LEGISLATIVE UPDATE

The following summary provides a review of the issues rising in the session which convened in January 2010, as well as some federal issues we have been involved with.

State Issues

Immigration - The body passed an immigration bill that requires state agencies and most state contractors to use E-Verify in their hiring practices. We worked to ensure that it has no negative impact on Nebraska restaurants.

Changes to Workers Compensation - We were successful in stopping changes to workers compensation that could have resulted in higher work comp rates for business owners.

Sales Tax Collection Allowance - In these very tight budget times, we were not successful in getting an increase in the sales tax collection allowance for Nebraska restaurants. We will continue this effort until we are successful.

Assistance for Rural Restaurants - Although it did not pass, we thank Senator Deb Fischer for introducing legislation recognizing that restaurants are vital to rural communities. Hopefully this discussion will result in favorable legislation over time.

Federal Issues

Health care reform has emerged as the issue of the year in 2009 and we have been working closely with the National Restaurant Association and our congressional delegation in an effort to modify some of the aspects of the legislation that could adversely affect our industry. The employer obligations under consideration in the legislation before the senate at this time represent a very significant challenge and burden for restaurateurs. In that regard, we have requested Senator Nelson to support amendments in the following five areas that have the most significant impact on restaurants.

1. A part-time worker exemption. Part-time employees are an essential component of the restaurant industry. On average, 43 percent of restaurant workers work more than 30 hours per week. Many of our employees work for multiple employers, or receive coverage under
another health plan. It is critical restaurateurs be allowed to set the criteria for offering health benefits to part-time workers.

2. A robust small business exemption. As an industry comprised mainly of small businesses, it’s critical that any reform have a robust small business exemption. Over 90% of eating and drinking establishments have fewer than 50 employees. With profit margins less than 4
percent, and industry sales down considerably over the last two years, our members are not in a position to bear the burden of additional costs.

3. A 90-day waiting period for new hires so that our members can provide committed full-time employees the highest quality benefits at the most affordable price. The restaurant industry is unique, with an extremely flexible work environment and higher than average turnover rates. According to the Bureau of Labor Statistics, 75 percent of our employees leave their jobs annually – a rate 25 percent higher than the overall private sector at 49 percent.

4. A modified definition of a full-time employee to 390 hours per calendar quarter (13 weeks) instead of the current 30 hours per week on average. The modified definition takes into account fluctuations in hours an employee works, and would help reduce the impact of
employer requirements for restaurateurs.

5. Preserve current ERISA protections. The restaurant industry is a strong proponent of ERISA because it provides larger companies the regulatory framework to offer a uniform health benefits package across state lines. Preserving the ERISA framework, allows employers to maintain the ability to offer competitive and more affordable coverage in part through the financial and administrative savings permitted by this uniform national standard.

Employee Free Choice Act (EFCA) - We have been actively opposing this federal legislation that would more accurately be titled the Employee Forced Choice Act as it would effectively eliminate the secret ballot for employees in the decision to unionize a workplace. Nebraska is a key state in this national battle primarily due to Senator Ben Nelson. Senator Nelson opposes the legislation but has not committed to vote against cloture which is the key to defeating the effort when it arises next year.

The LEAN Act - We are supporting the National Restaurant Associations efforts in this reasonable answer to menu labeling. We encouraged both Senators Johanns and Nelson to co-sponsor this legislation. Senator Johanns is now a co-sponsor.

Immigration Reform - Executive Director, Jim Partington, attended an Immigration Works USA meeting in Washington, DC on June 15, 2009 and following the meeting met with the Nebraska congressional delegation on June 16th to discuss immigration, EFCA, menu labeling, health care and other federal issues of interest to our industry. Immigration reform will be the next front burner federal issue after health care is disposed of.

For more information about legislative issues, please contact us at dineout@windstream.net or 402.488.3999. Continue visiting
www.nebraska-dining.org for issue updates.