Duff on Hospitality Law

Last week the Seattle Hotel Association presented the 6th installment of its annual symposium and economic forecast. Like years past, this year's program featured a terrific line up of local and regional experts, including Matthew Gardner (Gardner Economics), Vail Brown (STR), Lee McCabe (Expedia), Chris Kraus (PKF) and Tom Norwalk and Jerri Lane (Seattle King County Convention and Visitor's Bureau). Local general managers and directors of sales and marketing have come to rely on the Association's annual symposium as an important part of their annual budgeting process.

In this week's post, Employment Law guru, Diana Shukis, offers insight into the complex and fascinating conflicts arising from Washington state's Medical Use of Marijuana Act.

After some delay, the new federal regulations giving gift card holders greater protections took effect recently, adding to a patchwork of state consumer laws already in place. The new regulations apply to both issuers and sellers of store gift cards, gift certificates, and general use prepaid cards, such as prepaid Visas or Mastercards, sold after August 22, 2010. We’ve seen our clients consider conflicts between state and federal law, advertising policies for resellers, tax recognition on gift card income, and unclaimed property laws.

As many of you are aware, the 9th Circuit Court of Appeals gave Northwest restaurant owners much to cheer about early last year when it authorized Northwest restaurants to initiate mandatory tip pools including back-of-house employees who traditionally do not receive tips. A complete description of the Court's decision in Woody Woo and its immediate effects can be found in my blog post from last November.

The Federal Drug Administration (FDA) has released its long anticipated draft regulations about menu labeling, which describe how the agency intends to enforce Section 4205 of the Patient Protection and Affordable Care Act of 2010, signed into law by President Obama just over a year ago. The FDA is accepting comments from the public on the proposed regulations until June 6, 2011.

Employment Law specialist, Mike Brunet, details a growing trend and how it will impact the Seattle-area hospitality industry.

This week’s topic may appear limited in scope, but is representative of a national and local trend. On April 25, 2011, the Seattle City Council unanimously passed an amendment to the City of Seattle’s municipal code to define and punish “wage theft,” the practice of improperly withholding amounts owed to employees. Seattle thus joins a growing number of jurisdictions, including Miami-Dade County, FL, and the cities of Austin, TX, Denver, CO, Kansas City, KS, and San Francisco, CA in having a specific law in place to combat wage theft. A number of legislators in cities, counties, and states around the nation are considering pending bills that would add to this list. Although the goals of Seattle’s Wage Theft Ordinance may be laudable, the scope of the bill could cause well-meaning employers, including hoteliers and restaurateurs, to unintentionally run afoul of it.

I am just back from the 5th Annual HR in Hospitality Conference, held in Washington DC last week. The Conference was an information-packed two and one-half days. There were terrific presentations, interesting panel discussions, great audience questions, and many opportunities to informally connect with others in the hospitality industry who focus on human resource issues. I have already marked my calendar for next year’s Conference to be held February 27-29 in San Francisco. 

In today’s post, HT&T team member Diana Shukis (Employment and Litigation) discusses the appropriate test, as determined by a recent Washington state appellate court decision, to decide whether a worker is an independent contractor or an employee.

Back in December, my colleague Greg posted “Premises Security 101,” noting the increased attention our clients were paying to premises security issues. As it turns out, they were right to do so. Less than two months later, on February 7, 2011, a King County jury decided that Denny’s owed three plaintiffs $46.4 million in total for injuries sustained when a patron shot into a Denny’s Restaurant in Kent with a semiautomatic gun. According to plaintiffs’ attorney Ron Perey, this was the largest personal injury verdict ever rendered in the State of Washington; however, Denny’s insurance company settled the case for $13 million before the jury delivered its damage award.

Just to be clear, the man who shot plaintiffs Steve Tolenoa, Lisa Beltran-Walker and Carl Walker was not employed by or otherwise related to Denny’s or its management or the owner of that particular Denny’s. Frank Evans was a violent drunk guy who showed up after the bars closed, picked a fight with another patron, lost it, got mad, left and came back with a Glock .40, which he used to shoot up the restaurant (11 bullets). Mr. Evans was convicted on multiple counts of first-degree assault and is currently serving a 62 year sentence in state prison.

Our friends at Seattle's Convention and Visitors Bureau have issued a "Call to Action" regarding Substitute House Bill 1371: Boards and Commissions. They have requested our help with the following: