GRA Weekly

October 31, 2021

This week's newsletter is brought to you by Society Insurance.

FEDERAL UPDATES

White House Releases Build Back Better Framework

Last Thursday, President Biden released the Build Back Better Framework, a $1.75 trillion plan featuring major investments in child care, healthcare, clean energy, earned income tax credits, education, and more social services. The spending proposal includes offsets, such as a new 15% corporate minimum tax and a 1% surcharge on corporate stock buybacks.

While the Association is still evaluating the plan and eagerly seeking the legislative details, we wanted to share an update of some key tax pieces of the Build Back Better Framework:

The cap on Section 199A deduction is not included. Last month, the House Ways & Means Committee approved a cap on the deduction at $500,000 in net income in order to raise $78 billion. The National Restaurant Association opposes a cap on Sec. 199A and continues to closely monitor this issue.
The repeal of the stepped-up basis is not included. If enacted, family-owned businesses could be subject to a new capital gains tax when the business ownership transfers after death. The NRA opposes repealing the stepped-up basis.
A corporate tax rate increase is not included. Last month, the House Ways & Means Committee approved an increase from the current 21% to 26.5%. Restaurants oppose a corporate tax rate increase. However, the Build Back Better Framework would create a “Corporate Minimum Tax” of 15% minimum tax on businesses with more than $1 billion in financial statement book income. This would raise an estimated $325 billion.

Biden Administration Vaccine Mandate Expected Soon

The federal government’s Occupational Safety and Health Administration (OSHA) is soon expected to issue an emergency temporary standard (ETS) requiring employees of companies with 100 or more employees to get vaccinated against COVID-19 or get tested on a weekly basis. Our federal partners and the National Restaurant Association, recently joined a stakeholder listening session with the Office of Information and Regulatory Affairs to provide an overview of our industry’s efforts to support employee vaccinations as well as the challenges of workforce shortage issues, recovery, and the potential impact of a vaccine mandate before the holiday travel season.

The pending ETS was the subject of a recent joint congressional hearing of the House Education & Labor Committee's Workforce Protections Subcommittee and Civil Rights and Human Services Subcommittee. The hearing covered a variety of vaccine-related topics, including the ETS, alternatives to vaccine requirements, and potential workforce shortages and supply chain disruptions. It is still expected that this standard will be immediately challenged in the courts.

Bloomberg news is reporting that the vaccine rule will allow employers to force workers who refuse vaccination to pay for the required weekly testing and masks. We will continue to keep you informed on the latest breaking news on this critical issue.

CITY OF ATLANTA

City of Atlanta Requires CPA Statement for Alcohol License Renewal

The City of Atlanta has decided to begin enforcing ordinance 10-106(c) beginning November 1, 2021. Ordinance 10-106(c) requires businesses classified as Restaurants selling alcoholic beverages to provide a statement from a Certified Public Accountant detailing how much of their annual business sales are alcohol versus food. The GRA is asking that this this enforcement be delayed until a better solution for all can be considered and encourage you reach out to the Mayor’s office and your council person to voice how this decision will impact you. Read more about this issue & what actions you can take here.

80/20 TIP FINAL RULE

US Dept. of Labor Issues Onerous 80/20 Tip Final Rule

The US Department of Labor (DOL) released a rule last week that changes tip regulations under the federal Fair Labor Standards Act (FLSA). The US DOL announced its Dual Jobs final rule, which restores the Obama-era “80/20” rule, as expected. This effectively revokes the Trump administration rule that was successfully secured to provide regulatory relief for the industry. DOL’s new regulation will upend the current framework of how tipped employees are compensated by requiring employers 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.

The final rule, effective December 28, 2021, creates mass confusion and enormous compliance challenges. Over the years, it has been a hotly litigated topic; it obviously remains to be seen if the final rule will receive deference from federal judges ruling on these types of lawsuits. The Restaurant Law Center of the National Restaurant Association is evaluating its options regarding a potential legal challenge. We will continue to keep you informed of the legal implications.

RESTAURANTS + GOVERNMENT

Restaurants + Government: How We Can Effectively Work Together

Thomas Jefferson once wrote, “The government you elect is the government you deserve.” On Tuesday, November 2nd, you will have the opportunity to elect a person that could have more of an impact on you and your business than you realize. From approving business or alcohol licenses, determining your taxes and annual fees, to passing sanitation ordinances, locally elected officials play a vital role in restaurant operations.

The Georgia Restaurant Association (GRA) understands the important role our local elected officials have in our lives and the impact we can achieve in making our voices heard. There are numerous ways to work in tandem with your local government. For example: 1. Keep in contact with your local official(s) and all of the governing board; 2. Show up to meetings, subscribe to meeting alerts and stay informed; and 3. Become part of the governing board by running for office. Need inspiration? You can read about a Marietta restaurateur currently running for City Council and why he chose to. With more restaurateurs actively part of the process, it becomes easier to educate your local government on how their decisions impact your business and the community as a whole.

Not subscribed to our e-news? Click here to stay informed on the latest in our industry as well as any action alerts that may directly impact you. If your schedule allows, come join us or even host an in-person Kitchen Cabinet Meeting at your establishment. If you have any questions, or are interested in running for office on a Local, State, or Federal level, let us know! The GRA is always happy to be a resource for you. For more information, you may reach out to Daniel New, Director of Advocacy.

GRAF GOLF TOURNAMENT SUCCESS

The inaugural GRA Foundation Golf Tournament, held on Monday, October 25th at The Standard Club in Johns Creek raised just over $73,000! Proceeds will be used to support Georgia's ProStart® Program and enrichment opportunities like mentorships, job-training, training for teachers, and student scholarships! Many thanks to all of our sponsors for helping make this event happen: Coca-Cola, SpotOn, Melissa Libby & Associates, TVS Design, Gas South, Moore Colson, Sysco, UnitedHealthcare, NCR, US Foods, Workstream, Georgia Power, New Belgium, Piano Keys, Ale Sharpton, Focus Brands, IRONWOOD, TFH Legal, Savannah Distributing, Schlotzsky's, and Loyal Q and Brew.

Snack Attack Challenge

To help keep our golfers energized on the course, we called upon our local ProStart Students and challenged them to a 'Snack Attack Challenge'. This gave high school students an opportunity to put their culinary skills to the test. Golfers had a chance to vote on their favorite snack food and the winning school will be receiving a pizza party and a $250 gift card for the chef educator to use on their classroom. Out of 8 high schools that competed, we are proud to announce Grayson High School, led by Chef Phillip Garrett as the Inaugural Winner of the ProStart Snack Attack Challenge!

And last but not least, congratulations to our winning foursomes!

1st place - Gregg Hawkins, Joe Aiello, Robert Falanga, and Bill Houck (sponsored by The Silver Moon) (pictured)

2nd place foursome - Terry Bailey, Chase Scott, Mitch Funk, and Buck Daniel (sponsored by TFH Legal)

3rd place foursome - Hank Clark, Matt Hene, and Martin Thorson (sponsored by IRONWOOD)

Photos from the tournament can be found here.

BEN'S FRIENDS ATLANTA

Ben's Friends Atlanta wishes to invite any food and beverage professional to attend their weekly support group meetings. All are welcome and there is no cost to participate. Ben's Friends is the food and beverage industry support group offering hope, fellowship, and a path forward to professionals who struggle with substance abuse and addiction.

Every Sunday 12:30PM | Southern Belle

Learn More.

CONGRATS CITY OF DUNWOODY

Dunwoody earns Savvy Award for communications

The GRA congratulates the City of Dunwoody for earning a top honor for communications in support of restaurants through the pandemic from the City-County Communications & Marketing Association during its national conference last week. Dunwoody received a 2021 Savvy Award for outstanding achievement in creating an economic development marketing campaign to lift local restaurants through the pandemic.

“We’re thrilled to be recognized for a campaign that we really took to heart,” said Dunwoody Communications Director Jennifer Boettcher, who accepted the award at the 3CMA conference in St. Louis. “The City developed strong programs to support struggling restaurants, and we knew creative communications were critical to their success.” The winning campaign included marketing for the Picnic Table Project, which involved a tour of tables and t-shirt giveaway to encourage outdoor dining, as well as the City’s Al Fresco Matching Grant Program, which provided restaurants with funding to create outdoor dining options. Social media was another important element. The #DestinationDunwoody Restaurant Passport and #LetsDoLunch campaigns gave the community a chance to share their commitment to local businesses. Read More.

SMALL DETAILS. BIG DIFFERENCE.

ERC PAYROLL TAX REFUND WEBINAR

Maximizing the ERC Payroll Tax Refund

Missed last week's webinar? You can access the recording and presentation to get a brief 30-minute overview of the Covid-19 Employee Retention Credit and how your restaurant can make the most out of this beneficial program. In this webinar, we reviewed the two tests for eligibility as well as what wages may qualify. If you think your restaurant may be eligible but don’t know where to start, this is your opportunity to get those questions answered.

Recording | Presentation

JONESBORO JOB FAIR

The City of Jonesboro and the Development Authority of Clayton County are hosting a job fair on Tuesday, November 9th from 12:00 pm-4:00 pm at the Broad Street Green located at 108 Broad Street, Jonesboro, GA 30236. The job fair is specifically for employers in the Restaurant, Hospitality, and Retail Industries. Employers who are interested in participating can register here.

SERVSAFE OPERATING GUIDANCE

ServSafe Operating Guidance: COVID-19 Precautions Training

ServSafe and the National Restaurant Association are excited to announce ServSafe Operating Guidance: COVID-19 Precautions, the FREE COVID-19 training suite that brings together content from the original COVID-19 Delivery, Takeout, and Reopening modules as well as new information from the latest COVID-19 Operating Guidance.

The free 15-minute video covers:

Encouraging vaccinations for employees
Best practices on indoor dining, ventilation, mask use, and social distancing
Guidelines for hand washing, health monitoring and testing, and policies for ill or exposed employees
Operational guidelines for cleaning, sanitizing, and disinfecting
COVID safety procedures for pickup and delivery

Available in English and Spanish, this updated training combines best practices for continued operation during the pandemic in one, easily accessible training video.