Nevada Restaurants

Union Card Check - Action Requested

Action Requested:  HR 800 House Bill Facilitates Unionization, Denies Worker Rights to Private Vote

The U.S. House of Representatives is expected to vote next week on H.R. 800, the so-called Employee Free Choice Act. This extremely onerous bill could fundamentally alter the workplace by making it easier for unions to organize. Under the bill, employers would be required to recognize a union if a majority of employees signs cards saying they want to join. Workers would lose their current right to a private ballot vote when determining whether or not to participate in a union. Many workers and the employer would be shut out of the decision-making process. 

There is a good deal of momentum for this bill in the new Congress and labor unions have made this their #1 priority this Congress. It is very important your voice be heard now. Urge your Congressman to vote “NO” on H.R. 800.
 
Visit http://capwiz.com/restaurant2/issues/alert/?alertid=9409896&type=CO to email or fax your Congressman.

Call your Congressman: You can reach Members of Congress by calling the Capitol switchboard at 202-224-3121. 

Please be sure to include the following points in your message:
 
• Retention of the current federally-supervised private ballot process is critical to protecting working families from coercion or intimidation from union representatives, employers or both. 

• The authorization card or “card check” process proposed under H.R. 800 denies workers their right to a private ballot vote when deciding whether to join or not join a union.

• Rather than vote privately, workers would have to choose in public during union organizing efforts. That means that everyone would know how a worker voted: union representatives, bosses and co-workers.   

For more information on this issue, please visit the business community’s Coalition for a Democratic Workplace (CDW) website at www.myprivateballot.org.

Any questions?  Give us a call or contact Meredith Nethercutt at the National Restaurant Association at 800-424-5156 or e-mail her at mnethercutt@dineout.org .  She is great to work with and like us loves this industry.

Price Gouging

On February 14, the Senate Commerce and Labor committee heard SB82, which provides that price gouging during an emergency constitutes a deceptive trade practice.  Senator Dina Titus introduced the bill in the interest of being proactive in the event of emergency. She stated that by passing the bill, Nevada would follow the precedent set by 30 other states that have emergency pricing regulations.

Senator Titus’ introduction was followed by testimony from both proponents and opponents of this bill.  Another one of NvRA’s lobbyist, George Ross, testified in opposition to this legislation, indicating that the bill is not as narrowly drawn as the sponsor indicated.  He specifically noted that the role of price is to match supply and demand, and all of the supply will go to where the price dictates and if businesses are the only ones that have these controls, they will be unsupplied as a result.  He also pointed out that the right to pass through supplier costs was so vague that based on prior experience such programs would lead to much litigation.
Senator Joe Heck was then appointed as the Chair of the Subcommittee which heard SB82 again on February 19.  Again, testimony was presented from both sides, but no further action was taken on the bill.  We will continue to monitor this bill to ensure that it will not negatively impact restaurant businesses. 

Business Lobbyists Group

On Tuesday, February 20, the business lobbyist group met for the first time this session. The group, organized by the Nevada Restaurant Association’s (NvRA) lead lobbyist, Sam McMullen, and composed of lobbyists from various organizations and associations across the state, met with Governor Jim Gibbons to discuss a variety of important issues that will impact the business community during the 2007 Legislative session. The Governor specifically stated that it was not his intention to sign any measures which required a 2/3 majority vote for passage, which means tax measures.

HIFA Wavier

The Senate Human Resources and Education Committee held a hearing on Medicaid on Monday and Charles Duarte, specifically mentioned the Health Insurance Flexibility and Accountability (HIFA) Waiver.  CMS approved the 5-year waiver on December 1, 2006, which will be a great benefit for small business owners. 

The details of the presentation were as follows:
• The Nevada 2005 Legislature passed Assembly Bill 493 (which the Nevada Restaurant Association supported) requiring the Director of Health and Human Services to apply for a Medicaid waiver pursuant to the HIFA demonstration initiative. 
• CMS approved the 5-year waiver effective December 1, 2006. 
• The approved coverage group which benefits small business employers is “The Employer Sponsored Insurance Subsidy Program” (called Nevada Check Up Plus) which provides a monthly subsidy of up to $100 toward a policy of insurance purchased by an employee or spouse when the employee works for a small employer and the employee:
o Has a household income not more than 200% of the federal poverty level,
o Is otherwise ineligible for Medicaid, and
o Is a parent, caretaker relative, or legal guardian of a child under the age of 19.

Minimum Wage

On February 9, the Director of the Nevada Department of Business and Industry, Mendy Elliot, sent a letter to employers throughout the state expressing that she has referred a number of detailed questions to the Attorney General, regarding the legality of the inflation of the new minimum wage law.  Some of the questions posed include:
• When will the increases become effective?
• How will the cost of living be calculated and what will the rates be?
• How will the state wages work in conjunction with a federal increase. 
Both the Director and the Labor Commissioner want to ensure that the business community has the opportunity to share their positions with the Attorney General’s Office on the questions posed.  The Chief Deputy Attorney General, Christine M. Guerci-Nyhus office will accept input and comments until 5 pm on Friday, February 16. 

The rest of the letter can be viewed here:  http://www.nvrestaurants.com/docs/officeofthedirectorpriorities.pdf

Culinary Arts

The Assembly Education Committee met on Monday, February 12, to discuss iNVest, a program which stands for Investing in Nevada’s Education, Students and Teachers.  During this hearing, the President of the Nevada Association of School Superintendents, Dr. Mary Pierczynski of Carson City, laid out her plan for education improvement in Nevada.  She specifically favorably mentioned the Culinary Arts Program at Carson High School as an excellent example of a successful, vocational and technical training program that other programs in other schools should emulate.

Minimum Wage

On February 8, 2007, the Senate Commerce and Labor Committee held a hearing regarding minimum wage, specifically the implementation and impact of the new amendment to the Nevada Constitution increasing the minimum wage.  The focus of the hearing was how the new minimum wage regulations are going to affect restaurants and other employers. 

In the November 2006 general election, voters passed Question 6, a Constitutional Amendment governing minimum wages for all employees in Nevada by nearly 70%.  The amendment became effective on November 28, 2006 when the State Supreme Court certified the election.  As a result of the amendment going into effect so quickly, the law is being implemented through a set of emergency regulations adopted by the Labor Commission, which only last 120 days.  These emergency regulations are currently being revised into temporary regulations, which will last only until permanent regulations are adopted sometime after November 1 this year.  The Legislative Counsel Bureau must ultimately revise and confirm the regulations in order for them to take effect permanently, which has given us many opportunities to change, fix, and work with any problems prior to the implementation of the permanent regulations.  Thus, it is important that our members and the Association continue to notify us of any problems or difficulties so that they can be addressed as effectively as possible in the permanent regulations. 

The Association’s lobbyist Sam McMullen testified today on behalf of the Association and other businesses to highlight the progress we have already made in the temporary regulations and the changes we will continue to work for to be implemented in the permanent regulations.  Below are a few of the important issues that have already been clarified in the temporary regulations or that are currently being worked on:

• Initially, there was concern that employers would be required to pay the $6.15 per hour to the employees who qualified for the lower tier minimum wage until the insurance actually kicked in.  However, it has since been clarified that once the employer simply offers health insurance to an employee who qualifies for the lower tier, the employer is still only required to pay the $5.15 per hour, regardless of whether the employee accepts the offer or whether the insurance taken effect.  Additionally, so long as the requirements for the health insurance are relatively mechanical and apply to all employees, and are not subject to any discretion or control by the employer, the employee can continue to be paid the lower wage they qualify for event through the normal waiting period until the health insurance benefits actually apply.

• There was also some idea early on that employers were going to have to calculate the test for health care premiums every pay period, but it has since been clarified that this will be done either quarterly or annually at a minimum.  Additionally, if employers know that their employees will never pass the test, we are clarifying that they can simply make a decision to pay the upper tier of $6.15 per hour and not have to make the calculations. 

• There was some dispute whether the CPI would be additional on top of the federal minimum wage, but we have now clarified that this will only occur when the cumulative CPI exceeds the federal minimum wage.  Thus, it will be the greater of the two.  For example, total implementation of the coming $2.10 federally-imposed increase divided by the $5.15 base is the equivalent of 40.78 % increase in the CPI, which means it will be at least 13 years before he CPI will affect the minimum wage in NV. 

• The definition of “trainee” for the section regarding a “90 day trainee” is still being worked on, along with clarification of other issues that were not addressed such as treatment of the calculation for new hires, employees who turn 18 years of age shortly after being hired, and other status changes. 

We still have another month until these regulations go to hearing, so we would greatly appreciate if you would each continue to apprise us of any practical issues associated with this new law so that we can cure them or otherwise do what we can to adjust or soften them in the drafting or implementation of the temporary regulations (to be approved March 5), or if need by the permanent regulations.  We really appreciate the individuals who have sent questions, practicalities, and concerns to the Association and hope you will continue to do so in the future.   

A copy of the proposed temporary regulations, the Labor Commissioner’s testimony from the hearing, and information on the upcoming hearing and revised regulations can be accessed at http://www.laborcommissioner.com

SB 7—Alcohol Liability

On February 8, 2007, the Senate Judiciary Committee heard SB7, a bill sponsored by Senator Wiener and Assemblyman Horne, which establishes civil liability for certain acts involving the use of controlled substances and the consumption of alcoholic beverages—but not for business establishments.

Senator Wiener introduced the bill, explaining that as a result of this bill, adults who knowingly serve alcohol or controlled substance to minors will be held civilly liable for the injury caused by the inebriated person.  She also clarified that this bill does not apply to businesses or organizations that are licensed to serve alcoholic beverages.  Senator Wiener proposed an amendment to include the word “knowingly” to the bill to clarify so that only adults who knowingly serve alcohol will be held liable. 

SB7 was “Do Passed as Amended” out of the Senate Judiciary Committee on February 8, 2007.  We will continue to monitor this bill to ensure no amendments making business establishments liable are proposed.