Recent News on Federal Overtime Regulation

Recent News on Federal Overtime Regulation

by | Dec 5, 2016 | IndiNews, Management

U.S. District Judge Amos Mazzant in Texas has placed a temporary injunction on the Department of Labor’s new federal overtime rule postponing its implementation until a ruling is made or the federal government appeals the injunction. This is welcome news for thousands of business owners across the country and unwelcome news for millions of salaried workers. 

New rule and injunction

In short, the new overtime regulations set to go into effect December 1, 2016, would have raised the threshold for overtime pay from $23,660 per year to $47,476 per year, requiring employers to pay overtime wages (40+ hours) to salaried employees who made less than the new threshold. There were about 12 million salaried employees who would have benefited from this regulation.

It gave the employer three options:

  • Raise minimum salary threshold above $47,436
  • Or pay overtime when a salaried employee worked over 40 hours per week
  • Or limit salaried employees’ work hours to 40 hours per week or less

In addition, the rule also provided for triennial adjustments based on the 40th percentile of weekly earnings of full-time salaried workers in the lowest-wage Census region. A few days after consolidating two lawsuits challenging the rule, Judge Mazzant granted the request for the injunction to halt implementation. Click here for more information about the lawsuits.

What now FAQ

Do I as a business owner need to do anything come December 1st?

No, it is business as usual and no payroll needs to be adjusted at this time.

What should I do if I have already made payroll changes to accommodate the new rule?

If you have already reclassified employees to nonexempt status or increased employee salaries in order to maintain their exempt status, experts advise keeping this in place as it would be difficult to take back.

Can the Department of Labor challenge the injunction?

Yes. The department said in a statement that it is currently considering all of its legal options.

Is there still a chance that the new rule will go into effect down the road?

As this is a temporary hold, the same rule or a revised rule could still be implemented. Things are a bit unpredictable with a new administration set to take office January 20th, 2017.

We suggest that you stay up-to-date on any new developments and to make sure you have a plan of action coordinated with your payroll department, be that in-house or contracted. To gain a full understanding of the overtime regulation, click here. As always, we here at Sirvo are dedicated to keeping our users informed about all things hospitality.

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How Restaurants Can Prevent Employee Burnout and Reduce Turnover

How Restaurants Can Prevent Employee Burnout and Reduce Turnover

by | Dec 2, 2016 | Business Toolkit, Management

Workplace burnout is a serious problem in the hospitality industry, as many restaurants are on a bootstrapping budget. Often, it is the most dedicated and hardest working employees who succumb to burnout, leaving restaurants with difficult-to-fill voids. To better prevent employee burnout, an understanding is needed, backed by a well-thought-out plan of retention.

“Even if companies haven’t literally lost their employees, many have lost them psychologically.” – Jon Gordon

Scope of Workplace Burnout

The findings from a recent study of 3,000 employees in the US and Canada, sponsored by Staples Inc., sheds light on the magnitude of business burnout:

  • 91 percent of employees say they work more than forty hours per week.
  • 65 percent cite feeling pressure at home that is a carryover from their jobs.
  • Working more hours to stay afloat is a pressure that causes many Americans to mentally check out of their work lives.
  • Frustration and cynicism are often the two main hallmarks of occupational burnout.

Perhaps the most interesting fact presented was that 59 percent of workers state that being encouraged to take breaks by supervisors helped to decrease their feelings of burnout, whether they actually took a break or not.

The response to the act of showing concern is an indicator that the Golden Rule, or law of reciprocity, is still the most important guiding principle in life and business. Simply, treat others as we want to be treated.

With this in mind, the Staples study lists the three simple “perks” that employees value above all others as wellness programs, comfortable break-rooms with technology and fresh snacks and beverages.

The Purpose-Driven Workplace

For nearly a decade, studies have consistently indicated that employees want to work for companies with a purpose. Employers that can facilitate this (marginally tangible) request seem to have better retention rates. Differentiating on this point translates favorably in today’s lean business model.

“A lack of purpose goes deeper than simple business burnout.” – Dan Pontefract

Of course “purpose” means different things to different employees but Dan Pontefract, author of The Purpose Effect, provides the following guidelines.

Be appreciative. Restaurants that have successfully implemented programs focused on rewards and recognition of their employees have reported better productivity, stronger engagement, retention, and loyalty. Cracker Barrel, for example, has a strong rewards and recognition program and boasts improved turnover rates.

Be engaging. Sharing organizational goals and plans with every team member, no matter their role, creates a feeling of purpose. In and Out Burger is one chain praised by current and former employees for its positive work environment.

Be ethical. This is key to an organization’s integrity. It says to employees and customers that the company is taking responsibility. This fosters a sense of pride in the company for the employee.

Be fair. When a culture based on fairness permeates the entire organization, the results are improved “people practices” throughout. Make sure that your organization has a level playing field for all employees to succeed and advance. Restaurants like Five-Guys and TGI Fridays consistently top lists of the “best restaurants to work” because they promote heavily from within. These brands also offer benefits that help any employ with the desire, advance to higher levels in the company.

Be inclusive. Identify and recognize all that are affected by your company, including clients, employees, families, community, and beyond. Next, seek ways to serve all these entities as stakeholders and acknowledge each group as an integral part of your success.

Be flexible. When possible allow employees the opportunity to self-schedule. This has been shown to increase employee satisfaction which is the number one driver of productivity.

Employees are the single most valuable asset of your business. Understanding when and how to show that you value your employees is imperative in management and retention. This will reflect outwardly in terms of productivity and workplace satisfaction. In the lean business economy of today, there is no easy solution for employee burnout. With these strategies, however, companies can move toward increasing employee engagement and satisfaction as well as improving retention.

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5 Reasons the Hospitality Industry is a Viable Career Path for Millennials

5 Reasons the Hospitality Industry is a Viable Career Path for Millennials

by | Nov 30, 2016 | Career

It used to be that men and women in their twenties would work in the hospitality industry only as a temporary job, something to get them through college or to help them transition from part-time work to their “real job”. But things are changing. 

Many millennials are discovering that the hospitality industry is actually a great place to launch their careers. If you’re trying to figure out your career path, or are a manager working on a hiring plan, here are 5 reasons why the hospitality industry is a viable career option for millennials.

1. Social engagement

Contrary to the seemingly obsessive nature with all things technological, members of the millennial generation actually thrive when they are in social situations. The hospitality industry suits this desire for making personal connections and allows for networking opportunities that lead to possible new employment opportunities or social functions.

Many millennials do not want to be tied down to a computer all day long–they would rather spend their day having meaningful interactions. Which is exactly what you would encounter when working in hospitality.

2. We are motivated by our passions, not money

Millennials are unique in many ways, including the desire to have a fulfilling career instead of just working for a paycheck. Millennials are more likely than any other generation to turn down a higher paying job if it isn’t going to fulfill them on a personal level.

The hospitality industry isn’t exactly known for paying out maximum incomes, but it is known for providing a place where workers can grow and thrive. As an industry that provides a work/life balance, a livable wage and an opportunity to continue learning, this could be the right place for you!

The hospitality industry suits our desire for making personal connections and allows for networking opportunities that lead to possible new employment opportunities

3. We want to grow in our careers

Millennials don’t expect to work for one company for 45 years and then retire, like previous generations did. In fact 91% stated they plan on staying at their current employment less than three years. The key here is that they don’t necessarily want to switch companies. They want to grow in their careers, and in many industries, they just can’t do that at one company.

The hospitality industry, though, can be different. There are a wide range of professional opportunities within the hospitality industry that foster professional growth (i.e. Management, Marketing, HR, etc.)

4. We are engaged with what’s happening online

Millennials are very comfortable with technology and interact with it on a daily basis. This can be a huge gain for the hospitality industry, which is starting to catch up to other industries when it comes to being tech-savvy. Millennials can help the hospitality industry move forward technologically by being tuned into how people are using social media, reviews and apps to find restaurants and hotels.

Being tech-savvy can work to your advantage. Especially if you are seeking opportunities in marketing or social media management within the hospitality industry.

Forget everything you read about millennials being a “me” generation. When it comes down to it, we genuinely care about the world and they want to help people.

5. We want to help people

Forget everything you read about millennials being a “me” generation. When it comes down to it, we genuinely care about the world and have a need to help people. We want a rewarding career that allows us to give back to our community. Millennials are not clock-watchers — we don’t want to punch in at 8 and out at 5 just in the name of getting a paycheck.

Motivated millennial employees can take your restaurant, bar or hotel to the next level with their social understanding and tech skills, so don’t underestimate them. And if you’re a millennial employee, don’t underestimate the career opportunities that await you in the hospitality industry. This is a great industry that supports the quality of life that most of us want to have outside of work due to the non-traditional work schedule and the opportunities to make a livable wage. 

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7 Licenses and Permits Required to Open a New Restaurant

7 Licenses and Permits Required to Open a New Restaurant

by | Nov 28, 2016 | Business Toolkit, Management

Opening a new restaurant is no easy task and the restaurant industry is highly regulated. New eateries face all of the typical new business hurdles, as well as complying with a web of local, state and federal regulations. To ensure that your new restaurant gets off to a good start, find out exactly what licenses and permits it needs to operate.

Business License

The city or state where your new restaurant resides issues you a business license. This license is what gives you the authorization to operate within a particular geographic jurisdiction. Getting a business license usually involves filling out some paperwork (i.e. registering your business name) and paying an application fee.

Employer Identification Number (EIN)

An EIN number is what tells the federal government that you are an employer. It is essentially a tax identification number, and you obtain it by visiting the IRS website, filling out a form and paying a fee. You can also apply by mail or by phone. Your EIN is the number under which you file your business taxes each year.

…the restaurant industry is highly regulated…

Certificate of Occupancy

A new restaurant must have a certificate of occupancy to show that the building it is safe for employees and customers. The town or city that your restaurant resides issues the certificate and usually requires a building inspection by local authorities. Most restaurants must have a certificate of occupancy before opening their doors to the public.

Food Service License

No restaurant can operate without a food service license. This license usually involves and on site visit by city or county health department officials and ensures that your restaurant meets all food preparation, food storage and food safety regulations and laws. In some cases, employees must complete a food safety training program and have a food handler’s permit.

With the right licenses and permits, you will get off to a flying start and a whole new culinary adventure.

Liquor License

If you plan to sell liquor at your restaurant, then you need a liquor license. Liquor laws vary from state to state and sometimes from city to city. Local authorities do not want just anyone selling liquor, so most liquor laws are fairly strict and regulate everything from when and where to serve liquor to how much it costs. Depending on your restaurant’s location, you might need both a beer and wine license and a liquor license.

No matter what type of liquor license you need, apply for it early because it can take up to a year to receive it. Application fees can range from a few hundred dollars to many thousands of dollars, and you must renew the license each year.

Music License

Music in the background of any public eating establishment helps create atmosphere. Copyright law, however, protects music, so if you plan to play it in your restaurant, then make sure you have a music license.

Check out Sirvo’s Business Owner’s Toolkit for more information on operating your own place in the hospitality industry.

Get the license from companies that hold performance rights for copyrighted musical works. Two of the largest such companies are the American Society of Composers, Authors and Publishers (ASCAP) and Broadcast Music Incorporated (BMI). You can face some pretty stiff fines without a music licence.

You can also opt for a restaurant music streaming service that covers all your bases like, Soundtrack Your Brand.

Sign Permit

You need signage to draw attention to your new restaurant. So before you put up that placard, sandwich board or illuminated banner, make sure that you have a sign permit from the city or town where your new restaurant resides. This permit allows you to use signage, but it also regulates the size and location of your signs.

Opening a new restaurant is exciting! With the right licenses and permits, you will get off to a flying start and a whole new culinary adventure. Check out Sirvo’s Business Owner’s Toolkit for more information on operating your own place in the hospitality industry. 

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Hotels: A Great Place to Start or Advance Your Career

Hotels: A Great Place to Start or Advance Your Career

by | Nov 25, 2016 | Career

If you’re interested in a career in the hospitality industry, a hotel is an excellent place to start. There is a very wide range of entry-level positions that can lead to mid/upper level professional positions. Let’s take a look at the general entry-level jobs available and the possible paths of advancement that each one offers.

Desk Clerk

A hotel desk clerk works a basic, fairly low-impact customer service position that isn’t difficult to get into. Some hotels may ask for prior related hospitality experience or a high school diploma. Very rarely do hotels require any higher education or formal training.

This is a very good position to advance into management as you’ll rapidly learn the hotel’s day-to-day operations. If you’re considering pursuing a career in accounting, another interesting branch is to work as a night auditor. This overnight job retains the functions of the front desk clerk, but with less incoming traffic during the shift, the rest of the time is spent preparing the daily revenue and room occupancy reports.

Hotels have a wide variety of departments…

Administrative Assistant

Hotels have a wide variety of departments in which they require administrative assistants; accounting, development, human resources, legal, marketing, etc. This is yet another area that enables you to quickly learn about day-to-day operations and has room for advancement to a variety of other departments.

Depending on the complexity of the job, the educational requirement for an administrative assistant may be anything from a high school diploma to a related bachelor’s degree. It is a job that can potentially be obtained without prior experience.

Accounting

Accounting work doesn’t differ much in a hotel from what is done pretty much everywhere else; hotel accountants will process financial data, prepare regular reports, manage payroll and conduct audits among other duties. Opportunities exist not just at individual hotels, but at the corporate offices of chains as well. Duties can expand to working with investments, strategic initiatives and business case recommendations.

Opportunities exist not just at individual hotels, but at the corporate offices of chains as well…

Areas to potentially move up include real estate, the supply chain and management of individual hotel locations or regions. These positions will usually require a degree, but there are plenty of entry-level opportunities for new graduates.

Marketing

Marketing is another area in which jobs are available both at the independent and corporate level. Opportunities are particularly rich for those who speak another language and have a deep understanding of cultures that a hotel brand is expanding into.

This position requires a degree, but a wide range of communications, psychology or social studies bachelor’s degrees are often sufficient to secure an entry-level position.

There are plenty of opportunities to advance in a hotel.

Food Service

Most of the world’s top chefs pass through a hotel or resort at one point or another in their careers. This is a great breeding ground for chefs looking to learn traditional cooking techniques.

There are plenty of opportunities to advance in a hotel kitchen and often all it takes is a little luck and timing. Craft your trade, learn from those around you, play your cards right and you may become the next executive chef.

A lot of people do not always look to hotels as having a plethora of professional opportunities. Hopefully, this blog has opened your eyes to some of the paths forward as you look to develop professionally. Regardless of what career path calls out to you, a series of hotel positions always looks great on a resume.

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