Washington Restaurant & Lodging Magazine September 2016

WA S H I N GTO N

September 2016

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YOUR ROAD

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WORKPLACE SAFETY

PREVENTION FIRST STOP: INJURY & RISK REDUCTION

EVERYONE WINS WITH RETURN-TO-WORK PLANS

PAYING ATTENTION TO

FOOD ALLERGENS

EMPLOYERS’ GUIDE TO

RECREATIONAL MARIJUANA

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Inside

www.warestaurant.org

Features

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RISK IDENTIFICATION

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Doing the Right Thing the Right Way: A Road Map to Workplace Safety

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Tools and Programs to Help Injured Employees Stay Productive

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Recreational Marijuana Two Years’ Later: Don’t Get Lost in the Legal Weeds

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Food Allergens: Ignore Them at Your Own Risk

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Teen Employment: Everybody Wins

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Connecting the Dots: The Washington Lodging Convention

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In Every Issue

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WA S H I N GTO N

September 2016

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YOUR ROAD

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MAP TO

WORKPLACE SAFETY

PREVENTION FIRST STOP: INJURY & RISK REDUCTION

EVERYONE WINS WITH RETURN-TO-WORK PLANS

PAYING ATTENTION TO

FOOD ALLERGENS

EMPLOYERS’ GUIDE TO

RECREATIONAL MARIJUANA

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President and CEO: An Even Stronger Association

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News Briefs

11

Lex on Tech: What Pokémon Go Really Means for Hospitality

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State Government Affairs Update

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Local Government Affairs Update

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Calendar/New Members

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Ask the Expert: Safeguarding Against Fraud and Theft at Your Restaurant

On the cover

A safe workplace is a smart workplace. All conscientious restaurateurs and hoteliers know that a safe workplace is not only good for employees and guests, it is also good for the bottom line.

This issue of Washington Restaurant & Lodging Magazine provides a roadmap for staying safe on the job, cutting down on workers’ compensation costs and returning injured employees to work.

Washington Restaurant Association 510 Plum Street SE, Suite 200 Olympia, WA 98501-1587

September 2016 │ 5

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EDITORIAL STAFF Publisher, Anthony Anton Executive Editor, Lex Nepomuceno Editor-in-Chief, Marianne Scholl Art Director, Lisa Ellefson Managing Editor, Paul Schlienz Contributing Editor, Andy Cook Contributing Editor, Stephanie Davenport Contributing Editor, David Faro Contributing Editor, Jillian Henze Research Editor, Sheryl Jackson JOINT EXECUTIVE COMMITTEE WRA Chair, Phil Costello Stop n’ Go Family Drive In WLA Chair, Matt Van Der Peet Westin Bellevue Hotel WRA EXECUTIVE TEAM President and CEO, Anthony Anton Vice President, Teran Petrina Director of Business Development, Ken Wells Director of Communications & Technology, Lex Nepomuceno Director of Government Affairs, Bruce Beckett Director of Internal Operations, Kylie Kincaid Director of Membership, Steven Sweeney Education Foundation, Naja Hogander

510 Plum St. SE, Ste. 200 Olympia, WA 98501-1587 T 360.956.7279 | F 360.357.9232 www.warestaurant.org │walodging.com Letters are welcomed, but must be signed to be considered for publication. Please include contact information for verification.

Reproduction of articles appearing in Washington Restaurant & Lodging Magazine are authorized for personal use only, with credit given to Washington Restaurant & Lodging Magazine and/or the Washington Restaurant Association.

Articles written by outside authors do not necessarily reflect the views or positions of the Washington Restaurant Association, Washington Lodging Association, their Boards of Directors, staff or members.

Products and services advertised in Washington Restaurant & Lodging Magazine are not necessarily endorsed by the WRA or WLA, and do not necessarily reflect the opinions of the WRA, WLA, their Boards of Directors, staff or members.

ADVERTISING INQUIRIES MAY BE DIRECTED TO: Michelle Holmes Allied Relations Manager 206.423.3902 michelleh@warestaurant.org Washington Restaurant & Lodging Magazine is published monthly for WRA and WLA members. We welcome your comments and suggestions. email: news@warestaurant. org, phone: 800.225.7166. Circulation: 6,310.

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President and CEO

An Even Stronger Association After four years of hard work, I’m so happy to be able to say the Washington Restaurant Association and the Washington Lodging Association have signed papers to become a unified hospitality association. This joining of forces has made your association one of the biggest industry associations in the state with more than 6,000 members.

I’ve been asked what this step means, and I am energized by our future potential. The benefit to members is something we have been focused on since we began contemplating this venture. Now, we can address the issues facing our industry with pooled resources and a stronger voice.

Together, we have built a capable and energetic team. We are also supported by the most talented and committed members and volunteers in the state.

By harnessing ideas from all sectors of Washington’s hospitality industry, we really have a chance to lift people up and do great things. Uniting offers us a: Stronger position to make a difference in our shared goal of finding and training a future workforce.

More effective position to address the challenges facing our industry with a larger government affairs team at both the state and local level.

Greater stability and greater opportunity for refunds for our members in the RETRO program.

Robust communications team with more resources to keep members informed on all aspects of hospitality and up to date with news, changing laws and regulations.

Greater ability to connect with experts through our advisory network, which provides 15 hours of free counseling across a wide variety of industry concerns including legal advice, marketing, safety and additional cost-saving programs for members.

I’ve also been asked why we joined forces. Hotels and restaurants joining together is a natural evolution. We are two parts of the hospitality industry that have been in a symbiotic relationship for years. By coming together now, we are better able to leverage the strength and resources of both associations, benefiting our members, their employees and, ultimately, the state as a whole.

We have a bright new future. Our members have more to look forward to than ever.

Two questions I have been asked that I can’t answer yet are, “What is our new name?” and, “What is our new logo?” Both of these will be announced Oct. 1. We are so excited to share them with you and the world, but, as with all great things, we are taking our time to make sure we’ve got it right.

In order to do the right thing, the right way and at the right time, we have engaged a branding board of hoteliers, restaurateurs and staff. We have hired the best branding firm to really get a sense of who we are and where we are going.

I can’t wait to show you the next and final step in this thoughtful process. Always remember, your association is here to help you succeed.

Sincerely, Anthony Anton

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Primary Source of Information | News Briefs What Do Americans Love More Than Gadgets? Food In a recent Gallup poll, consumers voted restaurants as the top business sector, ahead of the second-place computer industry. The poll ranks perceptions of 24 business sectors, and the restaurant industry, with a net positive response, outperformed the computer industry by six percentage points. Both sectors received 66 percent positive ratings, but restaurants had only 7 percent negative ratings, compared to 13 percent for the computer industry.

“Restaurants are the beloved cornerstones of communities across America,” said Dawn Sweeney, president and CEO of the National Restaurant Association.

“America’s 1 million restaurants provide opportunity to 14 million Americans and have become an essential part of our everyday lives.”

NRA research shows that nine in 10 consumers say they enjoy going to restaurants, and two in five say restaurants are essential parts of their lifestyles.

Half of all adults have worked in the restaurant industry at some point in their lives, and a third of all Americans got their first job working in a restaurant.

New GMO-Disclosure Standard Does Not Apply to Food Served in Restaurants In late July, President Barack Obama signed into law a bipartisan bill that creates a consistent, national standard that will require food manufacturers to disclose foods containing genetically modified ingredients. The USDA has two years to issue regulations. Once rules are in place, manufacturers will have three options for adding a GMO label to their products: text on a package, a symbol or a link to a website.

The federal law immediately preempts all state and local GMOdisclosure laws not identical to the national standard and will prevent a costly, confusing patchwork of state labeling laws. The law also says no state or locality can impose separate GMO disclosure regulations on restaurants.

GSA Announces 2017 Per Diem Rates The General Services Administration (GSA) has released the federal per diem lodging rates for FY2017 that will go into effect Oct. 1, 2016. The standard continental United States (CONUS) rate applies to all other locations and increased just $2 from $89 to $91 per night. In Washington’s eight non-standard rates, all except for Seattle, received rate increases ranging from two to 11 percent.

Seattle summer months will jump 18.8 percent to $240 per night, while the month of May will fall 17.3 percent to $167 because it is no longer being treated as part of the high season. Per diem rates for meals and incidentals remain the same for both CONUS and non-standard locations.

The Department of Defense (DOD) began paying significantly below the GSA per diem rates in 2014 in response to sequestration. These reductions are still in place, and Congressman Derek Kilmer, D-Gig Harbor, has been working to reverse the cuts. He is one of the sponsors of H.R. 1193, which would prohibit the DOD from reducing the federal per diem for members of the uniformed services or civilian employees of the department. Go to wra.cc/wa1016a to see a comparison of FY 2016 and 2017 rates for Washington state.

September 2016 │ 9

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Lex on Tech

What Pokémon Go Really Means for Hospitality

By Lex Nepomuceno By now you will have likely formed an opinion about the Pokémon Go phenomenon.

Perhaps it’s simply the latest “thing” among Millennials and the younger Gen Z kids, and it‘ll go by the wayside before too long. Maybe it represents a paradigm shift in gaming that will have a major impact on the entertainment industry. Or it could be the coming out party for augmented reality and its impact will be felt across multiple industries, including hospitality.

For those of you who haven’t given Pokémon Go a try, the game uses mobile devices’ GPS capability to allow players to locate, capture, battle and train virtual creatures known as Pokémon.

The augmented reality (AR) mode uses the phone’s camera and gyroscope to project an image of a Pokémon onto the real world right in front of the user.

Major companies are making large investments into this kind of augmented reality, such as Microsoft with its recently launched HoloLens initiative. The device aims to take what smartphones can only do in bits and pieces and immerse users living in the real world with augmented experiences.

Consider this: You have a guest staying in a standard hotel room, but you wanted to infuse their stay with luxury experiences so they will consider upgrading on a future stay. Guests could add working 80-inch flat screens on

pim pic / Shutterstock.com bare walls, display a conference agenda on a bathroom mirror or get important reminders on the ceiling when they wake up.

Retailers are already starting to see the benefits of the Pokémon Go craze. A recent survey by Revel Systems offer some great insight: More than 80 percent of businesses with nearby PokéStops reported an average 9 percent increase in weekly foot traffic. (Players earn the equivalent of extra points at real world PokéStops) Two-thirds of businesses with nearby PokéStops increased their weekly sales by an average of 12 percent.

The average increase in weekly gross sales totaled more than $2,000 per business.

Businesses also reported an average increase of 265 weekly customers.

Restaurants, hotels and tourist spots can harness Pokémon Go “lures” for less than $2 per hour to attract foot

traffic. (A lure makes a location stand out with special, temporary imagery.) In fact, there are a number of business sponsorships and Pokémon/business partnerships already in the works through point-of-sale providers and other enterprises. Instead of employing sign wavers at $15 per hour, a business can potentially get more walk-in business at a

fraction of the cost.

With the growing concern about government micromanagement of work schedules, employers may start using virtual front-desk staff when the wait times for check-in grow too long. Quick service operators could start having virtual order-takers materialize in open spots to help during dinner and lunch rush. If restrictive scheduling laws, like the one being considered in Seattle, are imposed on businesses, managers may choose to instantly tap into a digital workforce directly tied into their pointof-sale systems rather than pay penalties or deal with red tape associated with bringing in workers on short notice.

Think all this is science fiction? It is already science reality, and Pokémon Go characters are leading the way. Major players like Samsung and Google are actively developing visual augmentation technologies through contact lens and glasses so consumers won’t even need mobile phones to view digital content in the real world.

September 2016 │ 11

S GOVERNMENT Local Affairs Update T Government A T E

AFFAIRS

UPDATE

By Stephanie Davenport

2016 Primary Elections Results Primaries are generally known for having lower turnout than general elections, but this August’s voter participation was considerably lower than normal. Only 35 percent of registered Washington voters submitted ballots for the Aug. 2 primary, significantly lower than the average turnout of 41 percent in comparable years. This low participation led to some interesting results.

The gubernatorial race was closer than expected.

Gov. Jay Inslee led Republican challenger Bill Bryant 49.3 percent to 38.33 percent in the primary. Common wisdom is that an incumbent who polls less than 50 percent in the primary is vulnerable. That said, even though the primary results were closer many anticipated, we still believe Gov. Inslee will win re-election in November.

The state treasurer’s race divided the Democrat vote.

Together, Democratic candidates for state treasurer earned 51.6 percent of the vote, yet there will be no Democrats on the November ballot in the treasurer’s race. In Washington state, the top two primary winners advance to the general election, without regard to party. Three Democrats running for treasurer ended up dividing the vote, and as a result two Republicans are moving forward. Duane Davidson is the frontrunner with 25 percent of the vote while Michael Waite stays in the race with 23 percent in the primary.

The secretary of state’s race is impacted by the numbers.

Republican incumbent and WRA/WLA endorsed candidate Kim Wyman is in a tight race with Democratic challenger Tina Podlodowski. Sec. of State Wyman was Thurston County’s elections director for a decade and was elected to serve as county auditor in 2001. Elected secretary of state in 2012, she has received support from both sides of the aisle. Voter participation itself may be a factor in this tight race, with Podlodowski citing low voter turnout under Sec. Wyman as part of her platform.

The leadership of the Legislature is up for grabs.

The Senate is currently controlled by the Majority Coalition Caucus (MCC), made up of 25 Republicans and one

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Democrat. There are at least four contested seats that could undermine the MCC and change the balance of power in the Senate. Democrats need to take three of these four seats to regain the majority, and the competitive primary races in the following battleground districts mean control of the Senate will be up for grabs in November: 5th Legislative District: Senator Mark Mullet, D-Issaquah, a WRA/WLA endorsed candidate, ended slightly ahead of challenger Rep. Chad Magendanz, R-Issaquah, with just 412 votes separating the two in the primary.

17th Legislative District: WRA/WLA endorsed candidate Rep. Lynda Wilson, R-Vancouver, is seeking a seat in the Senate. She came in just 50 votes ahead of Democrat Tim Probst. Both move to the general election.

28th Legislative District: WRA/WLA endorsed candidate Senator Steve O’Ban, R-Tacoma, earned 1,920 votes more than Democratic challenger Marisa Peloquin.

41st Legislative District: WRA/WLA endorsed candidate Senator Steve Litzow, R-Mercer Island, came in 456 votes behind Democrat Lisa Wellman.

The House of Representatives this past session was controlled

by Democrats, 50 seats to 48. Going into the general election, there are nine extremely close House races, with five of these expected to go to Republicans and four expected to go to Democrats. If these results hold, Democrats will control the House in 2017 by a 51 to 47 margin. It is very difficult to project outcomes, however, given such low participation in the primary. Candidates vying for one of the House seats in the 30th legislative district, for example, were only separated by 30 votes.

Look for more information on candidates supported by the Association online at www.warestaurant.org/2016endorsements. In our next issue, will look at the key races in greater depth and at voter initiatives that will be on the November ballot. In the meantime, please contact Stephanie Davenport at StephanieD@warestaurant.org or 360.956.7279 if you have any questions.

L O C A L

GOVERNMENT AFFAIRS

UPDATE

By Jillian Henze

Cities across the state continue to consider new policies which, if adopted, will impact hospitality businesses.

SEATTLE

Initiative 124 Heads to November Ballot The signatures to qualify UNITE HERE Local 8’s Initiative 124 for the ballot were verified on July 15, and immediately sent over to the city clerk for introductions and referral to the Seattle City Council. The council voted on July 27 to send the initiative to Seattle voters in November. The decision came in spite of the fact that the council went into executive session on July 25 to review and discuss legal concerns about the initiative with the City Attorney’s Office. Then on Aug. 15, the council voted 7-1 to pass a resolution calling on voters to support I-124.

If it passes in November, Seattle hotels will be required to provide panic buttons for housekeepers, and larger hotels will have to limit housekeepers’ workload based on square footage and provide gold-level health care plans.

Two Employee Surveys Align In July the Seattle Restaurant Alliance released the Seattle Restaurant Workers Survey which showed that a significant majority of workers love their schedules and the flexibility afforded them. Workers said scheduling changes are not their priority.

The city of Seattle’s own shift workers survey was conducted

by Vigdor Measurement and Evaluation and released July 19.

Many of the results were similar to data from the SRA survey.

The Seattle City Council will use this data to craft a scheduling policy that is expected to be approved in late September or early October. The legislation will likely create rules that fine employers for on-call shifts and for scheduling employees to work back-to-back closing and opening shifts and for not posting schedules within specific time parameters.

SPOKANE

Gender Pay Equity Wage Gap The Spokane City Council is evaluating the gender pay equity wage gap and may pass legislation on the issue this fall. A study conducted by the city of Spokane in March concluded that there is a gender pay equity wage in the Greater Spokane area.

The study concluded “women earn 78 cents for every dollar earned by a man. When race is taken into consideration along with gender, the gap grows even larger.”

Recommendations include hosting workshops to teach women how to negotiate higher salaries and encouraging businesses to recruit more women and minorities and to providing onsite childcare.

TACOMA

Foodservice is Excluded from Bag Ban This summer the city of Tacoma passed a plastic bag ban that will go into effect in July 2017. WRA Local Government Affairs Manager Samantha Louderback worked with the council to exempt foodservice from this ordinance.

New Food Truck Law In August the city council approved a food truck ordinance that establishes new license requirements, location approval and an inspection system. Food truck vendors, restaurants, the WRA, and Tacoma city and health department staff developed the policy, allowing the selling of food from the public right-ofway at approved locations. Previously, food truck vendors had to obtain special event permits to sell food in the city.

Short-Term Rental Regulations Each year Tacoma’s planning department asks the city council to approve a yearly amendment to the city’s comprehensive plan and land use code. In August, the council approved added a short-term rental regulation that requires an owner of record who rents individual guest rooms within a dwelling to occupy the dwelling during the rental period ad to install smoke and carbon monoxide monitors. The amendment did not address short-term rental of entire apartments or houses.

PORT TOWNSEND

Some Short-Term Rentals May Be Prohibited In July the Port Townsend Planning Commission voted unanimously to recommend that the city council adopt rules banning non-owner-occupied short-term rentals. There is concern that the current shortage of housing within the city could be exacerbated by non-resident owners purchasing properties to use as short-term rentals. The commission defined a “short-term” as being fewer than 29 days. The commission continued to work on the issue in August and scheduled a public hearing Aug. 24.

September 2016 │ 13

Doing the Right Thing the Right Way: A Road Map to Workplace Safety

By Paul Schlienz

Accidents happen.

No matter what you do, there is always the potential for something to go wrong in life and in work environments.

Employers who accept this fact know that the smartest thing they can do is to have all the right safety measures in place to reduce the risk of injury.

Smart employers also know that risk reduction is not only important for employees’ safety, it is cost-effective.

Slips, trips and falls, exposure to chemicals, burns and cuts/lacerations are just a few of the hazards of working in a restaurant.

“If you run a restaurant or a hotel, you should ask yourself if you have enough ‘wet floor’ signs on hand,” said Woods. “If you have a high usage of knives, you may have a high frequency of nicks and cuts that can be avoided by implementing a cut glove policy.”

“If employers stay focused on doing the right thing, the right way to keep everyone safe, ultimately, that’s going to reduce the frequency and cost of claims,” said Jessica Woods, RETRO executive accounts manager for the Washington Restaurant Association and the Washington Lodging Association. “If you reduce injuries, you reduce your experience factor, which reduces your hourly rate, and you’ll pay less each year to the state in workers’ comp insurance premiums.”

Know Your Risks The first step in that all important risk reduction is to identify and understand the risks at your workplace.

Unfortunately, as in most workplaces, there are specific hazards associated with restaurant or hotel work.

Then there are the many young people who work in restaurants.

“Young people need more training than older workers,” said Elaine Fischer, spokesperson for the Washington Department of Labor and Industries (L&I). “They are often not as willing to speak up if they have questions or if they notice a problem.”

Lodging establishments have their own set of hazards.

RISK IDENTIFICATION 14 │ warestaurant.org

“Some of the injuries we see at hotels include musculoskeletal strains from reaching and lifting things like mattresses and repetitive motion injuries,” Fischer said. Exposure to bodily fluids and bloodborne pathogens is another risk for housekeeping staff.

Hotel maintenance staff members face different risks, such as accidents that can result from electrical work, sprains and strains from lifting and injury from falls, according to Fischer.

“We’ve also seen a lot of injuries with hotel maintenance staff members related to ladders,” Fischer added.

“Ladders are a major cause of injuries in all industries.

People can die.”

More than an Ounce of Prevention No matter what kind of hospitality business you operate, you need to have a written Accident Prevention Program (APP) that identifies all possible hazards and spells out how to reduce the risks they present. Washington state law requires all employers to have a written APP (WAC 296800-140), and employers must also make sure their APP is effective in practice. Ideally, it is the cornerstone of your safety program.

“All business owners are very busy,” said Woods.

“Sometimes they don’t really know where to start when creating a safety program, and they may need help.”

Strong APPs not only help protect your workers and your business, they also give you the peace of mind that you are doing everything possible to maintain a safe workplace, allowing you to focus on making your business grow. Not having an APP is not only a poor business decision, it leaves you open to significant violations/citations from L&I’s Department of Safety and Health (DOSH).

Failure to comply with the APP requirement or other workplace safety regulations can be expensive.

“If you want to stay out of trouble with L&I, one of your top concerns should be hazardous chemical communication,” said Woods. “You need to inform your employees of chemical risks and give them personal protective equipment, such as goggles and gloves, in order to avoid burns. Erring on the side of caution is how you’re most protected.”

“If L&I inspects your workplace and finds that your employees do not have access to splash goggles when handling chemicals, you could be facing a $3,000 fine or more depending on staff size,” Woods added.

“You could also be fined an additional $3,000 if you fail to have a material safety data sheet for each hazardous chemical used in the workplace.”

Failure to have an eyewash station if required is another common violation that leads to significant citations.

This is where your Association comes into the picture. We have a Retrospective Rating (RETRO) program, and our RETRO Department partners with members enrolled in RETRO to help them create even safer workplaces. One of the many benefits of the program is assistance in tailoring an APP manual to meet the specific needs of a business. In addition to APP help for RETRO participants, the Association also has a Hospitality Workplace Safety Guide available for hoteliers and restaurateurs.

PREVENTION September 2016 │ 15

TRAINING The ROI of Training Of course, one of the best ways to reduce on-the-job injuries, and L&I citations, is to invest in employee safety training and injury prevention. Again, your Association and the Education Foundation offer you the resources you need to comply with the law and help your workers avoid injury.

In 2014 the WRA Education Foundation launched a comprehensive safety initiative for owners, managers and supervisors in the hospitality industry who are responsible for training their employees. As part of this, the Hospitality Workplace Safety Guide mentioned above is available in English, Spanish and Korean. It covers a range of topics including working around stoves, ovens and grills; fryer safety; working with knives, equipment with blades and other sharp items; slip, trip and fall prevention; safe lifting and carrying; housekeeping staff safety; and grounds, maintenance and workplace ergonomics.

Another state requirement is specialized training for employees who may potentially become exposed to any body fluids, whether on a daily basis because of their profession or through applying first aid to another person in need. WRAEF offers a bloodborne pathogens course which meets this requirement. Incipient firefighting training, another WRAEF course offering, provides employees with assessment tools to determine whether it is safe to fight a fire or evacuation is necessary.

“If you’re doing everything in your power to create a safe work environment for staff, you’ve trained your employees appropriately and are continuing it throughout the course of their employment, you’re going to reduce injuries and save money.” said Woods.

WRAEF also offers courses such as a four-hour First Aid/ CPR course which provides all the necessary certifications to meet state requirements. Members can arrange for onsite classes for 10 or more students at a discounted price.

Don’t wait for an accident to happen. When you’re proactive about increasing safety in your workplace, everybody wins.

RESOURCES TO HELP YOU IMPROVE WORKPLACE SAFETY WRA RETRO Program: www.warestaurant.org/wise-buy/retro Safety training through the WRA Education Foundation: www. wraef.org Washington Department of Labor & Industries safety resources: www.lni.wa.gov/safety/GettingStarted To request an APP (RETRO members) or a Hospitality Workplace Safety Guide, email chriso@warestaurant.org.

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Keeping your workers safe from injuries is in their best interest and yours!

Here are some key safety takeaways:

Have a written Accident Prevention Program (APP) addressing your specific workplace's safety and health hazards.  If you employ 11 or more employees, establish a safety committee that meets at least once a month.  Post all required employee notifications, like L&I's mandatory Job Safety and Health Law poster, where employees can read it.  Follow all requirements related to hazardous chemicals. That includes having a hazardous chemical communications plan, having all required Safety Data Sheets available to workers at all times, and properly training workers on chemicals used in your workplace in a manner they can understand.  Make sure workers have the personal protection equipment (PPE) they need for specific tasks. For example, hand protection and eye protection (such as goggles) when working with chemical solutions and if required, having an eyewash station with unobstructed access within 10 seconds reach.  Provide equipment to reduce risk.

Cut gloves, for example, reduce the risk of cuts in the kitchen and radios help hotel workers request assistance and supplies.

Provide training on all machinery hazards and make sure employees understand the prohibited duties/ equipment for workers under 18 years old.  Train on safe methods to perform tasks that don’t involve machinery.  Keep equipment working smoothly.

For example, laundry carts that move easily reduce the likelihood of a back injury.  Conduct a periodic safety check walk around the work areas and promptly take corrective action for any hazards discovered.  Periodically observe work performance of employees supervised for compliance with safety rules.  Provide training and take corrective action as necessary. Document employee evaluations.  Set a good example for employees by following established safety rules and attending required training.

September 2016 │ 17

Tools and Programs to Help Injured Employees Stay Productive

GETTING SIDELINED EMPLOYEES BACK AT WORK IS THE BEST THING FOR EVERYONE.

By Marianne Scholl and David Faro An on-the-job injury takes its toll in all kinds of ways.

Obviously there is the pain and suffering of the employee, and possibly his or her family. Having an employee sidelined by a workplace accident can also be hard on co-workers’ morale and hard on the employer’s workers’ comp costs. Studies have shown, however, that helping an employee get back to work as quickly as possible is the best thing for everyone.

There is a reason why injured professional athletes, and even collegiate or high school players, suit up with their teammates on game day. Staying connected to the team, or to the company in the case of an injured worker, helps with recovery. It improves physical outcomes and can support long-term emotional as well as financial health. With a more serious injury, it can possibly prevent a slip into a full disability.

Many companies have return-to-work programs already in place to help get employees back in the workplace.

If your company is unfamiliar with the return-towork concept, your first step should be to get our Education Foundation’s Return-to-Work Guide for Hotels and Restaurants. Published with a Safety and Health Investment Project, or SHIP, grant from the Washington State Department of Labor & Industries, and with help from ERNwest and a team of hospitality industry HR professionals, the guide will walk you through the many steps of helping employees get back to work as soon as possible.

Return-to-work strategies include offering the injured employee shorter hours, light duty tasks or a different work assignment. Having employees back at work will mean you retain your connection to skilled and experienced employees, and you keep both productivity and time loss at a minimum. And reducing time loss is critical to reducing the impact of a workers’ comp claim on your workers’ comp insurance rate.

The employee also benefits from the return-to-work process. Employment, even with revised tasks and responsibilities during the healing process, focuses on “ability,” not “disability” and provides a sense of job security. Continued contact with co-workers is also important for the employee and for your workplace culture.

18 │ warestaurant.org

In addition to outlining the return-to-work process step by step, the Return-to-Work Guide includes a sample light duty offer letter and job descriptions as well as information on documentation. Request a copy of this invaluable toolkit by emailing chriso@warestaurant.org or view it online at wra.cc/mag0916a.

It makes sense to keep your employee connected to your restaurant or lodging establishment during recovery. The sooner you get employees back to work, the quicker they recover and the less likely they are to slip into full disability.

It also reduces the financial impact on your workers’ compensation premiums. Less time off work means lower premiums.

L&I’S STAY AT WORK PROGRAM The Department of Labor & Industries is such a strong proponent of keeping injured workers employed that it offers financial incentives to encourage employers to bring injured workers quickly and safely back to light-duty or transitional work.

It offers these incentives through its Stay at Work Program, which will reimburse employers for some of the costs of light duty or transitional work and some of the cost of training, tools or clothing required for this work.

To be eligible for Stay at Work reimbursements, you, the employer, must: Be paying workers’ compensation premiums to L&I. (The program is not available to self-insured employers.)

Why RETRO? As a member of WRA or WLA, you’ve undoubtedly heard of RETRO. But do you know what our RETRO program is and why we’re so proud of it?

Be the employer at the time of injury on the claim or, for an occupational disease claim, either a) be an employer whose experience rating is affected by the allowed claim because you once employed the worker, or b) be the last employer to employ the worker when the allowed claim was filed (even if the claim will not affect your experience rating).

Give the worker’s health care provider a description of the available transitional or light-duty work that clearly indicates the physical requirements for the work.

Have written approval of the light-duty or transitional work approved from the worker’s health care provider.

Continue any health care benefits the worker had, unless these benefits are inconsistent with the employer’s current benefit program for workers.

Apply within one year of incurring the eligible expenses.

Applying for Stay at Work reimbursements is simple. Go to www.Lni.wa.gov/ StayAtWork and click on “Apply Here.” By applying online, your application will reach staff sooner, reducing delays and speeding up the review process.

Stay at Work Reimbursements for Eligible Employers.

50 percent of an injured worker’s base wages for the light-duty or transitional work for up to 66 days in which work was actually performed per claim. Fewer than eight hours still counts as one day.

Up to $10,000 per claim for base wages for work conducted within a consecutive 24-month period.

Up to $1,000 per claim for training fees or materials, such as tuition, books or supplies.

Up to $2,500 per claim for tools, such as a special wrench or keyboard tray.

Up to $400 per claim for specialized work clothing such as a steeltoed boots.

RETRO, which stands for “retrospective rating,” is a program administered by the Association to help participating employers lower the risk of on-thejob accidents, manage claims when accidents do occur, and potentially earn refunds on workers’ comp insurance premiums. That’s what RETRO does.

The program works in tandem with the Department of Labor and Industries (L&I) to connect safety performance with bottom-line savings. Work safe and save money. That’s how RETRO works.

We believe that hospitality businesses should be rewarded for providing safe workplaces, having accident-prevention plans and maintaining industry-leading records in safety performance. RETRO is successful because it promotes a culture of safety throughout the industry and state. That’s what RETRO believes in.

RETRO does all of this by giving members access to tools, information and support, including the Stay Safe program, a wide range of safety courses, accident-prevention plans tailored for specific businesses, and training in accident-reporting procedures. RETRO staff will also communicate with L&I personnel on members’ behalf.

So if someone asks you “Why RETRO?” The answer truly should be, “Because I believe in safety.”

Learn more about RETRO www.warestaurant.org/wise-buy/retro.

NOTE: The program will not reimburse an employer for costs incurred when hiring other workers to do the same job. Learn more at www.Lni.wa.gov/ StayAtWork.

September 2016 │ 19

Recreational Marijuana Two Years’ Later: Don’t Get Lost in the Legal Weeds

By Catharine Morisset, Attorney at Law The passage of Initiative 502 paved the way for recreational marijuana sales to begin in Washington state in July 2014.

Yet more than two years later, the public, employees and employers alike still have misconceptions about the legal aspects of recreational marijuana, and Washington’s Liquor and Cannabis Board (LCB)’s rules and enforcement practices continue to evolve.

What I-502 Did and Did Not Do I-502, codified as law in Chapter 69.50 RCW, legalized small amounts of newly defined cannabis-related products for adults 21 and over and established taxes on these products. I-502 also opened the door to a licensed retail, growing and processing industry in Washington. It did not, however, create a “right” to use marijuana, and it did not decriminalize growing, selling, using or possessing marijuana without restriction.

The law allows only for private consumption and has no effect on 2005 laws that prohibit smoking of any kind in all public places and places of employment. The most often overlooked aspect of I-502 is that it has zero effect on the federal Controlled Substances Act, which continues to classify cannabis as a Schedule I controlled substance.

Marijuana use or possession—even in Washington— remains subject to prosecution under federal law. Keeping these basics in mind helps guide hospitality business owners’ decisions on employee, guest or other businessrelated policies.

20 │ warestaurant.org

Recruiting, Hiring and Employee Use Businesses operating in Washington can choose to conduct workplace drug testing in some or all contexts (such as pre-employment, post-accident, reasonable suspicion or random testing), and “zero-tolerance” policies that prohibit marijuana remain valid. Under the 2011 Roe v. Teletech case, employers have no duty to accommodate even medical marijuana use by their employees. Whether an employer should test for marijuana use is a grayer legal area lacking a one-size-fitsall answer.

Assuming a clearly articulated and lawful drug testing policy exists, employers generally do have flexibility in deciding when to test and which drugs to test for.

Post I-502, many businesses have revisited this testing after encountering difficulties finding marijuana-free employees. Some employers have opted to remove cannabis from pre-employment and even postemployment testing, hoping this will aid in recruitment and retention. Others have stopped testing based on personal opinions about testing and/or marijuana.

When contemplating drug-testing options, employers should consider a number of factors: Relaxing any drug-free workplace or premises-use policies risks accusations of condoning illegal activity because cannabis use remains illegal under federal law.

Is it appropriate to have less stringent drug testing requirements for all employees? Considerations differ, for example, if the job is a safety-sensitive position for which testing helps mitigate the risk of injury to property, employees or the public.

Washington’s workplace safety rules require employers to prohibit alcohol and narcotics use from the workplace (with an exception for lawful prescription drug use.

Medical marijuana does not qualify for an exemption).

Tolerating employee marijuana use risks an increase in workplace injuries and the possibility of losing workers’ compensation coverage for on-the-job injuries.

There is not (yet) an effective test that can distinguish between an employee’s off-day and work-day marijuana use. Such a test would probably have little practical use, however, in the absence of both state and federal legal limits similar to driving under the influence standards.

There are other benefits of drug testing aside from workplace safety. Testing can help weed out risky candidates, decrease absenteeism and increase productivity.

The above list is by no means exhaustive, and the nuances of the risks are best left to a discussion among business owners, managers and legal counsel.

On-Premises Guest Use In response to business owners’ attempts to combine bars with private marijuana lounges, LCB regulations plainly prohibit businesses with liquor licenses from allowing cannabis use anywhere on their premises. This includes all areas open to the public, including balconies and banquet rooms rented for a private event.

What LCB regulations do not clarify is how this “all premises” prohibition reconciles with LCB’s current stance that hotels may choose to allow guests to use cannabis in

their rooms. For now, LCB has informally indicated that it considers private hotel rooms like private residences for the purposes of cannabis enforcement, adding that hotels can allow guests to use cannabis in their rooms without compromising their liquor licenses. Again, whether to rely on an informal position is up to the business.

It would be prudent to communicate in-room use in some manner to guests. There is currently great variation in how restaurants, hotels or other hospitality employers communicate in-room marijuana policies, from no written communication at all to outright bans. Employers would also serve their employees well by reminding them that Washington’s law does not provide any criminal immunity for private individuals who procure for or sell pot to others.

This could arguably include bellhops and concierges who purchase products from a retailer on guests’ behalf.

Laws prohibiting on-premises smoking do give owners some additional tools to limit use and must be followed even by the more tolerant business owner. Only 25 percent of rooms at Washington hotels may be designated smoking rooms, whether for tobacco or marijuana. Enforcement of any in-room prohibition with edibles, however, is difficult in practice and likely not to be solved anytime soon.

No matter what your stance, as a business owner and employer it is important to clearly communicate all marijuana and drug-free policies to both employees and guests.

This article is not intended as legal advice. Please consult your employment attorney for guidance on your specific situation.

Catharine Morisset is a partner in Fisher Phillips’ Seattle office.

Her practice focuses on representing local and national employers in litigation in state and federal courts, on appeal, and also before the EEOC and similar state agencies in all aspects of workplace law. You can reach her at cmorisset@fisherphillips.com or visit www.fisherphillips.com for more information.

September 2016 │ 21

Food Allergens: Ignore Them at Your Own Risk

By Andy Cook

For the dining room server, hearing this ranks in frequency with “What kinds of hot teas do you have?” For cooks, it’s somewhere in the neighborhood of the “SEE SERVER” modifier.

The most vulnerable dining demographic are young adults, particularly tweens and teenagers as many food-related allergies emerge at this stage in life. Studies show that one in 13 children are afflicted with possibly fatal allergies, up 50 percent since 2000. Still, no one gets a lifetime pass, as allergies can onset at any age.

Granted, there are the few who’ll claim a severe allergy to carbs… as they drink their previously ordered Hefeweizen.

But the fact of the matter is that, according to the Center for Disease Control, 15 million Americans are at risk for fatal foodborne allergic reactions. That’s fatal, not hives, not swelling – a person’s life could end.

In terms that directly connect this growing concern to your food service operation, the CDC offers an alarming statistic: There are some 300,000 allergy-related ambulance calls annually in the U.S., half of which are calls to restaurants.

In most cases, restaurant staff were not informed of the allergy by the guest.

“I have an allergy to…”

Smart Allergy-Friendly Practices Accommodating customers with food allergies is no small task. More than 250 food allergens have been identified, and 15 million Americans diagnosed with food allergies look to dine where they feel safe. This large market needs to feel confident in your restaurant’s food safety protocol. When you go the extra mile to meet guests’ needs, strong customer loyalty and repeat business result. Here are a few key takeaways from experts who spoke on food allergens at last year’s National Restaurant Association Hotel-Motel Show:

• Train your staff how to handle food allergens. A reputable program such as ServSafe Allergens drives home critical • • • • •

•

information you need to keep your restaurant safe for guests. “Incorporate your employees into your process. They start buying into it and feel more confident in what they’re doing,” says William Weichelt, ServSafe director.

Involve a certified manager for the entire duration of your guest’s visit. He or she acts as a knowledge center on behalf of your restaurant and creates an open, honest dialogue with customers. A trained manager should be present during every shift. Training other front-of-house and back-of-house employees is also recommended.

Create a back-of-house system for allergen-specific equipment. Consider using color-coded, allergen-specific plateware, prepware and other equipment. If a guest is concerned about cross-contamination, you can offer to show him or her your allergen-specific tools.

Make ingredient lists available to guests. They know their allergy better than you do, and thus will likely know the names of ingredients or sub-ingredients that may be red flags for them.

Sub-out widely used allergens. If possible, isolate ingredients or recipes that could trigger a common allergy. For example, P.F. Chang’s China Bistro now uses wheat-free soy in lieu of regular soy in all of its marinades.

Never guess. If employees are asked a food allergy question that they can’t answer, they should reach out to a manager who can. If your restaurant cannot confidently satisfy a guest’s request, expressly communicate this. As Patrick Yearout, panel moderator and director of training at the Seattle-based Ivar’s Restaurants said, “You’re not going to be the right place for everyone, but try to make your restaurant the right place to go for as many people as possible.”

Invest in allergy-specific technology. POS systems are now available with an allergen key. When pressed by a frontof-house staffer, the back of the house knows of the allergy, and a manager then becomes involved. According to P.F. Chang’s China Bistro chef Jim McCurley, P.F. Chang’s utilizes an allergen matrix that can scrub the menu for allergens, so staff can present allergen-affected guests with a menu tailored to their needs.

For additional information regarding food allergens, go to www.foodallergy.org and www.chart.org, the Council of Hotel and Restaurant Trainers’ website. You can also access ServSafe Allergens information at www.wraef.org/training/allergy.

Source: National Restaurant Association 22 │ warestaurant.org

This leaves us, the hospitality professionals, in a difficult position.

Let’s start with the obvious. Even when guests know they have serious allergies, they sometimes fail to mention it. Maybe they’re too socially awkward and can’t bring themselves to speak out for themselves. They may read the menu like a spec sheet; it’s not. It’s a menu, a marketing sheet. To us, it’s obvious, but to many of our guests, it’s not. We can’t control a guest’s failure to disclose, but we can minimize other risks by educating ourselves and our staff.

Many restaurants have menus with innocuous icons alerting guests to the presence of top line allergies, such as peanuts or shell fish.

This practice does double duty by reminding diners with more obscure allergies that they should follow up with their server.

The savvy server will read social cues fed to them while recording the guest’s order. If the diner is adamant about excluding an ingredient, train your newer wait staff to mirror the practices of the pros, and follow up with the question, “Are you allergic?”

For your back-of-house warriors, instill a culture of cooperation on this topic. It’s vital to your operations that they prioritize open communication with the wait staff

when this topic is introduced to an order. The same diners who are socially awkward enough to not mention an allergy they suffer from have a counterpart on your wait staff who’s too socially awkward (or intimidated) to advocate on their behalf to the line cooks.

It’s also important to note that gel sanitizers are not effective in removing food allergens. The CDC recommends hand washing with soap and water to remove allergens from hands.

It’s also smart to provide staff with allergen training. While there are precious few resources for that, the best we’ve seen, and the one we endorse, is the little known ServSafe Allergens. This online course costs only $22 per student and covers such topics as identifying allergens, communication with the guest and preventing cross-contact.

Whatever you do, don’t be the British restaurateur who was convicted of manslaughter and sentenced to six years for the peanut-induced death of his regular guest. He and his staff were aware of the man’s allergy to peanuts and had experience modifying menu items for him. The restaurateur, in an attempt to save money, switched out a few products, including one that contained peanuts.

Be smart. Be safe.

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September 2016 │ 23

Teen Employment: Everybody Wins

By Stephanie Davenport

The hospitality industry plays a key role in our state’s employment health. One out of 33 people in Washington is employed in a restaurant, making our industry the main pipeline to enter the workforce. Restaurants in the quick service sector play a particularly important role when it comes to jobs.

Why? Teen employment.

For every year a person works in their teens,

income rises by 14–16% in their twenties.

In our current political atmosphere, quick-service counter jobs are often vilified for their wage offerings. However, these entry-level jobs are a cornerstone for Americans entering the workforce. For every year a person works in his or her teenage years, income rises by 14 to 16 percent in their twenties. A study, lauded by the White House, shows that people who are unemployed between the ages of 16 and 24 earn $400,000 less throughout their careers than those who do not.

People who are unemployed between ages 16 and 24

earn $400,000 less

Despite all these great reasons to hire teens, teen employment in the Washington restaurant industry has dropped 42 percent in the last decade.

This is because rising wages makes it hard for owners to hire people without experience.

This is one of the reasons it is critical for minimum wage policies to have a training wage element. Restaurateurs need support in hiring firsttime workers, and the WRA and WLA continue to advocate for teens whenever minimum wage policies are presented, at both the state and local levels.

We’re also helping make teens an even better good choice for businesses looking for part-time employees. Each year, our ProStart program prepares 800 students from 34 schools across Washington to work in and manage a restaurant. These trained teen workers have a passion for our industry, and are a smart investment. Call the Association at 360.956.7279 if you would like to connect with a ProStart student or support this important training program.

Washington restaurants continue to employ more than 227,000 people in our state alone. Though the impacts of teen unemployment are a far-reaching problem, In a National Restaurant Association survey of 5,100 current and former employees, nine out of 10 managers, supervisors, and chefs say their first job at a restaurant was entry-level. The hospitality industry cares about its employees and lifting people up. We need to work harder than ever to support first-time jobs and the quick-service eateries that support them.

throughout their careers.

When a young person struggles to get that first job, it can have a lasting negative impact not just for that individual, but for the economy as a whole.

Because of this significant income gap, multiple levels of government are now encouraging teen employment.

President Barack Obama’s 2017 budget proposed nearly $6 billion in new funding to help young people get their first job; and his administration worked with the Department of Labor on a $20 million grant competition. Seattle Mayor Ed Murray started a program called Youth Employment Initiative with the goal of streamlining the process of matching employers and youth.

24 │ warestaurant.org

9 out of 10

managers, supervisors, and chefs say their first job at a restaurant was entry-level.

GOT TEENS? If you have teenagers on staff, then you already know that Washington state has very specific rules for employing anyone under the age of 18. September is a good time, in preparation for the new school year, to make sure you are following those rules to a tee. Teen employers are required by Washington law to have a youth work permit endorsement on their annual business license prior to hire. For every teen you employ, you are also required to have: 1. A current, signed parent/school authorization form that includes a job description and schedule.

2. Proof of age on file.

In addition, state law regulates the number of hours teens may work in a week, their start and end times, and when and where they can work alone. In addition, it prohibits specific work activities that would put teens at risk for injury.

Additional rules apply to 14- and 15- year olds, including prohibitions on cooking and baking.

See www.lni.wa.gov/workplacerights/teenworkers for more information.

NOTE: Parent/school authorization forms expire each year on Sept. 30.

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September 2016 │ 25

Connecting the Dots: The Washington Lodging Convention The Washington Lodging Convention & Trade Show, the state’s premier gathering of lodging professionals and hospitality experts, convenes Nov. 6-8 at Spokane’s stunning new Davenport Grand Hotel. It’s your chance to connect with your peers and to gain deeper insight into hotel, business and public policy trends that are reshaping our industry. You’ll also have training opportunities where you’ll learn how to turn employees and guests into brand champions, how to be smarter about your investment in social media and what to do in a man-made disaster. Plus, Washington’s only lodging trade show offers one-stop shopping of the latest in hotel products and services. Here is a quick preview of a few of the dynamic presentations:

The Future is Now: Working with and Selling to Millennials and Beyond

Kevin Paul Scott, author and co-founder of ADDO Worldwide These days, business means more than just products and services, and lodging establishments must do more than sell room nights. Both your customers and your employees, particularly Millennials and their younger peers, increasingly want your business to stand for something.

No one knows this better than Kevin Paul Scott. He has spoken around the world and helps leaders up the meaning-quotient in their businesses so that employees and customers alike champion the business as if it were their own.

Inhospitable to Human Trafficking: Hotel Safety and Security Training

Mar Brettmann, PhD, executive director, Businesses Ending Slavery and Trafficking (BEST),Sandip Soli, attorney, Real Property Law Group, PLLC Sex trafficking impacts all types of lodging properties from

26 │ warestaurant.org

economy hotels in small towns to luxury hotels in the heart of downtown. The crime not only harms victims, but poses serious safety risks to hotel guests and employees, and can expose owners to legal and financial liabilities This session will teach owners and managers how to proactively prevent this crime and recognize it when it does occur.

Owners and managers will also learn how to transfer this important information to their employees using BEST’s new online training platform. Session attendees will receive free training collateral for their employees, including trafficking indicator cards, posters and victim service cards.

What National Hospitality Employment Law Trends Mean for Washington State

Andria Lure Ryan, attorney and partner, Fisher Phillips From the dramatic increase in the salary threshold for overtime exemptions to the expansion of the joint employer standard, the U.S. Department of Labor has been introducing far-reaching changes to federal labor and employment law, all with the potential to seriously impact your business. Andria Lure Ryan will help you stay on top of these critical changes. A nationally recognized employment law expert, she’ll review what trends in federal and state employment law mean for Washington hospitality employers and managers.

The full program also features STR’s forecast of Washington’s lodging performance in 2017, a look at social media and travel trends, disaster training, government affairs updates and much more. Sunday you’ll also have a chance to tour the Davenport’s back-ofthe-house.

Register now at www.walodging.org/convention.

WE EXIST TO SERVE YOUR RESTAURANT NEEDS

CARLOS GARCES 425‐291‐5279

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Employment Practices 425‐291‐5255 Employee Benefits General Liability & Liquor Liability Cyber Liability – For Sensitive Customer Data

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INDUSTRY CALENDAR September/October Training Sept. 26

ServSafe® Manager, FSA Kent

Oct. 4

ServSafe Manager, Bargreen Seattle

Oct. 11

ServSafe® Manager, Sysco Kent

Oct. 17

ServSafe Manager, FSA Everett

Oct. 20

ServSafe® Manager, Bargreen Tacoma

NEW HOSPITALITY MEMBERS 190 Sunset, Edmonds

Lodges on Vashon, Vashon

Ben Moore’s Restaurant, Olympia

Merchant’s Café, Seattle

Bramble House, Vashon

Mountain View Lodge, Manson

Burger Addict, Renton

New York Richies, Kennewick

Connect, Seattle

No Anchor, Seattle

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Meetings Sept. 13

Seattle Hotel Association Board Meeting Visit Seattle Office

Crow’s Nest on Camano, Camano Island

Pacific Pizza, Tacoma

Sept. 13

Spokane Chapter Membership Meeting

Sept. 14

Executive Committee Monthly Meeting

Cuadra No. 32, Seattle

Red Lion Hotel, Tacoma

Sept. 20

Spokane Hotel/Motel Association Meeting

Sept. 27

Finance Committee Meeting, Chandler’s Crabhouse

Divine Café, Port Gamble

Sabra’s Place, Centralia

Oct. 4

Executive Committee Monthly Meeting

Hampton Inn Northgate, Seattle

Steve’s Bar & Grill, Bellevue

Oct. 5

Seattle Chapter Monthly Meeting

Oct. 5

MSC Sub-committee Meeting

Harbor General Store, Gig Harbor

Susanne’s Bakery & Deli, Gig Harbor

Oct. 11

Seattle Hotel Association Board Meeting Downtown Seattle Association

Oct. 11

Board Development Conference Call

Heaven Sent Fried Chicken, Marysville

Taco Time, Seattle, Kenmore, Canyon Park

Oct. 11

Spokane Chapter Board Meeting

Oct. 18

Spokane Hotel/Motel Association Meeting

Ishtar Greek Cuisine, Kent

The Butcher’s Table, Seattle

Oct. 18

Finance Committee Meeting, Chandler’s Crabhouse

Oct. 20

Education Foundation Board Meeting

Oct. 24

New Board Member Orientation

Oct. 25

Fall Board of Directors Meeting

Events Sept. 20

Golf FORE! Education

WRA/WLA I-1433 MINIMUM WAGE WEBINARS September 12 

September 21  September 26

Webinars will take place on the above dates at both 10 a.m. and 3 p.m. Members are encouraged to participate and ask questions about what I-1433 may mean for their business. Sign up by emailing kaaren@ warestaurant.org.

28 │ warestaurant.org

Laguna Café, Spokane

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Ask the Expert | Restaurant Profit Coach Safeguarding Against Fraud and Theft at Your Restaurant

By Rick Braa, CHAE

Q:

I’m noticing my cash balance is declining even though my EBITDA (earnings before interest, taxes, depreciation and amortization) is growing. Nothing has changed on my balance sheet to drain cash, and our team has experience and good longevity. Where should I check to find some potential reasons why this might be happening?

A:

Employee theft and fraud is not uncommon today and it’s often perfected by the least likely long-term employees. Fraud is a threelegged stool of motivation, opportunity and rationalization.

Motivation can vary and is often brought on by financial pressure or hidden or embarrassing conditions.

Opportunity knocks when the risk of getting caught is low, and rationalization logically presents how much more deserving an employee is than what is being provided.

When questioned about whether employee theft or fraud is a possibility, an owner’s response is often, “I trust my staff.”

Trusting staff is imperative. Trust is paramount to a healthy culture, but verifying and inspecting results and behavior is a critical counter-balance. “Trust, but verify” is the best policy. When it comes to verifying whether sales are making it to the ban, there are several good areas to inspect. Comps, promos and voids are among the leading culprits of employee theft and are deserving of study. Make sure these best practices are in place: Limit comps and promos to authorized personnel. Only managers should be authorized to comp and promo. In the absence of a manager, lead personnel can be given authorization. If the crew is working by themselves, require crewmembers to manually record all comps or promos on a tracking sheet with the reason for each. Employees with codes and keys often provide them freely to the crew. They shouldn’t.

Visit the table every time a comp or promo occurs.

Manager visits can be awkward. Use your best judgement whether a visit should be paid immediately or when dropping the check, but with any comp or promo requiring validation, ensure that a manager interacts with the guests prior to their departure. The goal of the visit is guaranteeing the guest is happy and intends on returning.

30 │ warestaurant.org

Require comps and promos to be adjusted in the moment, not at the end of the shift. Often restaurants allow comps or promos to be recorded later, rather than when the activity occurred. This limits the ability to validate the legitimacy of the comp or promo. Deviant behavior is reduced if the risk of getting caught is tightly correlated timewise.

Examine every comp, promo and void on a daily basis.

Look at the time stamp of when each table was opened and closed. Both should be within the limits of what is reasonably expected. If a table shows a long span of being open and a comp, promo or void occurs on the ticket, nefarious behavior is likely occurring. Also, check to see if managers have a disproportionate amount of comps, promos or voids during their shifts.

The hardest theft to find is when a manager alters a check and steals cash after hours. What makes detection especially difficult is the fact that a manager can alter a check, reprint and replace the check, and steal cash using several sources.

After examining all tickets, question both the manager and the server occasionally to let them know every ticket is being examined even if nothing odd is found.

Employee theft and fraud starts small and increases over time. By installing good controls around comps, promos, and voids, while strengthening the awareness of those controls, you can kick out more legs of fraud’s three-legged stool. You’ll reduce the possibility of employee theft and more cash will make it to the bank.

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 specializing in helping companies grow profitability.

HEALTHCARE SOLUTIONS

Are you lying awake at night wondering if you are compliant with all of the healthcare laws? Let the WRA help you sleep better!

The Washington Restaurant Association has added “HEALTHCARE SOLUTIONS” to our program offerings. To find out what works best for your business, visit: wra.cc/hcsolutions to walk through our healthcare options for your business.

Or, ask your broker. Don’t have a broker? Call or email and I will set you up with an expert in our industry!

Contact Stephanie Conway for more information at 360.581.5788 or email her at stephaniec@warestaurant.org.