial resources for state tourism marketing and provide state tourism marketing services. It is funded through minimal assessments on businesses within tourism industry sectors.

WLA joins the Washington Tourism Alliance in supporting the legislation, and WLA members have contacted their lawmakers asking them to support HB 1938. The House Finance Committee held a hearing on the bill on March 20, and the date of a hearing before the Senate Ways and Means Committee has not yet been set. Look for future updates and calls to action on this important legislation.

Equal Pay for Equal Work
A bill to update Washington’s existing equal pay law picked up a few Republican votes, passed the House 55-43 and has moved to the Senate. The bill, HB 1646, establishes the Equal Pay Opportunity Act and prohibits the provision of less favorable employment opportunities based on gender. It also prohibits retaliation for certain workplace wage discussions. Although no one testified against the bill in committee, representatives of the Association of Washington Businesses and Washington Policy Center are concerned that the bill would be burdensome for employers and lead to more litigation.

Liquor Markup
Under Washington’s current liquor distribution system, retailers are assessed a 17% fee for selling to bars and restaurants. HB 1343 and its Senate companion bill SB 5301 eliminate this fee which is particularly onerous for hotel bars and restaurants that typically maintain smaller liquor inventories and restock on short notice from retailers. Although the bills appear to have died at the cut off, both were declared NTIB and remain under consideration.

Human Trafficking
SB 5880, a bill to establish the Washington Human Trafficking Reporting Act, would have required the development and implementation of a mandatory training program to teach employees to identify and report human trafficking victims. WLA is very concerned about human trafficking and has helped develop partnerships and practices to prevent this crime through voluntary training. The bill as written, however, is problematic for the industry. It failed to pass the Senate Law and Justice Committee and is expected to be worked on and reconsidered next session.

Music Licensing
In response to business concerns about harassment and inappropriate behavior by representatives of music licensing agencies, HB 1763 requires these agencies to register to conduct business in Washington, prohibits coercive conduct and other inappropriate behavior and establishes penalties including making violation of this act a violation of the Consumer Protection Act. It passed the House 92-6 and is expected to move forward in the Senate.

Tax Exemption for Hostels
HB 1516 provides an exemption from the convention and trade center tax for hostels that primarily sell lodging services on an individual bed, shared room basis. The bill also prevents public facilities districts in King County from levying the state-shared hotel- motel tax on sales of lodging at hostels. It passed the House unanimously.

Unclaimed Property
HB 1551, which is intended to add clarity and efficiency to the administration of unclaimed property, unanimously passed the House. It replaces the current 100% penalty for willful failure to file an unclaimed property report with a revised penalty structure that imposes a 10 percent penalty for failure to file a report or pay or deliver property under a report. Although the companion bill, SB 5543, passed the Senate policy committee, HB 1551 did not move out of the Senate Ways and Means Committee.

WLA and our lobbyist, TK Bentler, are tracking these bills and educating legislators on the impact they will have on lodging owners, operators and employees. Please look for calls to action and contact your legislators when asked so that we can deliver wins for the industry.

For more information on WLA’s advocacy work, please contact Stan Bowman by email here or at 206-306-1001.

Higher minimum wage under Seattle’s new ordinance starts April 1.

The minimum wage in Seattle will begin increasing on April 1, 2015 under the complicated $15 minimum wage ordinance approved by the Seattle City Council in June 2014. Seattle hoteliers have been well represented in the process of establishing rules for the implementation of the ordinance and in the legal challenge to the ordinance’s unfair treatment of franchisees as large employers.

The Seattle Hotel Association and the Seattle Restaurant Alliance with support from WLA and the Washington Restaurant Association were successful in their efforts during the rulemaking process to have service charges recognized as commissions. As defined in the rules, service charges paid to the employee may be considered commission and therefore counted as wages. The final Administrative Rules and FAQ were released on the Office of Civil Rights’ website on March 27, 2015, less than one week before the first wage increase requirements take effect.

Complicated Phase-In Schedules
Businesses in Seattle with more than 500 employees and franchisees, regardless of their size, must begin paying employees a minimum wage of $11 an hour on April 1. They will have three years to reach the $15 minimum wage if they do not provide health care coverage and seven years if they do. Businesses with 500 or fewer employees that pay a flat hourly rate and do not offer health insurance benefits must also start paying a minimum of $11 an hour on April 1 and reach $15 by January 1, 2019. There are separate phase-in schedules for small businesses that pay health benefits and/or report employee tips to the IRS.

The Seattle Office of Labor Standards, which was established in November, will enforce Seattle’s minimum wage, paid sick and safe time, and administrative wage theft ordinances. It has released fact sheets for employers and is responsible for the administrative rules.

Seattle Minimum Wage Fact Sheet for Large Employers (501 or more employees)

Seattle Minimum Wage Fact Sheet for Small Employers (500 or fewer employees)

On the legal front, the International Franchise Association (IFA) and five franchisees are suing the City of Seattle in federal court over the ordinance’s illegal discrimination against franchisees by improperly treating them as large, national companies regardless of their size. Although businesses with fewer than 500 employees have up to seven years to phase in the $15 hour wage, franchisees must follow the three-year, large business phase-in schedule even though they are independent small businesses. The IFA request for a preliminary injunction was recently denied by U.S. District Judge Richard A. Jones, and IFA and the five franchisees are now appealing the judge’s decision to the United States Court of Appeals for the Ninth Circuit. WLA has been a strong supporter of this legal challenge and will continue to keep its members apprised of its progress.

Learn more here about the IFA lawsuit challenging the discriminatory treatment of franchisees in the Seattle minimium wage ordinance.

IFA will appeal to federal court to stop Seattle’s discrimination against franchises in new minimum wage ordinance.

(March 20, 2015) The International Franchise Association, the world’s largest organization representing franchise owners, announced today that it will appeal a recent decision in federal court that allows the city of Seattle to discriminate against small franchised businesses as part of the city’s 2014 minimum wage law. IFA sought a preliminary injunction, which was denied by U.S. District Judge Richard A. Jones court earlier this week.

IFA and five Seattle franchisees today gave notice that they will appeal Judge Jones’ decision to the United States Court of Appeals for the Ninth Circuit. The original lawsuit was filed in June 2014. It requested fair treatment for franchises under the law, which treats them as large, national companies, rather than the small, locally-owned businesses that they are.

“Franchisees deserve fairness under the law and we will continue to aggressively advocate on their behalf in federal circuit court,” IFA President & CEO Steve Caldeira said. “We are not seeking to prevent Seattle’s minimum wage increase from going into effect. Our appeal will be focused on the blatant discriminatory mistreatment of franchisees under Seattle’s new law and the City’s improper motivation to discriminate against interstate commerce.

“Franchisees compete for the same customers as non-franchised businesses in Seattle, and they face the same challenges other small businesses face and this regulation puts them at a severe economic disadvantage. Therefore, we believe they should be properly categorized as such. Put simply, a small local franchise owner with 10 employees is the same as the small non-franchise business owner,” Caldeira stated.

Starting April 1, large businesses in Seattle – defined as those with more than 500 employees – will be forced to raise the minimum wage they pay their employees to $15 an hour over three years. Smaller businesses will have seven years to phase in the wage increase. The new law classifies Seattle’s 600 franchisees – who own 1,700 franchise locations and employ 19,000 workers – as large businesses simply because they operate as part of a franchise network.

“In reality, these are small, locally-owned businesses that should be given the extra time to plan for the wage increase – just like all other small businesses in Seattle,” Caldeira said.

IFA has argued that this discrimination violates the Commerce Clause of the U.S. Constitution, because 96 percent of the franchises operating in Seattle are affiliated with an interstate commerce network.

MORE INFORMATION

Judge Denies IFA Request for a Preliminary Injunction (March 18, 2015)

Request for a Preliminary Injunction against Discriminatory Treatment of Franchises in Seattle’s $15 Wage Ordinance Moves Forward (October 14, 2014)

Union’s Hidden Agenda Drives Pressure on Franchises Says IFA President and CEO Steve Caldeira (Puget Sound Business Journal, September 5, 2014)

Ad Campaign Exposes SEIU’s Hidden Agenda Behind $15 Minimum Wage Law in Seattle (August 20,2014)

Injunction Seeks to Halt Seattle’s Discrimination Against Small Franchisees in New Wage Ordinance (August 17, 2014)

WLA’s Board Supports Lawsuit Challenging Franchise Language in Seattle Wage Ordinance (June 16, 2014)

Lawsuit Filed by IFA and Five Seattle Franchisees against the City of Seattle for Discriminatory Treatment of Franchisees Under New Wage Ordinance (June 11, 2014)

With the denial of its request for a preliminary injunction, IFA vows to keep fighting to halt Seattle’s discrimination against local franchise businesses.

(March 18, 2015) The International Franchise Association, the world’s largest organization representing franchise owners, vowed to keep fighting to block the City of Seattle from discriminating against small franchised businesses as part of the city’s 2014 minimum wage law, after the group’s request for a preliminary injunction was denied yesterday in federal court.

IFA and five Seattle franchisees sued Seattle in June 2014, seeking to block portions of the city’s new law to increase the city’s minimum wage to $15 an hour. The plaintiffs asked the court to enjoin the city from treating franchisees as large, national companies rather than the small, locally-owned businesses that they are.

“Yesterday’s decision is clearly a disappointment but it is not the end of this fight,” said IFA President & CEO Steve Caldeira, CFE. “The ordinance is clearly discriminatory and would harm hard-working small business owners who happen to be franchisees. Those who have set out to destroy the long-accepted, time-tested and proven franchise business model must be stopped. IFA will continue to fight against discrimination of small business owners in Seattle and elsewhere. It was never about Seattle raising the minimum wage to $15 wage, but rather the increase applied in a discriminatory way.”

Seattle’s new law, which takes effect April 1, requires large businesses defined as having more than 500 employees to raise the minimum wage they pay their employees to $15 an hour over three years starting in April 2015. Smaller businesses will have seven years to phase in the wage increase.

However, the Seattle ordinance unfairly requires Seattle’s 600 franchisees, who own 1,700 franchise locations and employ 19,000 workers, to meet the faster three-year deadline for large businesses simply because they operate as part of a franchise network. These small, locally-owned businesses would be treated as large, national companies under the law due to their affiliation with a franchise network. This affiliation, IFA contends, is violates the Commerce Clause of the U.S. Constitution, given 96 percent of the franchises operating in Seattle are affiliated with an interstate commerce network.

The IFA lawsuit argued that the Seattle ordinance defies years of legal precedent clearly defining a franchisee as an independent local business owner who operates separately from its franchisor, which provides brand and marketing materials. IFA also contended that this categorization violates the Equal Protection Clause of the U.S. Constitution, as well as Washington State’s Constitution.

Caldeira said IFA will continue to pursue legal avenues to win a permanent injunction against the portions of Seattle’s ordinance that apply to small business franchises.

A copy of the original motion for a preliminary injunction can be found here. The original lawsuit against the City of Seattle will continue to proceed, with an expected trial date in October.

Go to SeattleFranchiseFairness.com to learn more about the issue and the coalition of Seattle small business owners working together to oppose the franchisee provisions in the city’s minimum wage law.

MORE INFORMATION

Background on the Lawsuit Filed by IFA and Five Seattle Franchisees against the City of Seattle for Discriminatory Treatment of Franchisees Under New Wage Ordinance

Request for a Preliminary Injunction against Discriminatory Treatment of Franchises in Seattle’s $15 Wage Ordinance Moves Forward (October 14, 2014)

Union’s Hidden Agenda Drives Pressure on Franchises Says IFA President and CEO Steve Caldeira (Puget Sound Business Journal, September 5, 2014)

Ad Campaign Exposes SEIU’s Hidden Agenda Behind $15 Minimum Wage Law in Seattle (August 20,2014)

Injunction Seeks to Halt Seattle’s Discrimination Against Small Franchisees in New Wage Ordinance (August 17, 2014)

WLA’s Board Supports Lawsuit Challenging Franchise Language in Seattle Wage Ordinance (June 16, 2014)

WLA’s Board of Directors will host luncheon on June 23 in Spokane.

The Washington Lodging Association’s Board of Directors is hosting a luncheon for its membership on Tuesday, June 23 at DoubleTree by Hilton Spokane City Center.

At this complimentary event, members will have the opportunity to connect with WLA Directors and fellow members and hear updates on the Association and the industry, including a review of the 2015 legislative session and an overview of WLA plans to partner with the Washington Restaurant Association in creating a new hospitality association.

Our program also features a panel discussion of data breaches and what lodging properties can and should do to reduce risk and respond quickly and effectively in the event of a breach. Moderated by Julie Eisenhauer, CPA, of allied member Clark Nuber, the panel will help you understand the legal, insurance, IT and communications implications of data breaches and review what you can do to protect your company from the serious consequences of a breach.

WLA’s Board-Hosted Luncheon

Tuesday, June 23, 2015 from 11:30 a.m. to 1:30 p.m.

DoubleTree by Hilton Spokane City Center

322 North Spokane Falls Court in Spokane

Lodging Registration

Allied Member Registration

11:30 a.m. Registration & Networking

12:00 p.m. Lunch & Program

1:30 p.m. Program Concludes

Please call WLA at 877-906-1001 if you have any questions or would like to register by phone.

More about the Data Breach in the Hospitality Industry Panel

Moderated by Julie Eisenhauer, CPA, the panel discussion provides an opportunity to:

Learn about the legal ramifications of a data breach.

Get an overview of federal and state data security and data breach requirements.

Learn how to create an effective, actionable response plan.

Find out how to protect your organization with vendor security assessments.

Learn about insurance products that address cyber risk.

Learn about initiatives to strengthen Washington’s position as an international tourist destination at WLA’s Board-Hosted Luncheon on April 23.

The Washington Lodging Association’s Board of Directors is hosting a luncheon for its membership on Thursday, April 23 at Hotel Monaco Seattle.

At this complimentary event, members will have the opportunity to connect with WLA Directors and fellow members as they learn about initiatives to strengthen Seattle and Washington State as an international tourist destination and hub for business. Presenters include Tom Norwalk, President & CEO of Visit Seattle, Jeff Blosser, President & CEO of the Washington State Convention Center, and Marshall Foster, Director of the City of Seattle’s Office of the Waterfront.

The luncheon will also feature updates on the Association and the industry, including a review of the 2015 legislative session and an overview of WLA plans to partner with the Washington Restaurant Association in creating a new hospitality association.

WLA’s Board-Hosted Luncheon

THE LUNCHEON IS NOW “SOLD OUT.” If you would like to be put on a waiting list, please email info@walodging.org.

WLA and the Washington Restaurant Association advance plans to create combined hospitality association.

(March 16, 2015) WLA’s Board of Directors has been working with the leadership of the Washington Restaurant Association (WRA) on a plan to join forces in a new trade association that will represent both lodging properties and restaurants. Both organizations have been successful in supporting and advocating for their respective sectors of the hospitality industry, and a combined association would bring even greater capacity to deliver even greater results to members.

WLA and WRA have partnered in recent years to address issues at the state and municipal levels, and one of the goals in establishing a new association is to build on this partnership and strengthen the hospitality industry’s influence in government affairs.

As the extreme minimum wage increases in SeaTac and Seattle have shown, the political landscape has changed and trade associations must act with greater speed, greater resources and greater impact than ever before. By combining forces in a single hospitality association, the industry will be even better positioned to meet challenges than with two separate associations. The equation “1+1 = 3” symbolizes this exponential increase in capacity and influence.

“WLA and WRA have so much in common, from shared policy goals to similar programs, that leveraging resources to create a unified association that is so much greater than the sum of its parts makes sense,” says WLA President & CEO Jan Simon. “More than 20 states have combined lodging and restaurant associations, and in Washington this would be a very thoughtful merger of two strong and effective organizations.”

Initial discussions about joining forces began in 2012. The WLA and WRA Boards are participating in a facilitated process aimed at leveraging the strength of both organizations to deliver even greater value to members.

The mission of Washington’s new hospitality association would be to enhance the success of its members and its goal will be to have:

• Increased influence in the government affairs arena
• Greater strength in addressing legal issues
• A stronger voice in funding tourism promotion
• A stronger financial base
• Greater administrative efficiency and effectiveness
• Expanded opportunities for educational programs and member services
• Greater value for allied members
• Increased opportunity for innovation

Leaders and Executive Committee members from WLA and WRA will present plans for the new association and address member questions at WLA’s Board-Hosted Luncheon on April 23, 2015 at the Hotel Monaco Seattle. Please make plans to attend and reserve your place here.

For more information about the merger or to speak with an Executive Committee member about the plan, please email info@walodging.org

Washington’s House of Representatives passes bill that would raise the state’s minimum wage to $12 an hour.

Oral Arguments in Seattle Minimum Wage Lawsuit Set for Tuesday, March 10

Employees at Properties with Certified Folder Racks and their Dependents are Eligible for Academic Scholarships

WLA allied member Certified Folder Display Service, Inc. is now accepting applications for the 2015 Anne Marie Fearn Memorial Scholarship Awards. Six academic scholarships totaling $17,500 will be awarded in recognition of the entrepreneurial spirit and love of travel demonstrated by Mrs. Fearn, Certified’s long-time chairman and chief executive.

Employees and dependents of employees at any hotel, resort or motel that has one of Certified’s free visitor information brochure display racks are eligible for $2,500 scholarships. Also eligible are employees and dependents of employees associated with any current Certified advertiser for which Certified distributes brochures or magazines. The application deadline is April 30, 2015 and winners will be notified June 1, 2015.

“It’s the company’s desire to give back in Mrs. Fearn’s honor to those who support the company – its employees, advertisers and display rack locations,” said Bill Deering, Senior Vice President and General Manager. “Mrs. Fearn was a strong advocate for people furthering their education and making a better life for themselves and their families. We want to recognize and support their achievements.”

In addition to the Certified Advertiser and Certified Rack Location/ Merchandiser categories, Certified also gives scholarships in the Certified Employee/Independent Contractor category. Applicant must write a one-page essay answering one of three travel and tourism-related questions. Grade point average, athletic and extracurricular activities, and community service are also taken into consideration in selecting the award winners. Click here for more information.

AH&LA 2015 Policy Agenda Addresses Priority Issues Important to the Health and Success of the Hotel Industry

• Safeguarding the long-standing franchisor-franchisee relationship
• Preventing extreme wage initiatives that are too high and too fast, resulting in negative economic consequences
• Revising the Affordable Care Act to give employers and employees more flexibility

Technology and Distribution

• Protecting consumers from misleading online advertising in the hotel sector
• Ensuring tax parity for Online Travel Companies
• Creating a level playing field with the short-term online rental marketplace
• Curbing patent trolls and reforming the system

Travel and Tourism

• Promoting and increasing international travel to the United

Click here to take a look at the guide.

Of course, we will continue to be vocal on a number of other issues, but we believe it’s important that we be very clear about what matters most to our industry and its continued success. I am extremely optimistic about the months ahead of us, and all that we will accomplish with the power of your voice. Thank you for contributing to our collective success.

Sincerely,

Katherine Lugar
President/CEO

Learn about the Washington Lodging Association’s 2015 legislative priorities here.

Serving the hospitality industry for more than a century, the American Hotel & Lodging Association (AH&LA) is the sole national association representing all segments of the 1.8 million-employee U.S. lodging industry, including hotel owners, REITs, chains, franchisees, management companies, independent properties, state hotel associations, and industry suppliers. Headquartered in Washington, D.C., AH&LA provides focused advocacy, communications support, and educational resources for an industry generating $155.5 billion in annual sales from 4.9 million guestrooms.

American Hotel & Lodging Association Issues Statement on President Obama’s State of the Union Address

February 26 Workshop with Attorney Joseph G. Marra Focuses on How to Avoid Legal Risk in the Workplace and Reviews What Managers and Supervisors Can Do to Protect Against Lawsuits

Parking is available at the Russell Investments Garage at 1301 Second Avenue.

Learn important steps for protecting your company, and yourself, from workplace lawsuits. Attorney and employment law expert Joseph G. Marra will review common management mistakes that can open the door to litigation and put a company and the personal assets of individual supervisors at risk. At this free workshop, you’ll learn the legal implications of supervisory positions; review do’s and don’ts for performance evaluations and employee communications; and gain a clearer understanding of your responsibilities in claims of harassment.

REGISTER HERE

Joseph G. Marra is a managing partner and shareholder at Davis Grimm Payne & Marra where he represents employers in all types of employment litigation and helps clients implement and maintain proactive and preventative employment practices. His focus includes management advocacy in private and public sector labor and employment law, including negotiating collective bargaining agreements; advising and representing employers in all areas related to union relationships; responding to unfair labor practices and union organizing campaigns and defending against claims of wrongful discharge, discrimination and sexual harassment.

PRESENTED BY

New OSHA Reporting Requirements Now In Effect

The Cost of Free: Understanding the Tax Implications of Complimentary Meals

House Passes the Save American Workers Act of 2015 to Restore the Definition of Full-time Employment as 40-hours per Week.

Congress ReauthorizesTerrorism Risk Insurance Act and Sends to President for Signature

AH&LA and AAHOA Sue City of Los Angeles over Hotel-only Wage Ordinance that Exceeds City Authority

Congressional Passage of Brand USA Praised by Hotel Industry

(December 13, 2015) The American Hotel & Lodging Association (AH&LA) praised both the U.S. House of Representatives and the U.S. Senate for agreeing to reauthorize Brand USA as part of the omnibus spending bill to fund the government.

Brand USA is a private-public partnership designed to increase international travel to the United States. Last year alone, Brand USA generated 1.1 million incremental international visitors, $3.4 billion in direct spending, and $1 billion in total sales tax revenue, and created or supported 53,000 jobs. The program operates without the investment of a single dollar in taxpayer funds.

As the sole national association representing all segments of the 1.8 million-employee lodging industry, AH&LA pressed members of Congress to continue this critical program with letters, meetings and phone calls, and welcomed the final Senate vote which sends the legislation to the President’s desk for signature.

“Consensus and partnership are two words not often uttered in Washington D.C., but today we see that both sides can come together and accomplish worthy goals. Extending Brand USA will allow the hotel industry to continue to grow and create well-paying, long-lasting jobs.

“Brand USA ensures that the United States remains competitive and utilizes tools that most other countries also use to attract and welcome international travelers. This bill is a win not only for the hotel and travel industry, but for every small business and industry that tourists support. Ensuring the continuation of this program is critical to our industry, and we applaud Congress for their bipartisan collaboration and getting the job done,” said Katherine Lugar, AH&LA president and CEO.

AH&LA Survey Shows What’s “In” and “Out” for the Lodging Industry in 2015

December 10, 2014 – The American Hotel & Lodging Association (AH&LA) has released “The 2014 Lodging Study Hotel Trends: An Inside Look at Popular Amenities and Guest Services.” Conducted by industry data provider STR, this definitive industry survey illustrates how hotels are adapting to consumer demands by adjusting their services and amenities to take into account guests’ needs.

Funded by the American Hotel and Lodging Educational Foundation, the survey examines top trends in the hotel industry, which this year are marked by personal service, healthy lifestyles and convenience.

Travelers can expect high-speed and wireless Internet in more places, as well as in-room video on demand services and high-definition, flat screen televisions. Hotels are also prioritizing convenience and comfort with mobile check in, mobile apps, better bedding, and allergy-free rooms. The hotel guest can also expect a healthier experience, with more access to healthy menu choices, free breakfast and health facilities.

In addition to advancing consumer service, hotels are also giving back, making charitable contributions and being good stewards of the environment. Environmentally-friendly programs, such as towel reuse programs, recycling capabilities and water savings programs are increasingly popular, with overwhelming majorities of hotels participating. Hotels are also giving to charities, and employees are offering their personal time to volunteer efforts.

Key findings include:

• High-definition televisions in rooms are the standard with 84% of respondents saying that these are provided. Flat screen televisions are the norm, with 96% of respondents stating their facilities stock them.
• Mobile apps for hotel service continue to grow in popularity with 33% of hotels offering an app for their guests.
• Most hotels (86%) provide computers in the lobby for complimentary use.
• Fewer hotels are charging for in-room Internet services. Only 11% of respondents charge for Internet service. This figure is down from 23% in 2012.
• 93% of respondents have a linen/towel reuse program.
• The popularity of recycling programs continue to increase, climbing steadily and achieving 64% in 2014.
• The percentage of hotels with electric car charging stations has grown to 11% from 5% just 2 years ago.
• 84% of participating hotels contribute to charities, and the majority of hotels (84%) make in-kind contributions of room nights, meeting space, goods or services.
• 82% of hotels offer complimentary breakfast. An all-time high of respondents (74%) stated that they provide healthy menu choices.
• Conversely, fewer hotels are offering newspaper delivery, in room DVD players, and mini bars. Jacuzzis are also on the decline.

“Providing the highest level of quality service is paramount in our business and keeping ahead of guests’ needs is a critical component,” said Katherine Lugar, president and CEO of AH&LA. “From high-tech gadgets and amenities to charitable giving to being good stewards of our environment, the hotel industry continues to grow, innovate and accommodate changing consumer behavior. It is this flexibility and remarkable adaptability that allows the hotel to grow and thrive even as other business sectors struggle.”

The Lodging Study, conducted every two years with more than 9,600 participants, is the most comprehensive analysis of the trends in the hotel and lodging industry based on direct feedback from hotels. It is also one of the longest-running surveys of its kind.

 

Click here for an infographic of study results

 
American Hotel and Lodging Educational Foundation
Invest, Educate, Empower is the industry’s philanthropic organization, dedicated to helping people build careers that improve their lives and strengthen the lodging industry. Founded in 1953, AH&LEF is a subsidiary of the American Hotel & Lodging Association and provides resources for hospitality-related education and research.

American Hotel & Lodging Association
Serving the hospitality industry for more than a century, AH&LA is the sole national association representing all segments of the 1.8 million-employee U.S. lodging industry, including hotel owners, REITs, chains, franchisees, management companies, independent properties, state hotel associations, and industry suppliers. Headquartered in Washington, D.C., AH&LA provides focused advocacy, communications support, and educational resources for an industry generating $155.5 billion in annual sales from 4.9 million guestrooms.

STR
STR is the leading data provider for hotels, management companies, appraisers, investors and lodging industry analysts. Its database of lodging properties was used for this study, which has been conducted every two years since 1988. In 1996, the study expanded beyond AH&LA membership to include all properties in the United States with more than 15 hotel rooms.

NLRB Rules Employer Email Can Be Used For Union-Related and Other Protected Communications

WLA and AH&LA Focus on Holding Online Rental Companies to Same Standards as Other Types of Accommodations

Online short-term rental companies like Airbnb are facilitating the rental of unlicensed accommodations, often located in residential homes and apartments. In Washington State, these businesses are not currently held to the same health and safety standards, or the same state and local tax or insurance requirements, as hotels, B&Bs and other types of lodging establishments.

While WLA believes that competition creates a healthy business climate and benefits consumers, the Association is committed to the safety of the traveling public and to a fair and competitive business environment for the lodging industry. Holding online short-term rental companies to the same health, safety and taxation standards as other types of lodging businesses is a priority for WLA, and in the next legislative session it will ask lawmakers to require all lodging establishments –including those marketed exclusively online– to meet the same standards. Read more about WLA’s legislative priorities here.

Online short-term rentals that are able to skirt regulatory, licensing and taxation requirements are also of concern to American Hotel & Lodging Association (AH&LA). AH&LA is working with partner state associations and others to address the issue at the national and state level.

Neighbors for Overnight Oversight, a coalition of concerned residents, community leaders, businesses and policymakers, is working with AH&LA and speaking out for sensible rules and oversight of the short-term online rental market.

Please join these efforts by using the Neighbors for Overnight Oversight Toolkit which includes sample letters to the editor and useful information on the issue of unregulated and unlicensed accommodations. View the online toolkit here. If you would like to join WLA in working on this issue, please email WLA’s grassroots action team here.

OSHA’s New Recordkeeping Requirements: Resources to Help You Ensure Your Property is in Compliance in 2015

WLA’s Incoming Directors and Officers Bring High Level of Hospitality Experience and Civic Involvement to the Board

The Washington Lodging Association’s new officers and 2014-2015 slate of directors assumed their responsibilities at the Association’s Annual Convention & Trade Show November 9-11 at Semiahmoo Resort in Blaine, Washington.

Meghan Wiley, General Manager of Holiday Inn Express & Suites Pullman, is the new chair and leads a Board of six officers and 23 directors, who serve two-year terms and represent the geographic regions and different property sizes. Ms. Wiley has served on WLA’s Board since 2004 and has 20-plus years’ experience in the industry. In addition to her position as general manager, she has worked on numerous hotel openings for The Hotel Group, which operates her property, and taught hospitality classes at Washington State University.

John Taffin is the new treasurer, bringing experience as a chair of WLA from 2000 to 2001. As Chief Operating Officer of CoHo-Services, he oversees the operations of hotels and restaurants managed by CoHo-Services, including the Inn at Queen Anne and Marqueen Hotel in Seattle, the Heathman Lodge in Vancouver and the Howard Johnson Plaza Hotel in Yakima.

Eric Campbell, Vice President of Operations, Campbell’s Resort in Chelan, joined the Executive Committee as secretary. His experience includes the operation of boutique hotels in the Seattle market and at destination resorts, and he has been active in promoting tourism, business and industry with the Chelan Chamber of Commerce.

Joining the Board are the following Directors:

Larry MacDonald, General Manager, Best Western Plus Lakeway Inn and Conference Center
With 30 years’ experience in the industry, Larry MacDonald has worked as a general manager at properties throughout the Western United States. He has served on the Board of the Colorado Hotel & Lodging Association and on the Wyoming Restaurant and Lodging Advisory Board.

Pat McShane, Executive Vice President, InnSight Hotel Management Group
Pat McShane has worked in the industry for 38 years and in 1996 he co-founded Innsight Hotel Management Group which manages lodging properties in Washington and Oregon. He was chair of the Oregon Lodging Association when it merged with the Oregon Restaurant Association and subsequently served as the Oregon Restaurant and Lodging Association’s vice chair and chair. He served on WLA’s Board from 1994 to 1996.

Ronald Oh, CHA, General Manager, Holiday Inn Express North Seattle
Ron Oh is a board member of the Korean American Hotel Owners Association with responsibility for education and scholarships, serves on the South Seattle Community College Hospitality Program Advisory Board and has piloted internship programs for local community colleges. He was active in the One Seattle Coalition, which addressed proposals for a $15 minimum wage, and is a plaintiff in the International Franchise Association lawsuit challenging the discrimination against franchise businesses in the City’s new wage ordinance.

Mike Schabbing, General Manager, Courtyard by Marriott Seattle Southcenter
Mike Schabbing has over 25 years in the hospitality industry and has been general manager at Courtyard by Marriott Seattle Southcenter since 2002. He is also the chair elect of the Southwest King County Chamber of Commerce Board of Directors, serves as the government affairs chair of the Seattle Marriott Business Council and is on the steering committee overseeing the establishment of a tourism promotion area/public development area for Seattle Southside hotels.

Tom Waithe, CHA, Regional Director of Operations, Kimpton Hotels
Tom Waithe has been a regional director of operations for Kimpton Hotels since 2006 and currently oversees four properties in Seattle and three in Portland. His general manager experience includes the Bellevue Club Hotel, Woodmark Hotel, Semiahmoo Resort and Willows Lodge. He has worked closely with tourism boards in British Columbia and Oregon and currently serves on the Visit Seattle Board of Directors.

Cindy Fanning, Director of Operations for Silver Cloud Inns & Hotels, who served as chair 2012 to 2013, cycled off the Board and was honored at the Convention for her significant contribution to WLA by Immediate Past Chair Zahoor Ahmed, CFO and VP of RC Hedreen Company. Also leaving the Board of Directors are Paul Jinneman, Managing Member, Icicle Village Resort Associates, L.P., Leavenworth; Mona Sarrensen, General Manager, The Inn at Gig Harbor; Denise Vickerman, General Manager, Ramada – Spokane Airport; and Lenny Zilz, Vice President of Operations, Columbia Hospitality.

Read more about the 2014-2015 Board Officers here and Board Directors here.

WLA Honors Outstanding Hotel Employees and Programs with 16th Annual Stars Awards

(November 12, 2014) WLA recognized six employees and three properties with 2014 Stars Awards for their outstanding service and contribution to the industry. WLA allied member PSAV was also recognized as WLA’s Allied Partner of the Year. The prestigious Stars of the Industry Awards were presented November 10 at the Celebrating Northwest Hospitality Dinner & Auction, one of the highlights of this year’s Convention & Trade Show at Semiahmoo Resort in Blaine.

WLA’s Stars Awards program, which is now in its 16th year, celebrates the people, programs and partners who exemplify the best in Washington hospitality. Moss Adams LLP sponsored the Awards and Roy Cupler, CPA, a WLA Board Officer and Moss Adams Partner presented the awards. Properties were also recognized for community service, special events and efforts to achieve environmental sustainability. Winners who are associated with an American Hotel & Lodging Association-member property will be entered in the AH&LA Stars Awards Program.

Congratulations to the 2014 Stars of the Industry Award Winners

Outstanding General Manager of the Year: Bill Weise, Silver Cloud Hotel Seattle Stadium
This prestigious award honors a general manager who has demonstrated superior professionalism and taken a leadership role in the industry by actively participating in association, community or industry programs. Bill Weise was nominated for not only his outstanding performance managing an extremely active hotel and large staff, but for his meaningful contribution to community organizations and initiatives. He serves as community liaison for Silver Cloud Inns & Hotels in the downtown Seattle market and has been active in the Washington Lodging Association, the Seattle Hotel Association, the Downtown Seattle TPA and, most recently, on a minimum wage task force. He responds to WLA’s calls to action, making important calls to legislators, and works to advance the hospitality industry whenever possible. He has made an important contribution to the Inhospitable to Trafficking Training initiative which Businesses to End Slavery and Trafficking (BEST) and WLA have helped develop to address trafficking and related crimes at lodging establishments.

Rising Star of the Year: Moriah Glasgow, Renaissance Seattle Hotel
Given to an outstanding individual new to the industry or to his or her position for exceptional efforts to serve and enhance the experience of the traveling public, the Rising Star of the Year exemplifies the spirit of hospitality. When the Renaissance Seattle Hotel needed someone to assist the food and beverage manager, Moriah Glasgow was willing to roll up her sleeves. With a keen eye for details, she was instrumental in raising scores for beverage & food service and showed the wisdom to reassess, retool and recharge when an idea or approach needed refining.

Outstanding Lodging Employee (Limited Service): LeAnna Bryant, Office Manager, The Canterbury Inn at Ocean Shores
The Outstanding Lodging Employee Award recognizes a non-management employee who goes above and beyond normal job responsibilities and provides outstanding and unusual service to a property, its guests and the community. In nominating her, General Manager Ken Elgin wrote that from the first “Hello and welcome” to the “I hope you enjoyed your stay,” LeAnna Bryant is constantly looking for ways to make a guest’s experience memorable and enjoyable. Examples of her dedication to customer service include setting up birthday parties on her own time, and she treats guests as if they were family members visiting her home.

Outstanding Lodging Employee (Full Service): Josh Chan, Restaurant Bartender and Server, Best Western Plus Executive Inn, Seattle
Josh Chan’s managers report that he consistently achieves high performance levels, and his team often hears about his exceptional service from guests. He has the personality and experience to make guests from any race or culture feel at home, and the hotel regularly receives positive comments from all who encounter him at his hotel. Both his energy and enthusiasm increase when he has the opportunity to serve customers and guests.

Outstanding Manager of the Year (Limited Service): Melissa Church, Sales Manager, Holiday Inn Express & Suites Pullman
Nominees in this category are judged on the degree to which they show outstanding leadership qualities, consistently enhance the general well-being of guests, and provide exceptional service. Melissa Church quickly demonstrated all of these abilities from the moment she joined the staff of the Holiday Inn Express & Suites Pullman. When a temporary night auditor was needed she filled the role without a hitch, never complaining when the short-term fix turned into a three month position. She also stepped in to serve as a guest services manager before becoming an excellent sales manager.

Outstanding Manager of the Year (Full Service): Michael “Mickey” Niland, Maintenance Chief, Silver Cloud Hotel Seattle Stadium
Described as an outstanding manager, team member, hotel professional, father, friend and caring human being, Mickey Niland is known as a hard worker committed to taking care of those who can’t take care of themselves. He strives to provide a path of upward mobility for immigrants and entry-level team members and helps team members refine their job skills and improve their language and personal skills to increase their opportunities. He has identified, trained and promoted team members who are now on career paths they never envisioned pursuing.

Allied Partner of the Year: PSAV
PSAV has been setting the standard for event technology services within the hotel, resort and conference center industry for more than 77 years and has been supporting WLA for a decade. As an in-kind sponsor of WLA’s Annual Convention & Trade Show, they meet all audiovisual needs and partner with the host property to bring the latest technology and innovation to this important industry event, creating a fresh look each and every year. PSAV also supports WLA Board-hosted luncheons, ensuring that each program is flawless. In 2013, thanks to its partnership with PSAV, Director of Event Technology Paul Kovach and his team at DoubleTree by Hilton Seattle Airport and the Hilton Seattle Airport & Conference Center were recognized as having the highest customer satisfaction of over 400 properties owned and managed by Hilton Hotels. Jaymes Toycen, PSAV’s Regional VP of Operations, and PSAV have demonstrated an amazing commitment to service, to the Association and to the industry.

Good Earthkeeping Award: Kalaloch Lodge, Olympic National Park
Kalaloch Lodge has a commitment to environmental stewardship and began implementing GreenPath® in 2012 when Delaware North Companies Parks & Resorts’ was awarded the concession contract to provide lodging and other services at the Lodge. As a result, Kalaloch Lodge is conserving natural resources, reducing greenhouse gas emissions and providing opportunities for future generations to experience this special place. They’ve built their own waste management system from the ground up, increasing waste diversion from less than 5% to nearly 50% in just one year. The Lodge has also reduced water consumption by 41% to save over 1.2 million gallons of water and reduced energy consumption by 11.5%, among other achievements.

Special Event: 40th Anniversary of the Dempcy Family Ownership of the Mayflower Park Hotel

This Stars award honors programs or campaigns that demonstrate a creative approach to scheduled events, anniversaries, charity events, holidays, or special publicity events, and this year’s winner was a celebration of the people and the history of an iconic Seattle property. To recognize forty years of ownership by the Dempcy family, and to document the importance of the Mayflower Park Hotel in Seattle’s history, the hotel’s three historians, Trish Festin, Audrey McCombs and Craig Packer, with Gonzaga University history major Steve Festin, partnered with Arcadia Publishing to publish Seattle’s Mayflower Park Hotel. In addition to celebrating the book’s publication, the 40th Anniversary Party featured historical photographs, memorabilia and artfully prepared food and cocktails. The guest list was a who’s who of Seattle, and owners Birney and Marie Dempcy received a City of Seattle Proclamation stating that “The Mayflower Park Hotel has been a significant part of Seattle’s vibrant history, holding course through both the ups and downs, while staying original since day one.”

Outstanding Community Service: Embassy Suites Seattle-Tacoma International Airport
The Outstanding Community Service Award honors programs that demonstrate community engagement at the national or local level, and the Embassy Suites Seattle-Tacoma International Airport is a repeat winner. It has long been committed to giving back to the community, and over the course of the past year, the Embassy Suites team has helped raise funds for the Starlight Children’s Foundation Trick or Suite, Puget Sound Down Syndrome Community’s Buddy Walk, Philippines earthquake survivors, Oso families and Childhaven, a therapeutic childcare center that supports children who have been abused or neglected. “Denim Friday” was one standout event initiated by the front desk clerk, not the corporate office. Embassy Suites team members made donations to wear jeans on Fridays for a full month, raising funds to assist families affected by the Oso landslide.

Photos by WLA Allied Member Karen Mullen Photography

Click here for more pictures of the Awards Ceremony

Click here for the 2014 Categories

WLA President & CEO Jan Simon Aridj to Retire in March 2015

(November 19, 2014) After 15 years at the helm of the Washington Lodging Association, President & CEO Jan Simon Aridj will retire at the end of March 2015. The news was shared with members November 10 at the Annual Convention & Trade Show, with a distinguished group of past chairs of WLA’s Board of Directors paying tribute to her talented leadership.

Columbia Hospitality Vice President Andy Olsen, a long-time Board director and chair from 2011 to 2012, called Jan “the star of Washington’s lodging industry.” He spoke of her dogged commitment to advancing the interests of hoteliers across the state, and he credited her skillful leadership with building WLA into the highly effective and professional trade association that it is today.

Andy was joined in his heartfelt recognition of Jan’s accomplishments by Past Chairs Howard Cohen, CHA, Vice President of Clise Properties; Shaiza Damji, Managing Director of 360° Hotel Group; Paul Ishii, General Manager of Mayflower Park Hotel; Karl Ruether, CHA, CFBE, General Manager of Icicle Village Resort; and Cindy Fanning, Director of Operations for Silver Cloud Inns & Hotels. They expressed their regret that Jan was leaving the Association and spoke eloquently about her stewardship and ability to deliver key wins for members and the lodging industry as a whole.

Howard Cohen, who served as chair 2001-2002, applauded Jan’s many achievements and recalled her quick response to a Washington Department of Health inspector inappropriately telling him that he could not place water glasses on doilies as required by his brand. Jan immediately called DOH and the issue was resolved by the end of the day. Shaiza Damji similarly spoke of Jan’s effectiveness on all kinds of issues, particularly when it came to challenging the Department of Revenue’s collection of sales tax on the purchase of guest room amenities, which were being taxed again when guests paid for their rooms. Jan helped WLA raise over $90,000 to challenge DOR in court, and the decision in hoteliers’ favor has saved the industry hundreds of thousands of dollars.

Other examples of the accomplishments cited by the past chairs included establishing reasonable rules for carbon monoxide monitors, keeping inspectors out of rented guestrooms and fifteen years of promoting tourism with the publication of the Washington State Visitors’ Guide. In addition to her successful defense of industry interests, Jan was also celebrated for being a mentor to the directors on WLA’s Board and for her gracious friendship. Calling her a symbol of Washington hospitality, the past chairs presented Jan with a Stars of the Industry Award in recognition of her service.

Upon receiving the award, Jan thanked the leaders on the stage, current and past directors, and WLA members for all they have done to make the Association successful. “Today WLA’s Board is more engaged, and we have a larger, more professional staff and a team of professional partners delivering incredible programs to our members all because of the commitment and passion of leaders like these past chairs,” she said.

“We’ve been able to accomplish so much together thanks to the support, leadership and truly engaged participation of immensely talented directors and officers, and thanks to WLA’s tremendous members and partners. It has been an honor and a privilege to work with such smart, generous and dedicated stewards of our industry.”

Jan also expressed confidence that the strength of WLA will not diminish when she retires, noting that the achievements during her tenure will serve as the foundation for delivering even more value and benefits to WLA’s members and the industry.

A plan for transitioning to new leadership has not yet been announced and will be shared with members as soon as it is in place. WLA’s Board of Directors is in discussions with the Washington Restaurant Association about establishing a combined trade association to represent the hospitality industry, and the transition plan will address the possibility of a merger.

Jan is planning to travel extensively in Europe after retiring and hopes to walk the nearly 500-mile Camino de Santiago trail in Spain. She is also considering extending her travels to live abroad and teach English as a second language, and possibly continuing to work in the hospitality industry on a project basis.

 

Photos by WLA allied member Karen Mullen Photography

National Election Results Create Opportunities for Progress on Issues Important to the Lodging Industry

Washington State Election Results Support WLA’s Goal of a More Business-Friendly State Legislature

(November 6, 2014) In contrast to the national midterm elections, which have significantly altered the balance of power in Congress, the results in Washington State are less dramatic. While the Republican Party gained seats in both the State Senate and House, the 2015 Legislature will look a lot like the 2014 Legislature.

The Senate will again be controlled by the Majority Coalition Caucus (MCC), with the Republicans gaining one seat to take a narrow 25 to 24 majority. Senator Tim Sheldon (D-35), who won his seat in the 35th District, will join the MCC again in 2015. In the House, it is likely the GOP will pick up between two to four seats, which will not be enough to change leadership roles. Several of these House races are too close to call and may require a statutory recount.

The Washington Lodging Association Political Action Committee made campaign contributions for candidates in both parties has been highly successful in supporting winning candidates. The outcome of the elections closely fits WLA PAC goal of having a balance of power between the State House and Senate. Read the white paper WLA members presented to legislative candidates here.

Overview of State Senate Races

The 2014 Senate has been split 26 – 23, under the control of the Majority Caucus Coalition (MCC) which counts 24 Republicans and two Democrats. One of those Democrats, Sen. Rodney Tom, did not run for re-election and will be replaced by Democrat Cyrus Habib, currently a state representative.

To retain control of the Senate, the MCC had to win in several key races, which they did. These races include:

6^th District: Sen. Baumgartner has defeated his Democratic opponent Rich Cowan 57% to 43%.

26^th District: Incumbent Sen. Jan Angel, who won a hard fought special election last year to unseat an appointed incumbent, showed an even stronger finish in the general election, defeating Democrat Judy Arbogast 58% to 42%.

28^th District: Incumbent Sen. Steve O’Ban won an intense battle with Rep. Tami Green (D) in what is likelyto be the most expensive race in the state. Sen. O’Ban’s impressive primary victory carried over in the general election for a 55% to 45% win.

30^th District: With an open seat in this swing district, Mark Miloscia (R), formerly a House Democrat, takes this seat with a 56% to 43% victory over Shari Song (D).

35^th District: MCC incumbent Sen. Tim Sheldon (D) was targeted by the Democrats. The very tight three-way primary election put two Democrats on the November ballot, and with strong support from the GOP, Sheldon won 54.5% to 45.5%.

42^nd District: Despite a tough and well-funded opposition, incumbent Sen. Doug Ericksen (R) coasted to a 59.3% to 40.3%victory.

45^th District: Incumbent Sen. Andy Hill survived an expensive race against a well financed opponent. The 45^th is a swing district that leans Democratic, but Hill made inroads among key Democratic constituencies. He won the race 52.9% to 47.1%

Overview of State House Races

17^th District: In a district that swings Republican, incumbent Rep. Monica Stonier (D) finished behind GOP opponent Lynda Wilson in the primary by 692 votes. Although still too close to call, in an election that favored Republicans Wilson is expected to win.

25^th District: Incumbent Rep. Dawn Morrell (D) outpaced challenger Melanie Stambaugh (R) in the primary by 451 votes. The 25th has been a true swing district for many years, with split delegations common, and Stambaugh is projected to take this seat.

26^th District: Incumbent Rep. Larry Seaquist (D) came out of the primary with a 610 vote margin. In a contentious race that included the filing of lawsuits, Seaquist is expected to lose to his Republican challenger.

26^th District: Appointed GOP incumbent Jesse Young faced former Sen. Nathan Schlicher. This district was the best hope for Democrats to pick up a seat, but in keeping with the trend, Republican Young is likely to remain in the Senate.

28^th District: In a race for an open seat formerly held by a Democrat, Paul Wagemann (R) faced Christine Kilduff (D). The race is too tight to project an outcome.

30^th District: With the recent death of incumbent Rep. Roger Freeman (D), challenger Jack Dovey (R) looked like the favorite. Nevertheless, Freeman’s name remained on the ballot and appears to winning in a race that is still too close to call. This apparent victory leaves a decision for filling the vacant House seat to the King and Pierce County Councils, which must jointly appoint a Democrat to replace Freeman for one year.

35^th District: In a race still too close to call incumbent Rep. Kathy Haigh (D) is slightly ahead of her GOP challenger, Dan Griffey.

44^thDistrict: This is an open seat that was held by the GOP in 2014. It appeared to have been a chance for the Democrats to pick up a seat, but last minute allegations of student involvement in campaign in violation of public use for campaigns could endanger Mike Wilson (D). GOP candidate Mark Harmsworth is ahead and expected to win.
 

Ebola Resources for the Hotel Industry

San Francisco Passes Legislation to Regulate Short-Term Online Rental Companies like AirBnB

(October 10, 2014) The San Francisco Board of Supervisors has passed legislation creating a new regulatory framework for short-term online rental companies, such as Airbnb and VRBO. A final, pro forma vote will take place October 21, and media reports indicate Mayor Lee will sign the bill.

The American Hotel & Lodging Association (AH&LA) views this legislation as a step forward, especially given that San Francisco is the birthplace of the sharing economy. The new law reflects what appears to be the Board of Supervisors’ desire to bring the short-term online rental industry into the regulatory fold by requiring registration, taxes and insurance – all of which are requirements for hotels. The provisions of the new law, which takes effect in February 2015, include:

• Allowing only permanent residents to offer short-term rentals
• Establishing a new city registry for hosts
• Mandating the collection of hotel tax
• Limiting entire-home rentals to 90 days per year
• each listing to carry $500,000 in liability insurance
• Establishing guidelines for enforcement by the Planning Department

Read details and the full text here and news coverage of the Supervisor’s action here.

The lack of regulation and health, safety and taxation standards for short-rentals is also an issue in Washington State, and one of the legislative priorities for the Washington Lodging Association for 2015 will be to ask the Legislature to require all lodging establishments –including those marketed exclusively online–to meet the same health, safety and taxation standards. Learn more about WLA’s legislative priorities here.

AH&LA is also working to address the issue with Neighbors for Overnight Oversight, a coalition of concerned residents, community leaders, businesses and policymakers committed to protecting neighborhoods nationwide by speaking out for sensible rules and oversight of the short-term online rental market. Members are encouraged to join these efforts and to use the Neighbors for Overnight Oversight Toolkit. Learn more here.

Request for a Preliminary Injunction Against Discriminatory Treatment of Franchises in Seattle’s $15 Wage Ordinance Moves Forward

(October 14, 2014) The International Franchise Association (IFA) has completed its reply to Seattle’s arguments on the IFA lawsuit challenging the discriminatory treatment of small franchise businesses in the city’s new minimum wage law. The next step will be for the judge to determine if and when the motion seeking a preliminary injunction will move to oral arguments. Read the briefs in support of a preliminary injunction here and here.

IFA and five Seattle franchisees sued Seattle on June 11 seeking to block portions of the city’s new law to increase the city’s minimum wage to $15 an hour. The plaintiffs asked the court to immediately enjoin the city from treating franchisees as large, national companies rather than the small, locally-owned businesses that they are.

The city’s ordinance categorizes small, independently-owned franchise owners as big, out-of-state businesses in violation of the Commerce Clause of the U.S. Constitution. The lawsuit argues that the Seattle ordinance defies years of legal precedent clearly defining a franchisee as an independent local business owner who operates separately from its franchisors that provide brand and marketing materials, based on the payment of an initial franchise fee and ongoing royalty payments to use the brand’s trademark.

In its motion for a preliminary injunction, the plaintiffs argue that the ordinance’s arbitrary definition of small businesses violates the Commerce Clause and Equal Protection Clause of the U.S. Constitution, as well as Washington State’s Constitution. The motion also contends that an injunction would be in the public interest and that franchisees will suffer “irreparable harm” unless a limited preliminary injunction is granted. Read the motion here.

ADDITIONAL INFORMATION

Unions Out to Destroy Franchise Business Model Says IFA President and CEO Steve Caldeira (September 5, 2014)

Ad Campaign Exposes SEIU’s Hidden Agenda Behind $15 Minimum Wage Law in Seattle (August 20, 2014)

Injunction Seeks to Halt Seattle’s Discrimination Against Small Franchisees in New Wage Ordinance (August 17, 2014)

WLA’s Board Supports Lawsuit Challenging Franchise Language in Seattle Wage Ordinance (June 16, 2014)

Federal Lawsuit Filed Against City of Seattle for Discriminatory Treatment of Franchisees Under New Wage Ordinance (June 11, 2014)

Connect with One Million Travelers with Your Ad in the Official Washington State Visitors’ Guide

When it comes to travel, publications like the official Washington State Visitors’ Guide are still determining where people go, where they stay and what they see and do on their vacations.

As one recent study showed, 80% of readers who hadn’t yet planned their trips were influenced in their choice of destination after reviewing a visitors guide.

This powerful effect is just one of the reasons why your property needs a presence in the 2015 edition of the Washington State Visitors’ Guide, the definitive travel resource for our beautiful state.

Your ad will connect you to travelers in print, online and on their phones, reaching prospective guests in a variety of channels as they plan their trip through Washington.

With its highly targeted distribution, the Visitors’ Guide–and your ad–will be:

• Picked up at visitor centers and tourist locations throughout Washington and in Arizona, California, Colorado, Idaho, Nevada, Oregon, Texas and Vancouver, BC.
• to 65,000 subscribers of Seattle Met and Portland Monthly.
• Mailed as the exclusive fulfillment publication for the Washington Tourism Alliance and ExperienceWa.com, the state’s tourism website.
• Sold on newsstands at more than 400 Washington and Oregon retail stores, including Barnes & Noble, Whole Foods and QFC.
• Read online at StayInWashington.com and ExperienceWA.com.
• Downloaded on iPads, tablets and smartphones.

Reserve your ad space now and take advantage of discounts for WLA member. To place your space reservation or to request a media kit, please contact Jeff Adams at SagaCity Media at 206-454-3007 or by email at jadams@sagacitymedia.com.

L&I Proposes 6% Increase in Workers’ Comp Insurance Rate for Hotels and Motels

Unions Out to Destroy Franchise Business Model Says IFA President and CEO Steve Caldeira

By International Franchise Association President and CEO Steve Caldeira
Published on Sept. 5, 2014 in the Puget Sound Business Journal

The fast-food strikes that have occurred in Seattle and other cities have been portrayed as a grassroots movement led by workers. In fact, the strikes were part of a national campaign that was led from the top down by the Service Employees International Union.

One of the groups leading the charge in Seattle was called Working Washington, which describes itself as a grassroots coalition of groups and individuals. In fact, as the Seattle Times reported, Working Washington is a front organization for the SEIU.

Why is SEIU hiding behind another group? Some media outlets have speculated that it will elicit more sympathy from the public if it portrayed the fast-food strikes and the allied campaign for a $15-an-hour minimum wage as a “grassroots movement.”

But the reality is more complicated – and Machiavellian – than that. According to newly discovered documents filed as part of a lawsuit by the organization I represent, the International Franchise Association, against the city of Seattle, the ruse was perpetrated to help SEIU financially.

Specifically, emails unearthed by lawyers in the case show that David Rolf, president of the SEIU in Washington, admits that part of the union’s motivation for the higher wage in Seattle was to break the business model for franchises. In so doing, he would clear the way for the SEIU to more easily unionize fast-food employees and expand the union’s dwindling membership ranks and financial coffers.

Seattle’s new minimum wage law treats franchisees not as the small, locally owned businesses that they are, but as big, out-of-state businesses. Franchisees, even if they have only a handful of employees, must adopt the higher minimum wage on the same timetable as businesses with more than 500 workers.

This blatantly unfair and discriminatory provision was added at the request of the SEIU, according to statements and emails revealed in court documents.

The SEIU’s assault on small-business franchisees is not confined to Seattle. After pressure and lobbying by SEIU, the general counsel of the National Labor Relations Board in July overturned decades of legal precedent by saying that franchisees and their franchisors can be designated as “joint employers.” This decision, if upheld, would mean that thousands of small franchisees would lose control of the businesses they worked so hard to build.

The same principle applies in Seattle. If franchisees and their franchisors are considered large employers, then the SEIU can more effectively unionize their employees and expand its power. It’s a lot harder to organize thousands of small businesses than one or two large businesses.

Put another way, the union hasn’t had much luck finding new members among small businesses. But if those locally owned franchises were suddenly considered units of big corporations, the SEIU’s power grab suddenly makes a lot of sense.

Franchising is a business model that has thrived for more than a century because it gives people an opportunity to start small businesses under a proven concept. Franchise businesses are responsible for one out of every eight private-sector jobs and 3.4 percent of the U.S. gross domestic product. Franchisees create new jobs and businesses at twice the rate of other business segments.

This is the business model that the SEIU seeks to destroy in its search for more members. For the sake of the 600 franchisees in Seattle that employ 19,000 people, and for the sake of our national economy, Seattle shouldn’t be allowed to become the SEIU’s new piggy bank.

Steve Caldeira is president and CEO of the International Franchise Association, which represents 1,350 franchisor companies and more than 12,000 franchisees around the country.

ADDITIONAL INFORMATION

Request for a Preliminary Injunction against Discriminatory Treatment of Franchises in Seattle’s $15 Wage Ordinance Moves Forward (October 14, 2014)

Ad Campaign Exposes SEIU’s Hidden Agenda Behind $15 Minimum Wage Law in Seattle (August 20,2014)

Injunction Seeks to Halt Seattle’s Discrimination Against Small Franchisees in New Wage Ordinance (August 17, 2014)

WLA’s Board Supports Lawsuit Challenging Franchise Language in Seattle Wage Ordinance (June 16, 2014)

Federal Lawsuit Filed Against City of Seattle for Discriminatory Treatment of Franchisees Under New Wage Ordinance (June 11, 2014)

Businesses Can Avoid Layoffs with Washington State’s Shared Work Program

Chad Pearson, Shared Work Marketing Manager with Washington State’s Employment Security Department, provides an overview of a unique program to help busineses cope with a downturn in business.

It can happen to any business. Demand for your product or service slips. Maybe the market goes in the tank. All you know is your business is in a fix, and you’ve got hard decisions to make.

You don’t want to lay off your skilled employees, but what else can you do to cut costs?

The Employment Security Department provides an alternative. It’s called Shared Work.

Under the program, businesses can reduce the hours of permanent employees, who can then collect partial unemployment benefits to replace a portion of their lost wages. This translates into immediate payroll savings and prevents the loss of skilled employees.

Shared Work can’t be used to subsidize seasonal employees during the offseason or normal slow times in your industry, but it can help when an unexpected drop in business prevents you from giving normal hours to your team.

Plus, to make the program more affordable, the federal government will cover more than 92 percent of Shared-Work benefits through June 2015. That means you can participate virtually for free and there will be practically no effect on your unemployment-insurance tax rate.

Sterling Ramberg, co-owner of The Gear Works, had this to say about Shared Work: “We invested hundreds of thousands of dollars in our employees’ training and couldn’t afford to lose them. Shared Work helped us avoid that.”

The flexibility of the program also makes it attractive. Your business can enroll some or all of your employees. You use it only when needed, and you can vary each employee’s reduction anywhere from 10 to 50 percent per week.

Recent surveys show that Shared Work helps keep skilled workers, reduces payroll costs and improves employee morale. Employers who have used the program consistently recommend it to others.

To learn more, watch a Shared-Work video, visit www.esd.wa.gov/shared-work or call 800-752-2500.
 

GSA Releases Per Diem Rates for Fiscal Year 2015

Ad Campaign Exposes SEIU’s Hidden Agenda Behind $15 Minimum Wage Law in Seattle

(August 20, 2014) The International Franchise Association (IFA) has launched an ad campaign to inform Seattle residents about the Service Employees International Union’s (SEIU) well-planned, strategic attack on independently-owned, small business franchisees, and SEIU’s motives for discriminating against them in the city’s new minimum wage law.

The radio campaign, which began on KOMO Newsradio and KIRO Radio 97.3 FM, on August 20, discloses that David Rolf, the president of SEIU in Washington, admitted that part of SEIU’s motivation for the higher minimum wage in Seattle was to break the business model for franchisees and in turn, expand the union’s membership to franchise employees.

Seattle’s new minimum wage law treats franchisees not as the small, locally-owned businesses they are, but as big, out-of-state businesses. Franchisees with fewer than 500 employees, including those with even just one employee, must adopt the higher $15 minimum wage on the same expedited three-year timetable as big businesses, such as The Boeing Company, with more than 500 employees, beginning in April 2015. The new law calls for non-franchised businesses with fewer than 500 employees to phase in the $15 minimum wage over seven years.

This unfair and discriminatory provision was added at the behest of SEIU, according to statements and emails filed in court as part of a lawsuit by the IFA.

In addition to the ad campaign, the IFA filed a lawsuit in June to challenge the discriminatory provisions of the city’s new minimum wage law. Earlier this month, IFA requested a preliminary injunction to stop the part of the new law that unfairly classifies small franchise businesses as large businesses. The preliminary injunction would halt this blatant discrimination by enabling small franchise business owners to pay the same minimum wage as other small businesses while the litigation is ongoing. The American Hotel & Lodging Association, the Asian American Hotel Owners Association, the U.S. Chamber of Commerce, the National Restaurant Association, the Home Care Association of America and the Washington Retail Association filed an amicus brief on August 16 in support of the IFA’s motion.

If the minimum wage law were allowed to take effect as written, small franchise businesses would be forced to pay a much higher wage than their fellow small businesses that aren’t part of a franchise, putting those franchisees at a significant competitive disadvantage. The result could be closed businesses and lost jobs.

SEIU’s push for a $15 minimum wage in Seattle is part of a national effort by the union to break the franchise model and unionize franchisees’ employees. After intense pressure and lobbying by the SEIU, the general counsel of the National Labor Relations Board last month overturned decades of federal and state legal precedent by saying that McDonald’s Corp. can be designated as “joint employers with its franchisees.” This decision, if upheld, would mean that thousands of small-business franchisees would lose control of the businesses they worked so hard to build and the jobs of millions of workers would be placed at risk.

If franchisees and their franchisors are considered joint employers, then the SEIU can more quickly and effectively unionize their employees and expand the union’s power. The union has failed at its attempts to recruit workers at small franchise businesses, but if these locally-owned businesses were suddenly considered national corporations, SEIU’s power grab gets a lot easier.

The SEIU badly needs new members. The U.S. Supreme Court ruled in June that the SEIU can no longer siphon money set aside for low-income and special-needs children and adults who receive care at home by forcing home care and childcare providers who aren’t SEIU members to pay union fees. The Supreme Court’s ruling will likely take away a major source of revenue for the union.

The decision has already led the SEIU in several states, including Washington, to tell those workers it will no longer force them to pay the fees.

Listen to the new ad campaign here.

ADDITIONAL INFORMATION ON IFA LAWSUIT

Request for a Preliminary Injunction against Discriminatory Treatment of Franchises in Seattle’s $15 Wage Ordinance Moves Forward (October 14, 2014)

Unions Out to Destroy Franchise Business Model Says IFA President and CEO Steve Caldeira (September 5, 2014)

Injunction Seeks to Halt Seattle’s Discrimination Against Small Franchisees in New Wage Ordinance (August 17, 2014)

WLA’s Board Supports Lawsuit Challenging Franchise Language in Seattle Wage Ordinance (June 16, 2014)

Federal Lawsuit Filed Against City of Seattle for Discriminatory Treatment of Franchisees Under New Wage Ordinance (June 11, 2014)

Read the June 11, 2014 complaint here.

Clearing the Legal Haze of Marijuana in the Lodging Industry: Answers to Frequently Asked Questions

Attorney Chris Hilgenfeld, a shareholder at WLA allied member Davis Grimm Payne & Marra provides answers to frequently asked questions on what Washington’s marijuana laws mean for lodging owners and operators.

In November 2012, Washington voters passed Initiative 502, which decriminalized marijuana in certain instances and created a system for distribution regulated by the Washington State Liquor Control Board. This new law, along with Washington’s Medical Use of Marijuana Act (i.e., medical marijuana), has created questions and concerns for all employers. The marijuana laws in Washington have also led to many questions for lodging owners and operators, as the lodging industry must address guest-related concerns regarding marijuana usage. I have attempted to address the questions that I have most commonly heard.

I was told that marijuana is now legal in Washington, is that right?
The new Washington law (Initiative 502) has decriminalized under state law possession of marijuana – in small amounts – for individuals 21 years of age and older. Possession of marijuana is still illegal under federal law. The selling or distribution of marijuana without a state license is illegal under both state and federal law.

Can I drug test my employees for marijuana?
Yes. The new marijuana laws do not limit an employer’s right to drug test in the workplace. Employers must still ensure they are drug testing correctly. In doing so, all employers should review their handbooks and drug-testing policies. Although an employer is permitted to drug test, the employer is expected to administer and adhere to its own policies. Employer policies should prohibit the use of illegal substances under all applicable federal, state and local laws, not simply state that the use of illegal substances is prohibited.

Employer policies should also specifically define what ‘under the influence’ means. In most cases, drug tests are administered using a urine sample, which detects the release of THC (the active ingredient in marijuana) in the body. Because THC is stored in the person’s fat cells, it can be detected in a person’s body for days or even weeks after use. As a result, an employer should identify what test results constitute being under the influence.

The employer must also be aware that certain positions may require different standards. For example, a CDL driver position must adhere to Department of Transportation drug-testing requirements.

What if my employee has a medical marijuana card?
Employers may still establish a drug-free work place and are not required to accommodate the use of medical marijuana. An employer should review its policy regarding the use of prescription drugs. The policy should limit when prescription drug use is permissible. For instance, the policy may state that prescription drug use is permitted, so long as the drug is used as prescribed and legal under federal, state and local laws.

My hotel is unionized. Can I use the new marijuana law to change policies or procedures?
The new marijuana laws do not alter your labor agreements. The new laws also do not change your bargaining obligations. If you do need to revise your drug-testing policies or procedures, you must do so in accordance with labor laws. Your exact bargaining obligations will depend on your specific circumstances.

Can I prohibit guests from smoking marijuana in their rooms?
Yes. Hotels are not required to permit marijuana usage in their establishment, even if the hotels permit smoking in designated areas or guest rooms. The medical marijuana law also does not require hotels to permit on-site usage of marijuana. Hotels should expressly prohibit marijuana usage if that is their goal.

May I allow guests to smoke marijuana at my lodging establishment?
If the lodging establishment is on state property, the decision to allow marijuana usage in a smoking room is up to the discretion of the lodging owner and operator under state law. If the hotel is on federal property, the possession of marijuana is illegal and the owner and operator are placing their establishment at risk. Furthermore, if the employer receives federal funding or grants, federal drug-free workplace requirements may also apply. The interplay between state and federal laws is not entirely known. Because of the unknown, lodging establishments do place themselves at some risk by permitting marijuana usage on site.

A pot store plans to open up next to our establishment. Is there anything that I can do?
Possibly. Washington’s new marijuana laws still permit the cities and counties to regulate zoning. The pot stores are subject to those local zoning laws and requirements. Several cities and counties are considering whether to ban marijuana businesses, or at least create strict zoning requirements. By working with your local government officials and zoning boards, you can remain proactive in your response.

Marijuana issues in Washington are growing increasingly complex and subject to sudden change. All employers must remain vigilant and work with their human resources specialist and/or their attorneys to ensure they are ahead of the haze.

None of the above should be considered legal advice, but is instead offered to provide information and address issues relevant to the Washington hospitality industry in connection to the legalization of recreational marijuana. Please contact an attorney for specific legal advice.

ADDITIONAL RESOURCES

Recreational Marijuana Use Can Still Get You Fired by Clarence M. Belnavis, attorney with the allied member law firm of Fisher & Phillips (July 2014)

In the Weeds: An Employer’s Perspective on Managing Employees Who Smoke Marijuana and Requiring Drug Tests by Tami Becker Gómez, attorney with the allied member law office of Williams Kastner (May 2013)

Legal High: A Primer on I-502 and Washington’s Recreational Marijuana Law by Samantha (Sam) Noonan, attorney at law (May 2013)

Seattle Taxpayers Forced to Fund Expensive Outside Counsel for City Attempt to Defend Discrimination

NEWS RELEASE:

(July 8, 2014) The City of Seattle’s decision to hire expensive outside legal counsel to try to defend its discriminatory actions against small businesses in the recently adopted minimum wage ordinance should outrage every taxpaying resident and business, according to Jan Simon, President and CEO of the Washington Lodging Association (WLA).

Last week the City announced it had hired Susman Godfrey, a Texas law firm with offices in Houston, Dallas, Los Angeles, New York City and Seattle, and Erwin Chemerinsky, dean at the University of California, Irvine School of Law, to assist in its defense of the ordinance.

“As a Seattle taxpayer I am flabbergasted and disappointed that the Mayor and City Council believe it is appropriate to hire an outside law firm charging a reported $1,100 an hour to defend the blatantly discriminatory sections of the ill-conceived ordinance,” said Simon.

Under the City ordinance, businesses with fewer than 500 employees, except franchisees, have seven years to reach $15 an hour. Those with 500 or more – and franchisees, regardless of how many people they employ – have only three years, or four if they provide health insurance.

The Seattle statute unfairly requires Seattle’s 600 franchisees, which own 1,700 franchise locations and employ 19,000 workers, to meet the three-year deadline for large businesses simply because they operate as part of a franchise network. The Seattle ordinance defies years of legal precedent clearly defining a franchisee as an independent local business owner who operates separately from the corporation that provides brand and marketing materials. Hundreds of small locally owned businesses and thousands of their employees are unfairly threatened by Seattle’s new law.

“This adds insult onto injury, as some of the money to pay the exorbitant legal fees to try to defend the indefensible will come from the very people and businesses who are discriminated against,” Simon said. “If the City Attorney’s office drafted the ordinance, why can’t it defend it in court?” ”

The WLA Board of Directors has announced it opposes the franchise language in the City’s recently adopted wage ordinance and supports the lawsuit filed against the City in federal court by five Seattle franchisees and the International Franchise Association. The WLA notes that family-owned hotels with significantly fewer than 500 employees make up the vast majority of the industry.

In Washington, nearly 80 percent of lodging establishments are affiliated with a franchise or brand, including two WLA members who are plaintiffs in the lawsuit, and would be considered large employers under the new ordinance. The American Hotel & Lodging Association – the lodging industry’s national association – also supports the Seattle franchisee lawsuit.

U.S. District Judge Richard Jones of the Western District of Washington will hear the case.

For more information about the lawsuit and the coalition of small business owners working together to oppose the franchisee provisions in the city’s minimum wage law, go to SeattleFranchiseFairness.com.

The Washington Lodging Association is the state’s only non-profit trade and professional association dedicated to the interests of Washington’s lodging industry. It has served owners, operators and employees of properties large and small properties all across the state since 1920, and counts more than 500 lodging establishments with more than 40,000 guestrooms, and more than 125 allied businesses who serve the lodging industry, in membership.

Media contacts:
Ashley Bach, Pacific Public Affairs: 206-579-2414, ashley@pacificpub.com

ADDITIONAL INFORMATION

WLA’s Board Supports Lawsuit Challenging Franchise Language in Seattle Wage Ordinance (June 16, 2014)

Federal Lawsuit Filed Against City of Seattle for Discriminatory Treatment of Franchisees Under New Wage Ordinance (June 11, 2014)

Resources for Addressing Recreational Marijuana as Employers and Lodging Owners and Operators

The following information is excerpted from articles written in 2013 for WLA members by Attorney Samantha Noonan and by Williams Kastner Attorney Tami Becker Gómez after the passage of Initiative 502. It should not be considered legal advice, but is instead offered to provide information for the Washington hospitality industry related to Initiative 502.

Federal v. State law
Many employers may be confused by the dueling laws now at play in Washington state. Although, following the passage of Initiative 502, marijuana use (with restrictions) is now legal in Washington state, marijuana use remains illegal under federal law. This discrepancy between federal and state law is an advantage for employers. Because marijuana use and possession is still illegal under federal law, employers can continue to prohibit their employees from using marijuana and can continue to test their employees and/or applicants for marijuana.

In order to take advantage of the protections still in place under the federal law, employers should ensure that their policies and handbooks prohibit the use of illegal substances under all applicable federal, state and local laws. Likewise, employers should revisit their policies on intoxication at work. Although most employers have some policy regarding employees being under the influence at work, these policies may need to be modified to specify marijuana in particular and should note that no detectable level will be tolerated (as marijuana’s active ingredient THC may stay in a person’s system for multiple days after use).

Some employers may be subject to federal drug-testing regulations because of receipt of federal grant monies or because the employer’s business is regulated by the federal government. These employers must continue to conduct drug tests as required, follow applicable procedures should a positive test occur, and maintain a drug-free workplace.

Medical Marijuana v. Recreational Marijuana Use
As outlined above, Washington employers are still free to prohibit the use of recreational marijuana following the passage of Initiative 502. But what about medicinal marijuana use? Luckily for Washington employers, this issue has been decided by the Washington Supreme Court. In the case of Roe v. TeleTech Customer Care Management, 171 Wn.2d 736 (2011), the Court dismissed a plaintiff’s wrongful discharge claim (the plaintiff was discharged because of a positive drug test), finding that Washington’s Medical Use of Marijuana Act did not require her former employer to disregard its zero tolerance drug policy. A wise employer will take a second look at its policies and ensure that if such policies allow for the use of prescription drugs at work, those policies state that prescription drugs be legally prescribed under both state and federal law. Employers may even choose to state that they prohibit the use of marijuana even if prescribed under the provisions of the Medical Use of Marijuana Act.

Although Washington employers are relatively well protected in their decisions regarding allowing or disallowing their employees to engage in marijuana use, such protections do not prevent litigation on the issue. As Initiative 502 is a recent change in the law, employers can expect to see employees challenge marijuana-related employment decisions. As an employer, ensuring that comprehensive policies are in place is a solid first step in protecting yourself.

Washington’s Smoking in Public Places Law
Washington’s 1985 Clean Indoor Air Act banned smoking in public places, except in certain designated smoking areas. In November 2005, Washington voters passed Initiative 901 (codified in 2006 and set forth as RCW 70.160 et seq.) to prohibit smoking in all places of employment and in all public places. The definition of “public place” includes bars, restaurants, recreational facilities and non-tribal casinos, and also includes private residences used to provide child care, foster case, adult care, or similar social services, and at least 75 percent of guestrooms within a hotel.

Section 70.160.075 of the Smoking in Public Places law prohibits smoking within 25 feet of entrances, exits, windows that open, and ventilation intakes that serve enclosed areas where smoking is prohibited. Under the language of the section, “[o]wners, operators, managers, employers or other persons who own or control a public place or place of employment may seek to rebut the presumption that 25 feet is a reasonable minimum distance by making application to the director of the local health department or district in which the public place or place of employment is located.” RCW 70.160.075.

While Washington is one of the first states to legalize the recreational use of marijuana, the use of or display of marijuana within public view is still illegal. Therefore, the smoking restrictions set forth under the Washington Smoking in Public Places law are not likely to apply to recreational marijuana use or display. Similarly, under the Medical Cannabis law, use or display of medical marijuana in the general public is prohibited.

Although there is no case law addressing such a scenario, it may be assumed that hotels or motels may effectively ban any public use or display of recreational marijuana in or around the property or any nearby public areas.

Hotel Policies on Smoking
There is no current protocol within the hospitality industry as to smoking medical or recreational marijuana inside hotels. As such, property owners and operators of hotels with a property-wide smoking ban might consider extending the ban to include marijuana (whether medical or recreational) and confine all smoking to designated exterior smoking areas only.

For properties with designated smoking rooms, owner/operators would be well served to have a written policy that addresses the use of marijuana in designated smoking rooms. Factors to consider in creating such a policy include whether the hotel’s reputation may be tarnished by allowing marijuana to be smoked on site, what the hotel’s duty is to other guests who may be exposed to second hand smoke, and whether permitting the use of medical marijuana in a designated smoking room constitutes a “reasonable accommodation” under the Americans with Disabilities Act.

For the original articles on Washington’s Marijuana Laws:

In the Weeds: An Employer’s Perspective on Managing Employees Who Smoke Marijuana and Requiring Drug Tests by Tami Becker Gómez

Legal High: A Primer on I-502 and Washington’s Recreational Marijuana Law by Samantha Noonan.

None of the above should be considered legal advice, but is instead offered to provide information and address rising issues in the Washington hospitality industry related to Initiative 502. Please contact an attorney for specific legal advice.

Garvey Schubert Barer Answers Early Questions on Seattle’s Complex Wage Ordinance

Provided by WLA Allied Member Garvey Schubert Barer

(June 6, 2014) Seattle’s new $15 minimum wage ordinance provides that all employers will be required to reach the $15 per hour wage over a period of years, depending on their number of employees. Very generally speaking, and subject to a number of specifics touched on below, employers with 500 or fewer employees will be required to pay $10.00 an hour starting on April 1, 2015, and will make annual increases culminating in $15.00 an hour in 2021. Employers with more than 500 employers will need to pay $11.00 an hour starting in April 2015, and will reach $15.00 an hour in 2017 (2018 for employers who contribute to employee health insurance premiums).

Employers are grappling not only with how to manage the logistics of the increased wage, but with how to read the ordinance’s many definitions and exceptions. In the coming months we expect to see rule making and legal challenges that will hopefully clarify the impacts of the ordinance. This post addresses a few of the questions we’ve been hearing so far.

Am I a Schedule 1 or Schedule 2 Employer?
Schedule 1 employers generally have more than 500 employees, while Schedule 2 employers generally have 500 or fewer employees. But it’s not that easy. If you’re a franchisee, as defined in the ordinance, you need to count all the employees employed by any other associated franchisee anywhere in the U.S.

Why does it matter which Schedule I’m in?
Whether you are regarded as a Schedule 1 or Schedule 2 Employer is important for two primary reasons: it determines how long you have to reach the minimum wage, and it determines whether you can use tips and employer-paid healthcare premiums to meet your wage obligations.

Schedule 1 Employers reach the minimum wage of $15.00 more quickly, and while their contribution to health insurance premiums can delay the $15.00 minimum wage by a year (from 2017 to 2018) neither such contributions, nor tips, can be used to offset Schedule 1 Employers’ obligations.

Schedule 2 Employers have longer to reach the $15.00 minimum wage (7 years, by 2021), and prior to reaching that number, they can use a combination of wages and tips and/or premium contributions to meet their obligations.

Some of my employees work occasionally in Seattle. Are they covered?
Hours in Seattle are covered if the employee works at least two hours in Seattle during each two week period. If you have employees who do any work in Seattle, you should carefully monitor the amount of such work and be prepared to pay the applicable minimum wage for hours spent in Seattle.

The ordinance does provide that time spent in Seattle solely for the purpose of traveling through Seattle from a point outside Seattle to a destination outside Seattle (for instance, a drive on I-5 from Renton to Everett) will not be considered work in Seattle so long as there are “no employment-related or commercial stops in Seattle except for refueling or the employee’s personal meals or errands.”

If two or more businesses are related, will their employees be counted together or separately?
The ordinance provides that for non-franchise employers (franchises are addressed in more detail below), separate entities may be regarded as an “integrated enterprise” for the purposes of counting employees and determining whether an employer is covered by Schedule 1 or Schedule 2. The concept of “integrated enterprise,” with similar (or identical) multi-factor tests, exists in other employment laws, including Seattle’s own sick and safe leave ordinance and the federal Family and Medical Leave Act (FMLA). The ordinance also contains an important exception:

“There shall be a presumption that separate legal entities, which may share some degree of interrelated operations and common management with one another, shall be considered separate employers for purposes of this section as long as (1) separate legal entities operate substantially in separate physical locations from one another, and (2) each separate legal entity has partially different ultimate ownership.”

This exception invites creative thinking about structuring (or restructuring) ownership and operations.

Is my business a “Franchisee”?
The ordinance defines a franchise as a certain kind of written agreement providing benefits (including association with a trademark) in exchange for payment of a “franchise fee.” Many employers know if they have a franchise agreement, but others may have business arrangements that are not called “franchise agreements” (for instance “management agreements”) that might qualify under the ordinance. If you determine that you are a franchisee, you will need to learn how many employees are employed by associated franchisees anywhere in the U.S. If that number is more than 500, you will be considered a Schedule 1 Employer regardless of how many employees you employ.

For more information, please contact:

Lucy Bisognano
lbisognano@gsblaw.com
(206) 816-1427

Greg Duff
gduff@gsblaw.com
(206) 816-1470

Diana Shukis
dshukis@gsblaw.com
(206) 816-1475