WLA joins lawsuit against Washington State Liquor and Cannabis Board over rules restricting options for negotiating liquor pricing.

(Oct. 11, 2015) The Washington Lodging Association joined the Washington Restaurant Association in a lawsuit filed last week against the Washington State Liquor and Cannabis Board (LCB) over new rules that would restrict options for negotiating liquor prices. Northwest Grocery Association and Costco have also joined the suit.

The rules, which the LCB adopted in September, establish a strict system of uniform quantity discounts for spirits that specify when and how volume discounts can be calculated. Businesses are prohibited from taking advantage of product promotion and pricing specials, including “family plans,” and from establishing a customer relationship beyond a single, one-time order. The rules are harmful and unfair to restaurants and hotels, and WLA and the WRA believe the courts will ultimately find the rules to be illegal.

“We think it’s pretty simple – price should be determined by the willingness of a customer to pay the price, and the willingness of the buyer to sell at that price, the way it works for ‘goods of all kinds,’ as permitted under the law,” said Bruce Beckett, WRA’s Director of Government Affairs.

Over the last two years, the WRA has been in vocal opposition to a barrage of LCB rules that appear to violate Initiative 1183, the liquor sale privatization measure passed in 2011. As a result, the LCB has received dozens of detailed comment letters and heard from more than 150 local restaurants about the harm the rules will cause, including price increases for customers. It is unfortunate that the LCB has not chosen to acknowledge the concerns of these Washington businesses.

“It was frustrating when the LCB violated the law during the implementation of privatization three years ago. But our objections were affirmed in court when the LCB rule to restrict purchasing options for restaurants was overturned,” said Beckett. “This will be the second time the Board has ignored the impact on small business, and the second time we ask a court to overturn rules that violate the law and impede restaurants and bars from legally acquiring product to run their business.”

Washington’s state minimum wage will stay the same in 2016.

Convention & Trade Show Sponsors

DOJ approval of Expedia’s acquisition of Orbitz means 95% of all online travel agency bookings will be controlled by two players.

Much to the disappointment of the American Hotel & Lodging Association (AH&LA), the Department of Justice has approved Expedia’s acquisition of Orbitz. AH&LA has lobbied against the deal because it consolidates almost all bookings by online travel agencies, or OTAs, in a duopoly.

“By approving this deal, only two players control the online marketplace: Priceline and the behemoth Expedia, now owning Orbitz, Travelocity, Hotels.com, Hotwire, Cheap Tickets, and Trivago,” says Katherine Lugar, AH&LA’s President & CEO. Priceline owns Booking.com, OpenTable and Kayak.

“As we’ve said all along, this transaction will result in significant negative consequences for consumers and also the large number of our members who are small businesses and independent hotels. It could lead to increased distribution costs for independent hotel owners who risk seeing booking commissions rise by double digits.”

The association’s advocacy has raised public awareness about the negative impact of online travel consolidation and garnered prominent national media attention in the press. Lugar promises that AH&LA will continue to take action on decisions that threaten the industry and harm guests. The Expeida/Orbitz debate has increased awareness follows the association’s significant work on deceptive online practices, which has generated more than 300 million media impressions.

Additional Resources:

American Hotel & Lodging Association statement on the Department of Justice approval of Expedia’s acquisition of Orbitz (September 16, 2015)

“Expedia and Orbitz are merging. Here’s what it means for you.” (The Washington Post, September16, 2015)

Completion Of $1.6B Orbitz, Expedia Merger Further Whittles Down Online Travel Agency Options (The Consmerist.com, September 17, 2015)

Congress is negotiating legislation that includes repeal of drastic cuts to the military per diem rate and representatives need to hear from you.

(Sept. 4, 2015) Earlier this year, the Department of Defense dramatically cut the military per diem allowances for employees on long-term travel assignments, and a repeal of these drastic cuts is in the offing. AH&LA has been advocating for a repeal of this harmful policy, which cuts the per diem allowance for workers who are on assignment for more than 30 days by 25 percent, and for those traveling for more than 180 days the per diem was cut by an astounding 45 percent. You help make this repeal a reality.

The military per diem policy is distinct from the per diem rates announced recently by the General Services Administration (GSA), and these lower rates could be very damaging to hotels that cater to military bases. It also sets a bad precedent for per diem policy in general.

Representative Derek Kilmer (D) of Washington State’s 6^th District introduced bi-partisan legislation to repeal the policy, and worked with Representative Mark Takai of Hawaii to get the legislation added to the National Defense Authorization Act. The Act was approved by the House of Representatives, while the Senate version of the NDAA includes a requirement that the Pentagon study the impact of this policy, which is not nearly as strong as the House provision.

The Senate and House are currently negotiating a final version of the NDAA to send to the President, and it is vital that hoteliers push Congress to preserve the House legislation which would repeal the Pentagon cuts to per diem allowances. That’s why Congress needs to hear from you. Adding your voice to this discussion will help ensure that we preserve these important allowances.

Contact your Members of Congress now by clicking here. It only takes a few minutes and will have a profound impact on our industry and those federal workers and their families who benefit from these allowances.

For more information or if you have any questions, please contact Craig Kalkut, AH&LA’S vice president of government affairs at ckalkut@ahla.com.

Joint WLA/WRA Operations to Begin October 1.

(September 2, 2015) This week the Washington Lodging Association and the Washington Restaurant Association signed a joint operating agreement and a master services agreement establishing a framework for working collaboratively on all fronts. Under the agreements, the WRA will provide management services to WLA out of its Olympia office, and current members will have dual membership in both associations.

Joint operations, which begin October 1, will leverage the WRA’s extensive staff resources. The membership and business development teams have already begun reaching out to WLA members to help them take advantage of expanded opportunities that come with dual membership.

Joining forces gives the hospitality industry a stronger voice and increases the capacity to address challenges at both the state and local levels. By working together, WRA and WLA will have an expanded government affairs team which includes staff and contract lobbyists as well as local representatives in key areas.

While the WLA and WRA Boards of Directors will remain in place over the next year, Directors from both organizations will begin working together on committees this Fall. A Joint Executive Committee is in place and the first joint Board of Directors meeting will be held in November in conjunction with WLA’s Annual Convention & Trade Show.

WRA’s CEO & President Anthony Anton will lead both associations, and Matt Van Der Peet, WLA’s chair and the general manager of Sheraton Bellevue Hotel, will serve as WLA’s president. The leadership of both associations remain committed to launching a unified hospitality association in 2016.

Magazine focusing on WLA and WRA merger mailed to members.

Area coordinators: your local connection to new unified hospitality association and member benefits.

In the unified hospitality association being formed by WRA and WLA, member services will draw on WRA’s successful area coordinator system. There will be 10 area coordinators based around the state, giving members a close connection to the association no matter where they live. As part of the transition WRA’s current area coordinators will begin reaching out to WLA members in August.

A unique model of engagement
When the Washington Restaurant Association developed the concept of area coordinators in 1996, the idea was borne from the need to connect. Since then, area coordination has become one of the key concepts that defines the WRA’s operations and sets its organizational model apart from many other associations.

“Part of the original plan was to engage restaurateurs directly, connect them with legislators and catalyze the beginning of a grassroots advocacy program,” said Anthony Anton, president and CEO of the WRA.

The WRA learned from its members that they wanted a relationship with the association that went beyond information and news reports. They wanted someone they could call, someone they knew, someone who would get the ball rolling for them in whatever direction their current needs dictated. Members needed someone to guide them through the noise, someone with a clear understanding of the industry and a menu of solutions for the ills a restaurant might encounter.

What members needed was a first response team, a restaurant 911.

“At its core,” said Anton, “the heart of the area coordinator program is to enact better community connection and stronger political influence within the hospitality sector.”

When asked if the creation of area coordinators had worked as he hoped it would, Anton replied, “In my mind, it’s a wild success, but there has been a definitive learning curve. From the get go, the program has achieved what we set out to do, and along the way, we have refined the system and calibrated it based on feedback from members and area coordinators. After each iteration, we come that much closer to ‘spectacular.'”

In fact, members who enjoy close ties to their area coordinator list that relationship as one of the great benefits of being a member of the WRA.

Initially, the association assumed that the best candidates for the position would be people with a background in sales. The WRA also hoped that area coordinators would aid retention initiatives.

“We thought experience selling memberships would be a critical skill for the position,” said Anton. “What we learned was that the most crucial ingredient for an area coordinator to meet with success was a deep commitment to hospitality, in general, combined with a caretaker attitude. We wanted people that involved their hearts and passions. Initially, figuring out just who exactly was the right person to be an area coordinator was our toughest challenge. Now, however, we have a clear understanding of the type of professional who fits best in the AC role. Essentially, we want our members to feel like they have another strong and dedicated member on their team.”

More members, more support
The WRA area coordinators have given a personal touch to WRA for almost two decades, and this model will be expanded in the new combined hospitality association and extended to WLA members.

As part of the transition, the WLA and WRA membership teams are merging, in July, and area coordinators will begin reaching out to WLA members in August to introduce themselves and the area coordinator system. The plan is for 10 area coordinators, each locally based to support members throughout the state with close, personal ties to the association. And as the membership of the new association grows, so will the area coordinator team.

Cathy Fox, the area coordinator for South King County, looks forward to working with more hoteliers.

She came to the WRA with a strong background in hospitality, an academic education in political economy and personal experience running a small business. She is passionate about analyzing profit and loss scenarios in micro-economic climates. Most of all, she likes talking to business owners and operators, finding out what makes them tick, how they interface with the public and what their growth plans look like for the future.

“I am fascinated by how our members anchor communities,” Fox said. “As an area coordinator, I get to see the good work that they do beyond their walls every day.”

Area coordinators are trained to take note and pay attention to the details of your unique organization, from your operational and economic challenges to the values at the foundation of your business. From her perspective, the two most important ingredients a successful AC can bring to the table are tenacity and good listening skills.

“Good listening allows me to really find out what is on a member’s radar as an important issue,” said Fox. “Tenacity helps me be a powerful advocate for my members, but it also connects me to a community that is traditionally very hard to connect with. Business owners have limited bandwidth, and being tenacious about solutions to help them in their operations helps me help my members.”

Donna Tikker, the WRA area coordinator for the Spokane area, also takes her role seriously.

“I have a motherly attitude,” Tikker said. “I want to help people succeed, and that desire comes right out of my heart. ACs are interested in members. They ask questions and they have a deep curiosity, and they have a tool kit to move an operator toward success.”

One of the ways Fox, Tikker and the entire AC team will help members is to connect them with all of the benefits and programs available through the association. Whether it is credit card processing, health insurance or music licensing, to name just a few of the items on the menu of cost-saving programs available to members, ACs have solutions that help members save time and money.

The desire to strengthen grassroots action within communities across the state was a key factor in the creation of the WRA area coordinator lineup, and ACs will play a critical role in engaging members in government affairs in the new association. They reach out when calls to action are critical to the industry’s success in Olympia, and they strengthen relationships between members and lawmakers by encouraging participation in the annual legislative Hill Climb.

WRA area coordinators are also a decisive means for association members to share their point of view and issues of concern, whether it is something that only affects their business or affects the industry as a whole. They are a great conduit, and although members have multiple channels through which they can contact the association, a real meeting with a real person is a great way to share information and find effective solutions.

All members—new or old, WRA or WLA, hotels, restaurants or allied vendors—are encouraged to connect with their area coordinators. Take their calls when the reach out to you or give them a call and invite them for a cup of coffee. Start a conversation. Tell them and us what is important to you on a daily basis. What keeps you up at night? Your area coordinators want to know. They are ready to listen.

For more information on membership in the new association, Area Coordinators contact Jennifer Hurley, the WRA’s Membership Administrator by emailing jenniferh@warestaurant.org or by calling 360.956.7279.

Governance of new hospitality association: expanding capacity and opportunities for innovation

Like any wise couple contemplating a wedding date, the Washington Restaurant Association and the Washington Lodging Association are not rushing into marriage. Indeed, the union between these two key players in the hospitality industry has been carefully thought out in great detail since discussions on working more closely together began in 2012. A good example of the careful planning that went into this combining of forces can be seen in the new, united organization’s proposed governance structure.

The new organization’s combined leadership capabilities and viewpoints will create more opportunities for innovation, as well as expand its ability to effectively represent the hospitality industry.

“We need to be stronger together,” said WRA president and CEO Anthony Anton. “We can spend more money on member value and less on administration. I am most excited about our ability to strengthen our industry through our industry connections to each other, our community and relationships and your association.”

The details
“A great deal of time was spent making sure that we all have good representation on the Board, geographically and across our industries,” said Matt Van Der Peet, WLA Board chair. “Whoever will be part of the Board will be individuals who are fully engaged. It will be a Board that well represents all entities within the new association.”

When combined operations begin on October 1, the governing Board will be made up of WLA and WRA’s current Board members and officers. In July 2016, a new 30-member board will take office. For the first two years, there will be dual chairs, vice chairs, treasurers and immediate past chairs, one from the WLA, one from the WRA. In 2017, the full Board will have 26 seats with the chair, vice chair, secretary/treasurer and immediate past chair as officers. The Executive Committee will be made up of these voting officers, the president/CEO plus the chairs of the Education Foundation and the Member Services Corporation.

Nine Board members will be elected based on the number of employees in their restaurant or hotel; three allied members; six at-large members, including the chairs of the RETRO Committee and the Education Foundation; and four additional Board members – one each from the Seattle Restaurant Alliance and the WRA’s Spokane Chapter and one each from the Seattle and Spokane lodging associations. With the exception of officers, Board members will be limited to two terms of three years. Officers will have one-year terms and be eligible for reelection to a second one-year team.

The Board Development Committee, which will have equal representation from the two associations, will nominate candidates for the new Board, who will be elected by a twothirds majority of the Board.

“We’re really looking at this as an opportunity to have all the best minds in the same room,” said Phil Costello, WRA Board chair. “The Board is going to be made up of the right people, no matter where they’re from.”

Best and brightest
“Having a unified board will provide much stronger representation for the hospitality industry,” said Stan Bowman, president and CEO of the Washington Lodging Association. “The greatest strength is the balance between sectors of the hospitality industry. We will seek the most talented members to represent us on the board.”

Prospective Board members will be chosen from those who distinguish themselves on committees.

“The leadership of our organizations asked ‘How do we get the best and brightest on our Board to provide the vision needed to lead hospitality to great heights?'” said Anton. “This means getting away from outdated structures that dictate percentage of makeup, and focusing on developing the great leaders of our community.”

According to Bowman, one of the great strengths of the new organization will be the opportunities to get involved and connect.

“WRA has great experience with committees, and the new association will similarly tap into the talents and skills of members who want to serve the industry,” Bowman said.

“We recognize that people still need to know the association speaks for them,” said Anton. “To do this, we’ve guaranteed chapter leadership slots on the Board as well as a minimum of two executive committee members from each industry on the seven person executive committee and alternating chairs. I think this is a great blend of the needs of a great Board.”

A letter from WLA and WRA’s presidents and CEOs: A new association for a new era.

Seattle Minimum Wage: You might be a larger employer than you think

• Share common management
• Have centralized control of labor relations
• Have some common ownership or financial control

“Joint employment” is another gray area that can trigger the faster increase schedule. You might be considered a joint employer if you have temporary workers through a staffing agency or your business contracts with a landscaping and gardening service. The factors that determine whether or not you must consider these workers in your employee count include 1) the degree of direct or indirect supervision; 2) the power to determine pay rates; 3) the right to (directly and indirectly) hire, fire, or modify employment conditions; and the 4) the preparation of payroll and the payment of wages.

Given the complexity of this classification, if you have the possibility of being a joint employer or having an “integrated enterprise,” you may want to contact the Seattle Office of Civil Rights to ensure that you are following the law. For more detailed information, you should contact a wage and labor lawyer.  Please refer to our vendor partners to find attorneys specializing in hospitality or call our office to connect with advisory network now available through our partnership with the WRA.

Additional Articles:

Employer Types and Schedules

Tips

Posting Requirements

Additional Resources

WLA/WRA Guide to Seattle’s Minimum Wage

Seattle Minimum Wage Ordinance

Fact Sheet for Large Employers (501 or more employees)

Fact Sheet for Small Employers (500 or fewer employees)

City of Seattle Minimum Wage and Wage Theft Workplace Poster

AH&LA asks members to help fight patent trolls and the risk of frivolous lawsuits.

(July 7, 2015) In the next few weeks, the United States House of Representatives is expected to vote on The Innovation Act of 2015 which will help protect the hospitality industry from frivolous lawsuits brought by patent trolls. The American Hotel & Lodging Association (AH&LA) is urging members to ask their congressional representatives to support this critical legislation.

“Patent trolls” purchases old patents with the sole purpose of using these patents to threaten expensive lawsuits in order to extort money from legitimate businesses. They are hurting the hotel industry by using the threat of litigation to force hotels to settle dubious claims or pay licensing fees.

The Innovation Act of 2015 will help close the loopholes in our legal system that allow trolls to thrive. Of particular importance for our industry, the legislation will:

· Protect end users of products like hotels that offer Wi-Fi service by ensuring claims between a patent owner and the product
  manufacturer go through the legal system first;

· Crack down on abusive demand letters sent by trolls to extract money from innocent business; and

· Deter trolls by giving judges the power to force those who bring frivolous lawsuits to pay all legal fees.

AH&LA has been involved in addressing the problem of patent trolls since 2011 when a company armed with recently purchased patents sent thousands of demand letters targeting hotels and cafes that provided Wi-Fi for customers. The troll demanded as much as $2,500 per location. Wi-Fi router manufacturer Cisco stepped in to defend its customers and reached a settlement in 2014.

The Innovation Act is designed to prevent this kind of trolling. It has strong momentum in Congress, but there are opponents looking to stop the bill in the House. Help ensure its passage by contacting your representatives. Click here to find your representative in Congress.

Sample Letter

Subject: Support H.R. 9 – The Innovation Act of 2015

I urge you to support the H.R. 9, the Innovation Act of 2015, when it comes to the House floor. This legislation will take important steps to stop patent trolls from gaming the legal system to extort legitimate businesses like mine.

Patent trolls do not produce goods or services. They contribute literally nothing to the economy. They simply abuse the litigation system and make vague threats to extract money from productive companies.

Patent trolls are hurting the hotel industry. They use the threat of expensive lawsuits to force hotels to settle dubious claims or pay licensing fees. Money paid to trolls for licensing or settlements is money that is not invested in businesses or used to create jobs.

The Innovation Act will close many of the loopholes that allow trolls to thrive. Every reform in the legislation is critical. Only Congress can solve the problem of patent trolls, and I urge to move one step closer by supporting the Innovation Act when it comes to the House floor.

Sincerely,
(Name)
(phone and email address)
(Address)

(You may also include your business name, job title and business contact information.)

Third time is a charm: Record legislative session finally adjourns after Senate reaches deal on closing $2 billion budget hole.

Washington’s 2015 Legislature adjourned today after a record 176 days and triple overtime session. Despite protracted negotiations and brinksmanship that narrowly averted a partial government shutdown, lawmakers preserved a budget deal that resolved their differences on how to meet the state Supreme Court mandate to put more money into the state’s education system without raising taxes.

Operating budget passed, signed and almost
Last week state lawmakers thought they were heading home after finally passing a budget, yet things did not go according plan. With negotiated agreements on the operating budget, a transportation package and the capital budget in hand, Gov. Jay Inslee and the legislators began last Tuesday expecting they would avoid a government shutdown, complete their work and adjourn sometime Tuesday night. Only the first of those three expectations were met.

Just 30 minutes before a partial government shutdown, the governor signed Senate Bill 6052, making appropriations for the 2015-17 fiscal years. There were big smiles and glowing comments about a “great budget” that lowers college tuition and boosts funding for education, mental health, children’s services and employee salaries without levying new taxes (apart from closing a few “loopholes” and allowing some tax preferences to expire). Those smiles faded fast as legislators returned to their chambers to confront a rising rebellion putting the capital budget, transportation package and even the already passed operating budget seemingly all at risk.

Budget falters on timing of class-size reductions
The budget agreement reached by negotiators assumed Initiative 1351 would be amended to defer its costly requirements. The plan was to delay class-size reductions and changes in the school employee staffing formula for four years, saving an estimated $2 billion. In accordance with that budget agreement, the House passed House Bill 2261, but the Senate was unable to muster the 33-vote supermajority it needed to pass the bill. A contingent of Senate Democrats, largely made up of Senators from the Puget Sound region, withheld their support because they wanted to see a delay in the high school biology test requirement. That created a $2 billion hole in the $38.2 billion state operating budget. This week, however, the Senate passed legislation to delay the high school graduation requirement for two years and to defer class-size reductions for two years.

Agreement found on $16.1 billion transportation package
The budget agreement also faltered on a transportation package that raises revenue, primarily through an increase in the gas tax, to fund new projects and increased maintenance for the transportation system. The 16-year plan spends $8.8 billion on state and local road projects and $1.4 billion on maintenance and preservation. An additional $1 billion would go to non-highway projects, such as bike paths, pedestrian walkways and transit. It also would allow Sound Transit to ask voters to pay for potential expansions of its rail line. This week legislators agreed on an 11.9-cent increase in the gas tax over the next two years and bonds to help cover the costs.

WLA and WRA publish minimum wage guide to help Seattle members comply with complex local law.

WLA and WRA combine membership and communications teams in advance of combined operations.

Tips in Seattle: Understanding what the new minimum wage ordinance means for employers with tipped employees.

The Washington Lodging Association and Washington Restaurant Association commissioned a legal analysis of Seattle’s Minimum Wage Ordinance to help their members understand and comply with the complex new law. The result is the Seattle Minimum Wage Ordinance Guide (MWG), which gives an overview of all aspects of the wage law. The two associations are also partnering on a series of articles, the first of which looks at tips. Tips: An overview of the legal requirements.

The Seattle Minimum Wage Ordinance is complex, and how it handles tips is particularly complicated.

First off, you need to know that there are different tip rules for Schedule 1 and Schedule 2 employers. Figure out which type of employer you are here. You’ll see that while the number of employees counts, size isn’t the only difference between the two types.

Schedule 1 employers, also called “large employers,” are allowed to use tips towards meeting the difference between minimum wage and minimum compensation. What are the differences? Click here to learn the difference. (Also, check page 16 of the MWG). Want to know what payments are included in compensation? Check the bottom of page 18 of the MWG).

If you are a Schedule 2 “small employer,” you can apply tips towards an employee’s minimum compensation if the tips are:

• Retained by the employee.
• Reported to the IRS (as all tips should be).

Tips can only bSmall employers can only count tips towOnly counted during time spent by the employee working in a tipped position. (If they do something non-tipped, it can’t you can’t count it. Learn about tipped positions at the top of page 22 in the MWG).
Minimum wage and overtime laws are typically applied on the workweek basis, and we recommend you average tips over the workweek. Averaging tips over the workweek will be more consistent, less confusing, and less likely to be viewed as a violation. (See pages 22 and 23 of the MWG for more on this.)

For large employers, applying tips towards minimum compensation can create complications in calculating the employee’s overtime rate of pay. Find an examplehere. (Also see the MWG page 24 and 25. Overtime calculation rules are on page 11.)

Be sure to keep payroll records for at least three years. Tips that demonstrate the payment of minimum wages and minimum compensation to each employee must be included in your records. (See page 11 of the MWG).

Give written notice if you count tips in wage calculations If you are going to count tips in the wage calculation, you must provide written notice to your employees with specific information or have a poster on display that details this information. You can get a breakdown of that information on pages 26 and 27 of the MWG. Or, you can use these sample letters as a guide:

Sample Letter: Current Tipped Employees
Sample Letter: Tipped Employees At Time of Hire

Finally, there are many ways in which service charges and tips go hand-in-hand. We will be covering service charges in future versions of this email update. For now, you can read extensively about service charges in the MWG.

For more information about the MWG, or help with questions about the implementation of the new Seattle Minimum Wage ordinance, please call WLA at 206-306-1001.

When a dog is not a pet: Five things you should know about service animals.

AH&LA educates lawmakers and consumers about deceptive online booking practices.

Higher state revenue forecast unlikely to resolve budget standoff before end of special legislative session.

(May 29, 2015) Gov. Jay Inslee called legislators back for a second special session today after they failed to resolve the budget impasse in the first special session. The distance between the Republican-dominated Senate and Democratic House is so great that even the 3% increase in the latest revenue forecast did little to bridge the gap over taxes and how to fund education.

TK Bentler, WLA’s government affairs counsel, provided this overview of the key issues going into a second special session:

Is there a need for new taxes or can the budget adequately be funded within current law revenues?
The May 18^th Revenue Forecast increased the General Fund State account by $106 million for the 2013-15 biennium and an additional $309 million for 2015-2017. The state also expects more than $100 million extra in federal money for 2015-2017 and potentially an increase in marijuana tax revenue. Republicans say that the new revenues mean there is no need for any new taxes. Democrats disagree. The Governor acknowledged that new revenues mean the size of the tax package that he initially proposed can be scaled back, but he continues to push for new revenues as does House Democratic leadership alleging the Republican budget is unsustainable without additional revenues.

If new revenue is necessary, where should it come from?
During the special session, Democrats focused on two major sources of revenue: a potential capital gains tax on the state’s wealthiest people and a tax/fee on carbon. Republicans adamantly oppose both those sources. Republicans also note their staunch opposition to the increase in the B&O tax on services which was included in the initial House Budget. However, prior to the most recent forecasts, there had been some signal from the Republican leadership that they were willing to consider some of the other, relatively smaller, tax “loophole” changes proposed by Democrats such as the tax on bottled water in exchange for enactment of their “jobs package” which includes extension of some tax preferences for targeted industries.

Funding the McCleary Decision –– Property Tax levies and Teacher Salaries
Both sides are close on the level of appropriation needed to adequately fund education. The biggest difference is that the Senate appropriates less to “catch up” on teacher cost-of-living increases. Greater differences arise from their respective proposals for how to respond to the Supreme Court’s demand that the Legislature address the disparity between rich and poor school districts which results from differing local property tax levy capacity.

Since many districts use local levies to increase teacher pay, the what and how of teacher compensation is also a key negotiating issue. Republicans propose a “revenue neutral” property tax reform package that would lower local property tax levies and raise the state school levy. They would also establish a statewide salary system for teachers with regional adjustments for differential cost of living. Taxpayers in property-rich districts, largely in the Puget Sound corridor could see their taxes increase under that proposal while about 60% of taxpayers would see their property taxes decline.

Democrats oppose the “levy swap,” and instead propose a capital gains tax to raise money for education while further studying how to address the need to equalize funding among rich and poor districts.

Addressing Climate Change – Cap & Trade, Low Carbon Fuel, and the Transportation Budget
The Governor continues to insist that this Legislature must act on his climate change initiative. Republicans have generally opposed taxes on carbon, whether in the form of the governor’s proposed Carbon Pollution Act (CPA) or the Low Carbon Fuel Standard (LCSF). To prevent the Governor from imposing the LCSF by executive order, the Senate’s transportation package included a “poison pill,” which would take money away from transit and other environmental priorities in the transportation budget if an LCSF is imposed. That remains a stumbling block for transportation negotiations.

Though their ideas of a path forward differ from the Governor’s, Democrats in the House and Senate still seem to be pushing hard for some carbon pricing mechanism. The House Appropriations Committee held a hearing on a proposed substitute for HB 1314, the Governor’s carbon pollution market program, but in the face of broad opposition House leadership appears to have put that bill aside. That, in turn, seems to have increased House D commitment to removing the poison pill, perhaps stiffening their support of the low carbon fuel standard.

The Senate proposed a number of transportation system “reforms,” most of which the House and Senate transportation negotiators have been able to work through. But they continue to face a major stumbling block regarding the use of sales tax revenues from highway construction projects. Currently those sales tax revenues are part of the general fund and are relied upon for the operating budget. The Senate shifts those revenues to the transportation budget. The House insists that such a shift cannot be made without identifying an adequate and sustainable source of replacement revenues to keep the operating budget whole. Resolving that issue is essential to reaching agreement on both the operating and transportation budgets.

WHAT’S NEXT?
To avoid a partial government shut-down, Legislators must pass an operating budget before July 1. A second special session convened on May 29 would have to end by June 27. History would suggest that legislators will be unwilling to compromise and unable to conclude their work much before then. But this year there is tremendous pressure to finish before June 12. This is because with the US Open at Chamber’s Bay, legislators cannot count on finding available or affordable lodging near Olympia later in the month and traffic congestion is expected to add hours to their commute times. That may create enough incentive for budget negotiators to quickly reach agreement on the unresolved issues and adjourn in early June.

Negotiators are keeping their cards pretty close to their vest, so it’s difficult to predict what a compromise might look like. However, it is unlikely that the Legislature will adopt any major new taxes, whether a capital gains tax or carbon pollution fee, or increase the B&O tax.

Some new revenue may be brought to the table by allowing some tax “loopholes” to sunset. Negotiators will likely push the property tax levy and teacher bargaining questions forward for consideration next year while reaching a compromise on the amount allocated for teacher cost of living raises. There’s some indication that a compromise could be reached on phasing in a low carbon fuel standard and possibly shifting some portion of future highway construction sales tax revenues to the transportation budget. If not, the transportation package which has been a top priority for the business community for five years could be tabled until 2016.

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