GRA Weekly

November 28, 2021

This week's newsletter is brought to you by Workstream.

BUILD BACK BETTER ACT

Build Back Better Act Passes; Good and Bad News for Restaurants

On November 19th, the House of Representatives passed the Build Back Better Act, which includes provisions like free universal Pre-K and expanded childcare subsidies that would help address workforce concerns across the economy. The Association was pleased to work with members of the House and Senate in successfully shaping the legislation to exclude several tax provisions that would have been extremely detrimental to the restaurant industry.At the same time, the legislation includes provisions that are concerning for restaurants and failed to address a top tier priority. Specifically, Association EVP of Public Affairs Sean Kennedy expressed concern that the bill did not replenish the desperately needed Restaurant Revitalization Fund. He also highlighted a tax provision in the bill that would saddle restaurants and other small businesses with $252B in new taxes. Additionally, the bill imposes new and enhanced fines and creates personal liabilities, all of which could be assessed against restaurants who make inadvertent or technical errors.Although House Democrats have indicated they want to send the bill to President Biden for his signature by the end of the year, the legislation faces uncertainty in the Senate where moderate Democrats signaled their opposition. The Association remains vigilant in advocating on behalf of restaurants as the legislation morphs further in the Senate.

FINAL SURVEY OF 2021

Coronavirus Restaurant Impact Survey - November 2021

The National Restaurant Association is collecting information on the economic impact of the Coronavirus (COVID-19) outbreak. Please be assured that all information provided is anonymous and strictly confidential. The survey should take no more than 15 minutes to complete. Please submit a completed survey by December 1. Take the Survey.

**BONUS** For everyone that submits a survey, please email us a screenshot of your survey confirmation submission page to info@garestaurants.org and you will be entered into a drawing to win a $500 Visa Gift Card. Entries must be received by December 1, 2021 11:59PM ET.

CITY OF ATLANTA

City of Atlanta Requires CPA Statement for Alcohol License Renewal Update

Councilman Antonio Brown has dropped legislation asking for the delay of the CPA Statement requirement for Alcohol License renewal until the 2023 renewal period. The legislation should be heard on Monday, November 29 at 2:00PM in Public Safety and Legal Administration Meeting. We strongly encourage you leave public comment about how this impacts you by calling (404) 902-5066 Conference ID 151945 between 4:00PM and 7:00PM on Sunday, November 28. Read more about this issue & what actions you can take here.

TIP RULE

US Dept. of Labor Tip Rule Goes Into Effect Dec. 28

The US Department of Labor's new Dual Jobs final tip rule goes into effect December 28, 2021, and changes tip regulations under the federal Fair Labor Standards Act (FLSA). Employers will be required to closely monitor tipped employees’ work in three categories: time spent on tasks that produce tips, time spent on tasks directly supporting tip-producing work, and time spent on tasks that are not part of the tipped occupation.

Under the final rule, an employer can take a tip credit only when the worker is performing tip-producing work or when:

A tipped employee performs work that directly supports tip-producing work for less than 20% of the hours worked during the employee’s workweek. Therefore, an employer cannot take a tip credit for any of the time that exceeds 20% of the workweek. Time for which an employer does not take a tip credit is excluded in calculating the 20% tolerance.
A tipped employee performs directly supporting work for not more than 30 minutes. Therefore, an employer cannot take a tip credit for any of the time that exceeds 30 minutes.

We will be updating our resources and providing more details soon to help keep you informed and in compliance.

FEDERAL UPDATES

OSHA No Longer Implementing or Enforcing Vaccine ETS

After a court order on Nov. 12 from the U.S Circuit Court of Appeals for the Fifth Circuit, the Occupational Safety and Health Administration is no longer implementing or enforcing the Emergency Temporary Standard (ETS) published on Nov. 5 which mandated that employers with 100+ employees require employees to get vaccinated or undergo weekly COVID-19 testing.While OSHA remains confident in its authority to protect workers in emergencies, multiple lawsuits have been filed challenging the ETS, all of which will be consolidated and heard by the Sixth Circuit, which consists of a majority of Republican-appointed judges who have expressed misgivings over OSHA’s claimed authority.In the face of ongoing litigation and continuing uncertainty over whether the ETS will survive, the Association is advising restaurant owners and operators to continue planning and developing compliant workplace policies so they are prepared should the stay be lifted and the ETS gets enforced. A ruling by the Sixth Circuit is expected at the end of the month, and experts advise that the Sixth Circuit ruling will be appealed to the Supreme Court. In the meantime, the Association continues to closely track the litigation and all issues surrounding the ETS and will provide updates on new developments.

Association Launches Grassroots Petition on ERTC

With the Infrastructure Investment and Jobs Act terminating the Employee Retention Tax Credit (ERTC) for Oct.-Dec. 2021, the Association launched a grassroots petition campaign where restaurants can sign up to support the Association’s efforts to urge the Department of Treasury and Internal Revenue Service to speed up the ERTC approval process, allow small businesses to defer their 4th quarter federal income tax payments until July 15, 2022, and safeguard all deferred 4th quarter federal income tax payments from penalties or interest.

COVID-19 Relief Program Deadline Approaching

With the expansion of the COVID-19 Economic Injury Disaster Loan (EIDL) program in Sept., restaurants can apply for up to $2M with greater flexibility on how the funds can be used. However, the deadline to apply for COVID-19 EIDL funds is fast approaching, and last week the Small Business Administration released updated guidance encouraging small business owners to submit applications by Dec. 10. The official deadline is Dec. 31.