The Dish | March

2023 Chair of the Board

Molly Rice-Norby

Woodstock Inn Station & Brewery

2023 Vice Chair of Lodging

Brian Ferguson

Flag Hill Distillery & Winery

2023 Vice Chair of Restaurants

Nicole Barreira

Great NH Restaurants

2023 Vice Chair Allied Membership

Paul Ramsey

The Palace Theatre

Secretary/Treasurer

Bernie Lontine

110 Grill

NHLRA President & CEO

Mike Somers

NHLRA Education Foundation Executive Director

Amie Pariseau

NHLRA Membership & Business Development Director

Samantha Poole

NHLRA Office & Events Manager

AubreyLynn Goodale

NHLRA Social Media & Marketing Coordinator

If It'sthattime ofyear! Checkyour inboxfor Legislative Updates!

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Members Around Town

Tocelebrate International Women’sMonth andPinkBoots Society Collaboration Brew-Frogg Brewing highlightstwo womenwho participatedin thebrewday.

Martignettispotlights employeesinhonorofWomen’s HistoryMonth,International Women’sDay,Women’sWeek, andEqualPayDay

ZorvinoVineyardsenjoying Tuesday'ssnowday!

How to keep customers happy after raising your restaurant’s prices — the Danny Meyer way From

Heartland

Soyouraisedyourrestaurant’sprices Welcometotheafterparty

To kick us off, let’s acknowledge two things: 1) Raising prices can be a great long-term growth strategy for restaurants, especially when combating the pressure of high inflation.2)Higherpricescanoftentranslatetohighercustomerexpectations.

Whilesomepatronsmightbemoreforgivingofpriceincreases,manywillstart expectingmorefromyourrestaurantinreturnforthesteeperbillattheendoftheirmeal. One study showed that nearly 80% of respondents correlated higher prices to better experiences.

That’s why after you increase those numbers, your best bet to retain customers and attractnewonesistofocusoncultivatingaguestexperiencethey’llhavenochoicebut tolove.

Notsurewheretostart?You’reinluck Ifanyoneknowsabouthowtokeep customers happy after raising prices, it’s Danny Meyer

The founder of Union Square Hospitality Group and Shake Shack famously introduced a no-tipping policy at his restaurantsin2015byraisingmenuprices15-20%.

AlthoughhelaterreinstatedtipsduetotheCOVID-19pandemic,duringthefive-yearrun of his “Hospitality Included” model, Danny not only kept loyal customers happy but managed to grow even more popular during that time despite having markedly higher prices.

Thebestpart?DannyrecentlysatdownwithHeartlandleaderstodiscusshishard-won recipe for how to create a better customer experience and make your restaurant a success higher prices and all with a philosophy he coined as “enlightened hospitality.”

Whether you ' re a multi-location, chart-topping restaurant collective or an up-andcoming hotdog cart, read on to get the ultimate guide to meeting and exceeding customer expectations from the restaurant trailblazer who literally wrote the book on hospitality:

Visittherestofthearticle.

Empowerment Through Connections

MAY 23 | 8AM - 5PM | CHURCH LANDING, MEREDITH

Schedule Sneak Peek

We’re excited to host Empowerment Through Connections for a second year, designed to celebrate women in the hospitality and tourism industry, provide an opportunity to connect withanddeveloppeerrelationships,andtoaddressyourtop-of-mindtopicswithagroupof industryprofessionals.We’rehardatworktocreateavaluableandinspiringagenda.

GUESTSPEAKER,DEBRASCHULER

Our morning will start with continental breakfast and our guest speaker, Debra Schuler. Her session,"PuttingThingsFirst,"willprovidepracticalstrategiesandtoolstohelpincreasefocus onyourmostimportantprioritiesandreduceand/oreliminatetheunimportant.

Living a more productive and balanced life starts with recognizing and accepting that not doingeverythingthatcomesacrossyourpathisnotonlyacceptable,it’swise.Highlyeffective people know that sometimes choosing to say “no” or “not now” to certain personal and professionaldemandsisnecessaryinordertofocusontheirhighestprioritiesandgoals.

APRESENTATION&PANELHOSTEDBYTHENHCENTEROFNONPROFITS

Afterlunchbythelake,we'llreturnwithapresentationandpanelhostedbytheNHCenterof Nonprofits."GetOnBoard"willinspireanewgroupofleaderstoconsiderboardserviceatlocal nonprofits.ThissessionwillconcludewithapanelofcurrentNHLRA,NHLRAEF,andcommunity board members as well as highlighting how you can become directly involved with the next generationoftheindustrythroughboardwork.

INTERACTIVESESSIONWITHDUPREYHOSPITALITY'SSHERRIFERNS

The afternoon will conclude with NHLRA Board Member and Regional Director of Sales and Marketing for Duprey Hospitality, Sherri Ferns. You’ll leave Sherri’s interactive session with ideasonhowtobringeverythingthroughoutthedaytogether.

NETWORKING&CHEERSTOTHEDAY

Towrapup,foranyonewhowouldliketonetworkorclinkglassestocheeragoodday,wewill gatherupstairsatLakesideGrill.

PLEASE CONTACT AMIE PARISEAU AT APARISEAU@NHLRA.COM WITH QUESTIONS OR TO INQUIREABOUTSPONSORSHIP.

Upcoming Events

Saint Patrick's Dinner with guest chef, Michael Arrastia

March 18, 6 p.m. - 9 p.m.

The Westbrook Inn, Derry

Update on Evolving Discrimination Laws Webinar

March 28, 9:30 a.m. - 11 a.m.

Online

Farm to Table Vendor Showcase

April 14, noon - 4 p.m.

Hermit Woods Winery & Eatery, Meredith NH

Compliance Guide to Federal and State Youth Employment Laws Webinar

April 18, 9:30 a.m. - 11 a.m.

Online

Woodstock Inn Brewery Brewers Weekend

May 5 & 6, two-night stay

Woodstock Inn Brewery, Woodstock

Women in Hospitality: Empowerment Through Connections

May 23, 8 a.m. - 5 p.m.

Church Landing, Meredith

ServSafe®

March 20- Portsmouth

March 20- Lebanon

March 21- North Conway

April 4- Concord

April 12- Manchester

April 18- Nashua

April 26- Portsmouth

May 2- Concord

Empowerment Through Connections

MAY 23 | 8AM - 5PM | CHURCH LANDING, MEREDITH

Sponsorship Opportunities

TheNewHampshireLodging&RestaurantAssociationEducationFoundationispleasedtohostour secondannualWomeninHospitality&Tourism.EmpowermentThroughConnectionswillbeaday tocelebrateallwomeninourindustry,createanatmospheretodeveloppeernetworks,andoffer sessionsonavarietyoftop-of-mindtopics.

ALLSPONSORSHIPLEVELSRECEIVETHEFOLLOWING

Your logo on all printed and digital materials including prominent signage throughout the event RecognitionintheMayeditionof"TheDish,"ourmonthlydigitalmagazine,andoursocialmedia channels

ADVOCATE|$250

UNLIMITEDAVAILABLE

Sponsor one employee or student of the industrytoattendtheevent

MENTOR|$500

UNLIMITEDAVAILABLE

Sponsor one employee or student of the industrytoattendtheevent

1/4 page advertisement in the event program

LEAD|$750

FIVESPONSORSHIPSAVAILABLE

1/2 page advertisement in the event program

Two complementary event tickets - to be used by your company or by a current employeeorstudentoftheindustry

INSPIRE|$1,000

TWOSPONSORSHIPSAVAILABLE

1/2 page advertisement in the event program

Three complementary event tickets - to be used by your company or by a current employeeorstudentoftheindustry

PLEASE CONTACT AMIE PARISEAU AT APARISEAU@NHLRA.COM OR (603) 2289585WITHQUESTIONSORTOPARTICIPATE.

ACHIEVE|$1,500

THREESPONSORSHIPSAVAILABLE

Full-page advertisement in the event program

Five complementary event tickets - to be used by your company or by a current employeeorstudentoftheindustry

NETWORK|$2,000

THREESPONSORSHIPSAVAILABLE

Full-page advertisement in the event program

Sevencomplementaryeventtickets-tobe used by your company or by a current employeeorstudentoftheindustry

EMPOWER|$2,500

TWOSPONSORSHIPSAVAILABLE

Full-page advertisement in the event program

Ten complementary event tickets - to be used by your company or by a current employeeorstudentoftheindustry

MOTIVATE|$5,000

TWOSPONSORSHIPSAVAILABLE

15minuteSpeakerSpotlight

Full-page advertisement in the event program

Ten complementary event tickets - to be used by your company or by a current employeeorstudentoftheindustry

New Hampshire ProStart State Invitational Recap

By Amie Pariseau

Our annual New Hampshire ProStart State Invitational was held on March 7 at the Grappone Conference Center in Concord. Our state winners will compete at the New England ProStart Regionals on April 1 in Boston, MA and at the National ProStart InvitationalonMay2-4inWashington,D.C.

This year was our biggest competition to date! The following schools competed: ConcordRegionalTechnicalCenter(culinaryandmanagement),MilfordHighSchool& Applied Technology Center (culinary and management), Mount Washington Valley Career Technical Center (culinary and management), Pinkerton Academy (culinary and management), Plymouth Regional High School (culinary), Richard W. Creteau Regional Technology Center (culinary), Seacoast School of Technology (culinary), and WhiteMountainsRegionalHighSchool(culinaryandmanagement).

CulinaryResults

After placing second in 2022, White Mountains Regional High School was eager to regain the top spot and was a formidable team. Not only were they the first place team, they also won the Gold Star Award for Safety & Sanitation. Their menu of Classic Spaghetti alla “Cabonara” (handmade pasta, crispy guanciale, pecorino Romano, egg yolk parsley, and black pepper), Braised Cornish Hen “Cacciatore” (san marzano tomato ragout, castelvetrano olives, rosemary polenta, crimini mushrooms, batonnet sweet peppers, and chiffonade of Swiss chard), Citrus Scented White Chocolate Panna Cotta (limoncello caramel sauce, white chocolate “truffle,” pine nut crunch, and supremestangerine)wasverywellexecutedfromstarttofinish.

The second placed team, Richard W. Creteau Regional Technology Center, created a well-rounded menu with a Lamb Slider (seasoned lamb patty on a sautéed sweet potato round, topped with tzatziki sauce and dressed with onions, pea shoots, cherry tomato, and a spinach leaf), Maple Pecan Pork Medallion (maple pecan glazed pork medallion served over mashed sweet potatoes with zesty lemon asparagus), and Strawberry Mouse (toasted graham cracker wafer, topped with light whipped cream, andafreshstrawberrycompote).

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The third place team from Concord Regional Technical Center brought back some familiar faces from 2022. Their menu featured maple front and center with Crab on a Boat (crab cakes served on endive boat with Cajun remoulade and maple bacon sprout salad), Maple Crusted Lamb Chops (served with parsley garlic potato gnocchi, sautéed asparagus and Cipollini onion, creamy sherry wine reduction sauce, topped with crispy bacon) and Maple Ginger Cheesecake Bombs (chocolate shell filled with cheesecake and plums with a white chocolate crispy base served with orange caviar, salted candied walnuts, ginger sugar glass, whipped cream and spice plum reduction sauce).

GoldStarAwardswerealsowonbyPlymouthRegionalHighSchoolforCommunication and Seacoast School of Technology, who was competing for the first time, for Knife Skills.

ManagementResults

White Mountains Regional High School wrapped up the top spot and the Gold Star Award for Creativity with “The Notch.” The Notch is a casual, cozy, hometown feeling, freestanding establishment located on Main Street of ProStartville, USA. The Notch is very focused on helping the community They have a Read Across America promotion andpromotedonatingabookwithaguest’svisitandtheguestreceivesadiscounton their meal. All the books are then donated to ProStartville’s local childhood centers, schools,andlibraries.

The second place team and winner of the Gold Star for Creativity, Pinkerton Academy, designed Pup’s Cups, which serves fresh, healthy meals that are priced to encourage people to eat healthier. They support local farmers in the area for fresh produce and fresh meats. In a nod to their name, Pup’s Cups works with local adoption agencies to bring awareness to the adoptable animals. Every day of the week, their restaurant has animals from the local adoption centers as well as a representative from the center to answer any questions and watch the animals. Along with providing a place for people to love and dote on animals, they donate a portion of the day's sales back to the adoptioncenterthatcameinfortheday.

Milford High School & Applied Technology Center came in third place with an Italian food truck. “Why have a restaurant in a building when we could have it on wheels?!” Based on the dishes they grew up eating, their focus became a make your own pasta bar Theduoofladieshopedtobeanincubatorforotheryoungculinariansandtogive back to the community of Prostartville. Their food truck will travel to Share (food pantries)ornursinghomestoprovidefreeordiscountedmealsforthedisadvantaged.

ConcordRegionalTechnicalCenter’sKin,wasawardedthePresentationSkillsGoldStar Award.

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Every single team in both Culinary and Management brought an exceptional level of creativityandtalent.We’resoproudofNewHampshireProStartstudents!

We can’t wrap up the New Hampshire ProStart Invitational without thanking the following:

Our sponsors- 110 Grill, Café Services, Dexter Knives, Duprey Hospitality, Gordon Food Service, High Liner Foods, Performance Foodservice- NorthCenter, Sysco, The Common ManFamily,TheFlatbreadCompany,andUSFoods.

Our culinary judges: Will Beriau, Charlie Binda, Mike Beers (BAM Hospitality), Patrick Britten (Sysco NNE), Brian Coffey (Brian Coffey Catering), Doug Gibson (White Mountain Cupcakery), Zac Marshall (UNH), David Turin (David’s Restaurants), Gary Sheldon (chef mentor and lead judge), Lisa Somerville (Vintage Bakery), Todd Sweet (UNH), and Nathan Varney (The Labrie Group), and our timers and volunteers: Garrik Berry (ProStart Alumni and Littleton Freehouse Taproom & Eatery), Scott Bicknell (Performance Foodservice- NorthCenter), Peter Dickinson (The Common Man Family), CJ Hakim (ProStart Alumni and LaBelle Winery), John Knorr (ApprenticeshipNH), Laura Leslie (The Centennial Inn), Matthew Pierce (Café Services), Tom Weir (Heron Point Seafood),andClayWestbrook(TheFlatbreadCompany)

Our management judges: Christine Breault (110 Grill), John Dunn (Michael Timothy’s Dining Group), Willow Furey-Calder (Hart’s Turkey Farm Restaurants), Kelsey Hayes (Three Chimneys Inn), Keven Halopoff (Jimmy’s Jazz & Blues Club), Bernie Lontine (110 Grill),RickSpalding(HeronPointSeafood),VinnieSpiotti(AppalachianMountainClub), Sydney Sturdevant (Archer Development), William Walsh (Lakes Region Community College),SimWilley(Hart’sTurkeyFarmRestaurant),andJessicaWilson(Appalachian MountainClub),andtimersCraigGrabowski(GordonFoodService)andRobMcCarthy (MelanGroup).

Mark your calendar on Tuesday, March 5 for the 2024 New Hampshire ProStart State Invitational.

Thank you ProStart Sponsors!

Braised Short Ribs

By Hermit Woods Winery and Eatery

Ingredients:

1cantomatopaste

½bottleofRedScare½ofLakehouseRed

1package(4Ib.)ofshortribs

3stalksofcelery

3carrots

4garliccloves

2onions

3tablespoonsSalt

2tablespoonsPepper

4sprigsofrosemary

1/2cupWorcestershire

Directions:

Combinetomatopaste,wine,salt,pepper,Worcestershireinabowltocreatethe braisingliquid

Placecarrots,celeryandonion,garlicandrosemaryonbottomofbraisingpan

Trimoffexcessfatcapofshortribs

Cutshortribinto8likesizepieces

Searoffshortribsinpanuntilbrownedonallsides

Placeshortribsontopofvegetablesinbraisingpan

Putbraisingliquidinpan

Coverwithtinfoil

Cookfor4-5hourson350

RegisterHere

Good Start Packaging Donates Profits to The Water Project

By Melissa Breslin

164 million children in sub-Saharan Africa have nodrinkingwaterserviceattheirschools,and215 million children attend schools without basic sanitation.

In honor of World Water Day on March 22nd, NHLRAishighlightingoneofournewestmembers, Good Start Packaging, who is working to change this.

Located in Bedford, NH, Good Start Packaging offers compostable takeout food containers madefromrenewableplant-basedmaterialslike corn, wheat fiber, and sugarcane. Committed to being a force for good in the world, Good Start donates 20% of profits annually towards feeding communities, advancing human rights, and protectingtheplanet.

One of their key partners is The Water Project. This global non-profit helps bring clean water to communities by providing training, expertise, and financial support for water project construction. Good Start Packaging’s recent donation supportstheKasioniCommunityinKenyaintheconstructionoftheirnewhanddugwelladjacenttoanewsanddamontheriverbed.

Thesanddamwillbuildupsandtoraisethewatertableandnaturallyfilterwater, while the well will provide a safer method of drawing drinking water for the community. It could take up to three years of rain for this sand dam to reach maximum capacity because sometimes it only rains once a year! As the sand dammaturesandstoresmoresand,thesurroundinglandscapewillbecomelush andfertile.

Learnmoreaboutthisimportantworkandconsidergivingatthewaterproject.org.

2023 Report: Operators & Guests Crave Restaurant Technology

By Garrett Calcaterra

AsthePresentingSponsorofthe2023StateoftheRestaurantIndustryreportfrom theNationalRestaurantAssociation,SpotOnisproudtohelprestaurantoperators findtherightsolutionstonavigatethehospitalityindustry’schanginglandscape. There’s a lot of data and insights to unpack in the new report (you can find our fullpressreleasehere),butonerecurringtrendstandsout movingforward,both restaurant operators and consumers agree that restaurant technology plays a keyroleincreatingaseamlessdiningexperience.

If there’s been one saving grace for restaurants during this inflationary cycle, it’s that consumers have continued to support restaurants Last year, SpotOn reported that restaurant customers tipped 9% more over the first half of 2022 compared to the prior six months. According to the 2023 State of the Restaurant Industryreport,thetrendisholdingstrong.

Not only do consumers want to continue supporting their local restaurants, but manyexpecttechnologytoenhancetheirrestaurantexperience.

64%ofconsumerssayrestaurantsareanessentialpartoftheirlifestyle

55%wouldprefertoorderdirectlyfromarestaurantfordelivery

70%arelikelytoorder&payusingarestaurantwebsite,contactless,ormobile payment

67% would rather spend money on an experience over purchasing an item fromastore

69%likehavingtheoptiontositoutsideonapatio,deck,orsidewalk

These findings suggest some clear opportunities for your restaurant to boost efficiencyandincreaserevenuebyleveragingtechnology.

First-party online ordering enables guests to order directly from your restaurant, eliminating costly third-party app delivery commissions and helping your back-of-house operate more smoothly with direct POS integration

Readthefullarticlehere.

USDOL Fact Sheets on Tipped Employees and Typical Problems Employers Run Into

From the United States Department of Labor

Whencananemployerclaimatipcredittowarditsminimumwageobligation?

An employer can take a tip credit towards its minimum wage obligation only whenanemployeeisengagedinatippedoccupationbyperformingworkthatis partoftheirtippedoccupation.

Anemployeeperformsworkthatispartoftheirtippedoccupationwheneither:

Theemployeeperformsworkthatistip-producing. Tip-producingworkisany workperformedbyatippedemployeethatprovidesservicetocustomersfor whichthetippedemployeereceivestips,or

The employee performs work that directly supports the tip-producing work, if it is done only for a limited time. This directly supporting work is work performed by a tipped employee in preparation of or to otherwise assist tipproducingcustomerservicework.

TipProducingWork

Examples of tip-producing work include, but are not limited to, a server waiting tables; a bartender making and serving drinks and talking to customers, and a nail technician performing manicures. In each of these cases, the service is providedtothecustomerwhoisthesourceofthetip.

WorkDirectlySupportingTipProducingWork

Examplesofaserver’sdirectlysupportingwork,arewhentheworkisperformedin preparation for or to otherwise assist tip-producing customer service work, and when it does not provide service to customers. This work includes, but is not limited to, dining room prep work, such as refilling salt and pepper shakers and ketchupbottles,rollingsilverware,foldingnapkins,andsettingtables.

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Thetipcreditmaybeclaimedforalimitedamountofdirectlysupportingwork.

Anemployermayclaimatipcredittowarditsminimumwageobligationforany time a tipped employee spends performing tip-producing work. An employer may also take a tip credit for the time a tipped employee spends performing work that directly supports tip-producing work, provided the employee does not performdirectlysupportingworkforasubstantialamountoftime.

Atippedemployeeperformsdirectlysupportingworkforasubstantialamount oftimeif:

The tipped employee performs directly supporting work for more than 20 percent of the hours in a workweek for which the employer has taken a tip credit. An employer may not take a tip credit for any time spent in directly supportingworkthatexceedsthis20percenttolerance,or

The tipped employee performs directly supporting work for a continuous periodoftimethatexceeds30minutes. Whenanemployeeperformsdirectly supporting work, the employer may not take a tip credit for any of the time thatexceeds30minutes

Click to read USDOL Fact Sheet #15A: Tipped Employees under the Fair Labor StandardsAct(FLSA)andDualJobs.

TypicalProblems

MinimumWageProblems:

An employee does not receive sufficient tips to make up the difference between the direct (or cash) wage payment (which must be at least $213 per hour) and the minimum wage in each workweek. The employer must make up the differenceattheregularpaydayfortheperiodinwhichtheworkweekends.

An employee receives only tips and is paid no direct (or cash) wage. The employer must comply with the requirements for taking a tip credit and pay a direct(cash)wageofatleast$2.13anhourormustpayadirect(orcash)wage equaltothefullminimumwage,whichiscurrently$725anhour Deductions for walkouts, breakage, or cash register shortages reduce the employee’swagesbelowtheminimumwage. Suchdeductionsareillegalwhere an employer claims an FLSA 3(m)(2)(A) tip credit because any such deduction wouldreducethetippedemployee’swagesbelowtheminimumwage.

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OvertimeProblems:

An employer that takes a tip credit by paying a direct (or cash) wage less than theminimumwageerroneouslycalculatestheovertimepremiumusingonlythe reduced direct (or cash) wage paid. When an employer takes a tip credit, overtimemustbecalculatedbasedonthefullminimumwage,whichiscurrently $7.25anhour,notthelowerdirect(orcash)wagepayment. The employer may not take a larger FLSA 3(m)(2)(A) tip credit for an overtime hour than for a straight time hour. Under certain circumstances, an employer may be able to claimanadditionalovertimetipcreditagainstitsovertimeobligations.

An employer does not include all service charges, commissions, bonuses, and otherremunerationintheregularrateforpurposesofcomputingovertimepay.

TipPoolingProblems:

A tipped employee receives less than the federal minimum wage (currently $7.25) per hour as a direct (or cash) wage and is required to contribute to a tip pool that includes employees who do not customarily and regularly receive tips, suchascookordishwasher Whentheemployertakesatipcredit,theemployer can require the employee to share tips only with those employees who customarilyandregularlyreceivetips,suchasaserverorbartender. Anemployeeisrequiredtosharetipswithamanagerorsupervisor,regardlessof whether the employer takes a tip credit for the tipped employee. An employer who violates the FLSA by requiring tipped employees to share their tips with a manager or supervisor may be required to return the tips to the employee and paythefullminimumwage.

Click to read USDOL Fact Sheet #15: Tipped Employees Under the Fair Labor StandardsAct(FLSA).

USSC Says Even High Wage Earners Are Entitled to Overtime if Paid on a Daily Rate Basis

By Christopher T. Vrountas, Esquire and Allison C. Ayer, Esquire, Vrountas, Ayer & Chandler, P.C.

On February 22, 2023, in a 6-3 decision, the United States Supreme Court held that in order to be exempt from overtime under the Fair Labor Standards Act (FLSA), an employeemustbepaidonasalariedbasis,nomattertheincomeleveloftheemployee. In essence the Court ruled that even highly paid employees, whose annual income exceeds$100,000ormore,areentitledtoovertimepayifthey are paid at a daily rate or on any basis other than salaried In other words, even employees who earn six-figures must be paid one and a half times their regular rate of payforhoursworkedover40,iftheyarenotpaidapre-determinedamount,onaweekly orlessfrequentbasis,withoutregardtothenumberofdaysorhoursworked

As background, the FLSA generally requires employers to pay employees a premium overtime rate (i.e., 1.5 times regular rate of pay) for all hours over 40 worked in a week. The FLSA exempts from this requirement bona fide executive, administrative, and professionalemployees.Inordertoqualifyfortheseexemptions,theemployeemustpe paid at a certain level (currently $455/week), their job position must involve certain specific duties set out in FLSA regulations, and they must be paid on a “salary basis,” explained as receiving each pay period on a weekly, or less frequent basis, a predetermined amount not subject to reduction because of variations in the quality or quantityoftheworkperformed. ThisfinalrequirementwasatissueinHelixEnergySolutionsGroup,Inc.v.Hewitt.

Here’swhathappened:

MichaelHewittworkedforHelixEnergySolutionsGrouponanoffshoreoilrig Hereported tothecaptainoftherig,oversawaspectsoftherig’soperationsandsupervised12to14 workers.Heworked28-daysatatime,followedby28daysoff.Duringthe28-daystretch ofwork,hetypically,butnotinvariably,worked84hoursperweek(12hoursaday,7days a week). The employer paid Hewitt every two weeks, and paid him an amount equal to hisdailyratetimesthenumberofdayshehadworkedinthepayperiod.IfHewittworked onlyonedayduringthe2weekperiod,his

paycheck would total $963. But if he worked all 14 days, his paycheck would come to $13,482.Usingthismethodofcompensation,theemployerendeduppayingHewittover $200,000 annually. Importantly, the employer did not pay this employee overtime compensationforhoursworkedover40.IttookthepositionthatHewittwasexemptfrom the FLSA’s overtime requirements because he qualified as a bona fide executive Hewitt sued his employer arguing that he did not meet the exemption requirements and was entitled to overtime compensation He conceded that his employment met both the salary-levelanddutiestestofthebonafideexecutiveexemption Buthearguedthathis job position did not meet the requirement that he also be paid on a salaried basis The SupremeCourtagreed.

LookingtothelanguageoftherelevantFLSAregulation,theCourtsaidthatan“employee is paid on a salary basis if but only if he ‘receive[s] the full salary for any week in which [he] performs any work without regard to the number of days or hours worked.’” As the Court explained, this means that “[w]henever an employee works at all in a week, he must get his ‘full salary for [that] week’” referred to in the FLSA as a ‘predetermined amount.’Thatamount,accordingtotheCourt,mustbe‘withoutregardtothenumberof days or hours worked’ or in other words is ‘not subject to reduction because’ the employee worked less than the full week.” Under this definition, the salary-basis requirementforovertimeexemptionscouldnotbemetforanemployeelikeHewittpaid onadaily-ratebasis“whobydefinitionispaidforeachdayheworksandnoothers”As the Court noted, “[a] daily-rate worker’s weekly pay is always a function of how many dayshehaslabored Itcanbecalculatedonlybycountingthosedaysoncetheweekis over not,as[thelaw]requires[tobeexemptfromovertime],byignoring that number and paying a predetermined amount” Finding that the salary-basis applied equally to the separate “highly compensated employee”, the Court found that eventheseemployees,whohadamorerelaxeddutiesstandardtobeexempt,hadtobe paidonsalarybasis,notatadailyrate.

For its part, the employer argued that the salary-basis requirement was met so long as the employee receives in each pay period on a weekly or less frequent basis a preset and non-reducible sum. In other words, the salaried-basis requirement mandates only thattheemployeegethispaychecknomoreoftenthanonceaweek.Itstheorywasthat because Hewitt’s paycheck came every two weeks, and because that check always contained pay exceeding $455 (the salary level required to be exempt from overtime) foranyweekhehadworkedatall,theemployeewaspaidonasalariedbasis,andmet theexemptionrequirementsforovertime.

The Court outright rejected this argument It reasoned that the use of the term “salary basis” means “the unit of time used to calculate pay,” not the frequency of its distribution In that way, it is the unit of time used to calculate the pay, not the employee’sreceiptofthewages,thatmustbeaweekorlessfrequentmeasure

Continues...

in order to meet the salary basis requirement. In that way, Hewitt’s pay, calculated on a daily basis, even though paid weekly, did not meet the standard. As the Court stated “Mostsimplyput,anemployeepaidonanhourlybasisispaidbythehour,anemployee paidonadailybasisispaidbytheday,andanemployeepaidonaweeklybasisispaid by the week irrespective of when or how often his employer actually doles out the money”

Interestingly, the Court gave two specific ways the employer could have changed Hewitt’s pay structure to come into compliance with the salary-basis requirement: 1) by adding to Hewitt’s per-day rate a weekly guarantee that satisfies the ‘salary-basis’ conditions,or2)byconvertingHewitt’scompensationtoastraightweeklysalaryfortime hespendsontherig.Theemployerrejectedbothoptionsbecausetheywouldrequireit to pay for days Hewitt has not worked. But this requirement – to be paid even for days not worked, was the very point of the salary-basis requirement of the overtime exemption, and proved to them that the employer had violated the law. As the Court stated “Helix wishes neither to pay employees a true salary nor to pay them overtime. And the whole point of the salary-basis requirement is to take that third option off the table,eventhoughdoingsomaywellincreasecosts.”

So,whatdoesthismeanforemployersgoingforward?Basically,thetotalcompensation anemployeeearnsoverallinayear,doesnot,inandofitself,exemptanemployeefrom overtime Employees must be paid strictly on a salary basis in order for an employer to avoid overtime premium pay This means that even if the pay the employee ends up receivingfarexceedsthesalarylevelofthe overtime exemption (currently $455/week), if it is calculated on a basis more frequent than one-week, or otherwise accounts for how much the employee worked (i.e., adjusts up or down verses being paid a pre-set amount), the employee is not exempt, and is entitledtoovertimepayforallhoursworkedover

40. At pay levels this high, unpaid overtime claims could result in significant overtime pay, never mind possible multiple damages and attorneys’ fees for non-compliance.

Giventhispotentialexposure,employersshouldworkwithcounseltomakesureanyand allemployeeswhoarenotgettingpaidovertime,arebeingpaidonasalariedbasis,as defined by the Helix court. In particular, employers should pay close attention to employeespaidatadailyrate,andmakesurethattheyarepayingthemovertimeforall hoursworkedover40eachweek.Iftheyarenot,theyshouldconsiderconvertingthemto salaried-basedemployees,ASAP,orelsebereadytostartpayingovertime.

HAVEA QUESTIONOR CONCERN?

MembershipintheNHLRA meansbeingapartoftheonly organizationinthestate dedicatedtoprotecting, promoting,andeducatingour hospitalityindustry.

Contactusforquestionsorto sharewhatissuesareaffecting yourbusiness.We'reherefor you.

PRESIDENT&CEO: MikeSomers msomers@nhlra.com

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Adair Country Inn and Restaurant

Aldworth Manor

Atlantic Grill

Bagel Mill

Beckwith Restaurants Enterprises LLC

BG's Boat House Restaurant

Candia Springs Adventure Park

Cercle National Club

Cookie's Cafe

Five Guys Burgers & Fries

Four Seasons Motor Inn

Giorgio's Ristorante & Meze Bar

Great NH Restaurants

Good Start Packaging

Group Tree

Gunstock Mountain Resort

Hill-Brook Motel

Hungry Diner

Island Hospitality Management

Lantern Resort

Margaritas Management Group

Mill Falls at the Lake

Old Ferry Landing

Puritan Backroom Restaurant

Revival Kitchen & Bar

River Casino & Sports Bar

Sea Dog Brewing Company

Summit Supply

Vito Marcello's Italian Bistro

Vrountas, Ayer & Chandler, P.C.

White Mountain Hotel & Resort