Recent News on Federal Overtime Regulation

Recent News on Federal Overtime Regulation

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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New Ruling on Tips in Colorado

New Ruling on Tips in Colorado

A recent Tenth Circuit Court case decision changes the rules on tips depending on if you take the tip credit or not. Our friends at The Colorado Restaurant Association are on top of the story but due to the complexity of this issue, we suggest you read the full story here before acting!

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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

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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How to Run a Successful Wine Program

How to Run a Successful Wine Program

There’s nothing quite like a glass–or a bottle–of wine with dinner when you’re out to eat. Unfortunately, all too many restaurants are failing to take advantage of this great source of income. You have a wine list, but you’re not using it to its full potential! Below we offer some suggestions on refining your wine program in attempt to offer your guests as dynamic of an experience possible!

Choose Your Wines Carefully

Ideally, you want to have a rotating selection of wines that reflect the trends your customers will enjoy most. Some customers are eager to check out the new wine that you’ve just added to the menu, others have old favorites and won’t often branch out.

Choose your wines with care, being sure to offer them at a variety of price points to attract as many customers as possible. Always keep in mind the cuisine you offer and ensure that your wine selection can be paired with any dish you serve.

The excuse of, “well we just don’t sell that much wine” is essentially inexcusable.

A great resource for information is your liquor sales representative/consultant. Liquor distribution companies train their staff very well and provide them with a multitude of educational sessions throughout the year.

Don’t get us wrong, they are always trying to make the sale and get you to purchase higher priced bottles or ones they can’t seem to unload out of the warehouse. But they are also very, very knowledgeable of their product and can walk you through the selection process.

Watch Your Prices

Base your glass prices on market value/competitive pricing as this will encourage customers to consider your particular wine options. By pricing your glasses of wine reasonably, you encourage more guests to (at the very least) try a glass. A well-chosen glass can easily lead to a bottle, as well as a satisfied guest with the intent to return!

A well-chosen glass can easily lead to a bottle.

As for bottle pricing, an effective strategy is to offer a reasonable price on bottles of your house red or white; select a price point that makes it cheaper than it would be by the glass. Your house wines are great options to include on happy hour menus as well and are an easy choice for many of your guests who are not picky about their wine.

As for the higher end bottles, charge market price because these should not be discounted and won’t ever have to be as long as they are attractive options.

Educate Your Staff

It’s crucial for your waitstaff to be knowledgeable about your wine selection and be able to properly talk about wine with guests. A waiter who is uncomfortable speaking about wine and/or guiding guests through the selections will be a poor salesperson, and that’s not necessarily their fault!

It’s crucial for your waitstaff to be knowledgeable about your wine selection.

Ideally, you want as much of your staff possible to have tried the wines that you’re offering. Not only that, they should have an idea of the characteristics of the wine, what wine pairs well with the signature dishes on your menu, and how to choose a wine that will fit your customer’s preferences.

Discussing the wines you carry during any type of pre-shift meeting is an ideal time to provide information for your staff. Maybe even consider a bi-annual all-staff meeting to go over your entire beverage campaign and include a wine education portion in those meetings.

Improve the Experience

All waitstaff should be presenting and offering wine service in a professional and proper manner. There are traditionalists out there that will refuse a bottle or ask for a replacement if it is not presented properly.

Wine service takes practice and a first timer is always going to be nervous. It’s a pretty simple process, made easier by following these steps:

  • Always carry a wine key and not a cheap one either, they don’t last and often don’t work all that well.
  • Carry the bottle with the label out with the palm of your hand placed on the bottom of the bottle
  • Ensure that all wine glasses are polished and feel free to carry the glasses on a tray or in your other hand
  • Bring a linen folded and draped neatly across your arm to help with small spills
  • Present the bottle to the guest who ordered it prior to uncorking
  • Always be talking to the guest as you are uncorking the bottle (this avoids awkwardness and allows time to talk menu options)
  • Pour a small sample and present to the guest who ordered the bottle
  • Once an approval is given, pour for each guest (ladies first)

Selection, price, variety, pairings, presentation and education are essential to a restaurant’s wine program.

Selection, price, variety, pairings, presentation and education are essential to a restaurant’s wine program. The excuse of, “well we just don’t sell that much wine” is essentially inexcusable. If you do not have an attractive wine presence on your menu or a staff that is uneducated about wine you are letting money walk out the door as a business owner. Make it a priority and be passionate about an age old beverage selection that will not only attract a certain audience but will also make many of your guests feel that they were provided with an experience and sometimes an education. 

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While some people look forward to summer as a time to relax, go on vacation, and maybe hit the beaches, for many others, it’s the time to look for work. So how do you maximize your hiring efforts during this time? Let’s look at 7 ways to make this summer your best hiring season yet!

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The US wastes about 30% to 40% of the food supply, and that uneaten food goes right to landfills, where it produces methane gas and takes up space. How you decide to stop food waste is up to you; just remember that every little bit counts.

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What to Know When You Date Someone in the Restaurant Industry

What to Know When You Date Someone in the Restaurant Industry

Dating can be challenging, no matter what industries you both work in. The restaurant industry in particular can have specific challenges that can make it difficult to maintain a long-term relationship unless you know what you’re getting into. If you’re dating somebody who works in the restaurant industry, here are some things you should know.

Weekends aren’t weekends

When you work a normal 9-5 job, Friday night marks the beginning of your weekend. Saturdays and Sundays are lazy days, sometimes spent catching up on Netflix, shopping or just lounging around the house. Friday nights and Saturday nights are dedicated to going out.

In the restaurant industry, though, things get switched. Friday and Saturday nights are busy nights, and your partner probably prefers to work these nights since they tend to lead to bigger tips than, say, a Wednesday night orThursday afternoon.

In the restaurant industry, though, things get switched.

When dating someone in the industry, prepare yourself for going out during the week and not seeing your partner on weekends. This is just part of the deal. But, as an added bonus, you won’t be dealing with crowds when you go out on a Monday!

How you treat restaurant workers matters

When you do go out to eat, your partner is going to pay attention to how you treat the staff at the restaurant you are in, no matter what type of place it is.

Are you polite to the hostess, even if she doesn’t greet you right away? Are you patient with the waiter, who is clearly new at his job? How do you talk about the food? Perhaps most importantly, how do you tip?

If you tend to fall on the low end of the tipping scale, now’s the time to up the ante or think about whether you really want to date someone in the restaurant industry after all.

If you tend to fall on the low end of the tipping scale, now’s the time to up the ante.

Feet are the way to his/her heart

Nope, it’s not the stomach but the feet that can unlock the key to your partner’s heart. No matter what role they have in a restaurant, they are on their feet pretty much all day long.

Treating your partner to a nice long foot massage at the end of a hard day is pretty much the nicest thing you can do for him or her.

Going out to eat might not be fun anymore

But not for the reason you might think. This one depends on your partner, their role in the restaurant and how seriously they take their job. Some people are able to remove themselves from their work environment and enjoy dining at another restaurant whole heartedly.

Others may find themselves criticizing anything at the restaurant that is out of place.

Others, though, may find themselves criticizing anything at the restaurant that is out of place or not done to perfection. Know this going in. It might simplify your life to perfect your cooking skills and eat in most nights.

Get used to really late nights

Getting back to the whole working on Friday and Saturday nights deal, it’s good to know that restaurant workers’ evenings don’t usually end as soon as their shift does. Many workers head straight from the restaurant to the late night bar down the street to blow off steam and unwind after a grueling shift.

You’re going to need to be able to stay up late and meet them at their favorite late night bar.

If you want to see your beau, you’re going to need to be able to stay up late and meet them at their favorite late night bar. Bonus: this is a great way to get to know their friends, many of whom they probably work with.

Every industry arguably has quirks, but dating someone in the restaurant industry has special considerations. Knowing what you are getting yourself into can help you understand your partner and be supportive. 

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This is How to Upsell Menu Items Like a Pro

This is How to Upsell Menu Items Like a Pro

The more you can sell to any one customer or party, the more money you make off of the table. Seems like simple math, right? In order to properly convince your customers that they need to make more expensive choices, however, you need to avoid annoying them with constant attempts to upsell. Here are the basics so you can hit the ground running with your upselling game.

Make It Natural

The best servers don’t let customers know that they’re trying to increase their sales. Instead, they make an offer that sounds perfectly natural for each stage of the meal.

When you first comes to the table, for example, you might start off, not by asking if the customer would like to enjoy an appetizer or if you can take their drink order, but by suggesting a particular appetizer that is on special or has been receiving special attention.

The best servers don’t let customers know that they’re trying to increase their sales.

When the suggestions are part of the conversation, customers are less likely to realize that they’re being upsold, and more likely to take you up on the offer.

Make It Tempting

Every time you suggest that a customer purchase something that they weren’t already planning to buy, from an appetizer to dessert, you should make it tempting.

Suggesting that it’s your favorite dish or describing the dish in detail is a great way to tempt customers and convince them that they need to try it. Describing the perfect after-dinner coffee or suggesting a great drink to go with the meal is another excellent tactic for tempting customers to add on an extra purchase.

Be Specific

So, you know those customers who come in and order right away? Well, it’s likely that they’ve decided that they are going to skip the appetizer, dessert and maybe even drinks altogether, and just get an entree, period. These customers are tricky to upsell because they already have an idea in their minds.

Suggesting a specific item is a great way to add to the temptation.

However, suggesting a specific item is a great way to add to the temptation and maybe even get them to bite. By describing a dish or drink in detail, you help to create a picture in the customer’s head, which may entice them to get more than they originally intended. Plus, you’ll come off looking like a pro!

Show Enthusiasm

Customers are more likely to be intrigued by a special offering if there is an indication that it just cannot be missed. Showing a little extra enthusiasm can be exactly that – a sign that this is a must have. You’ll sell much more if you’re excited about what you’re selling rather than acting indifferent.

Don’t underestimate the power of a positive nature when it comes to convincing customers to try something new!

Read the Customer

Some customers are more likely to take a server’s suggestion than others.  A customer who is in a hurry or who is short with you and doesn’t want to engage in conversation is unlikely to be convinced by upselling techniques.

Continued pressure can result in lower sales or even a dissatisfied customer.

In this case, continued pressure can result in lower sales or even a dissatisfied customer who is unlikely to return to the restaurant. It’s important you learn how to read the restaurant’s customers so that you can determine when a tactic is effective and when you need to give up in order to preserve the customer experience.

Upselling is a tactic used by most salespeople. In a restaurant, it’s the job of the server to convince customers that they want to add a little extra onto their meal, from an appetizer or dessert to an after-dinner drink or two. By learning how to effectively upsell, you can increase your profit, as well as the restaurant’s, on a regular basis.

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