PRLA Restaurant & Lodging Matters Summer 2021

22 • PENNSYLVANIA RESTAURANT & LODGING matters • Summer 2021 ENTRÉE ACT Republican Congressman and ranking member of the House Committee on Small Business, Blaine Luetkemeyer, introduced the ENTRÉE Act to add $60 billion accounted-for funds to the Restaurant Revitalization Fund. The proposal achieves the same goal as the Restaurant Revitalization Replenishment Act but reappropriates existing recovery funds to the RRF and eliminates priority groups. PRLA has asked our members to reach out to their congressional representatives to urge their support of either bill. No matter what path is taken, it is not expected that Replenishment of the Entrée Act will be considered before Congress returns to session in September. PPP FORGIVENESS Many operators that obtained a second PPP are now working towards forgiveness of those loans. Please pay careful attention to what is forgivable and what isn’t. EMPLOYEE RETENTION TAX CREDIT (ERTC) Employers should continue to utilize the ERTC, which equates to up to $7,000/quarter for each retained employee. The credit was extended until the end of 2021. Refer to this explainer document from the National Restaurant Association for additional details. WORK OPPORTUNITY TAX CREDIT (WOTC) Employers should also consider utilizing WOTC which allows a tax credit for bringing on employees that have been on unemployment for more than 27 weeks. The credit must be taken within 28 days of the employee’s hire, and the state has a State Workforce Agency that can help with applying the credit. 80/20 RULE On June 21, the U.S. Department of Labor issued a proposed rule that seeks reinstate the Obama-era 80/20 interpretation of the Department’s dual jobs regulation to address the application of the FLSA’s tip credit to tipped employees who perform both tipped and non-tipped duties. Specifically, it proposes that if an employee performs work that directly supports tip-producing work for a substantial amount of time—that exceeds 20% of all of the hours worked during the employee’s workweek or exceeds 30 continuous minutes— “that worker is no longer performing labor that is part of the tipped occupation.” The proposal goes on to clarify that employers may not take a tip credit for work that is not part of the tipped occupation. Federal Items, cont. Local Items PHILADELPHIA Early in the summer, Philadelphia City Council unanimously passed legislation that would regulate short- term rentals in the city. Philadelphia’s ban on single-use plastic bags will go into effect Thursday, July 1, though full enforcement will not take place until April 1, 2022. The Philadelphia Department of Health recently announced that they are now strongly recommending that people wear a mask indoors regardless of their vaccination status to help quell the spread of the COVID-19 Delta variant. Philadelphia’s COVID Emergency Leave concluded at the same time the state Emergency Declaration concluded— Philadelphia’s long-standing paid sick leave remains in place and businesses can continue to tap into federal tax credits to provide additional leave until the end of September. Philadelphia Council member Kenyatta Johnson’s bill no. 210421, which would increase wages for employees at the Philadelphia Airport, was amended in Council today and has been placed on next week’s final calendar. The changes to the bill mean the new wage increase for restaurants and concessions at the airport will not go into effect until January 2022. The bill also includes a $4.54/ hour health supplement that employers must pay their employees. With the changes, that part of the legislation will not go into effect until July 2023. PITTSBURGH Pittsburgh City Council has voted to extend COVID Emergency Paid leave for one additional year. The Pittsburgh City Council passed a resolution in May declaring its intent to ban plastic bags within city limits. ALLEGHENY COUNTY The Allegheny County Health Department approved legislation allowing for paid sick leave to be required by employers within the county who have 26 or more employees. It now goes to County Council for consideration. •