Spring 2018

Spring 2018 • PENNSYLVANIA RESTAURANT & LODGING matters •  21 Governor’s budget address | Gov. Wolf proposes overtime changes Senate committee held online travel company loophole hearing Department of Labor & tip pooling Pa. Supreme Court to look at Pittsburgh paid leave case Philadelphia Council to hold hearings on scheduling resolution Federal Items DEPARTMENT OF LABOR & TIP POOLING The Department of Labor has a proposed regulation that would allow restaurants who pay minimum wage or more (and do not take the tip credit) to tip pool with back-of-house employees. The goal of this regulatory change is to allow for parity between BOH and FOH pay. The industry does not support managers or non- hourly staff sharing in tips. Local Items PA. SUPREME COURT TO LOOK AT PITTSBURGH PAID LEAVE CASE The Pennsylvania Supreme Court has decided to review one portion of our lawsuit against the city of Pittsburgh. It has combined our suit with the BOMA case, which relates to security guard training. The City of Pittsburgh and SEIU’s brief were submitted on February 15 and PRLA’s response is due March 15. Oral arguments will be scheduled later this year. FINAL 2017 NUMBERS ARE IN FOR PHILADELPHIA BEVERAGE TAX REVENUE December beverage tax revenues amounted to $6.5 million, bringing the total revenue for 2017 to $78.8 million—$11.2 million short of the $90 million goal. PHILADELPHIA COUNCIL TO HOLD HEARINGS ON SCHEDULING RESOLUTION Councilwoman Gym introduced a resolution authorizing the Committee on Children and Youth to hold hearings on “unpredictable schedules” and the impact they have on children and families. The hearing was held at the end of February. PHILADELPHIA COUNCIL INTRODUCES SODIUM LABELING LEGISLATION Councilwoman Blondell Reynolds Brown has introduced legislation that requires any “chain restaurant” to place a large sodium warning label beside any menu item that exceeds 2,300 mg of sodium. The legislation is expected to be considered later this year. • REDISTRICTING By the time you read this magazine, we will likely have new congressional districts in place—which could mean some significant shifts in who will have an edge in those running for Congress this year. SENATE COMMITTEE HELD ONLINE TRAVEL COMPANY LOOPHOLE HEARING A hearing was held on SB 721 (Reschenthaler—R, Allegheny), which would require online travel companies to remit tax on the retail cost of a hotel room and dedicate the monies from the loophole to statewide tourism promotion. The Department of Revenue believes that $20 million in new revenue, for tourism promotion, would be realized by closing the loophole. We are currently working on making some technical changes to the bill and hope it moves to the Senate later this spring. HEARING ON PREEMPTION OF EMPLOYER MANDATES SCHEDULED The House Labor & Industry Committee is scheduled to hold a hearing on HB 861 (Grove—R, York). This legislation, which PRLA supports, preempts municipalities from passing employer mandates ranging from leave, scheduling, and a variety of other issues.