FRLA President & CEO Carol Dover: Gaming Impact Study Lacks Attention to the Casino Cannibalization

Media Contact:
Elizabeth Ray

FRLA Press Secretary
850.224.2250 x255
[email protected]

(Tallahassee, FL) – Today the Florida Restaurant and Lodging Association President and CEO Carol Dover released the following statement regarding Part 1 of the Gaming Impact Study and its lack of attention to the casino cannibalization issue.

“We commend the Florida Legislature’s comprehensive approach to assessing the current lay of the land and future alternatives with regard to gambling in Florida.   We are also glad that the House and Senate select committees on this subject are undertaking a thorough analysis of what we have today and various policy alternatives.

“We have read with interest the first report issued by Spectrum Gaming.  While this report has a lot of good information, we would like for it to have gone farther in its analysis of the cannibalization effect of gambling – particularly as it relates to restaurants and lodging establishments.  Just eight of the 320 pages in the report were devoted to the subject of cannibalization, and much of that analysis was related to how casinos might harm existing gambling operations.

“While Atlantic City was mentioned, the staggering Atlantic City statistics were not.  Policymakers and the public should know that 40% of restaurants and a third of retail establishments going out of business in the wake of casinos opening there.  They should know that crime skyrocketed and the population actually shrank.

“We take exception to the report’s characterization of cannibalization, or the “substitution effect” as “…essentially synonymous with market competition.”  The practice of providing free or heavily subsidized room nights and meals – a standard practice in the casino industry – is not competition.  It is a predatory business practice that would hurt Florida businesses – particularly those that are a part of our hospitality industry.

“We strongly urge that the issue of casino cannibalization along with the dismal economic numbers associated with Atlantic City be legitimately and factually addressed in Part 2 of the Gaming Impact Study due in October 2013.

“We appreciate the ongoing work of the legislature on this issue, particularly legislative leaders and those who chair and serve on the House and Senate Gaming Committees.”

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About the Florida Restaurant and Lodging Association
FRLA’s mission is to ‘Protect, Educate and Promote’ Florida’s hospitality industry – which represents a $71.8 billion industry, 23% of Florida’s economy, $4.3 billion in sales tax revenue, and over one million employees, making it Florida’s largest employer. It is Florida’s premier non-profit, hospitality industry trade association. FRLA safeguards the needs of the hospitality industry, improves the business climate, promotes the highest levels of quality and safety for our patrons, provides legislative advocacy, and eases navigation of government regulation. The Association represents and serves more than 10,000 independent and household name members, suppliers, and theme parks. For more information, go to www.FRLA.org.

Attention To Those Employing H-2B Workers

On April 24, 2013, the Department of Homeland Security and the Department of Labor (DOL) jointly published in Interim Final Rule that revised the methodology by which the DOL calculates prevailing wages under the H-2B program.

Under this rule, the prevailing wage issued by DOL under 20 CFR 655.10 (b)(2) is the arithmetic mean for the occupation in the area of intended employment as established by the Bureau of Labor Statistics’ Occupational Employment Statistics survey.  Simply put, the amount you are currently obligated to pay H-2B workers can be substantially increased by this DOL rule.  This rule is effective immediately.  The ability to have a redetermination of a DOL Supplemental Wage Notice is extremely limited and wages determined by a DOL Supplement Wage Notice must be paid by the employer.

This issue is pending before at least 3 federal courts, and the H-2B Workforce Coalition, American Hotel and Lodging Association (AHLA) and other affected industries are working hard to seek relief from both the courts and Congress.

If you receive a Supplemental Wage Determination Notice from the U.S. Department of Labor, please let us know so we can communicate to Congress the impact these arbitrary rules are having on American business.

The FRLA Strengthens Local Efforts by Welcoming New Regional Managers

Media Contact:
Elizabeth Ray
FRLA Press Secretary
850.224.2250 ext. 255

The Florida Restaurant and Lodging Association is strengthening its local efforts with the addition of four new regional managers. Today, FRLA is proud to announce Christine Brosh will help lead the team in Southwest Florida, Lisa Howard will oversee Central Florida, Katie Bone will be in charge of the Tampa Bay region and Dawn Wilson will represent the Palm Beach area. As regional managers they will help support members, mobilize grassroots operations and bolster ongoing communications between FRLA headquarters and local offices. These regional managers join FRLA’s four current regional directors to represent 20 chapters across the state.

“On behalf of the Florida Restaurant and Lodging Association, I would like to welcome Christine Brosh, Lisa Howard, Katie Bone and Dawn Wilson to our team,” said FRLA President/CEO Carol Dover. “They all bring a unique skill-set and professional background that will help lead our organization and immediately impact our efforts in their respective regions to continue our commitment to protect, educate and promote Florida’s hospitality industry.”

Christine Brosh joins FRLA as the Southwest Florida Regional Manager representing Glades, Charlotte, Lee, and Collier County after working at Cooper Hotel Group where she served as a Sales Manager. Prior to her work in Southwest Florida, her career was in corporate event management and she independently owned and operated her own catering business.

Lisa Howard joins FRLA as the Central Florida Regional Manager representing Orange, Seminole, Brevard, Volusia, Flagler, Lake, and Sumter County after 17 years as a sales executive in the financial sales industry. In her previous career, Lisa maintained a multi-million dollar sales record, consistently achieving and surpassing sales goals. Lisa also took on the responsibility of arranging and coordinating a variety of trade shows and fundraising events. She’s been a resident of Central Florida for 28 years.

Katie Bone is FRLA’s new Tampa Bay Regional Manager representing Pinellas and Hillsborough County. She started with the association in 2010 as the Corporate Events Coordinator working in Tallahassee, eventually moving to Tampa to begin her new role.

Dawn Wilson is FRLA’s new Palm Beach Regional Manager representing Indian River, Okeechobee, St. Lucie, Martin, Hendry,  and Palm Beach County. She began with FRLA almost four years ago as a volunteer for the Monroe Chapter. With 19 years invested in the hospitality industry, Dawn has served in a variety of roles and has experience ranging from hostess to manager while working in hotels and restaurants.

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About the Florida Restaurant and Lodging Association
FRLA’s mission is to ‘Protect, Educate and Promote’ Florida’s hospitality industry – which represents a $71.8 billion industry, 23% of Florida’s economy, $4.3 billion in sales tax revenue, and over one million employees, making it Florida’s largest employer. It is Florida’s premier non-profit, hospitality industry trade association. FRLA safeguards the needs of the hospitality industry, improves the business climate, promotes the highest levels of quality and safety for our patrons, provides legislative advocacy, and eases navigation of government regulation. The Association represents and serves more than 10,000 independent and household name members, suppliers, and theme parks.

Urban Expositions Acquires the Florida Restaurant & Lodging Show

Media Contact: Elizabeth Ray
FRLA Press Secretary
850.224.2250 ext. 255
[email protected]

(Tallahassee, FL) –  The Florida Restaurant and Lodging Association is proud to partner with Urban Expositions, the new owner of the Florida Restaurant & Lodging Show. Urban Expositions has acquired the trade show from Reed Exhibitions. As part of the acquisition, the company also purchased the Western Foodservice & Hospitality Expo, Expo Comida Latina and the International Restaurant & Foodservice Show. Urban Expositions will assume ownership immediately although Reed Exhibitions will manage the upcoming Florida Restaurant & Lodging Show, September 22-24, 2013 at the Orange County Convention Center.
“We are thrilled to partner with Urban Expositions and build on the success of the Florida Restaurant & Lodging Show,” said Carol Dover, President and CEO of the Florida Restaurant and Lodging Association. “We will work closely, as we did with Reed Exhibitions, to strengthen professional growth opportunities and enrich the trade show experience for exhibitors and attendees.”
The Florida Restaurant & Lodging Show is the only comprehensive industry event devoted to the Southeast U.S. restaurant, foodservice and hospitality market. The Show provides exhibitors a strategic forum to demonstrate food products, technology and equipment as well as discuss service solutions with current customers and new prospects.
For more information about the show please visit http://www.flrestaurantandlodgingshow.com/.
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About the Florida Restaurant and Lodging Association
FRLA’s mission is to ‘Protect, Educate and Promote’ Florida’s hospitality industry – which represents a $71.8 billion industry, 23% of Florida’s economy, $4.3 billion in sales tax revenue, and over one million employees, making it Florida’s largest employer. It is Florida’s premier non-profit, hospitality industry trade association. FRLA safeguards the needs of the hospitality industry, improves the business climate, promotes the highest levels of quality and safety for our patrons, provides legislative advocacy, and eases navigation of government regulation. The Association represents and serves more than 10,000 independent and household name members, suppliers, and theme parks.
About Urban Expositions
Urban Expositions is the largest gift, airport and souvenir trade show organizer in the U.S., hosting a total of 28 shows each year. In January of 1996, Urban Expositions launched the semi-annual Philadelphia Gift Show, which has become one of the largest and most successful regional gift events in the nation. Since then, the company has continued to grow through acquisitions and new show development. Based in Kennesaw, GA, Urban Expositions offers a complete roster of trade show management services, including exhibit sales and marketing, operations, exhibitor/attendee promotions and services, media relations, seminar and event coordination, database development and management. For more information please visit www.urban-expo.com .

Florida’s Minimum Wage to Increase to $7.93

(October 17, 2013) Effective January 1, 2014, Florida’s minimum wage will increase from $7.79 to $7.93, with a minimum wage of at least $4.91 per hour for tipped employees. The minimum wage rate is recalculated yearly based on the percentage increase in the federal Consumer Price Index for Urban Wage Earners and Clerical Workers in the South Region for the 12-month period prior to September 1, 2012.  On November 2, 2004, Florida voters approved a constitutional amendment which created Florida’s minimum wage.  The minimum wage applies to all employees in the state who are covered by the federal minimum wage. Florida Statutes require employers who must pay their employees the Florida minimum wage to post a minimum wage notice in a conspicuous and accessible place in each establishment where these employees work. This poster requirement is in addition to the federal requirement to post a notice of the federal minimum wage. Florida’s minimum wage poster is available for downloading in English and Spanish from the Florida Department of Economic Opportunity’s website at: http://www.floridajobs.org. For more information please click here.

Carol Dover: Casinos in FL Would Harm Local Businesses

(Published by Sun-Sentinel, October 22, 2013)

Gambling interests say they will create thousands of jobs in Florida if we legalize Vegas-style casinos. When Bugsy Siegel essentially created Las Vegas by building casinos in a barren desert in Nevada, his enterprise did create jobs – because virtually nothing existed before the casinos.

The problem is when casinos are introduced into an existing base of commerce, they simply re-shuffle the deck of consumer spending. This is called “cannibalization” — when existing consumer spending shifts from one pocket into another.

Quite simply, the economic problem with adding casinos in Florida is that Florida is not a barren desert in Nevada or a remote swamp in Mississippi.

When casinos move in, they don’t simply compete for consumer spending. They use the predatory business practice of giving away things that are a source of profit for longstanding Florida businesses — things like “comp” meals and hotel stays.

But don’t take my word for it, just look at Atlantic City, where 40 percent of restaurants and a third of the retail stores went out of business after casinos opened. Crime skyrocketed and the population actually shrank. That’s what happens when casinos are dropped into an already-developed economy.

The euphemistic term “reallocation of consumer spending” was a key phrase in testimony last week in Tallahassee before the Senate Gaming Committee. Spectrum Gaming Group, the gambling industry’s go-to economic experts, were paid $400,000 by the state to study how Vegas-style casinos would affect Florida’s economy. They dryly noted that much of the impact would not come from new spending, but from “reallocation of consumer spending,” otherwise known as cannibalization.

The closure of so many restaurants and retail establishments after casinos moved in was a searing experience for Atlantic City.

And thirty-five years after casinos opened in Atlantic City, things have gotten worse, not better.

Now that the casinos have devoured the other businesses around them, they have started to devour each other. Oversaturation of casinos in Atlantic City and neighboring states has caused a 7-year gambling revenue skid in Atlantic City. Casino profits are down by half in one year alone.

And for the first time ever, Atlantic City casinos are adding strip clubs to try to draw more gamblers. And taxpayers are now having to bail-out failing casinos — over a quarter-billion dollars for one casino alone — because once government relies on gambling as a major source of revenue, casinos become too big to fail.

Atlantic City’s experience is not unique. Casinos pose a threat to local businesses wherever they emerge. John Kindt, professor emeritus of business at the University of Illinois who has testified before Congress, noted that in a Minnesota study, restaurants within 30 miles of a casino lost 25 to 50 percent of their business.

“For every job created by legalized gambling, the local economy loses one to two jobs,” Kindt said. “Intense gambling activities … will tend to cannibalize a pre-existing tourist economy.”

Rod Motamedi, a senior economic associate for Regional Economic Models Inc. who testified before the Senate and House Select Gaming Committee last week in Tallahassee, cited the potential loss to “retail, food service and similar businesses that compete for finite consumer spending.”

Motamedi also said, “You are making a choice to not spend money on something else. And that choice implies a loss of revenues or a loss of business for the other thing.”

The problem is that by the estimates provided by the legislature’s study, less than 5 percent of the money spent in Florida casinos would be from tourists — and many of those tourists are already coming here.

So casinos have their eye on Florida, not for what they can bring to Florida, but what they can take from us.

If there’s one thing that Florida history should teach us, it’s that gambling is nothing more than an economic shell game, where the only real winner is the house.

Carol B. Dover is President/CEO, Florida Restaurant & Lodging Association. 

Proceeds From Enjoy Arts and Tastes-St. Pete to Benefit High School Hospitality Students in Florida

Media Contact:
Elizabeth Ray
FRLA Press Secretary
850-224-2250 ext. 255
[email protected]

(November 13, 2013) The Florida Restaurant and Lodging Association (FRLA) is proud to sponsor Enjoy Arts and Tastes-St. Pete, a three day festival of food, wine and the arts featuring renowned chefs, restaurants and artists. Proceeds from ticket sales will benefit FRLA’s Educational Foundation, a non-profit organization that provides school-to-career training for high school students interested in the hospitality industry. The festival is scheduled for November 15-17, 2013 in and around St. Petersburg.

“This festival gives patrons a rare opportunity to experience unique flavors and fine art while feeling good about their contribution to the future of high school students not only in the Tampa Bay area, but across Florida,” said Carol Dover, President and CEO of the Florida Restaurant and Lodging Association. “We are thrilled to participate in this inaugural event knowing that young people will be able to build more careers in the hospitality industry. The Florida ProStart program, which is led by our Educational Foundation, represents the first rung on a student’s ladder to a successful foodservice career and the proceeds from this event will benefit the more than 235 high schools that are teaching the ProStart curriculum.”
FRLA’s Educational Foundation was developed to increase the quality and employability of today’s high school graduates by providing them with training related to important job skills as well as opportunities for careers and higher education. Local high schools in Pinellas County include Dixie Hollins High School, Northeast High School, Osceola High School, and Tarpon Springs High School. Hillsborough County schools include Armwood High School, Blake High School, Bowers Whitley Career Center, Brewster Technical, Chamberlain High School, Columbus Academy, D.W. Waters Career Center, Durant High School, East Bay High School, Erwin Technical, Freedom High School, Hillsborough High School, Jefferson High School, King High School, Leto High School, Riverview High School, Robinson High School, Sickles High School, Simmons Career Center, South County Career Center, Steinbrenner High School, Strawberry Crest High School, Tampa Bay Technical and Wharton High School.
For more information about FRLA’s Educational Foundation please click this link.
To buy tickets to Enjoy Arts and Tastes-St. Pete and to find the full schedule of events please click this link.
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About the Florida Restaurant and Lodging Association (FRLA)
FRLA’s mission is to ‘Protect, Educate and Promote’ Florida’s hospitality industry – which represents a $71.8 billion industry, 23% of Florida’s economy, $4.3 billion in sales tax revenue, and over one million employees, making it Florida’s largest employer. It is Florida’s premier non-profit, hospitality industry trade association. FRLA safeguards the needs of the hospitality industry, improves the business climate, promotes the highest levels of quality and safety for our patrons, provides legislative advocacy, and eases navigation of government regulation. The Association represents and serves more than 10,000 independent and household name members, suppliers, and theme parks.
About FRLA Educational Foundation (FRLAEF)
The Florida Restaurant & Lodging Association created the Educational Foundation in 1994. FRLAEF administers and executes two high school curriculums ‐ the National Restaurants Association’s (NRA) ProStart and the American Hotel & Lodging Association’s (AH&LA) Lodging Management Program – in more than 235 Florida high schools and provides resources to nearly 25,000 students in these culinary arts and hospitality management programs. Scholarships, Teacher Training Institutes, Industry Certifications, Equipment Mini‐Grants and Industry Internships are just a few of the products and services the FRLAEF provides to these classrooms.

Gov. Scott: Another Record for Florida Tourism

Governor Rick Scott announced that according to preliminary estimates* released by VISIT FLORIDA – the state’s official tourism marketing corporation – 22.9 million visitors came to Florida in the third quarter of 2013 (July-September), an increase of 1.7 percent over the same period in 2012.  These numbers represent the largest third quarter for visitation in the state’s history.

Governor Scott said, “Today’s announcement of another record quarter for visitation clearly shows ‘It’s Working’ in Florida.  Because every 85 visitors to our state supports one Florida job; a growing tourism industry equates to more jobs for Florida families and a stronger economy.  As we move toward our third consecutive year of record tourism growth, it is clear why the Sunshine State remains the top travel destination across the world. ”

Through the first three quarters of 2013, Florida welcomed 72.6 million visitors – an increase of 3.4 percent over the same period last year.  Visitor spending in Florida for January-August 2013 (last reported month) was $51.8 billion, representing a year-over-year increase of 5.8 percent from the same period in 2012.  Direct travel-related employment in Florida for January-August (last reported month) rose 2.8 percent, adding 29,700 jobs since this same time one year ago.  Each of these figures marks a record, making the first three quarters of 2013 the largest nine-month period in the history of Florida’s tourism industry.

“So far this year, we’re up nearly 2.5 million visitors who increased their spending by almost $3 billion, led by a double-digit increase in international visitors,” said Tammy Gustafson, Chair of the VISIT FLORIDA Board of Directors. “This continued momentum is a testament to the strength of VISIT FLORIDA’s marketing efforts, the power of the Sunshine State brand and the dedication of the nearly 1.1 million Floridians who work in the state’s tourism industry.”

An estimated 19.5 million domestic visitors came to Florida during the third quarter of 2013, representing a 0.5 percent increase from the same period in 2012. Florida welcomed 2.9 million overseas visitors in Q3 2013, representing a 10.1 percent increase over Q3 2012, and 516,000 Canadian visitors during the same period, representing a 2.9 percent increase from the previous year.

“Record visitor numbers equate to record visitor spending,” said Will Seccombe, President and CEO of VISIT FLORIDA. “With taxable sales up, occupancy rates up, rental car collections up, bed taxes up and average daily room rates up, Florida’s tourism industry has never been stronger.”

Carol Dover, President and CEO of the Florida Restaurant and Lodging Association said, “These newly released tourism numbers are encouraging to our more than 10,000 members of the Florida Restaurant and Lodging Association in our effort to attract over 100 million visitors to the Sunshine State. As Florida’s largest employer, our tourism and hospitality industry is on the front lines each and every day in providing a world class experience to visitors coming to our state for business meetings, conventions, vacations and milestone celebrations. We thank Florida Governor Rick Scott and members of the Florida Legislature for providing a pro-business and pro-family environment which not only attracts national and international tourists, but supports job creation and growth here at home.”

Additional Preliminary Data:
• The Average Daily Room Rate rose 3.6 percent to $102.69 and the occupancy rate for Florida hotels increased 1.9 percentage points to 62.7 percent in Q3 2013 compared to Q3 2012.

• Tourism-related employment has lead the state in growth for 41 straight months

• Nearly 13.6 million Florida residents are estimated to have taken a pleasure trip during Q3 2013.

• The share of in-state pleasure trips by residents was 42.3 percent, resulting in more than 5.7 million pleasure trips in-state – a 6.2 percent increase from the same time last year.

• Traffic at the state’s five Official Florida Welcome Centers managed by VISIT FLORIDA was up 4.0% in Q3 2013.

To view additional Florida visitor data, go the Research page on VISIT FLORIDA’s media website.

Gov. Scott: Statewide Unemployment Rate Falls To 6.7 Percent As Private Sector Jobs Dramatically Increase

Governor Rick Scott today announced that the statewide unemployment rate for September 2013 was 6.8 percent and 6.7 percent for October 2013. The statewide unemployment rate has remained below the national average of 7.3 percent since March 2013. Florida has created 440,900 private sector jobs since December 2010.

Governor Scott said, “Florida’s unemployment rate is now below seven percent at 6.7 percent in October 2013. This is our eighth month below the national average. Over the last two months, the state has added more than 67,000 private sector jobs. This is great news for Florida families.

“Our total job creation is now at 440,900, but we have more work to do. We don’t just want a state where job creation reaches a certain number, or unemployment falls to a certain number. We want to create an opportunity economy. We want a state with dynamic, growing industries that will create jobs and careers for generations to come.”

The state gained 20,800 private sector jobs in September 2013 and 46,400 private sector jobs in October 2013. Florida’s annual job growth rate from October 2012 to October 2013 is the fastest since June 2006. With 46,400 new private sector jobs last month, this is the most growth in a month since December 2010. Florida’s annual job growth rate has exceeded or been equal to the nation’s job growth rate since March 2012.

“Today’s numbers represent another successful chapter in Florida’s remarkable turnaround story under the Scott Administration,” said Jesse Panuccio, Executive Director of the Florida Department of Economic Opportunity. “We continue to outpace the nation with respect to job growth, job demand, and unemployment decline, which is further proof that policy matters and the Governor’s pro-growth agenda is working.”

Since December 2010, Florida’s statewide unemployment rate has dropped 4.4 percentage points, from a rate of 11.1 percent to October’s rate of 6.7 percent. Florida’s September 2013 rate was down 0.2 percentage point from the August rate of 7.0 percent, and the rate fell another 0.1 percentage point in October 2013. The current rate of 6.7 percent represents the lowest statewide unemployment rate since August 2008. It is also a decrease of 1.5 percentage points from October 2012, when the rate was 8.2 percent. Florida’s unemployment rate has now declined year-over-year for 36 consecutive months.

More Jobs Being Created

• Florida experienced positive annual job growth for 39 consecutive months.

• Florida’s job growth month-to-month has been positive for 26 of the last 28 months.

• Florida has created 440,900 new private sector jobs since December 2010.

• Florida is expected to create more than 1 million new jobs by 2018, according to the Florida Economic Estimating Conference.

• Florida job postings compiled by the Help Wanted OnLine data series from The Conference Board showed 258,128 openings in October 2013 (seasonally adjusted).

Home Sales Robust

• Home sales remain robust as the backlog of existing homes on the market is down by 36 percent from November 2011 (Florida Realtors).

• Florida median home prices were up 16.6 percent over the year in October 2013.

• Florida housing starts were up 30.7 percent over the year in August 2013 (latest data available).

Economic Growth Trends Up Across State

• A recent U.S. Census Survey reported that Florida experienced an influx of people moving into the state. Florida also led the nation in migrations from Puerto Rico

• Florida is running a trade surplus of over $18 billion – with $90.4 billion in exports and $71.8 billion in imports in 2012, up from $86.8 billion in exports in 2011 and $62.4 billion in imports in 2011.

Workforce Boards Assisting in Employment

• In October, Florida’s 24 Regional Workforce Boards reported more than 48,400 Floridians were placed in jobs.An individual who receives employment and training assistance through a One-Stop Career Center and finds a job within 180 days is deemed a placement and may be reported by a regional workforce board. Of these individuals, 14,119 previously received Reemployment Assistance.

• In 2012, more than 426,000 Floridians were placed in jobs, with 111,173 former claimants finding employment.

To view the September and October 2013 monthly employment data visit: www.floridajobs.org/labor-market-information/labor-market-information-press-releases/monthly-press-releases

ACA Transition Relief for Some Employers

Some employers will receive relief under the Affordable Care Act’s employer mandate next year, the White House announced today.

The ACA’s employer mandate eventually will require employers of 50 or more full-time-equivalent employees to either offer health benefits to their full-time employees or face possible penalties. The mandate originally was due to take effect in 2014, but the White House last summer moved the effective date to 2015.

In a final rule issued today to explain how the mandate will work, the Obama Administration said that employers with 50 to 99 full-time-equivalent employees won’t be subject to the law’s employer-mandate penalties until 2016.

This change, and other changes in the final rule, will provide additional flexibility for employers, especially those at or near the 50 FTE-employee definition of a “large employer” under the ACA. The National Restaurant Association has been pressing regulators for these changes and will continue to do so. The NRA also continues to advocate for structural changes in the law that only Congress can address, such as the definition of full-time employee.

According to Treasury Department officials, other provisions of the final rule:

  • Make permanent the “look-back measurement method:” The final rule gives covered employers the option of using a look-back period to measure the full- or part-time status of variable-hour and seasonal employees. This measurement method can give employers more stability and predictability in knowing which employees are eligible for health care coverage under the law. The Treasury Department also clarified that seasonal employees in positions working six months or less in a year generally aren’t considered full-time employees.
  • Offer transition relief for certain employer penalties: Penalty “A” will apply under the law to covered employers who fail to offer minimum essential coverage to “substantially all” of their full-time employees. For 2015, the Treasury Department says “substantially all” means employers must offer coverage to at least 70 percent of full-time employees. Starting in 2016, covered employers must offer coverage to 95 percent of their full-time employees to avoid Penalty A.
  • Offer transition relief for employers with non-calendar-year health plans. For covered employers who offer non-calendar-year plans, the final rule clarifies that the employer mandate will take effect on the first day of their plan year in 2015, rather than Jan. 1, 2015.

The National Restaurant Association said the final rule provided additional relief for some employers and thanked the Treasury Department for working with the NRA and the Employers for Flexibility in Health Care Coalition to provide flexibility in the rule.

See the Treasury Department’s press statement and fact sheet for more information. The National Restaurant Association will update its Health Care Headquarters with further analysis of the final rule.

Still to come: The Treasury Department has not yet finalized major new reporting requirements for employers under the law. The first information reports will be required in early 2016, based on data tracked in 2015. The National Restaurant Association reiterated its concern that these rules be as streamlined as possible, since these could contain significant compliance costs for restaurants.

The NRA also called on Congress to address other parts of the law. As restaurants nationwide struggle with ACA implementation, challenges remain that now only Congress can address. The NRA asks Congress to come together in a bipartisan manner to better align the definition a full-time employee with current business practices, eliminate the duplicative automatic-enrollment provision, and simplify the determination of a small business under the law.

For continuing updates on the law, visit the NRA’s Health Care Headquarters.