By law, the Liquor Control Board (LCB) must take into consideration its impact on small businesses when adopting rules through a Small Business Economic Impact Statement (SBEIS). The LCB failed to complete this requirement when it previously adopted its unauthorized and unlawful restriction on restaurants purchasing spirits and wine 24 liters per day. The Thurston County Superior Court overruled the board’s decision more than a year ago, and invalidated dozens of rules because of its failure to follow this requirement.
When the board announced it planned to further restrict the market by prohibiting businesses from voluntarily negotiating for price on spirits and wine, we were shocked by its initial decision to again not consider the impact on small business.
Last week, the board finally issued its SBEIS on its proposed rules to insert pricing restrictions and prohibit discounts after numerous requests by the WRA to follow its requirement to do so. However, the WRA is overwhelmingly disappointed by the board’s blatant attempt to discourage any relevant feedback. In the questionnaire the LCB sent last week, it describes its proposal, which unduly restricts legal market practices, and declares “All three of the practices above are prohibited under current laws and rules and federal laws” before asking businesses to provide comments.
The WRA has provided three legal opinions to the board that offer contrary views. The WRA’s legal work was joined by numerous other stakeholders that also believe the LCB’s statement is legally inaccurate. To date, the board has failed to provide or respond with any legal opinion, statement, or ruling that supports its “theory” that discounts are prohibited.
For this reason, we are advising businesses not to respond to the LCB’s SBEIS. Instead, the WRA will be providing comments and information about the impact of the board’s proposed rules on small business. If you would like more information or to be added to our alcohol taskforce please let Shannon Garland, the WRA’s Government Affairs assistant know at shannong@warestaurant.org.
Minimum wage update
Yesterday, the International Franchise Association and a group of Seattle franchise owners filed a legal challenge against Seattle’s new minimum wage ordinance in U.S. District Court. They are making the argument that the law unfairly treats them like large-business owners despite the fact that they are independently owned and operated as small businesses.
Meanwhile, last week, Forward Seattle, a grass-roots organization representing small businesses, filed a charter amendment that would overturn $15 minimum wage law. Forward Seattle’s amendment would boost wages to $12.50 an hour by 2020. At the same time, the special interest group $15/Now continued to push its charter amendment and gather signatures.
However, in a recent opinion issued by the Seattle City Attorney’s Office it was determined that charter amendments can only appear on the city ballot in general municipal elections, which are held in odd-numbered years. That means neither charter amendment can legally go to voters until 2015.
If you have any questions, please feel free to contact the WRA’s Local Government Coordinator Morgan Hickel at morganh@warestaurant.org.
Several new liquor laws take effect today
This year, the Legislature approved several new liquor licenses, which all take effect today.
Day Spa License – Allows day spas that provide services of hair care, skin care, nail care or body care (massage, waxing, wraps) to offer complimentary beer or wine.
Senior Center License – Allows a non-profit organization whose primary service is providing recreational and social activities for seniors on the licensed premise to sell spirits, beer and wine by the glass.
Growlers of Cider – Licensees who currently have the privilege to sell kegs and growlers of beer to go, will get the privilege to also sell cider in growlers to go.
Catering License – A license was approved this year for caterers who do not also function as a restaurant. Caterers will be subject to similar food requirements as restaurants.
Washington Market Watch: Foodservice industry grows by nearly 32,000 jobs in May
Things are looking up for the foodservice industry.
Food services and drinking establishments were among the main industries that grew in employment during May. According to a U.S. Bureau of Labor Statistics report released on June 6, the foodservice industry saw an increase of 31,700 jobs, on a seasonally adjusted basis over the past month, while it added a total of 311,000 jobs during the past year. Read more…
Listen to WRA’s DineNW radio show – now online!
Don’t miss this week’s DineNW radio show now online. Host Paul Schlienz kicks off the program with a discussion on why traditional annual performance reviews are passe with Renee Safarata, of Vivo (www.vivoteam.com/wra-partner-page/, www.vivoteam.com/annual-performance-reviews-dont-work/, www.vivoteamplatform.com). Paul then talks with Jean-Karlo Cock Tello and Courtney Gonzales of the Fireweed Terrace Restaurant (www.facebook.com/fireweedt) at the Skagit Valley’s beautiful Eaglemont Golf Course. Paul closes with a conversation with Billy McHale’s Jim Ross, whose Federal Way location is planning a big move (www.billymchalesfw.com). Also available online is the June 4 DineNW show where Paul interviews Eric Truglas, of the Semiahmoo Resort, in Blaine (www.semiahmoo.com); and Danielle Uderitz from the Avalon Golf Links in Burlington (www.avalonlinks.com). Paul closes with a discussion about Google Glass use in restaurants with the WRA’s Lex Nepomuceno.
Your chance to network with a grand view – Sip & Savor, Smith Tower, Seattle, June 25
Join the WRA Education Foundation as it hosts one of the premier hospitality events in June. Some of the best bartenders in Seattle and surrounding areas will compete to see who can create the most delicious cocktails from secret ingredients found in a series of black boxes. The cost of the event is $75 and seating is limited. Only 25 VIP tickets are available for $125, and these exclusive tickets allow for a limited number of people to attend both of the night’s competitions. Plan now, plan early. This will be an extravagant night of fun, networking and one of the best views Seattle has to offer. Click here to reserve your tickets.
Tell Senate you support Forty Hours is Full Time Act
Your U.S. senators need to hear from you! Let them know you support the bipartisan Forty Hours is Full-time Act, (S. 1188), sponsored by Sens. Susan Collins, R-Maine, and Joe Donnelly, D-Ind. This bill is the Senate companion to the Save American Workers Act, passed by the U.S. House of Representatives in April. Like the House measure, the Senate bill would change the Affordable Care Act’s definition of “full-time” from 30 to 40 hours. Urge your senators to support this important measure.
Restaurant industry pushes for streamlined Affordable Care Act
Streamlining the Affordable Care Act’s complex reporting requirements is a major goal of the National Restaurant Association (NRA) and the Employers for Flexibility in Health Care (E-FLEX) Coalition. The NRA is concerned about the reporting rules for employers. It has proposed ways to make the administration of tax subsidies more accurate when individuals apply for health coverage on exchanges. Unfortunately, the IRS did not accept the NRA’s recommendation. As a result, in early 2016, employers with more than 50 full-time-equivalent employees will be have to report more additional data than ever before to the IRS for the previous calendar year. Among the data that will be required are lists of full-time employees, the health care coverage offered to each employee by calendar month, and the cost of self-only coverage. This data will help the IRS determine if employers are complying with the ACA and identify the employees who are receiving tax credits. The U.S. House Ways and Means Committee held a hearing on this issue earlier this week.
Menu-labeling rules coming soon
Keep an eye out for final regulations from the U.S. Food and Drug Administration (FDA) on menu-labeling rules for restaurants and other retail food establishments. The draft rules have been under development since early 2011. In April, the proposed rules moved from the FDA to the White House’s Office of Management & Budget for final clearance prior to publication. The rules will directly affect all restaurants with 20 or more locations operating under the same name, in addition to “similar retail food establishments” with more than 20 locations. Under the law, while the regulations will be voluntary for smaller restaurants, affected companies will have to include calorie counts on menus or menu boards, and provide additional written nutritional information upon request.
“Complex” doesn’t even begin to describe these regulations. These rules will cover tremendous ground – from adding calorie information to menus to labeling combination meals. The NRA has asked the FDA to give restaurants a full year to comply and ensure that restaurant companies will be protected from liability if they make good faith efforts to comply. While the NRA supported the menu-labeling law, it remains unclear if the restaurant industry’s concerns were accommodated by the FDA in the proposed regulations.
Restaurant industry wants limits on scope of Reportable Food Registry
The NRA is asking the FDA to limit the scope of the Reportable Food Registry (RFR), an online portal allowing restaurants and other parts of the food industry to report when there is “a reasonable probability that an article of food will cause serious adverse health effects.” The NRA wants the RFR to apply only to foods sold directly to consumers in the retail marketplace. The reasoning behind this request is due to the fact that including ingredients available for manufacturing and bulk commercial products would lead to confused warnings with no direct impact to the consumer. The NRA also requested that the FDA define “grocery store” as including establishments that sell groceries directly to consumers, but not to food service establishments.