WA S H I N GTO N
Winter Edition 2018
PAID FAMILY
AND MEDICAL LEAVE IS HERE What is it, how does it work and what does it mean to your business and employees?
WITH HOSPITALITY ADVISORS
Top operational challenges and how to conquer them
Washington Hospitality Association 510 Plum Street SE Olympia, WA 98501-1587
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EDITORIAL STAFF Publisher, Anthony Anton Executive Editor, Lex Nepomuceno Managing Editor, Morgan Huether Art Director, Lisa Ellefson Copy Editor, Paul Schlienz Contributing Editors: Andy Cook, David Faro, Jillian Henze, Sheryl Jackson, Lisa Leinberger and Nicole Vukonich
Inside
Winter Edition 2018
EXECUTIVE COMMITTEE Chair: Chad Mackay, Fire & Vine Hospitality Vice Chair: Ron Oh, Holiday Inn Express North Seattle Shoreline EXECUTIVE TEAM President and CEO, Anthony Anton Vice President, Teran Haase Chief Financial Officer, Darin Johnson Senior Director of Communications & Technology, Lex Nepomuceno Director of Local Government Affairs, John Lane Director of State Government Affairs, Julia Gorton Director of Membership, Steven Sweeney
510 Plum St. SE Olympia, WA 98501-1587 T 360.956.7279 | F 360.357.9232 wahospitality.org
Letters are welcomed, but must be signed to be considered for publication. Please include contact information for verification. Reproduction of articles appearing in Washington Hospitality Magazine are authorized for personal use only, with credit given to Washington Hospitality Magazine and/or the Washington Hospitality Association. Articles written by outside authors do not necessarily reflect the views or positions of the Washington Hospitality Association, its Boards of Directors, staff or members. Products and services advertised in Washington Hospitality Magazine are not necessarily endorsed by the Washington Hospitality Association, and do not necessarily reflect the opinions of the Washington Hospitality Association, its Boards of Directors, staff or members. ADVERTISING INQUIRIES MAY BE DIRECTED TO:
Andy Cook
360.956.7279 andyc@wahospitality.org Washington Hospitality Magazine is published monthly for members. We welcome your comments and suggestions. email: news@wahospitality.org, phone: 800.225.7166. Circulation: 6,310
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Features 9
New Member Resource Available: Hospitality Employment Law Guides
13
Seven Best Practices for Labor Compliance Success
14
Paid Family and Medical Leave in Washington
18
Operations Questions and Answers with Washington Hospitality Association Advisory Network
21
New Payroll and Workforce Management Solutions Designed for Washington Hospitality Association Members
22
More Than Medical: Using Association Programs to Create a Brilliant Benefits Package for Your Employees
26
Is Your Background Music Legal?
In Every Issue 6
From Your President and CEO
8
Association News
10
Local GA Update
12
State GA Update
28
Calendar and New Members
30
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President and CEO Do what you love and can be the best at A few years ago at an industry social gathering, a local operator told me a customer had trashed his restaurant bathroom. The customer had separated the urinal from the wall, smashed it into the floor and destroyed most of the bathroom. The operator went on to tell me how he had spent most of the past week doing the repairs himself -- tearing everything out, putting in new faucets and fixing the water-damaged wall. He spent days on his hands and knees, putting in new tile, attaching a new urinal and fixing the mirror. He relayed how proud he was on the cheap deal he’d gotten on all the parts and how he made it all work. Another operator standing next to me revealed he too had just repaired a restaurant bathroom but hired out the work. The first operator teased the other about being lazy, said he paid way too much, etc.
Anthony Anton President & CEO
It’s easy to think how smart and savvy the first operator was that he got cheap parts and did the work himself. But looking deeper – are we so sure? The second owner’s repairs lasted until the business was sold seven years later. But, the first operator’s repair work lasted about 18 months before a leak caused water damage and all of his repairs needed to be fixed again. The operator was neither a tile expert nor a plumber. He took three days of his life away from being the best leader he could be, away from his family, from resting. He spent three days away from thinking about how he could increase sales and reduce expenses, away from greeting guests and getting critical feedback and valuable time away from thinking about solving the problems only he, as the business owner, could solve. The professional who the other local restaurant owner had hired was good at laying tile, could do it in half the time and could lay tile for 10 others that week. The plumber came in and set the pipes so it would last a long time and worked so efficiently they could spread their costs and time over hundreds of other jobs. Our business is hard. Our margins are small and we can’t do it all. You need to focus on the things that you can do to beat the odds. Not the ones that distract you from meeting your goals. The Hedgehog Concept in the book, “Good to Great” and the principles of lean manufacturing point to where our industry needs to go. Both encourage us to only do what we are deeply passionate about and what we can be the best in the world at. How do we, as leaders, get out of the busy work like fixing the vacuum, worrying about the appropriate way to reply to a tweet and wasting hours sorting through résumés? And how do we go about finding experts who can do it for us more efficiently and at a lower cost? There is waste in trying to be something that you’re not. You bring incredible value in being the best in what you do. The concept is simple. Do what you’re great at. Find others who are great at the other things and let them be great at it for many. As we adjust our business model, the Hedgehog Concept and lean manufacturing principles are likely going to be part of our solution moving forward. Please take the time to learn about them and about the value that your time has.
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Primary Source of Information | Association News
Stars of Hospitality Award Winners
The Washington Hospitality Association is proud to honor outstanding hospitality professionals each year. Here are the 2018 Stars of Hospitality winners: Lodging Emerging Hospitality Leader of the Year: Amanda Landers, Pan Pacific Hotel, Seattle Innovation Award: Derek Simcik, Thompson Seattle Paving the Way Award: Kim Straight, Holiday Inn Express & Suites, Sumner Employee of the Year: Meg Spiegelberg, Embassy Suites Pioneer Square, Seattle General Manager of the Year: Scott Snofsky, Hilton Garden Inn, Bellevue Restaurant Employee of the Year: DelRae EvansMcLain, Wild Ginger, Seattle General Manager of the Year: Tyler Winters, Farrelli’s Pizza, Lacey
STARS OF HOSPITALITY AWARDS Help Us Show Hospitality Cares: Hill Climb 2019 is Jan. 28 The State Government Affairs Team is proud of the incredible ways hospitality businesses give back to their local communities, but we need you to help share those stories. Help us create a presence at the capitol on Jan. 28 for our annual Hill Climb Legislative Day and Taste Our Best Reception. This is our best chance to highlight what we already know – Washington’s hospitality businesses care about people, providing careers and strengthening our communities. Learn more about how you may participate at Hillclimb2019.org.
–Morgan Huether and Nicole Vukonich
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New Member Resource Available: Hospitality Employment Law Guides The Washington Hospitality Association is pleased to provide two members-only Employment Law Guides tailored to Washington state and to your business: one for restaurants and foodservice operations, and one for lodging operations. You can access the guides by logging in to the member portal on the website: bit.ly/employment-lawguide. The Employment Law Guides are intended to provide guidance and sample forms to management, legal counsel and human resources professionals involved in employmentrelated matters in the hospitality industry. We hope you will find this material useful and effective as you deal with employees and workplace issues on a day-to-day basis. These guides have been prepared and compiled by Catharine Morisset of Fisher Phillips. Catharine is a member and supporter of the Washington Hospitality Association, serving on
the association’s Board of Directors and Editorial Committee as well as being a consultant on the association’s Advisory Network. Fisher Phillips is a national law firm committed to providing practical business solutions for employers’ workplace legal problems with more than 370 attorneys in 32 offices across the United States, including Seattle. The firm specializes in labor and employment law, offering deep and broad knowledge and experience in the area of the law the attorneys know best. Fisher Phillips is a proud Allied Member of the Washington Hospitality Association. Please note that these guides are not intended to replace legal advice from a qualified attorney. Employment law issues are typically complex and fact-specific, and even seemingly simple issues may require analysis of a host of laws, regulations, court cases or agency interpretations. For legal advice regarding any labor and
employment matter, we urge you to consult competent legal counsel with experience in this area. For questions about these guides, please contact the Washington Hospitality Association, (360) 9567279, or speak to an attorney in Fisher Phillips' Hospitality Practice Group at (206) 682-2308.
How to download the Employment Law Compliance Guides: 1. Go to bit.ly/employment-lawguide. 2. If you’ve never logged in to the website before, you will have to register by following the link at the bottom of the page. 3. The guides are available for download on the welcome screen.
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Government Affairs | Local GA Update
Seattle, SeaTac and Tacoma Announce 2019 Minimum Wages
In areas outside of Seattle, SeaTac and Tacoma, the Washington state minimum wage is $12 per hour effective Jan. 1, 2019. The minimum wage in Seattle, SeaTac and Tacoma was calculated using the consumer price index to adjust for inflation in each city. Seattle’s minimum wage, based on the consumer price index to adjust for inflation is: Large employers: $16 an hour, even those that contribute toward individual medical benefits Small employers: At least $15 an hour Small employers that contribute at least $3 per hour toward an employee’s medical benefits and/or tips: $12 SeaTac will increase its minimum wage to $16.09 per hour on Jan. 1, 2019. Tacoma’s minimum wage will increase to $12.35 per hour.
Commuter benefit subsidies through WSDOT
Seattle recently passed pre-tax commuter benefits legislation that will take effect in 2020. The ordinance applies to employers with 20 or more employees and requires employers to offer pre-tax commuter benefits or subsidized transit passes to employees. Washington State Department of Transportation (WSDOT) is offering matching funds to small business owners to offer One Regional Pass for All (ORCA) transit passes. The state legislature recently designated $1 million to help small businesses in the Puget Sound region start ORCA transit benefits for their employees. The state will match an employer’s investment in ORCA passes, up to $10,000 per business. The requirements for businesses to qualify are that they must have fewer than 100 employees and have not previously offered ORCA benefits. The state will allocate funds on a first-come basis, so if interested we suggest reaching out to Commute Seattle, which can help you get your business enrolled in this new program. To learn more, reach out to Nick Abel at nicka@ commuteseattle.com or 206-613-3233.
Gig Harbor City Council Considers Plastics Ban
Gig Harbor City Councilwoman Jeni Woock proposed banning single-use plastic this past summer and now is working to pass two ordinances she proposed in September. The ordinances would ban single-use plastics including straws and bags. Woock said she has not received pushback from foodservice businesses on the ordinances. The council will conduct a public discussion and vote in November on the ordinances. –Morgan Huether and Lisa Leinberger 10 │ wahospitality.org
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Government Affairs | State GA Update
Preparation Underway for the 2019 Legislative Session
The State Government Affairs Team is already looking ahead to the 2019 Legislative Session. The draft 2019 Priorities Issue Matrix will be formally adopted at the December 11 Government Affairs Committee meeting. At a glance, the high-level priorities the association will be pursuing are affordable housing options within our communities, preparing and developing our workforce, enacting changes within the Liquor and Cannabis board to address topics related to alcohol and licensing, and protecting the industry from any harmful policy proposals. The January issue of the magazine will have your full 2019 session preview.
Changes Coming Jan. 1: Are You Ready?
With the start of a new calendar year, many new policies and updates take effect. Are you prepared for the upcoming changes? Paid Family and Medical Leave Insurance Premium Collection Begins Part one of Washington’s Paid Family and Medical Leave program takes effect on Jan. 1, 2019. This means that all employers will need to begin collecting premiums from all employees, if the business has opted into the program or is exempt. Although small businesses with fewer than 50 employees are exempt from the program, they may elect to opt-in to offer this benefit to be more competitive in the workplace. For small businesses that opt-in, there are small business grants available to help cover the cost of hiring a temporary employee. Paid leave benefits for employees begin Jan. 1, 2020. Minimum Wage Increases at State and Local Levels The state minimum wage will increase to $12 in all areas across the state, except for Seattle, SeaTac and Tacoma, which have adopted a higher minimum wage. See page 10 for information about local minimum wages.
Help Us Show Hospitality Cares: Hill Climb 2019 is Jan. 28
The State Government Affairs Team is proud of the incredible ways hospitality businesses give back to their local communities, but we need you to help share those stories. Help us create a presence at the capitol on Jan. 28 for our annual Hill Climb Legislative Day and Taste Our Best Reception. This is our best chance to highlight what we already know – Washington’s hospitality businesses care about people, providing careers and strengthening our communities. Learn more about how you can participate at Hillclimb2019.org.
New Guidance About Service Animals Goes into Effect Thanks to a law passed last session by the State Government Affairs Team updating the state’s service animal laws, businesses will now be able to ask service animal handlers if the dog or mini horse is a service animal, and what work or task is the animal has been trained to do. If a person is unable to or refuses to answer these questions businesses may elect to call an enforcement officer. The law additionally creates a civil infraction and fine for the misrepresentation of a service animal. –Nicole Vukonich
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Seven Best Practices for Labor Compliance Success Recently, there was a federal investigation into a restaurant in Ottawa, Kansas that started several years before any charges were leveled. As soon as indictments were handed down, restaurant management was caught off guard, and operations were paralyzed. The restaurant’s general manager was sentenced to six months in federal prison on eleven counts related to labor noncompliance. This article is about ensuring comprehensive, fully compliant onboarding, that leverages simple technologies that could potentially save you tens, if not hundreds, of thousands should you suffer an audit or investigation. In many cases these are brought on by simple human error in the face of mystifying regulations and reporting requirements. Make no mistake – there is a ‘Sea Change’ in the labor enforcement climate, and a measurable uptick in policy enforcement, frequency and methodology. With the upcoming requirements regarding Washington State’s Paid Family Medical Leave, you owe it to yourself and your business to ensure fully compliant systems are in place. 1. Adapt to the Sea Change: It’s long past time for employers to take a critical view of their hiring and compliance processes to determine if they meet the legal labor standards requirements. Enforcement data suggests it’s only a matter of time before you are the subject of a “worksite enforcement action.” 2. Take the Big View: Identify the end users of the hiring process. The employee, supervisor, payroll manager, payroll processor, auditors and even attorneys will all be looking at your hiring paperwork, which means you need to ensure that everyone finds what they need – and sees what you want them to see. 3. Leverage technology: Take advantage of technology as a solution to your hiring processes. Compliance is best accomplished by removing human error. Chances are, your new hire knows next to nothing about the rules of hiring, paperwork and policy management. 4. Hot List: To ensure full legal compliance, you need an
integrated system to make sure things don’t fall through the cracks. Whatever scheme you implement, you’ll need to confirm that there are tools already in place that enable review of the critical forms. Your Hot List empowers your Document Management process by adding inspection to the process off getting complete and error-free documents for each required government form, disclosure of rights, and key company policies. Make a hot list of the most sensitive documents and, as the last item, include a schedule for a periodic hot list audit. 5. Security: System security is tantamount. What you are looking for in an automated system are multiple levels of security, including protection of PEI, confidentiality and server security. Another key concern is confidentiality. Access levels need to be clear and well-defined. 6. Messaging: Successful hiring requires effective communication from the employer to the new hire, including employee manuals, legal rights, company policies and procedures, work site rules and more. Effective onboarding significantly increases retention rates. 7. Total Cost of Ownership: Also consider ROI measurements in establishing a sustainable hiring and compliance management process. Given the potential risks, it might make sense to invest now in an affordable compliance management system for your hiring process. Insist on clarity when it comes to the TOTAL cost of ownership; what’s included with the monthly list price? Bandwidth, cloud storage, cost per employee/location, user credentials, change fees, help ticket pricing, new or customized forms and more… these can add up, be sure to insist on clarity. Get the FULL version of ‘Seven Best Practices for Labor Compliance Success’ whitepaper at www.FastrackOnboard.com or email ‘WHA@FastrackOnboard.com’ and ask for the white paper. Consider implementing new, simple and comprehensive tools into your onboarding systems - that are customized to your needs. Your new awareness equips you and your team for evaluating potential solutions and acting to protect yourself and your business from the hazards present in the Sea Change.
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Paid Family and Medical Leave in Washington By Nicole Vukonich
In July 2017, after months of negotiations and strategic planning a business and employee-friendly paid family and medical leave law was signed by the governor. Now with the implementation date for Washington’s Paid Family and Medical Leave set to begin on Jan. 1, 2019, the Washington Hospitality Association wants to ensure you are informed and prepared for the coming changes. Part one of the Paid Family and Medical Leave Act takes effect Jan. 1, 2019 when insurance premium collection will begin. Every employer will have new requirements for this law regardless of size of business. These new requirements include: • • •
All employers must collect premiums from all their employees’ wages. It is important to note that wages do not include tips. All employers must report wages and hours to the state Employment Security Department, which is similar to how Unemployment Insurance is reported. Beginning one year later, on Jan. 1, 2020, all employers must notify employees of the program and their rights, including on their labor posters.
What is Paid Family and Medical Leave? Washington’s Paid Family and Medical Leave Act created an insurance program for all qualified, eligible employees who have worked for any Washington-based employer for 820 hours for four out of five of the previous quarters. This equals about five months of full-time employment or those who have worked 17 hours per week for the entire year. Employees in a business with fewer than 50 employees are
covered and pay into the fund, however, the employer is exempt but may choose to opt in. Employees are eligible to use paid family and medical leave only for a qualifying event that is medically certified and is approved by the Employment Security Department. How much leave may be taken? Eligible employees who meet the criteria may access paid leave for qualifying events that are medically certified. • • • •
Up to 12 weeks for family care Up to 12 weeks for a personal medical/disability Up to 16 weeks per 12-month period for a combination of family care and medical/disability If a person experiences a disability related to pregnancy, she may be eligible for a total of up to 18 weeks of leave per 12-month period.
Who pays for the program? The total cost of the program is 0.4 percent of payroll for the first two years and will be adjusted annually after. Two separate funds have been established. The first is the Paid Family Leave fund, which is one-third of the cost of the program. The second is the Disability/Medical fund, which covers the remaining two-thirds of the cost of the program. For the total cost of the program, 37 percent is paid by the employer and 63 percent is paid by the employee. What’s the difference between the funds? The Paid Family Leave fund is 100 percent funded by the employee and covers absences for child bonding, care of an ill family member, or a military exigency. The Disability/ Medical fund is 55 percent paid by the employer, 45 percent paid by the employee. This fund may be used for 14 │ wahospitality.org
an employee’s disability, including pregnancy. The total employer contribution is 37 percent or 0.148 percent of payroll. For example, for an annual payroll of $1 million, the program would cost an employer $1,480 per year. How are employees counted? The size of an employer is counted by the Employment Security Department once a year on Sept. 30. The department will average the number of employees reported by an employer over the last four quarters of the calendar year. This number will determine employer premium responsibilities and eligibility for small business assistance grants. Why is this program a win for the hospitality industry in Washington? Small business exemption Businesses with fewer than 50 employees (96% of all businesses in the state) are exempt from paying the employer portion of the law. This allows small businesses to determine if they would like to opt-in. If a small business opts in, they must do so for three years. Small & medium sized business assistance grants Businesses with fewer than 150 employees may receive financial assistance up to $3,000 no more than 10 times per year to hire a temporary employee to cover duties while an employee is out on leave, or up to $1,000 for training and overtime costs. Large business flexibility Businesses that already have superior paid family and
medical leave programs in place, may be waived out of the state program. Businesses will be able to decide what is best for them and their employees. Larger businesses, who already offer paid leave, but choose to join the state program, could see a cost reduction from enjoying the benefits of a statewide insurance pool. All businesses will receive relief from unemployment insurance charges Businesses that hire a temporary worker to cover the duties of an employee on paid family and medical leave will not be charged for the layoff experience when the employee returns. Alignment with federal law The length of time employees can be on leave is consistent with the Federal Medical Leave Act (FMLA) and provides additional time for very narrow circumstances like a pregnancy-related disability. The employee job protection requirements in Washington’s Paid Family and Medical Leave program are also consistent with FMLA. Prohibits local governments from enacting separate programs One statewide insurance program prohibits local governments from creating costly, duplicate programs. How is Paid Family and Medical Leave different from Paid Sick & Safe Leave? There are many differences between these two types of leave. Importantly, these two types of leave cannot be used at the same time. An employee must select only one type of leave at a time.
Paid Family and Medical Leave
Paid Sick and Safe Leave
State Agency
Employment Security Department
Department of Labor & Industries
Who pays for leave
A state insurance program, paid for by employees (63%) and employers (37%)
100% employer paid
Who determines eligibility
Requires a medical certification and approval from the Employment Security Department
An employee may use leave An employer may request verification after three days of absence
Length of leave
Up to 12 weeks of leave, capped at 14 weeks. Under limited circumstances up to 18 weeks of leave
1 hour of leave accrued for every 40 hours worked. Employees may roll over up to 40 hours to next year
Amount
Up to 90% of wage, capped at $1,000 per week.
100% of wage
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Operations Questions and Answers with the Washington Hospitality Association Advisory Network We asked three of our advisory network members a few questions about operations. Here’s what they had to say.
Richard Finafrock, CPA, Peterson Sullivan LLP Q: How do you work with the hospitality industry? Myself and our Hospitality Industry team here at Peterson Sullivan LLP, provide traditional full-service CPA firm services to businesses and individuals operating within the hospitality industry. That includes not only restaurants, hotels and clubs, but also suppliers of products and services to those businesses. In addition, we provide a wide range of other business services from full-service accounting solutions to consulting services related to business mergers, acquisitions and sales. In a nutshell, my personal focus is on strategic federal and state income tax planning, as well as income tax compliance matters. Q: What are the top operational challenges that hospitality businesses are facing? From a tax standpoint, the top operational challenges I see have to do with the ever-changing tax law and related regulations. Keeping informed and up-to-date on the multitude of city, county, state and federal tax rules is a daunting task for businesses of any size. And failing to comply could subject a business to a variety of interest and penalty charges. Q: How can operators combat their top operational challenges? Engaging professional tax advisors can seem like an expensive proposition to some operators. However, the 18 │ wahospitality.org
potential financial exposure for not keeping up-to-date on tax matters could result in an unanticipated financial burden to the business and/ or business owner themselves. Failing to comply with tax rules could subject a business to a variety of interest and penalty charges. Q: What do you think is the most important thing hospitality owners and operators should do to be successful? Focus on what they do best. As an example, if the individual is a chef, he or she should focus their time and effort on running the restaurant operations and leave the accounting and finance tasks to others. Again, there is a cost in doing this either through additional labor cost for in-house accounting staff, or fees for outsourced accounting services. Q: Are there any common threads you see that many successful owners and operators are doing? From a tax perspective, there are opportunities for reducing income taxes or potentially benefiting from various tax incentives and credits, depending upon each business’ unique situation. Being mindful of tax considerations related to any course of action is important, though should not be the driving force behind any decision. Tax impacts should be just one of a multitude of considerations. Keeping informed about the ever-changing tax landscape is difficult, and having professionals in your corner who keep informed, such as the associations’ Advisory Network, is a huge help.
Q: Are there any trends in the industry that could help make managing a hospitality business easier or more efficient? Improved automation of various aspects of running a business has been, and continues to be, extremely helpful. From computer accounting systems, to online reservation systems, to the ability to search for answers online, automation has made managing a business more efficient. I don’t know that it helps make things easier because the tendency is that as less time is spent on one aspect of the business, more time is spent on another area. However, as mentioned earlier, that does allow people to focus on what they do best, which in my experience is what helps owner/operators be successful.
Quentin Incao, CEO/Hospitality Guru, Q Hospitality Management Q: How do you work with the hospitality industry? Q Hospitality Management provides consulting and operational support to unique and distinctive hotels and restaurants, support of this great industry includes such areas as recruiting, interim executive management, operational consulting, product sourcing and so on. Under The Q Hotel Group brand we provide hotel management to unique and distinctive independent hotels. The Captain Whidbey is a great example of one of our unique hotels. Q: What are the top operational challenges that hotels are facing? From both the operator’s point of view and as a firm that provides recruiting, I would have to say that it is staffing and wage creep; and often, using our Whidbey Island hotel as an example, wage creep because of lack of staffing. Q: How can hotel operators combat their top operational challenges? Provide a great place to work and as generous a benefits package as your budget allows to differentiate your hotel from the comp set. Look to hire or interview potential
team members who may not have the experience you are looking for but come with the right personality, a smile and hopefully great attention to detail. While this doesn’t work in all positions, hire for personality and train for the details. Another tactic is to look to an older generation for a more mature and potentially reliable team member for certain or appropriate positions. Q: What do you think is the most important thing hotel owners and operators should do to be successful? I truly believe in focusing on our staff first and our guests second. A happy and empowered team provides great experiences, great experiences in turn create happy guests, happy guests generate great revenue, great revenue creates happy owners! Now that’s a great return on experience! Q: Are there any common threads you see that many successful owners and operators are doing? Depending on how you determine “successful,” a few areas that catch my attention are: Creating a great presence either in name (front of mind) and/or on social media with images that tell stories without words or with few words Creating unique experiences Being known for those unique experiences Taking care of their team members so they can accomplish and focus on the points previously mentioned Q: Are there any trends in the industry that could help make managing a hospitality business easier or more efficient? Some of the newer hospitality-focused, web-based technologies and programs or SaaS (software as a service) have intriguing possibilities to replace more costly legacy programs/systems and with enhanced capability and webbased access, some of these can streamline an operation, cut down on administrative time and provide more access and insight into your operations.
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Catharine Morisset, Attorney at Law, Fisher & Phillips LLP Q: How do you work with the hospitality industry? I am a partner at Fisher Phillips, a national law firm dedicated to business solutions for employers’ workplace legal problems. I represent employers, in court and before regulatory agencies, and devote a portion of my practice to practical and preventative counseling. I am an active member of my firm’s Hospitality Group. Q: What are the top operational challenges that hospitality businesses are facing? Wage & Hour Compliance (overtime, missed meal and rest periods, increasing minimum wage and tip pooling practices) and an ever-changing landscape of paid sick leave laws. The current legislative and regulatory climate presents lots of costly pitfalls. The #metoo movement has also increased awareness for the need for sexual harassment and gender discrimination prevention, but also increased legal claims.
Q: How can operators combat their top operational challenges? Emphasizing preventative compliance as an operational priority. Q: What do you think is the most important thing hospitality owners and operators should do to be successful? Staying updated on state and local workplace laws (not just federal) and taking the time to prepare compliant policies and train managers. Managers are on the front line in all ways— from performance management to preventing harassment. Q: Are there any common threads you see that many successful owners and operators are doing? Manager training. A good handbook is no substitute for good management training. Q: Are there any trends in the industry that could help make managing a hospitality business easier or more efficient? More sophisticated POS systems that allow for some customization provide opportunity to help ensure compliance, such as having employees confirm they received all required breaks or confirming tip sharing percentages.
Gloves Off Washington is a campaign created by Washington State’s restaurant and hospitality industry members to increase the wellbeing of our patrons and our planet.
FOR MORE INFO VISIT:
www.glovesoffwashington.org
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New Payroll and Workforce Management Solutions Designed for Washington Hospitality Association Members
We are excited to be part of the Washington Hospitality Association’s Preferred Provider network. GNSA is a northwest local payroll and workforce management provider. We have over 20 years of experience bringing hospitality clients solutions including Payroll, Time and Attendance, Scheduling, Human Resource Management Systems (HRMS), Leave, Performance and Compliance Management. We know how important the ever-changing compliance regulations are to hospitality operators and want to be a partner who can shoulder some of that burden. Be it Paid Family Medical Leave, Minimum Wage, Paid Sick and Safe Leave, or Secure Scheduling GNSA has solutions for your team. GNSA solutions are completely modular, flexible and scalable for workforces of any size. But, what truly sets us apart from other vendors is our support model. GNSA’s support model eliminates call centers and hold times.
“The staff at GNSA are beyond exceptional, with attention to detail, as well as the care and kindness they put into every interaction. Over the course of our 12-year partnership, we have presented them with a multitude of extraordinary challenges that they’ve met with nothing less than supportive, encouraging and solution-oriented responses. They have been the exception when it comes to business relationships and cannot imagine ever working with any other payroll/human resource management company. Their service is priceless!” -Cari Lynn Powell, HR Systems Analyst for Restaurant Development Corp of America GNSA’s goal is to bring solutions that control labor costs, increase employee engagement, enhance guest experiences and minimize compliance risk. Our program looks to save association members both time and hard costs on systems, with member exclusive pricing.
Washington Hospitality Member Exclusive Pricing Equal to 41% discount on payroll + 20% discount on any additional modules
Please Contact Josh Willner to see if GNSA solutions would be a great fit for your company. JWillner@gnsadmin.com, (O) 503-972-1949 (C) 908-216-2817 Winter Edition 2018 │ 21
ASSOCIATION SPECIAL CONTENT
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ASSOCIATION SPECIAL CONTENT
MORE
THAN MEDICAL Using Association Programs to Create a Brilliant Benefits Package for Your Employees By David Faro
Thinking about benefits packages? Articles usually recommend various strategies for retaining employees. Generally, in most stories, benefits are brought up as a No. 1 way to attract staff and keep them in-house. If you are currently taking another look at your benefits structures, the Washington Hospitality Association offers a wide range of programs for association members to take advantage of.
To make it even easier, the Washington Hospitality Association has recently put all the member benefit options in one place. By visiting healthcarewashington.org, members can quickly find the information they need regarding association health care solutions. You can get information by viewing the site and then follow up by talking with our association benefits specialist. No one needs to buy the whole enchilada either. Stand-alone programs like dental and employee assistance can be combined to complement an existing benefits structure. But if you don’t know what’s available, you won’t be able to make the best choices when putting your benefits packages together. Below are a few of the options on the association health care solutions menu. After you read this, go to the web and check out the rest. And don’t forget, as the title implies, what is on the association menu is more than medical. As an example of the cutting-edge services available through the association, consider telemedicine and direct primary care.
Telemedicine
It can be hard for employees to take time out of the day to see a physician. And, in areas where the provider network is limited, telemedicine can be a good supplement to visiting a physician. If communicated appropriately, telemedicine plans can also provide employees who tend to rely more on the ER and urgent care with a much less expensive alternative for after-hours care. While telemedicine does not replace your primary physician, it is a convenient and affordable option for quality care in many situations, such as: When you need care now.
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ASSOCIATION SPECIAL CONTENT
If you’re considering the ER or urgent care for a non-emergency issue. On vacation, on a business trip, or away from home. For short-term prescription refills. Coverage can be purchased on a stand-alone basis. There is no deductible and no copay (except when used with Health Savings Account plans).
Direct Primary Care
Direct Primary care (DPC) is not insurance. It is, however, an affordable option for individuals, families and employers to receive quality, local personal medical care. With unlimited access to primary care, no co-pays, same-day/next-day appointments and the ability to schedule visits that meet your needs, the DPC model can be a good fit for those seeking alternative health care options. Coverage is available at a flat rate of $89/person/month for association members.
Dental
Association members have multiple dental options to choose from. Plans can be 100 percent voluntary or sponsored with as few as two enrolled employees, making it affordable for you to offer dental coverage to your employees no matter your budget.
Vision
A vision plan is a popular employee benefit. Our health care solutions program has several plans available. Options include a reimbursement plan, several vision networks (chain and independent), access to discounts on laser surgery and the ability to offer more than one plan to employees. Plans maybe be employer paid, employee paid or a combination of both.
Employee Assistance
Employers have a vested interest in the ability of employees to work at or close to their full potential. Employee Assistance Programs (EAPs) are valuable resources that can help employees cope with issues affecting their ability to
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reach that potential. Marital and family problems, conflicts among co-workers and managers, depression, substance abuse, work-related stress, legal and financial issues, and child and elder care needs are just some of the concerns affecting employees’ well-being. These distractions may hurt productivity and drive up costs for businesses. The health care system cannot always handle these types of issues, especially those—such as needs for financial counseling or elder care help—that are not health related. EAPs are cost-effective tools to mitigate these risks. EAPs can help employers reduce absenteeism, workers’ compensation claims, health care costs, accidents and grievances. In addition, they can address safety and security issues, improve employee productivity and engagement and reduce costs related to employee turnover.
Pharmacy Discount Cards
Offer one or both of our pharmacy discount cards to your staff and their families, absolutely free. The cards are a great option for prescriptions not covered through insurance plans, for supplementing high deductible plans and for part-time staff that are not eligible for medical benefits. Cards are available to print directly from the healthcarewashington.org website and start using immediately. These are just a few of the multiple benefit options available to businesses through their association membership. It is the association’s goal to provide access to the highest performing programs available while at the same time providing cost savings for our members, and for that reason alone you should check out the new web portal. If any of the above piqued your interest, the next step is to find out more by visiting healthcarewashington.org or by calling our Washington Hospitality Benefits Specialist at 877-246-0545. We are excited to share all the options available to you. We have programs that cover many benefits, so remember the association, remember our menu, and don’t forget, it’s more than medical.
Music Licensing Issues? We Have Solutions! SiriusXM Music for Hospitality Businesses Providing Legal & Fully Compliant Business Music Streaming Products and Services for Washington Hospitality Association Members SeriusExclusive Advertorial
1-888-318-5420 www.SiriusXM.com/WAHospitality
Introducing the SiriusXM Music for Business Program The Washington Hospitality Association has teamed up with SiriusXM Business to provide a background music program specifically for Washington Hospitality Association members. The program is packed with member-only benefits, discounts, and over 100 channels of music from the biggest name in the business.
SiriusXM Business Music Program Member Benefits
FREE SiriusXM Business Internet player ($150 value) Low, no contract, month-to-month only: $24.95 All icensing costs included – ASCAP, BMI, SESAC, & GMR Further discounts on commercial audio system hardware
SiriusXM Music for Business is perfect for: Restaurants
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Is Your Background Music Legal? SiriusXM for Business and the Washington Hospitality Association have crafted music streaming for business resources specific to the needs of the industry that includes member exclusive free streaming hardware, education, sound system design and music licensing consultation with no contractual commitment. Ryan Santangelo, Ph.D. President, DynamicMedia Music is uniquely important in the hospitality sector. Decades of studies tell us that properly curated music will keep guests in your facility longer, will improve their brand perception, will influence their purchase behavior and will contribute to repeat visits. Whether you’re providing soft background instrumental to guests on a patio or entertaining bar patrons with a live rock band, your business has a sound and that sound matters. The one common thread we see with all successful operators is their clear understanding of how powerfully music can influence experience. Music affects your guest’s perception of who you are every bit as much as the décor that adorns your facility and the lighting that sets the mood. Whether you operate a restaurant, hotel or theme park, how your business sounds creates a powerful foundation upon which to build and emphasize your core service offerings.
SiriusXM’s Exclusive Offer for Washington Hospitality Association Members
Music licensing is one of the hottest compliance topics to challenge Washington Hospitality Association members. To bring clarity, direction and a solution to this rising concern, the Washington Hospitality Association has worked with SiriusXM Music for Business to offer a licensed background music program specifically for Washington Hospitality members, with member exclusive benefits. The music program is packed with member-exclusive savings and benefits. To begin, all Washington Hospitality Members that sign up for service receive a free SiriusXM Business internet player valued at $150. The SiriusXM Business service includes over 100 channels of content, 30 of which are programmed exclusively for business with family-friendly content and no DJs or interruptions. The service includes both the SiriusXM music and all public performance licensing for the low price of $24.95 per month. The SiriusXM Business service is available on month-to-month agreements to all members with no long-term contracts. Solutions are also available for multi-location enterprise environments at member-only discounted rates. In addition, Washington Hospitality Association members will receive discounts on audio system hardware along with free audio system engineering for those members interested in commercial audio systems. We’re reinforcing our commitment to ALL Washington Hospitality Association members by joining the Advisory Network to offer free educational consultations. Do you have concerns about your own compliance? Is a music licensing agency calling you? Connect with me; I’m unbiased and here to help you understand where you stand in terms of compliance. To learn more about the Washington Hospitality Association Business Music program, or to purchase online, visit the program website at www.siriusxm.com/wahospitality or call 888-318-5420. 26 │ wahospitality.org
Sponsored Content
Is Your Music Legal?
Most new hospitality organizations we encounter aren’t just playing the wrong music; they are playing the wrong music illegally. If your background music is coming from a source that isn’t identified as “for business” (radio, personal playlists or internet streaming) you’re playing unlicensed music and are vulnerable to fines in the range of thousands to tens of thousands. Music licensing is a function of U.S. Copyright Law (USC Title 17). This law gives the music publishers, composers and directors that hold the copyrights to the music the exclusive right to the performance of the music in a public environment, like a business. In other words, just like you need a liquor license to serve alcohol, or an accommodations license to operate a hotel, you need permission from the copyright holders of the music to use it in your business. This permission comes in the form of a public performance license.
The Music Licensing System in a Nutshell
There are four organizations that manage the entire U.S. music licensing system; ASCAP, BMI, SESAC, and GMR. They are called Performance Rights Organizations (PROs) and it’s likely that you’ve heard of them. To make their music as available as possible, music artists select one of the PROs and register their mu-sic catalog with them. The PRO then has the right to sell licenses to businesses that wish to use that artist’s music in a business setting. The PROs collect licensing fees from the businesses and then pay those fees to the music artists in the form of royalties.
How Is Music Licensing Monitored?
Many hospitality organizations ignore music licensing laws because they are either not aware of them, or because they feel they will never get caught. Regardless of your reason, playing unlicensed music puts you in violation of federal law and places your business at risk for large fines and drawn out legal headaches.
The hospitality industry is a key target for music licensing enforcement. If you are using unlicensed music and have not yet been contacted, it’s likely only a matter of time before they get to you.
Where and Why to get a Music License
As an operator, you have two choices when it comes to purchasing a music license. You can either purchase a direct license from each of the four PROs (costing you thousands per year) or you can subscribe to a music for business service. Subscribing to a business music service like SiriusXM Business is the easiest and least expensive way to license your music. SiriusXM for Business provides over 100 channels of music and includes all your public performance licensing for one monthly payment of $24.95. As with all background music services, SiriusXM Business is designed and licensed only for use as ambient background music. If your need for music goes beyond background music, you will need to purchase direct licenses from the PROs. Businesses that use live bands, DJs, karaoke or charge admission need to purchase their licenses directly from the PROs. There are many other scenarios in which direct licenses are required. To better understand your music licensing obligations, download the SiriusXM Business / Washington Hospitality Association whitepaper entitled, The Simple Truth about Music Licensing in the Hospitality Industry, for free at www.SiriusXM.com/WAhospitality and click “licensing.”
Dynamic Media, established in 2004, is a national business music provider that operates as the Master Reseller for the SiriusXM Music for Business division. The company currently supports an installed base of over 25,000 clients in all industries across the U.S. and Canada. Dynamic Media is a Washington Hospitality Association Allied Member and a is member of the Washington Hospitality Association Advisory Council tasked with assisting and advising association members on issues related to music licensing. The author, Dr. Ryan Santangelo, is the President, CEO, and Co-Founder of Dynamic Media.
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INDUSTRY CALENDAR Nov/Dec/Jan TRAINING Dec. 10
ServSafe® Manager, Everett
Dec. 11
ServSafe® Manager, Kent
MEETINGS Nov. 15
MSC Sub Committee Meeting
Nov. 20
Spokane Hotel Motel Association Meeting
Nov. 20
Spokane Chapter Board Meeting
Dec. 4
Executive Committee Monthly Meeting
Jan. 8
Executive Committee Monthly Meeting
Jan. 9
Seattle Restaurant Alliance Membership Meeting
Jan. 10
Seattle Hotel Association Board Meeting
Jan. 15
Board Development Committee
Jan. 15
Spokane Hotel Motel Association Meeting
Jan. 16
Seattle Restaurant Alliance Board Meeting
Jan. 22
Finance Committee Meeting
Jan. 29
Washington Hospitality Association Board of Directors Quarterly Meeting
Jan. 30
Education Foundation Board Meeting
Jan. 30
MSC Board Meeting
Jan. 30
Seattle Restaurant Association Government Affairs Committee Meeting
UPCOMING EVENTS Jan. 28
Hill Climb & Taste Our Best
NEW MEMBERS 2120 Restaurant, Seattle
Melnikoff Restaurant Group, Seattle
Campus U Tote Em, Ellensburg
Miss Tamale, Pasco
Checo’s Mexican Grill, Othello
Notable Restaurant Group, Seattle
Downriggers Restaurant, Port Angeles
Railroad Tap Station, Shelton
Galloping Gertie’s Bar & Grill, Lakewood
Ramada Inn–Seattle Kent
Glover Mansion Events, Spokane
The Red Brick Cafe, Rosalia
Gold Bar, Seattle
Rhein Haus, Leavenworth
Holiday Inn Express & Suites, Tukwila
Smokiam RV Resort, Soap Lake
Ilani Casino Resort, Ridgefield
Tacoma Yacht Club, Tacoma
Jack’s, Bellingham
Tatanka Take Out, Ruston
Kettle Falls Inn, Kettle Falls
The River Hotel, Spokane
La Conner Brewing Co, La Conner
The Viking Lounge, Lacey
Mazatlan Restaurant, Lakewood
NEW ALLIED MEMBERS IBA Oliver Kotelnikov oliver@ibainc.com 40 Lake Bellevue Drive, Ste 100 Bellevue, WA 98005-2480 425.454.3052 www.ibainc.com International Business Associates, commonly known as IBA, is a full service business brokerage firm. We sell privately held companies and family owned businesses. We provide business buyers with quality companies at fair market values to evaluate for potential acquisition. IBA has completed over 4000 business sale transactions since 1975 including transactions in a spectrum of hospitality related industries ranging from hotels & motels to restaurants (Independent & Franchised) and from food manufacturing & distribution companies to bed & breakfasts and wineries. Our clients receive confidential representation by professionals with the knowledge, experience, and negotiation & deal facilitation skills required to successfully complete transactions of family owned businesses and privately held companies with market values between $250,000 and $20,000,000. IBA professionals are also licensed, real estate brokers with the knowledge & experience to successfully facilitate the sale of associated commercial real estate. ITW FEG Hobart Monica Nezzer monica.nezzer@itwfeg.com 8661 154th Ave NE, Apt 323 Redmond, WA 98052-3564 206.498.1024 At ITW Food Equipment Group, people and food
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are our passion. We believe great food brings people together, and the relationships we share feed our inspiration to be the best we can be for one another. Our family of premium brands has been dedicated for more than a century to supporting those who are not only passionate about creating great food, but are inspired by the people they serve and come to know on a daily basis. Likewise, it is our mission to provide food equipment that foodservice professionals can trust to work hard and deliver quality, consistent results day in and day out, empowering them to focus on what they love most—creating great food for great people. Pacific Recruiters David Israel disrael@patriceandassociates.com 3020 Issaquah Pine Lake Road, #315 Sammamish, WA 98075 206.618.0292 www.patriceandassociates.com/bellevue-98004 We’re the sole franchisee of Patrice & Associates within the State of Washington. We are part of successful national recruiting firm serving the restaurant and hospitality industries. Our territory will focus on Seattle’s Eastside – Bellevue, Kirkland, Redmond, and Sammamish. Patrice & Associates has over 125 offices, and 350 recruiters in the US and Canada. We help candidates build rewarding careers, and help our clients grow great brands! Patrice & Associates is the largest and most successful recruiting firm in the hospitality industry, with a 27 year track record, enormous database of candidates and jobs, and unmatched industry intelligence. We have the experience which will help you stand out from your competition!
RETURN TO WORK SbTyEP E D I U G STEP
GET IT AT: RETURNTOWORKWA.ORG
Ask the Expert Planning for Paid Family Medical Leave By Rick Braa, CHAE It’s been some time since the exciting announcement was made about Paid Family and Medical Leave coming to the workforce. Recently, we’ve been discussing how this will work personnel-wise. What should we be considering, and when? According to hospitality expert law firm Davis, Wright, Tremaine, “Under Washington’s new Paid Family and Medical Leave (PFML) law, eligible employees will be entitled to paid leave up to 12 weeks for their own serious health condition (medical leave), or for family care (family leave), up to 16 weeks combined family and medical leave and up to two additional weeks for certain pregnancy complications. Starting on Jan. 1, 2019, employers must begin remitting premiums and submitting quarterly reports for PFML. Starting Jan. 1, 2020, employees may begin taking PFML leave. Employees are eligible for family and medical leave benefits after working for at least 820 hours during the qualifying period. The impact to operators is not only financial (0.4% of employee wages split 37.5% employer and 62.5% employee) but also covering for time off. An employee can take between 12-18 weeks off leaving a hole to cover in the interim. Businesses with fewer than 150 employees may receive grants, ranging from $1,000 – $3,000, to offset the wage costs while an employee is on leave, these are limited to one grant per employee and up to 10 grants per year. For those with more than 49 employees, the employee’s previously accrued benefits must remain available to the employee, and employees returning from leave are entitled to be returned to 30 │ wahospitality.org
the same or an equivalent position. Regardless of whatever rules receive clarity over the next few months, the loss of a key employee can be disruptive. Internal growth and development are critical, as any hole left within staff, especially management, creates an opportunity for advancement and improvement. Reducing turnover and increasing retention are crucial to strengthening the business and covering mandated leave. To be prepared for 2020, be sure to put a hearty program in place during 2019: Create an environment of learning and growth--employees stay longer with companies that provide a path for growth. Expect every person in the organization to grow and train at every level. Each person should learn to teach, train and develop new staff. Owners should constantly be developing general and kitchen managers. GMs and KMs must develop those below them. Track growth of every person in the business from dishwasher to GM and then when someone does go on leave, there will be people to cover for them. Use a development plan for every person—everyone has goals; personal and professional. Some want a job, some want a career. Regardless of the drive of the individual, it is the responsibility of the operator of a business to enrich and enhance the development and professionalism of all employees. Using a development plan formalizes the process and contributes to achievement. Schedule a performance assessment where you and the employee assess his or her performance level. Once the assessment is complete, discuss three goals to elevate performance to the next level. Agree upon goals that are
specific, measurable, attainable, relevant and timely (SMART) that benefit the individual and the business. Make sure to meet frequently to track progress on agreed-upon goals and the development plan. Always be recruiting—the days of “post and pray” have passed. Placing ads and hoping someone will respond is like finding a needle in a haystack. Be proactive: use proactive job boards, electronic recruiting tools, referral bonuses and good old-fashioned face-toface recruiting. Build strategic relationships with surrounding restaurants for help—the idea of involving an unrelated business to help another is foreign. The fact is there are no secrets in the restaurant business and while some practices involve agreements with vendors, technology and relationships, a business either copies another entirely or borrows some elements that may or may not help. Working as a community and sharing resources will always defeat working as a silo. The latest social advancement of businesses being required to offer extended paid leave is here. Jan. 1, 2020, starts the new era of benefits for employees that directly impact short and long-term staffing. Be ready with a healthy development environment, proactive recruiting and strategic relationships and your business will be prepared for the next step in its evolution. For a more information on improving profitability and driving performance, contact AMP Services at rbraa@ampservices. com. Rick Braa is the co-founder of AMP Services, an accounting and consulting firm that specializes in helping companies grow profitability.
Work Safe. Save Money. Deadline fast approaching!
Dramatic new program changes coming
Sign your new contract today. Up to 100% fees returned
Performance refunds now rewarded on first and third adjustments! You get: Claims management Assistance with all L&I issues Safety training Mock inspections Custom compliance plans
Invest in workers’ comp management and you will be rewarded for your performance.
RETRO SINCE 1986
800.225.7166 | fax 360.357.9232 | 510 Plum Street S.E. | Olympia, WA 98501-1587
If you participate in the RETRO program and have not received your new 2019 contract, please contact our RETRO team immediately at 800.225.7166. Looking forward to another great year in RETRO with you! RETRO Department 360.956.7279 800.225.7166 retroadmin@wahospitality.org
The industry that serves. People | Careers | Communities
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