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

AH&LA Issues Statement in Support of Lawsuit Against Seattle Minimum Wage Ordinance

WLA’s Board Supports Lawsuit Challenging Franchise Language in Seattle Wage Ordinance

AHLEI Publishes Highly-Anticipated Revision of Uniform System of Accounts for the Lodging Industry

Resources Help You Prepare for OSHA’s New Focus on Inspections and Fines

The Obama administration has put the teeth back in OSHA’s bite, and according to WLA allied member Fisher & Phillips, all employers are in OSHA’s inspection crosshairs. Would your company be prepared if you opened the door today to find an OSHA compliance officer ready to inspect your business? Here are some important learning opportunities to help you prepare for a possible inspection.

Upcoming Safety Class on Hazard Communications

OSHA has updated its labeling and communications requirements for hazardous materials, and a safety class offered in partnership with WLA on September 23 from 8 a.m. to 10 a.m. in Seattle will help properties implement a hazards training plan for labeling, warning pictograms, safety data sheets, storage and handling of hazardous materials and more. As with all safety classes offered through WLA, members receive four free registrations each year. Register here.

Free Webinars to Help Prepare for and Respond to an OSHA Inspection

The Workplace Safety and Catastrophic Management Practice Group at WLA allied member Fisher & Phillips is presenting a free series of webinars to help businesses prepare for and respond to an OSHA inspection. The series covers OSHA’s enforcement and regulatory focuses and provides in-depth analysis of best practices for workplace safety and health. Register now and put each of these important learning opportunties on your calendar.

Catastrophic Accidents: Prevention and Handling
September 16, 2014 from 11:00 a.m. to 12 p.m.
No employer ever expects a catastrophic workplace accident or incident to occur at their work site, yet the fact is that these events do happen and it is critical that you have an effective response plan in place. Learn the essential components of a comprehensive program both from a regulatory and “common sense” perspective; best practices you might want to consider for a catastrophic incident response; and practical and proven strategies for establishing an effective internal and external communications process. Register here

13 Strategies for Improving Your Safety Program
October 21, 2014 from 11:00 a.m. to 12 p.m.
This webinar will examine the new enforcement-focused OSHA and its new special emphasis programs as well as safety legislation changes being considered by Congress. It will also review the essential elements of OSHA compliance, effective workplace safety and health programs, and how safety compliance, when used properly, can be a “profit center” rather than an administrative cost. Register here

OSHA’s Focus on Safety Incentives, Severe Violations Enforcement Program
November 18, 2014 from 11:00 a.m. to 12 p.m.
The webinar will examine new OSHA programs and look at new issues inspectors are focusing on, including the training and supervision of temporary employees, the implementation of safety incentive programs and whether or not these programs retaliate against injured employees. The webinar will also address OSHA’s severe violations enforcement program for wrongful and egregious violations. Register here

PAST WEBINARS

How to Handle an OSHA Inspection, Including Third Party Participation
Do you know your legal rights and how to handle an inspection from an enforcement-driven OSHA? Learn how to conduct a pre-inspection of your facility and correct any errors you find before an OSHA inspector sets foot on your property. This webinar also covers a step-by-step strategy for handling an OSHA inspection, including what not to say or do during the inspection, how to handle document requests from OSHA and the best way to handle employee and management interviews and potential whistle-blowers. View webinar here

Seattle’s New $15 Minimum Wage Starts Phasing in on April 1, 2015

(June 2, 2014) Seattle’s City Council unanimously passed an ordinance that will raise Seattle’s minimum wage to $15 an hour for all Seattle employers.

The ordinance establishes phased-in wage increases starting April 1, 2015. It requires large businesses with 500 or more employees in the US to start paying a minimum of $11 an hour by that date and to reach $15 by January 1, 2017. Large businesses that provide health care benefits have an additional year to reach $15.

Businesses with fewer than 500 employees in Seattle or nationally must reach a $15 an hour minimum wage by 2021, and they have until 2019 to meet a minimum compensation requirement of $15 if they combine employer-paid health care contributions, consumer-paid tips, and employer-paid wages.

Seattle’s minimum wage is tied to inflation, and the city projects that by 2025 the minimum wage will be $18.13 an hour, nearly double the state’s current $9.32 an hour.

Franchisees are recognized in the ordinance as large businesses if their brand has more than 500 employees nationwide. WLA has been partnering with the American Hotel & Lodging Association, the International Franchise Association (IFA) and other organizations to address this discriminatory treatment which will not only greatly increase labor costs for franchisees, but will permanently damage the franchise business model by singling out franchise business owners for punitive regulatory treatment.

Immediately following the City Council vote, IFA issued a press release announcing that it would file suit to challenge the unfair and discriminatory minimum wage plan, noting that decades of legal precedent have held that franchise businesses are independently-owned businesses and are not operated by the brand’s corporate headquarters. IFA CEO and President Steve Caldeira calls the treatment of franchisees in the ordinance “unfair, discriminatory and a deliberate attempt to achieve a political agenda at the expense of small franchise business owners.”

The ordinance will give Seattle the highest minimum wage in the country and includes the following provisions:

• Businesses with 500 or more employees in Seattle or nationally must start paying a minimum wage of $11 on April 1, 2015 and must increase the wage to $15 an hour by January 1, 2017.
• Large businesses that provide health care coverage have an extra year to reach $15 an hour.
• Businesses with fewer than 500 employees must start paying a minimum wage of $10 on April 1, 2015, and then follow the city’s schedule to reach $15 an hour by 2021.
• Businesses with fewer than 500 employees can count tips and health care costs as part of total compensation for the first five years of a seven-year phase-in. These businesses must start at $11 an hour on April 1, 2015.
• Franchisees are considered large employers if the franchise has 500 or more employees nationwide.
• Once the $15 an hour wage is reached, it will be increased annually on January 1 on a percentage basis to reflect the rate of inflation.
• A training wage is included, but businesses must apply for certificates similar to the state’s program.
• A city director will have the authority to establish a sub-minimum youth wage for 14- and 15-year-olds.

With the passage of this complex ordinance, the city will now begin drafting rules for its implementation. The Washington Lodging Association and the Seattle Hotel Association, with support from the American Hotel & Lodging Association, will be actively engaged in the rule-making process to protect the interests of lodging owners, operators and employees in Seattle.

Read Related Articles

WLA’s Board Supports Lawsuit Challenging Franchise Language in Seattle Wage Ordinance

Federal Lawsuit Filed Against City of Seattle for Discriminatory Treatment of Franchisees Under New Wage Ordinance

Attorneys with WLA allied member Garvey Schubert Barer answer questions on wage ordinance here.

New Study Shows Extreme Wage Initiatives Pose Significant Consequences for Hoteliers & American Workers

Forward Seattle files charter amendment that would replace $15 ordinance with straightforward $12.50 minimum wage for all Seattle businesses by 2020

Support WLA’s Efforts to Advocate on Behalf of Washington’s Lodging Industry

Join WLA

Your membership makes it possible for WLA to advocate locally and at the state level on behalf of your business and Washington’s lodging industry as a whole.

Contribute to the WLA Political Action Committee

The WLA PAC helps elect lawmakers who are hospitable to the business of lodging and supports campaigns that represent the interests of our industry.

Study Shows Extreme Wage Initiatives Pose Significant Consequences for Hoteliers & American Workers

(June 2, 2014) The American Hotel & Lodging Association (AH&LA) and the Asian American Hotel Owners Association (AAHOA) today released a groundbreaking new national study on the impacts of extreme local wage initiatives on the U.S. hotel industry and small businesses across the country.

The study, “Extreme Wage Initiatives and the Hotel Industry: Impact on Local Communities and the Nation,” was conducted by John W. O’Neill, Ph.D., director of the school of hospitality management at The Pennsylvania State University, and is the first of its kind to examine in detail the potential negative economic consequences of extreme local wage initiatives. One key area of focus is the current proposal in Los Angeles, California to increase the local wage for hotel workers to $15.37 per hour. The study finds that implementation of this increase could result in:

• A total job loss of 1,394 hotel staff positions
• A loss of $106.1 million in annual guest room revenue
• $16.4 million in lost hotel occupancy taxes
• $2.9 million in lower corporate taxes
• A loss of $20.1 million in hotel values

Most significantly, the report states, “[i]t is important to note that those in the hotel industry who would be most negatively affected by extreme minimum wage increases would be small business entrepreneurs who only own one or two hotels as their primary source of income.”

“The lodging industry – many members of which are small employers – has countless stories of men and women who have used ladders of opportunity to experience upward mobility and advancement into successful careers,” said Katherine Lugar, AH&LA president/CEO. “They have been able to enjoy this success because of the flexibility their employers have in setting wages and benefits. As this report demonstrates – and as we have seen reflected in other estimates – extreme wage increases could severely inhibit future growth and cost our economy billions of dollars. Already, the U.S. Senate refused to take action on a national minimum wage increase after the Congressional Budget Office estimated that increasing it could lead to the loss of 500,000 jobs nationwide. As an industry, we should not be faced with such a significant economic hit and, more importantly, the loss of employment for thousands of valued and hard-working men and women. These are risks we simply cannot afford to take.”

“Hospitality is at the forefront of providing good jobs to working-class Americans. Hoteliers, in particular, take great pride in offering entry-level opportunities that few other industries make available to young people,” AAHOA Chairman Pratik Patel said. “These jobs create an initial access to the workforce and the foundation for successful careers. For that reason, AAHOA is troubled by the current proposals to dramatically increase the minimum wage. This report clearly illustrates the destructive impact these proposals will have on entry-level workers and job opportunities. As small business owners, hoteliers are pillars of local communities. Our members own and operate hotels in thousands of communities across the United States. Guests often recognize us by the national brands we operate, but make no mistake, these are small business men and women who collectively help provide good local jobs to hundreds of thousands of Americans. As the report indicates, dramatic, and artificial, changes to wages will significantly impact opportunities for employment. Tens of thousands of young people will never be given the chance to start a hospitality career or gain the incredible benefits of working in our industry.”

The report also examines the overall potential impacts of an increase in the national minimum wage to $10.10 per hour, similar to the proposal introduced by Senator Tom Harkin (D-IA) that was blocked in the Senate. Nationally, such an increase could have an estimated annual impact to the lodging industry of $2.53 billion and result in sluggish hotel performance. In particular, these negative consequences could include:

• A total job loss of 12,195 hotel staff positions
• A loss of $612.3 million in annual guest room revenue
• $70.4 million in lost hotel occupancy taxes
• $146.2 million in lower corporate taxes
• A loss of $1.02 billion in hotel values

A copy of the extreme wage study is available here.

SCAM ALERT: Emails Inquiring into Renting Rooms to Minors May be Trolling for Opportunities to Sue

(June 2, 2014) The International Society of Hotel Association Executives (ISHAE) has brought a possible scam to the Washington Lodging Association’s attention. While we do not have confirmation that this scam has happened in Washington State, we want our members to be aware of this ISHAE alert.

ISHAE has been made aware of facts that strongly indicate that a scam is being perpetrated on lodging operators. Although it is possible that the sequence of events is purely coincidental, it is believed that this is not the case:

A number of hotels in California, Michigan and Kansas have received e-mails like the following:

Hello Hotel X:

We are the travel agency of a teenager (residing in Canada) for a business trip in California. Our client is 17 years of age and will travel on his own. He is interested in using your lodging services because he needs shelter.

Before arranging any travel plan, we would like to confirm that your establishment would not refuse to check him into the hotel. Can you accept our client? If not, is there any alternative or solution to accommodate him in your establishment?

We would also like to request details regarding any policy that could affect our client.

Best Regards,
Sanjiv Kumar
Reservations Agent
Horizon Access Travel, Inc.

There are several reasons why it is believed that this e-mail is part of a scam that can cost hotels thousands:

1. After extensive research, ISHAE has not been able to find the entity known as “Horizon Access Travel, Inc.” (If you find it on the Internet or otherwise, please let ISHAE know).

2. Even if it is assumed that Horizon exists other than as a name in an e-mail, it is highly unlikely, and suspicious, that the same solicitation is being sent to numerous hotels.

3. In at least two cases involving hotels that responded to the e-mail and informed Horizon that the hotels did not take anyone under 21, the hotels quickly received a demand letter from a Sacramento attorney insisting on a payment of over $5,000 to compensate his client, who is apparently the 17-year old person referred to in the e-mail. The demand letter states that because the hotel does not accept minors or people under 21, the hotel has violated California’s Unruh Civil Rights Act and Penal Code Section 365.

In Washington State, there is some legal ambiguity as to whether or not hotels may refuse to provide service or accommodations to minors. The Washington State Hospitality Law Manual, Third Edition notes that some hotels refuse to provide service or accommodations to an individual under the age of 18 years under the theory that a minor has no capacity to enter into a contract. RCW 26.28.015(4). However, it also notes that “some legal authority indicates that refusing to provide accommodations to underage persons is discriminatory and in violation of state anti-discrimination laws. This theory has not been tested in a Washington court.”

Based on all of this, it is believed that all of this is a SCAM that may subject hotels to substantial liability. It is strongly recommended that hotels DO NOT respond in any way to this e-mail.

Learn more about Washington law and renting room to minors during prom and graduation season

About the Washington State Hospitality Law Manual, Third Edition
Written in 2012 by Irv Sandman of Sandman Savrann PLLC and a distinguished team of Washington hospitality law experts, the Washington State Hospitality Law Manual is a comprehensive guide to legal issues facing hoteliers in Washington State. It is available exclusively to WLA members as a free member benefit and covers privacy rights, service animals, accessibility requirements, rights of minors, hotel liquor laws, liability, the Patriot Act, consumer protection laws, employment laws and much more.

Clearing the Smoke: Where Hoteliers Stand When Guests or Employees Use Washington’s Law to Justify Marijuana Use

Attorney Samantha (Sam) Noonan examines the intersection of Washington’s Smoking in Public Places, Medical Cannabis, and Recreational Marijuana laws.

(June 14, 2013) What happens when a hotel guest insists on smoking recreational marijuana in your hotel lobby? What about when your employee pops positive on a drug test and explains that he smokes cannabis for medical reasons? Understanding the intersection of two of Washington’s existing statutes, the Smoking in Public Places Law (RCW 70.160 et seq.) and the Medical Cannabis Law (RCW 69.51a), and Initiative 502, which legalizes recreational marijuana under Washington law, will help you respond in both cases.

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.

Washington’s Medical Cannabis Law
Under Washington’s Medical Cannabis Law (RCW 69.51A et seq.), patients with certain medical conditions are legally able to possess limited amounts of marijuana with authorization from a doctor, physicians’ assistant, nurse practitioner or naturopathic physician. RCW 69.51A.010. Qualified patients are also permitted to grow their own medicine, or find a designated provider. The law also states certain guidelines under which patients may create and participate in collective gardens for the purpose of producing, transporting and delivering cannabis for medical use. RCW 69.51A.085.

The use or display of medical cannabis in a manner or place that is open to the view of the general public constitutes a class 3 civil infraction. These use and display limitations extend to hotels and motels. Hotels and motels are not required to provide any accommodation of any on-site medical use of cannabis. RCW 69.51A.060. Moreover, the law allows employers to establish drug-free work policies and does not require an accommodation for the medical use of cannabis if an employer has a drug-free workplace.

Initiative 502
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.

Therefore, 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.

In further contrast to the Medical Cannabis Law, which allows qualified marijuana patients to engage in home growing or collective gardening, I-502 does not allow non-medical marijuana users to engage in home growing, sales or distribution of marijuana. The initiative does not address medical marijuana, nor does it change how or where medical marijuana outlets operate. Under the initiative, recreational-use marijuana must be purchased from a state-licensed retailer.

Initiative 502 allows the Washington State Liquor Control Board (WSLCB) until December 1, 2013, to write rules of a new system governing the implementation of I-502. Interestingly, I-502 does not address the topic of drug testing, but according to the WSLCB website, it is likely that employers may still elect to conduct drug testing at their discretion.

In summary, the laws and initiative discussed above are currently subject to the outcome of the rulemaking process, which is still underway.

ADDITIONAL RESOURCES

Washington Cannabis Institute

ACLU of Washington State Issue Page

Other WLA Updates on Washington’s Marijuana Laws:

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

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

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.

WLA Partners and Resources Help Members Meet Employment Demands of High Season

As the lodging industry heads into a busy high season, WLA and its allied members stand ready to help hoteliers meet their staffing and training requirements with these important resources and services.

Vendor Partner Recruitment Services

Q Hospitality Management

Q Hospitality offers a personalized, client-focused approach to management recruitment with fees well below the industry standard. WLA members receive discounts, and there is no cost if they don’t deliver.

Consolidar
The recently launched Consolidar Jobs Network connects employers with applicants who participate in Consolidar’s bi-lingual job and life skills training program. As a management consulting firm providing strategic guidance to organizations that serve Washington’s Hispanic communities, Consolidar’s goal is to support Hispanic youth and their families through health care, education and cultural reform leading to the placement of 100,000 youth into higher education or world-class jobs by 2027. Job postings are free.

Employee Training

Safety Training
Keep your staff safe and productive by taking advantage of cutting-edge safety training programs that come with WLA membership. Each member property receives four free class registrations per year and can select from classes in CPR/first aid certification, back injury prevention and other subjects that focus on maintaining a healthy workplace. Register here for an upcoming class or email us to find out about customizing a safety training program for your business.

Employment Resources

Washington State Hospitality Employment Compliance Guide
This user-friendly CD gives an overview of Washington State employment laws and includes guidelines and checklists for hiring and terminating employees as well as ready-to-use forms for applications, reference checks and performance reviews. It also includes the revised I-9 Employment Verification Form and Employer Handbook, sample vendor agreements and a guide to the Family and Medical Leave Act. The Employment Compliance Guide was created specifically for WLA members by Fisher & Phillips LLP, one of the nation’s leading law firms. An exclusive member benefit. Email to request a new copy.

Washington State Hospitality Law Manual, Third Edition
Understand your responsibilities and avoid costly litigation with this comprehensive guide to legal issues facing hoteliers in Washington State. Written in 2012 by Irv Sandman of Sandman Savrann PLLC and a distinguished team of Washington hospitality law experts, the manual covers privacy rights, service animals, accessibility requirements, rights of minors, hotel liquor laws, liability, the Patriot Act, consumer protection laws, employment laws and much more. An exclusive member benefit. Email to request a new copy.

Workers’ Comp Safety & Savings Program
With more than 200 participating hotels and restaurants, WLA’s Workers’ Comp Safety & Savings Program is one of the top-performing retro programs in the state, returning over $1 million this year alone in Workers’ Comp premium refunds. Participating members receive expert claims management support, help creating safer work places and assistance in lowering annual premiums. Learn more

Washington State Visitors’ Guide Celebrating 15 Years of Driving Travelers to Our State and Your Business

The Washington Lodging Association is proud to announce the publication of the 15th edition of the Official Washington State Visitors’ Guide.

Launched in 2000 to drive business and expand tourism across our state, it has been a popular and reliable source of top-notch travel ideas and useful resources ever since. It is now published in partnership with the Washington Tourism Alliance and SagaCity Media, Inc.

Featuring three unique covers to underscore the beauty and breadth of Washington, the Visitors’ Guide extends a compelling invitation to the state’s ten travel regions. This year its high quality travel writing highlights water adventures, music festivals, Native American museums, small towns and “local sips” stories that introduce artisanal breweries, distilleries and wineries in each region. See why the Visitors’ Guide is in such high demand by reading it online or ordering your own free copy.

The Visitors’ Guide, the official travel publication for marketing Washington State, has a circulation of 375,000 and a readership of nearly one million. It is mailed free upon request through ExperienceWA.com and StayInWashington.com and to 65,000 active and affluent subscribers of Seattle Met and Portland Monthly magazine. It also gets into the hands of travelers at visitor centers and travel locations in eight Western States throughout the trip-taking season and is sold at retail stores including Whole Foods, Barnes & Noble, QFC and Safeways in Washington, Oregon and California. Learn more about its innovative and effective distribution plan here.

The Washington State Visitors’ Guide has been enticing visitors to and throughout our state for 15 years, and WLA is grateful to our advertisers for partnering with us to grow their business and our industry. To find out about advertising in the 2015 edition, please email Jeff Adams, SagaCity’s Vice President of Custom Publishing, or call him at 206-454-3007.

U.S. House of Representatives Passes Bill to Change Definition of Full-Time Work under the Affordable Care Act

Fisher & Phillips Reviews the Top Five Legal Issues for Hospitality Employers

By Bethanie Barnes and John Mavros, attorneys with WLA allied partner Fisher & Phillips

There is much to be learned from 2013. Below are five legal topics that made headlines last year, and should provide valuable guidance for managing labor and employment law issues in 2014.

The Rising Minimum Wage
Hospitality employers should be prepared for minimum-wage increases and take note of whether these increases affect their tipped workers’ wages. Thirteen state legislatures have voted to raise the minimum wage, many of which are in effect now. For some states, like Massachusetts and California, employers have until July 1st to make adjustments to their pay plans. President Obama recently proposed that Congress vote to increase the federal minimum wage from $7.25 per hour to $10.10 and thereafter to link it to increases in the Consumer Price Index.

According to a recent litigation-trends survey (www.nortonrosefulbright.com), employers faced more wage-hour lawsuits than any other area of employment law. The popularity of wage-hour class actions among plaintiffs’ lawyers remains a real concern for employers. Also, one of the U.S. Labor Department’s (DOL) continuing enforcement initiatives is to target the hospitality industry, which they view as presenting a “high risk” for non-compliance. Last year the DOL announced five-figure settlements paid out by hotel and motel employers for failing to pay required overtime premiums.

Given the present legal climate, and the continually changing legal standards, it makes good sense to conduct your own audit to make sure that your internal procedures contain the necessary safeguards with regard to minimum wage, overtime payments, and other Fair Labor Standards Act (FLSA) compliance.

Hiring Interns
Last year, a New York federal court held that an employer’s unpaid interns should have been classified as employees, and were thus entitled to minimum wage and overtime requirements under the FLSA. Not surprisingly, more former interns are bringing lawsuits in the wake of this ruling seeking backpay.

Before you consider utilizing interns, whether paid or unpaid, consider the federal guidelines from the DOL. The Wage and Hour Division of the DOL issued a six-factor test to determine if a person who participates in “for-profit” sector internships may do so without compensation.
These criteria examine whether the internship experience is geared to providing a more educational environment that primarily benefits the intern’s academic pursuits, or if the intern is used as a substitute for regular paid workers. If considered a mere substitute for paid workers, the DOL requires employers to pay no less than the federal minimum wage and overtime.

Companies often bring interns into the workplace with the thought that internship programs have a mutual benefit to them and the intern. The idea is that interns gain valuable experience in the industry in which they hope to work and thereby become more marketable. The employer sees the benefit in that it can obtain needed labor, at little or no cost, without having to comply with onerous employment laws and regulations, such as wage and hour laws, workers’ compensation, and the payment and reporting of payroll taxes.

Cases from last year also indicate that employers could have exposure to harassment or discrimination lawsuits under federal law. The bottom line is that an internship program can be a risky proposition if not implemented properly. Our advice to hospitality employers is to seek legal counsel before setting up an internship program.

Class-Action Waivers In Arbitration Agreements
Following the U.S. Supreme Court’s landmark decision in AT&T Mobility v. Concepcion, employers defending class actions have succeeded in preventing class claims. Concepcion marked the beginning of a new wave of Supreme Court decisions which have significantly reduced the ability of individuals to pursue collective or class actions. In Concepcion, the Supreme Court upheld the enforceability of class-action waivers in arbitration agreements. In addition, through this case, the Supreme Court significantly limited the power of state courts to use state statutes and public policy considerations to both invalidate class-action waivers and challenge arbitration agreements.

Last year, the Supreme Court continued its support of enforcing arbitration agreements in American Express v. Italian Colors. Although having class claims reduced to individual ones does not necessarily eliminate the problem of litigation costs, it may go far in limiting the soaring exposure that typically arises from class-action litigation.

Arbitration agreements can provide valuable benefits for employers defending class-based claims. But hospitality employers should evaluate the potential impact of seeking to enforce arbitration versus fighting multiple claims individually.

This includes consideration of the merits of the employees’ claims, the amount of possible liability (globally and individually), the potential costs of facing numerous individual actions, the cost of arbitration, and the likelihood of achieving a broad-based resolution at a discounted value. Nonetheless, an arbitration agreement can serve as a powerful tool for protecting your company from expensive class litigation.

Social Media And Employee Protected Speech
Social media is a useful tool for any company seeking to attract new business, advertise a property’s amenities, and receive feedback from guests. But social media and the policies that govern them are not immune from regulation.

A “trending topic” in the labor and employment legal community has been the National Labor Relations Board’s (NLRB) aggressive approach to protecting employee speech in social media. This protection extends even to non-unionized employees. While limiting what your employees say or “tweet” about the company may help your business from a public relations standpoint, it can also create new legal woes.

Several NLRB decisions have caused employers to reexamine their policies to ensure that they are not too restrictive toward employees complaining about working conditions on social media. Thus, it’s important to carefully craft any social-media policy to make sure employees understand that their “protected” behavior is not prohibited.

One case is illustrative of this issue. After work, an employee posted a comment on her Facebook page complaining about a coworker and asking other people to chime in about their feelings toward this coworker. Four other employees commented under the status and berated the coworker. The employer found out about this incident and immediately fired the employee who posted the comment, and the four other employees who commented, stating that their remarks violated the company’s anti-bully and harassment policy.

Upon review by the NLRB, the Board determined that the terminated employees were engaging in protected and concerted activity on Facebook. Despite the company’s anti-harassment policy, the NLRB held that employees could speak about their coworker on Facebook because they were discussing working conditions.

Before accessing an employee’s social-media account, always consult legal counsel. Some states have limited the type of social-media content employers can access. For example, employee privacy in online accounts was deemed so important by the California legislature that it passed a law prohibiting supervisors and managers from requesting user names and passwords from employees. Although specific to California, all employers should be cautious before accessing employee social media.

Background Checks
Guest safety is a paramount concern for hospitality employers and it’s common for employers to conduct background checks to ensure that their employees do not have a criminal history. Indeed, certain employees may have access to guest credit card numbers, personal belongings, and other confidential information. While screening new hires through background checks may seem like the best way to limit your liability and protect your guests, blanket disqualifications may be viewed as an indirect form of race discrimination.

A 2011 Equal Employment Opportunity Commission (EEOC) study found that the use of criminal-background checks has a disparate impact on African Americans and Hispanics. As a result of the study, the EEOC issued enforcement guidance on April 25, 2012, related to the use of arrest and conviction records by employers in making hiring decisions.

The EEOC is now recommending that employers go through an extensive individualized screening process to ensure that the criminal-background information is job related and consistent with business necessity. For example, the EEOC suggests employers allow applicants to explain why their conviction should not preclude them from employment and further suggests that any adverse employment decision based on criminal-background checks be sufficiently tied to the job duties of the employee.

In a victory for employers, federal courts recently dismissed three EEOC cases against employers based on the theory that general-background checks in hiring create a race bias. Nonetheless, hospitality employers should proceed with caution in conducting background checks and avoid implementing a blanket policy that rejects applicants with criminal backgrounds.
Conclusion

To ensure that 2014 is a successful year, it is important for hospitality employers to take note of these recent trends. Whether ensuring wage-hour compliance, implementing a new internship program, or conducting a background check, employers must always be aware of the legal pitfalls.

For more information contact either of the authors: email JMavros@laborlawyers.com, BBarnes@laborlawyers.com, or call (949) 851-2424

Obama Administration Announces Delay of ACA Employer Mandate for Mid-sized Businesses

(February 10, 2014) The Obama Administration has announced the delay of the employer mandate of the Affordable Care Act (ACA) until 2016 for certain mid-sized businesses.

According to officials with the U.S. Treasury Department, businesses with fewer than 100 employees will not be required to provide healthcare coverage for their workers in 2015. Larger businesses of more than 100 employees must still provide coverage for up to 70 percent of their workers in 2015 and 95 percent in 2016 to avoid penalties.

Katherine Lugar, president/CEO of the American Hotel & Lodging Association (AH&LA), welcomed the news, noting in an AH&LA press release that “This further delay provides our industry with additional opportunities to engage with Administration officials and provide input on the regulatory process to ensure the concerns of hoteliers are taken into account when additional rules are finalized.”

The Treasury Department also released a fact sheet on current employer requirements under the ACA, linked here.

WLA’s ACA Resources Help Members Comply with the Affordable Care Act

The Patient Protection and Affordable Care Act, more commonly known as “Obamacare,” introduces a sea change in employer responsibilities, and this complex federal legislation places the onus on all employers to understand the law and how it applies to their businesses. To help its members determine what the Affordable Care Act (ACA) means for their operations, WLA has offered a new series of monthly conference calls with health care policy expert Donna Steward.

On these members-only calls Donna clarifies important aspects of the federal health care legislation, discusses allowable strategies for avoiding penalties, and answers questions about the law’s requirements. The final call in the series takes place on Wednesday, January 8, 2014 from 9:00-11:00 a.m.

January 8: Why Does the Affordable Care Act Continue to Cause Such Controversy?
It can’t just be differences in ideology and troubled websites that keep this legislation in the headlines. And if we all agree reform of our health care coverage system is necessary, why are we still fighting about it? Join us for an in-depth discussion of how the ACA is constructed, why the controversy continues and what we may see in the future.

Register Here for the January 8, 2014 Conference Call

Find FAQs, Podcasts and Additional ACA Resources Here.

Tax Exemptions and Credits Offer Savings for the Hotel and Restaurant Industries

By Katie Nguyen, CPA, a Clark Nuber tax senior specializing in state and local taxes for the hospitality industry.

I’d imagine that every hotel and restaurant owner/operator is interested to know how to save money on their state taxes while following all of the applicable laws and rules. As a former Washington Department of Revenue auditor, I’ve seen many exemptions, credits and preferential tax rates go unused – primarily because businesses just didn’t know that they existed. Here are some Washington tax incentives (both old and new) that the hotel and restaurant industry should be taking full advantage of:

Lodging for Continuous Periods Greater than30 days
Hotels and similar short-term accommodation providers are generally required to collect sales tax on charges for room rentals of 30 days or less, but not for continuous periods of more than 30 days. A recently issued Washington Tax Determination provides a favorable application of this law to a hotel that provided blocks of rooms to a corporate customer. In the determination, an airline had a long-term contract in place with a hotel to provide rooms for their off-duty flight crews. The contract was for a term of more than 30 days and the hotel was to provide the airline a set number of rooms on an ongoing basis. The hotels did not set aside specific rooms for the airline, but the airline was guaranteed the availability of the number of rooms specified and was required to pay for them even if they went unused.

The Appeals division ruled in favor of the airline, explaining that the law does not require a specific hotel guest to be in continuous occupancy of the same hotel room for a continuous 30-day period to qualify for the sales tax exemption. This treatment applies retroactively, so there may be refunds available to the extent sales tax has been charged on corporate contracts or other bookings of one or more hotel rooms for a continuous period of at least 30 days.

Sales/Use Tax Exemption for Items Imparting Flavor or Supporting Food
The Washington Legislature recently enacted a measure providing a retail sales and use tax exemption on purchases by restaurants of the following two types of items:

• Items used to impart flavor to foods that are completely or substantially consumed by combustion during the cooking process. Such items could include charcoal, charcoal briquettes, wood chips, grape vines, and the like.
• Items comprised entirely of wood that support the food during the cooking process. Such items could include wood planks, etc.

This exemption is effective October 1, 2013 and expires July 1, 2017.

Commute Trip Reduction Credit
Also recently passed by the state legislation was a bill extending the life of the Commute Trip Reduction B&O tax credit. This credit is a great incentive for those taxpayers who help subsidize the cost of employee public transportation, carpooling, or non-motorized commuting. For each employee, the credit is capped at $60 or 50% of the transportation cost paid (whichever is lower) annually. Be sure to submit your application to the Department of Revenue by January 31, 2014 to get your 2013 credit!

Syrup Tax Credit
Although not part of the new legislative changes, the syrup tax credit is another great incentive to take advantage of if you are in the restaurant industry. This is a Washington B&O tax credit that is available to any buyer of carbonated beverage syrup who uses the syrup in making carbonated beverages that are then sold (provided that the syrup tax has already been paid). As of July 1, 2009, the buyer is entitled to a B&O tax credit of 100% of the syrup tax paid. The credit can be taken directly on the excise tax return as well.

Awareness of these potential tax savings is just part of the process; implementing the exemptions and credits is the more difficult part. Be sure to contact a tax expert for assistance in these areas.

This article is not intended to be, and should not be construed as, tax advice for any specific fact situation. For more information about this article or tax exemptions, please contact the author at knguyen@clarknuber.com or 425-709-4860.

Hospitality Employment Compliance Guide is Available Exclusively to WLA Members

Published on a user-friendly CD by FISHER & PHILLIPS LLP, one of the nation’s leading law firms, the Hospitality Employment Compliance Guide was compiled specifically for the needs of Washington’s hospitality employers and is only available to WLA members.

The Compliance Guide gives an overview of Washington State employment laws and includes guidelines for the hiring process, checklists for hiring and terminating employees and ready-to-use forms for applications, reference checks and performance reviews. It also has sample service agreements, a guide to the Family and Medical Leave Act, and the new I-9 Employment Eligibility Verification form and handbook. Click here to preview the table of contents.

Founded in 1943 to provide advice and guidance exclusively to management regarding all aspects of labor and employment law, FISHER & PHILLIPS LLP now has 180 attorneys in 19 offices around the country. Please visit www.laborlawyers.com to learn more about the firm or contact a member of FISHER & PHILLIPS LLP’s Hospitality Business Practice Group at fp@laborlawyers.com.

The Compliance Guide is provided free of charge as an exclusive benefit of WLA membership. Learn more here about becoming a WLA member, or contact WLA at toll-free 877-906-1001 or by email to info@walodging.org.

Washington State Hospitality Law Manual Tackles New Legal and Business Issues

The Third Edition of the Washington State Hospitality Law Manual is now available exclusively to Washington Lodging Association members to help them address legal and business issues related to their operations. Irv Sandman of Sandman Savrann PLLC, serving as editor-in-chief and principal contributor, headed the team of legal experts who updated and expanded this comprehensive manual.

When the last edition was published in 1999, the world was a very different place. Many of the dramatic changes over the past 13 years, from the introduction of the Patriot Act to the advent of the digital age, have impacted the hotel industry and the laws and regulations that govern it. Designed to help WLA members avoid litigation in this new regulatory, legal and business environment, the Washington State Hospitality Law Manual now includes topics such as:

Hotel gift cards

Social media

Washington’s version of the National Food Code

No-smoking laws

Lilly Ledbetter Fair Pay Act

Sexual harassment in the workplace

Medical marijuana

Washington’s “hotel liquor license”

ADA Title III laws and rules effective in 2013

The Patriot Act

Music copyright issues

The new edition builds upon the work of Dennis McLaughlin, Dennis McLaughlin & Associates PS, who authored the first two editions for WLA. In addition to Mr. Sandman, the contributors and associate editors of the Third Edition are Bryan Helfer and Nathan Luce of Foster Pepper PLLC; Samantha Noonan of Williams Kastner; Andria Ryan of Fisher & Phillips LLP; and Sandip Soli of Cairncross & Hempelmann PS. University of Washington Law School Intern Janice Goh was an assistant editor and contributor.

Thanks to these talented attorneys and authors, the Third Edition of the Washington State Hospitality Law Manual is provided to all WLA members—free of charge—as an exclusive member benefit. Only members of WLA will receive this invaluable resource.

Click here to preview the Manual’s table of contents, preface and introduction.

ABOUT THE EDITORS AND CONTRIBUTORS

Irvin Sandman, Editor-in-chief and contributor

Irv is a principal of Sandman Savrann PLLC, a law firm devoted to providing comprehensive legal counsel to the hospitality industry. The firm’s recognized hospitality industry counselors lead a team of multidisciplinary professionals, bringing to bear hotel industry knowledge, experience, and connections to help hoteliers, developers and investors succeed. He has written and spoken extensively about legal and business concepts and strategies to help industry stakeholders anticipate trends and succeed in changing circumstances. In 2008, Irv received the Anthony G. Marshall Hospitality Law Award, given annually to a single attorney for pioneering and lasting contributions to the field of hospitality law. Irv is the immediate past president of the Hospitality Industry Bar Association. Irv can be reached at 206-686-0802, isandman@sandsav.com.

Bryan Helfer, Associate Editor and Contributor

Bryan is an attorney with Foster Pepper PLLC. He represents clients in single property and portfolio real estate transactions, including sales and acquisitions, financing, reorganizations, retail/office leases, land development, workouts and closings. He drafts and negotiates purchase and sale agreements, loan agreements, and commercial leases, and has experience drafting organizational documents, including operating agreements, joint ventures and corporate resolutions. Bryan is a graduate of The University of Michigan Law School (J.D., 2006), Keio University in Tokyo, Japan (2002) and University of California at Los Angeles (B.A., 2000). Bryan can be reached at 206-447-6218, helfb@foster.com.

Nathan Luce, Associate Editor and Contributor

Nathan is an attorney with Foster Pepper PLLC. Nathan’s practice focuses on real estate law and related litigation with an emphasis on representing buyers, sellers and lenders in acquisitions, dispositions, development, leasing and financing of commercial, retail and multi-family projects. He also has experience in the area of mergers and acquisitions, working with both buyers and sellers in a variety of commercial transactions. Nathan is a graduate of the University of Virginia School of Law (J.D., 2011) and the University of Washington (B.A., 2006). Nathan can be reached at 206-447-7264, lucen@foster.com.

Samantha Noonan, Associate Editor and Contributor

Samantha (Sam) is an associate in the Seattle office of Williams Kastner. Her experience includes a range of practice areas including commercial litigation, labor and employment, international and hospitality law. Sam graduated from the Cornell University School of Hotel Administration. She earned her J.D., cum laude, from Seattle University School of Law where she served as an Associate Editor of the Seattle University Law Review and President of the Women’s Law Caucus. Prior to her legal career, Sam served as an officer in the United States Navy aboard a guided missile destroyer and deployed to the Middle East in support of Operation Enduring Freedom. Following active duty, she was employed as a manager at the Fairmont Olympic Hotel. Sam currently serves on the boards of the Asian Bar Association of Washington and the Seafair Foundation. She also volunteers her time as a pro bono attorney with the Northwest Immigrant Rights Project (NWIRP). Sam can be reached at 206-233-2890, snoonan@williamskastner.com.

Andria Ryan, Associate Editor and Contributor

Andria is a partner in the law firm of Fisher & Phillips LLP, which is one of the country’s oldest and largest firms devoted exclusively to representing employers in labor, employment, civil rights, employee benefits and business immigration law. Although Atlanta-based, Fisher & Phillips has 270 lawyers in 27 offices across the country. Andria joined the law firm in 1988. She received her bachelor’s degree from American University in Washington, D.C. in 1985 and received her law degree from Catholic University in 1988. In 2005, Andria served as Chair of the State Bar of Georgia’s Labor and Employment Law Section. Andria is an AV rated lawyer and chairs the firm’s Hospitality Practice Group. She represents numerous hospitality employers throughout the United States in various phases of labor and employment law. Andria serves as an active member on the American Hotel and Lodging Association’s Human Resources Committee. She has been honored by the Colorado Hotel and Lodging Association and the South Carolina Hospitality Association for valuable contributions by an Allied member. Andria can be reached at 404-240-4219, aryan@laborlawyers.com.

Sandip Soli, Associate Editor and Contributor

Sandip Soli is a partner in the law firm of Cairncross & Hempelmann, and leads its Retail, Hotel & Restaurant practice group. Sandip assists hospitality clients in the acquisition, development, leasing and operation of hotel and restaurant assets. He also advises hospitality clients on liquor licensing and regulation compliance issues. Further, Sandip represents clients in litigation, arbitration and mediation to resolve disputes. Sandip serves as outside general counsel to the Washington Restaurant Association and is an active member of the Washington Lodging Association. Sandip can be reached at 206-254-4493, ssoli@cairncross.com.

Janice Goh, Assistant Editor and Contributor

Janice is a third year law student at the University of Washington. Janice grew up in Singapore and is fluent in both Mandarin and English. Since beginning law school, Janice has worked at the Washington State Court of Appeals and the Attorney General’s Office. Prior to law school, Janice worked at the US Embassy in Singapore and as a paralegal at an immigration law firm. Janice graduated from the University of Washington with degrees in Psychology and International Relations. Janice can be reached at 206-930-5312, jangpl@uw.edu.

Dennis McLaughlin, Author of the first and second editions of the Manual; Special Contributor to the third edition

Dennis is the principal in the Spokane law firm of Dennis McLaughlin & Associates, PS. From 1993 to the present, Dennis serves as general counsel to the Washington Lodging Association. Dennis was the recipient of the Washington Lodging Association’s Outstanding Service Award in 2000. He received the Spokane Regional Convention and Visitor Bureau’s Lifetime Achievement Award in 2006. From 1978 to the present, Dennis has served as general counsel of the Spokane Regional Convention and Visitor’s Bureau. He also serves as general counsel to the Spokane Hotel-Motel Association. He has assisted numerous local hotel associations with their incorporation as well as the formation of tourism promotion area ordinances. Dennis is a 1963 Graduate of Washington State University and received his Juris Doctorate from the University of Idaho in 1966. Dennis can be reached at 509-624-3525, dennis@dmassoc.cnc.net.

Seattle City Council Approves Ordinance Prohibiting Questions about Criminal History in Initial Job Application

The Seattle City Council voted unanimously on Monday, June 10, 2013, to prohibit employers from asking job applicants about their criminal history until after the initial screening process. The passage of the legislation, which was introduced as the “Job Assistance Bill,” reflects the growing trend to legislate wages, benefits and employer requirements within local jurisdictions.

Under the new ordinance, employers may only ask about an individual’s criminal history after they have completed an initial screening to eliminate unqualified applicants. Employers are also prohibited from rejecting an applicant or penalizing an employee because of a criminal record without a “legitimate business reason.” The city’s Office for Civil Rights will enforce the rule and can impose a $1,000 fine for violations.

The ordinance goes into effect November 1, 2013, and applies to employees who will work at least 50 percent of the time in Seattle.

In the Duff on Hospitality Law Blog, Jared Van Kirk of Garvey Schubert Barer’s Labor and Employment group, discusses the full impact of the law. He notes:

The ordinance also restricts the actions employers can take based on criminal history information. Employers must make changes to their internal hiring, discipline, and discharge policies and procedures to be consistent with these limitations. Employers may not take any adverse action based solely on an arrest, but may inquire about the circumstances related to the arrest. Employers may not reject an applicant or discipline or discharge an employee based on conduct that led to an arrest, conviction, or pending charge without a “legitimate business reason.” A “legitimate business reason” is a good faith belief that that the nature of the underlying criminal conduct will negatively impact the applicant’s or employee’s ability to perform the job or will cause harm or injury to people, property, business reputation, or business assets. Read the full blog post here.

Additional Information on Seattle’s Job Assistance Ordinance

Full text of City of Seattle Council Bill Number 117796

Job assistance ordinance update (Duff on Hospitality Law, June 11, 2013)

Council: No criminal background checks early in hiring process (SeattlePI.com, June 10, 2013)

Seattle criminal-background-check proposal well-meaning, misguided (Seattle Times, June 9, 2013)

Learn What the Affordable Care Act Means for Your Business

• Key Dates and Common Misconceptions About the Affordable Care Act
• Nuts and Bolts: What All Employers Need to Know to Comply with the Health Care Reform Law
• Understanding the New “Nondiscrimination” Rules from the U.S. Department of Labor
• Understanding Which Employees Must Be Offered Health Care Coverage
• Delay in the Employer Mandate Penalty – What Does This Mean for You?
• Reporting Requirements for Businesses of All Sizes Under the Federal Health Care Reform Law
• Affordable Care Act and its Implications for Businesses
• Federal Health Care Reform and Requirements for Small Employers
• The Individual Mandate and Its Impact on Employers
• Types of Coverage Large Employers Will Be Required to Provide in 2014
• The State Health Insurance Exchange
• How Employer Size is Determined
• Look-back and Stability Periods and Variable Hour Employees
• New Employees and New Variable Hour Employees
• Avoiding “Discrimination” Issues When Organizing Health Plan Offerings and Employee Contributions
• The Offer of “Affordable” Coverage
• Treatment of Non-traditional Employees

FREQUENTLY ASKED QUESTIONS

• Affordable Care Act Timeline – 2014 and Beyond
• Key Components of the Affordable Care Act All Employers Should Know
• Review of Employer Requirements under the Affordable Care Act
• Large Employer Responsibilities under the Affordable Care Act
• Determining Employer Size and Employees Eligible for Coverage Under the Affordable Care Act
• Tax Credits for Small Employers under the Affordable Care Act
• Requirements for all Employers under the Affordable Care Act
• The Individual Mandate and Penalties under the Affordable Care Act
• Changes to Health Plans under the Affordable Care Act
• Insurance Exchanges Required under the Affordable Care Act
• Recent Updates on State-based Insurance Exchange Requirements
• The “Affordability” Penalty for Large Employers
• Measurement and Stability Periods for Variable Hour Employees
• Measurement and Stability Periods for New Hires
• Nondiscrimination Provisions
• The “Affordability” Penalty for Large Employers
• Treatment of Non-traditional Employees
• Your “Responsibility” Under the Health Care Reform Law

ADDITIONAL RESOURCES

• Links to Rules and Implementation Guidelines Pertaining to the Federal Patient Protection and Affordable Care Act
• Jackson & Lewis Health Care Reform Resource Center
• Disability, Leave & Health Management Blog
• Exchange Notification Technical Release
• Department of Labor Model Language for Employee Exchange Notification

ABOUT OUR HEALTH CARE CONSULTANT

Donna Steward has 18 years experience with health care policy at both the state and federal level and 8 years experience lobbying state legislators on private market solutions for health care reform. She is currently President of Kiawe Public Affairs and specializes in health care advocacy for small business owners. Before joining Kiawe Public Affairs, Donna worked as Government Affairs Director for the Association of Washington Business (AWB), where she advocated for businesses on health care, education and unemployment insurance issues.

Steward has also worked as Associate Regional Administrator for the Centers for Medicare and Medicaid Services, where she had responsibility for Medicare contractors in 36 states and $33 billion in annual Medicare claims. She also spent five years as a Legislative Research Analyst for the Washington State Legislature, focusing on health care policy. Steward is a native Washingtonian and graduate of the University of Washington with a BA in Economics.

Hoteliers are Optimistic about the Future of the Industry

(June 12, 2013) Last week, hotel industry experts were uniformly upbeat at New York University’s annual International Hospitality Industry Investment Conference. Smith Travel Research (STR) set the tone with its forecast of 5.8% growth in U.S. revenue per available room this year. Randell Smith, STR’s chairman and co-founder, noted that room demand “has literally been on a tear since we came out of this downturn.”

PricewaterhouseCoopers, which uses statistics from STR and other firms, projected even higher RevPAR growth next year, reaching 6.2% in 2014 due to the improving economy and the still slow increase in the supply of new hotels. With demand outpacing the growth in the supply of rooms, the firm expects occupancy levels to reach 62.2%, the highest since 2007.

Economic factors are working in the industry’s favor, including gains in household wealth, decreasing household debt, a gradual improvement in the job market, and higher consumer confidence. Strong international tourism is also expected to play a role in increasing demand.

“From all measurements, 2012 was a breakout year,” said Choice Hotels International CEO and conference panelist Stephen Joyce. “We should see a four- to five-year incredible run.”

More News on Industry Forecasts:

“U.S. hoteliers optimistic for 2014” (TravelWeekly.com, June 9, 2013)

“Hotels Expect Best Year since 2007” (USA Today, June 7, 2013)

“Static supply, heady demand gives industry boost” (HotelManagement.net, June 3, 2013)

“Hotels & Lodging Stock Outlook – April 2013 – Industry Outlook” (NASDAQ.com, April 9, 2013)

“2013 Lodging Industry Forecasts and Other Highlights from the 2013 ALIS Conference” (DuffHospitalityLaw.com, January 30, 2013)

Court Strikes Down NLRB’s Workers’ Rights Poster Rule

On May 10, 2013, WLA allied member Fisher & Phillips released this legal alert on the NLRB’s poster rule.

The National Labor Relations Board suffered another significant blow this week, when the U.S. Circuit Court of Appeals for the District of Columbia struck down the Board’s controversial notice-posting mandate on the basis that it infringed upon employer free speech rights, while otherwise violating the National Labor Relations Act (NLRA). The posting requirement, which was scheduled to take effect back on April 30 of 2012, was invalidated in its entirety. Nat’l. Assn. of Manufacturers v. NLRB.

The rule would require the nearly six million employers subject to the NLRA to post notices informing employees of their rights under the Act. This unprecedented use of rulemaking triggered a severe backlash from the business community by virtue of its seemingly pro-union message. It would also render any posting violation an independent unfair labor practice, and evidence of unlawful motive, as well as toll the Act’s six-month limitations period for filing charges.

In its decision, the D.C. Circuit found the rule at odds with free speech protections in the First Amendment and the NLRA, noting that the right to free speech includes a prohibition on government-compelled speech and the right to refrain from speech all together. The court concluded that Section 8(c) of the Act not only gives employers the right to such free speech, but also the right to remain silent, rejecting any attempt to convert a failure to speak (through the mandatory notice) into an unfair labor practice or evidence of improper motive.

The court went on to uphold a lower court ruling, which held that the notice purports to substantially amend statutory language legislated by Congress, thereby exceeding the Board’s authority. Unfortunately, the court chose to bypass the significant question of the Board’s underlying authority to engage in such rulemaking.

Nonetheless, the decision and its vindication of employer free speech rights is a major victory for the business community, at least so long as it withstands any further judicial challenge. The Board has said that it would refrain from implementing the rule so long as litigation as to its validity remained pending. The Board has not yet indicated whether it will appeal this decision, and may be waiting on the outcome of a similar appeal before the 4th Circuit Court of Appeals that remains pending. But for now, the Board has been dealt a serious setback in its efforts to impose a new posting requirement.

This Legal Alert from Fisher & Philips provides an overview of a specific court ruling. It is not intended to be, and should not be construed as, legal advice for any particular fact situation. For more information, please contact Fisher & Phillips:

New Form I-9 for Employee Verification Opens Door to Audits and Fines

The United States Citizenship and Immigration Services (USCIS) released a new Form I-9 last month, and employers should begin using the new form immediately to verify the identity and employment eligibility of all new employees. The updated form is required as of May 7, 2013.

Get the new Form I-9 and Handbook here.

The new I-9 may seem straightforward, but employers can be fined $110 per missing item and up to $1,100 per incorrect form, even if the employee is legally authorized to work in the US. And audits of employers’ I-9 programs are increasing.

According to a National Law Review article, Immigration and Customs Enforcement (ICE) has conducted over 7,500 audits nationally since 2009 and imposed over $80 million in fines. Fines for non-compliant Form I-9 programs rose from $1 million in 2009 to $13 million in 2012. In an audit, ICE officers will review payroll records, examine Form I-9s, and match Social Security numbers, among other things.

Common compliance mistakes include failure to verify employment eligibility within three days of hire, failure to re-verify employees with certain kinds of citizenship documents and using expired documents to verify employment.

To help its members make sure that their recordkeeping is in compliance, WLA is hosting I-9 seminars with attorney Davis Bae of WLA allied member Jackson Lewis, LLP on June 10 in Seattle and July 15 in Spokane. Learn more here.

Let WLA Know If Questions Arise on a Department of Health Inspection

It happens time and again: Department of Health inspectors reach beyond existing codes to tell lodging owners and operators to do something that isn’t required under existing rules for transient accommodations. If this happens at your property, or an inspector says something that just doesn’t seem right, be sure to let WLA know.

As soon as we hear from one of our members about an inspection issue, we follow up with DOH to make sure the inspector is following the rules as they are written, not as he or she thinks they should read. Here are a few examples of overreach that WLA has successfully addressed:

A hotelier was told that she now needs to have carbon monoxide alarms in every guestroom.

Not true. Thanks to WLA’s grassroots initiative to secure sensible building codes for transient accommodations, alarms are only required in guestrooms where there is a possibility of exposure to carbon monoxide. Find details on CO alarm requirements here.

An operator of a flagged property was told he’d have to wash leather-covered ice buckets in an industrial dishwasher.

Not true.WLA has worked to ensure that transient accommodations regulations governing our industry specify end results and do not spell out the steps to achieve those results. Licensees have the responsibility and the autonomy to deliver end results in a manner that is fitting to their business practice. For example, ice buckets must be sanitary, but how they are cleaned is not up to an inspector.

Hoteliers reported that DOH inspectors were demanding access to rented guestrooms for routine inspections.

Not allowed. WLA challenged DOH’s contention that existing code allows for access to rented guestrooms and secured an opinion from then Attorney General Rob McKenna noting that DOH inspectors do not have the statutory authority to enter and inspect occupied or rented units. Read the AG’s letter here.

WLA continues to challenge subjective code interpretations like these and was the driving force behind new procedures that require inspectors to submit all citations for review by the head of transient accommodations. This step should reduce the number of unwarranted citations, but please don’t wait for a citation to arrive in the mail to call. Let us know right away about comments by inspectors that suggest there may be a problem or a citation pending.

We are here to fight for our members and our industry on regulatory issues, and we rely on members like you to inform of us when something doesn’t seem right. Be sure to call WLA toll-free at 877-906-1001 or send an email if you have any concerns at all about a DOH inspection.