Summer 2022
Pennsylvania Restaurant & Lodging Matters is published quarterly by the Pennsylvania Restaurant & Lodging Association, 100 State Street, Harrisburg, PA 17101, tel 800-345-5353, and is a benefit of membership in the association. Articles do not necessarily reflect the view or position of the Pennsylvania Restaurant & Lodging Association. Editorial coverage or permission to advertise does not constitute endorsement of the company covered or of an advertiser’s products or services, nor does Pennsylvania Restaurant & Lodging Matters make any claims or guarantees as to the accuracy or validity of the advertiser’s offer. ©2022 All rights reserved. No part of this publication may be reproduced in print or electronically without the express written permission of the Pennsylvania Restaurant & Lodging Association. PRLA 2022 OFFICERS CHAIRMAN Tom Neely Thomas A. Strauss Inc.—Lancaster Chapter VICE CHAIR Cynthia Smith Hoss’s Family Steak & Sea / Marzoni’s Brick Oven & Brewing— Keystone Chapter TREASURER Derek Beckman Courtyard by Marriott Philadelphia South at the Navy Yard— Philadelphia Chapter IMMEDIATE PAST CHAIRMAN Bill Covaleski Victory Brewing Company—Brandywine Chapter PRLA STAFF PRESIDENT & CEO Joe Massaro | jmassaro@prla.org OPERATIONS MANAGER Eric Adams | eadams@prla.org SENIOR DIRECTOR OF OPERATIONS Ben Fileccia | ben@prla.org DIRECTOR OF MEMBER SERVICES Christine Preuss | cpreuss@prla.org DIRECTOR OF FINANCE & HUMAN RESOURCES Diane Dwyer, CPA | ddwyer@prla.org SENIOR DIRECTOR OF GOVERNMENT AFFAIRS Lauren Brinjac | lbrinjac@prla.org DIRECTOR OF GOVERNMENT AFFAIRS Zak Pyzik | zpyzik@prla.org DIRECTOR OF EDUCATION Hope Sterner | hsterner@prla.org PROGRAM & EVENTS COORDINATOR Pamela Fink | pfink@prla.org DIRECTOR OF EVENTS & ENGAGEMENT Heidi Howard, CMP | hhoward@prla.org DIRECTOR OF COMMUNICATIONS Stephanie Otterson | sotterson@prla.org COMMUNICATIONS SPECIALIST Kendra Hepler | khepler@prla.org ACCOUNTING MANAGER Paula Judd | pjudd@prla.org PROFESSIONAL SERVICES PROVIDED BY GENERAL COUNSEL Shumaker Williams, P.C. Keith Clark GOVERNMENT AFFAIRS Frank DiCicco Associates, Philadelphia Andrew Zalenski, Greenlee Partners, Harrisburg Clint Cullison, Madison Stromswold ACCOUNTANT & INDEPENDENT AUDITORS Brown, Schultz, Sheridan & Fritz John Bonawitz, CPA INVESTMENT ADVISORS Conrad Siegel Tara Mashack-Behney Pennsylvania Restaurant & Lodging Matters is a publication of the PENNSYLVANIA RESTAURANT & LODGING ASSOCIATION 100 State Street, Harrisburg, PA 17101 800-345-5353 | www.prla.org | info@prla.org For Advertising Information: Grandt Mansfield Senior Account Executive 503-445-2226 | grandt@llmpubs.com Creative Design LLM Publications Stephanie Pendell, Designer stephanie@llmpubs.com INSIDE THIS ISSUE 4 Industry Outlook 6 Chairman’s Message 8 Spirit of Hospitality Awards Gala 16 Legislative Corner 18 Purpose of Pay Analysis 21 Legal Docket 22 Education & Training 26 New Members p 22
4 • PENNSYLVANIA RESTAURANT & LODGING matters • Summer 2022 INDUSTRY OUTLOOK THANK YOU FOR the warm welcome as I begin my journey on staff, at the Pennsylvania Restaurant & Lodging Association. I am humbled by the trust afforded me by the search committee, officers, board of directors, and each of you. It’s clear that the steady leadership of our officers and board of directors, as well as the expertise of my predecessor, John Longstreet, along with the PRLA team, have positioned our association to help Pennsylvania’s hospitality industry meet the challenges of today and thrive. As I get acclimated to my new role, I have had the opportunity to travel to meet with members and industry leaders from around the state. My goal is to visit each chapter in my first 90 days so I can learn about the challenges you’re each facing and how the association can best serve you. It is probably no surprise, in my early rounds of travel, the need to rebuild our workforce topped the list of priorities discussed. We’ve all seen the positive impact a job in our industry can have on individuals and families. That job can easily become the steppingstone to a career. My own story is one of a young man, unsure what career path I should follow when a bartending job introduced me to a mentor and an industry that I found exciting and rewarding. As the workforce challenges persist, it’s increasingly important to tell our story and provide clear pathways for anyone to attain the level they desire. Individuals from different neighborhoods, educational achievements, gender, race, and ethnicity can find a place to flourish within our tent. PRLA is exploring opportunities amplify our industry’s voice and to extend its reach to a larger population of prospective employees. Part of our role is to raise awareness of the tools and programs available to you through our affiliation with our national partners—National Restaurant Association, American Hotel & Lodging Association, Destinations International, and their foundations. From educational content to training and certifications as well as funding options, these partners are working diligently to help the industry find and retain talent. Our relationships with state and local governments and community-based organizations are other areas where we can identify opportunities for improving our workforce development options. Later this month, the PRLA team will meet to prioritize initiatives, create strategies, and develop plans to focus our efforts for the year ahead. Please feel free to share with us any thoughts you have about the priorities we should set as an organization going into 2023. I can be reached at jmassaro@prla.org. • Joe Massaro PRLA PRESIDENT & CEO “As the workforce challenges persist, it’s increasingly important to tell our story and provide clear pathways for anyone to attain the level they desire.” Industry Priorities
6 • PENNSYLVANIA RESTAURANT & LODGING matters • Summer 2022 CHAIRMAN’S MESSAGE FOR ME, THESE words could not ring truer as my year as chairman of the board winds down. The tenacity of our members never ceases to amaze me. It fills me with gratitude to be a member of this organization and industry. The honorees at the 2022 Spirit of Hospitality Awards Gala illustrated this point with each story of perseverance, service, and innovation. This edition of Pennsylvania Restaurant & Lodging Matters highlights their stories and achievements. This year, our organization was tenacious in its search for a new leader while continuing to focus on tackling our most important objectives, such as workforce development and industry reputation. These concepts go hand in hand as we engage in the long game of workforce development while simultaneously changing the conversation with young people on the opportunities and possibilities this industry provides. We have more to do but have a solid foundation to build on through previous campaigns and partnerships. While staffing needs are immediate, getting the next generation excited by the possibilities our industry can ensure our long-term success. PRLA is hosting a pilot hospitality boot-camp this fall for high school students not currently enrolled in a culinary or hospitality program to expose them to the opportunities waiting for them in hospitality. I encourage you to reach out in your community to engage with your secondary schools and start the conversation about jobs and career pathways provided by the industry. I have immense gratitude towards our search committee, board, and officers for their commitment to finding the right person for the right moment. As our president and CEO, Joe Massaro brings more than thirty years of hospitality experience and a deep understanding of the industry into his role. Our members get stuff done and I couldn’t be prouder to be part of this industry and association. • Television icon Henry Winkler, who portrayed the Fonz on Happy Days, once said, “I live by two words: Tenacity and gratitude.” Tom Neely THOMAS A. STRAUSS INC. LANCASTER CHAPTER Tenacity & Gratitude
8 • PENNSYLVANIA RESTAURANT & LODGING matters • Summer 2022 Spirit Hospitality 2022 AWARDS of
Summer 2022 • PENNSYLVANIA RESTAURANT & LODGING matters • 9 Each year, PRLA honors individuals and businesses from the hospitality and tourism industry for their leadership, service, and community engagement at the Spirit of Hospitality Awards Gala. This year, we celebrated their stories at the historic Hotel Hershey on Monday, September 12. PRLA is proud to recognize the following individuals and businesses for their innovation, dedication, and success. Rising Star Casey Spadaro Assistant General Manager, TownePlace Suites Mechanicsburg While Casey Spadaro’s title is assistant general manager at the TownePlace Suites, it doesn’t begin to cover all she has accomplished. Her colleagues describe her as exuding the light and warmth of hospitality because her sincerity, optimism, and charm make people feel heard, cared about, and valued. Under her guidance and by her example, her team has been honored by guest groups and the hotel’s ownership for their outstanding customer service. In addition to her primary job duties, Casey has taken the initiative to organize the hotel’s quarterly community service efforts that support local charity groups. Outstanding Industry Educator Daniel Wagner Culinary Arts Instructor, Greene County Career & Technology Center Dan Wagner’s motto of “just ask” has led to big things for students in his culinary arts classroom at Greene County CTC. Just asking has helped his students expand their perspective and gain unique experiences, like participating in five Presidential Inaugurations and the Senior PGA Championship Golf tournament, and catering events for Pennsylvania governors and senators. At the 2022 Pennsylvania ProStart Student Invitational, Dan was named the Pennsylvania ProStart Educator of the Year, joining a pool of nominees from around the country for the national James H. Maynard Excellence in Education Award. This May, he was honored with the EEA Industry Connections Award for helping his students make the most of their ProStart experiences.
10 • PENNSYLVANIA RESTAURANT & LODGING matters • Summer 2022 Employee of the Year Patricia Rhoads Thomas E. Strauss/ Miller’s Smorgasbord Patricia Rhoads began her journey with Thomas E. Strauss at Miller’s Smorgasbord in October 1978. Not a day has gone by since where a guest hasn’t asked for Pat. Whether escorting guests to their tables, reacquainting them with the offerings, or chatting them up while she serves up a scoop of ice cream on warm shoo fly pie, Pat always elicits a smile from everyone. She is equally beloved by her co-workers, where her presence and kindness lifts anyone’s sagging spirit. Manager of the Year Dawn Calabro General Manager, Angelo’s Restaurant Dawn Calabro started at Angelo’s Restaurant as a bartender and server nearly 20 years ago. When the restaurant moved into a new, larger facility, Dawn moved with them. After two disastrous general managers, the owner decided to give Dawn an opportunity and promoted her to manager. It was an opportunity she ran with. For the last 10 years, she’s demonstrated her ability to manage operations, lead great teams, and provide great service. She embodies everything Angelo’s stands for in the community.
Summer 2022 • PENNSYLVANIA RESTAURANT & LODGING matters • 11 Manager of the Year Nate Johnson Vice President of Operations Garces Group Throughout the pandemic, Nate Johnson, vice president of operations at Garces Group, stepped up in every possible way within the company. He has grown from overseeing the culinary program to supporting many other facets of the company, such as platform integrations and leading corporate culture initiatives. Most recently, Nate has been exploring opportunities to curtail food waste through menu development and local partnerships. Nate keeps the beat on the day-to-day operations by fostering great relationships with his employees. Event of the Year “Souper Bowl ” Hilton Garden Inn Indiana at IUP & United Way of Indiana County Each February for the last 15 years, the Hilton Garden Inn and the United Way of Indiana County have partnered to host the Souper Bowl. Local restaurants and chefs serve up their signature soups to contend for the title of the 2022 Souper Bowl Champion, all while raising money to support the United Way’s programs. Three local restaurants competed this year, selling nearly 1,600 bowls of soup and raising more than $11,000 for the United Way.
12 • PENNSYLVANIA RESTAURANT & LODGING matters • Summer 2022 SpotOn Innovation Award Beau Barsotti Chief Financial Officer The Common Plea Group The pandemic forced many operations to get creative to identify new ways to drive business. Beau Barsotti has developed visionary tactics and partnerships to take Common Plea Catering into new territory to solve some of the labor issues the industry is facing. The company’s new store is a labor-free kiosk that has no cashiers. Guests enter via a credit card or app to access the store. Once inside, cameras capture items you select and your card is charged upon leaving the kiosk. Beau continues to explore other shopping experiences with automation, such as robotic beverage opportunities and more. THANK YOU SPONSORS GALA MUSIC SPONSOR PRESENTING SPONSOR FRIENDS OF PRLA Annual Conference & Awards Gala Sept. 12 & 13 | The Hotel Hershey Presented by PRLA CORPORATE SPONSORS SPIRIT OF HOSPITALITY AWARDS GALA PRESENTING SPONSOR SPIRIT OF HOSPITALITY AWARDS GALA GOLD SPONSOR GIFT BAG DONORS THANK YOU, SPONSORS!
Summer 2022 • PENNSYLVANIA RESTAURANT & LODGING matters • 13 Wilmer S. Lapp Community Service Award Settlers Hospitality Group, Hawley Commitment to community is a core tenet of Settlers Hospitality. The Genzlinger family founded the business in 1980 with an unwavering belief that each business in the community uplifts the other—no one operates in a vacuum. In fact, much of their career in hospitality has been devoted to nurturing and promoting the area so the region collectively may thrive. Community-mindedness flows from the top. CEO Justin Genzlinger encourages his entire management team to participate with local organizations that help support and promote the area. At the onset of the pandemic, Settlers Hospitality organized donations and contributions to the Wayne County Food Pantry, as well as numerous other activities to support employees of the industry. The company also is taking an active role in the preservation of its natural surroundings. Over the last 10 years, Settlers Hospitality has raised over $100,000 to help permanently protect the working farms and forests, clean waters, wildlife habitat, and outdoor recreational opportunities of the Upper Delaware River. What began as a single inn and restaurant offering 23 rooms has grown to become a thriving hospitality group boasting 200 rooms and 250 keys across five properties. In that time, the resolve of Settlers Hospitality to support and lift up the community it calls home has only grown stronger.
14 • PENNSYLVANIA RESTAURANT & LODGING matters • Summer 2022 Philadelphia Chapter The Philadelphia Chapter won this year’s Chapter Challenge Award for recruiting the most new members. Chapter President Qamara Edwards accepts the award on the chapter’s behalf. Jeffrey Miller Jeffrey Miller is honored with the Chapter Challenge Individual Recruiter Award for signing on the most new members during the challenge. CHAPTER CHALLENGE
Summer 2022 • PENNSYLVANIA RESTAURANT & LODGING matters • 15 Lifetime Achievement Award 2022 Pat Daugherty The Tavern Restaurant (posthumously) Patrick Daugherty was a man of many hats— a restaurateur, an engineer, a United States Army National Guard Captain, a storyteller, an avid supporter of his State College community, and perhaps most importantly, a kind, genuine, and generous individual, beloved by many. According to StateCollege.com, Pat was a licensed professional engineer who first worked at The Tavern Restaurant in State College while earning bachelor’s and master’s degrees at Penn State. In 1980, Daugherty and partner Bill Tucker purchased the Tavern from original owners Ralph Yeager and John “Jace” O’Connor, who opened it in 1948. Tucker retired in 1986, but Daugherty carried on as the face of the downtown State College institution for 40 years. Pat served as Chairman of the Board of what was then the Pennsylvania Restaurant Association in 2002. Pat’s committed leadership and stewardship of the Association, particularly during this transformational period, cannot be overstated. Pat and his wife Ruth rarely missed a meeting, and his insight enhanced every conversation and decisionmaking process that he took part in. Pat truly understood the meaning of hospitality, and lived his life in service of others. His impact on the Association, to his community, and the hospitality industry as a whole will not be forgotten. It is the pleasure of the Pennsylvania Restaurant & Lodging Association to honor Patrick Daugherty with the 2022 Lifetime Achievement Award. Going forward, the award will be renamed as the Pat Daugherty Lifetime Achievement Award to honor Pat’s legacy of hospitality. • <iframe width=”560” height=”315” src=”https://www.youtube.com/ embed/K_SWCxIr4Eo” title=”YouTube video player” frameborder=”0” allow=”accelerometer; autoplay; clipboard-write; encryptedmedia; gyroscope; picture-in-picture” allowfullscreen></iframe> (Embedded Video)
16 • PENNSYLVANIA RESTAURANT & LODGING matters • Summer 2022 LEGISLATIVE CORNER STATE LOCAL FEDERAL State Items BUDGET OVERVIEW While the new fiscal year dawned without a budget in place, the General Assembly and the Wolf Administration were able to get a $45.2 billion budget deal across the finish line eight days later. The negotiations were contentious at times, mostly surrounding how to deal with the nearly $2 billion from federal stimulus monies and more than $5 billion in surplus revenues. Business groups celebrated language in this year’s Tax Reform Code which established a pathway to step down the Corporate Net Income Tax. Currently sitting at 9.99%, Pennsylvania’s CNIT is the second highest in the country among the 44 states that levy one. In January 2023, the CNIT will be cut to 8.99% with a 0.5% annual reduction thereafter until the rate reaches 4.99% in 2031. The state Tourism Office was once again flat-funded at around $4 million. Earlier this year, PRLA released the findings of our Tourism Study showing that tourism promotion in Pennsylvania is significantly underfunded. PRLA’s lobbying firm, Greenlee Partners, prepared a comprehensive summary of the Fiscal Year 2022–23 Budget. FALL SESSION RESUMES The House returned from summer recess on September 12, and the Senate reconvened on September 19. There are only a handful of session days left until the elections and several PRLA priorities are close to the finish line. Priorities of note include the following: • Frozen Desserts Law: Both the House and Senate have passed legislation out of their respective chambers addressing Pennsylvania’s outdated, duplicative Frozen Dessert Law. PRLA is advocating for a final vote on this legislation this fall. • Reducing the Licensee Discount: This bill passed the House with overwhelming bipartisan support last year. It currently awaits consideration in the Senate Appropriations Committee. • Unemployment Compensation Law: Both the House and Senate are moving legislation which would amend the UC Law so that employers are deemed to have paid UC contributions during fiscal year 2021 even if they remained shut down due to the COVID-19 emergency. • Amusement Park Liquor License Fix: HB 2049 cleared the House earlier this year and is now in the Senate Law & Justice Committee. The bill would allow amusement parks to sell alcohol by utilizing a Public Venue License. Currently, amusement parks in PA usually obtain an R Liquor License in order to serve alcohol; however, that does not match the reality of their operations. Any bill that does not make it to the Governor by the end of the year will have to be reintroduced and start the process over in the next session. ELECTIONS Pennsylvania’s November 8 elections are finding the national spotlight as attention turns to two high-profile races. In the race for governor, Democratic nominee and current state Attorney General Josh Shapiro faces off against Republican candidate and current state Senator Doug Mastriano. Republican Dr. Mehmet Oz and current Lt. Governor John Fetterman are vying for retiring U.S. Senator Pat Toomey’s seat. This race could impact which political party has the majority in the US Senate. In addition to these two races, all state House seats are up for reelection and half of the seats in the state Senate. PRLA expects at least 40 new faces in the General Assembly next year. It’s vital to research the candidates on your ballot. As such, Spotlight PA has prepared a comprehensive voting guide for readers. TOURISM COALITION The PRLA Lodging & Tourism Committee and Board of Directors worked hard in 2022 to formalize a new leadership structure within the PA Tourism Coalition. The Coalition met for the first time under this new structure at the Keystone Building on August 18, 2022. The Tourism Coalition is made up of various stakeholders from all sectors of Pennsylvania’s lodging and tourism industry. The Coalition’s goal is to help organize and unify the industry in an effort to maximize Pennsylvania’s potential as it relates to tourism.
Summer 2022 • PENNSYLVANIA RESTAURANT & LODGING matters • 17 Budget Overview | Fall Session Resumes Elections | Tourism Coalition Philadelphia City Council/Mayoral Race Philadelphia Outdoor Dining Pittsburgh City Council Short-Term Rental Legislation Credit Card Competition Act | SBA Sitting on RRF Funds FAST Recovery Act Federal Items Local Items CREDIT CARD COMPETITION ACT In August, U.S. Sen. Roger Marshall (R-Kan.) and U.S. Senate Majority Whip Dick Durbin (D-Ill.) introduced the bipartisan Credit Card Competition Act of 2022. The proposal will bring competition to the credit card network routing market. It would require credit cards to operate on more than one network option to route financial data, which is already required with debit card transactions. Reps. Welch (D-VT) and Gooden (R-TX) introduced the House companion to the bipartisan Credit Card Competition Act of 2022 in September. SBA SITTING ON RRF FUNDS This summer, the National Restaurant Association sent a letter to the Small Business Administration after learning they had over $180 million in undistributed Restaurant Revitalization Fund (RRF) money. Subsequently, the SBA announced that it would be working with the Justice Department on a plan to award the rest of the funds. FAST RECOVERY ACT While the FAST Recovery Act is a new state law in California, the National Restaurant Association is urging the industry to take warning. The legislation gives a Fast Food Sector Council of unelected individuals complete authority to set regulations on wages, training requirements, and health and safety standards for national counter-service restaurants located in the state. As detailed in the association’s policy brief, the FAST Recovery Acts hands power over the quick service industry to unelected political appointees without any accountability, which is unprecedented and will create ramifications for the entire industry across the country. PHILADELPHIA CITY COUNCIL/ MAYORAL RACE Philadelphia City Council returned to its session in September with four vacant seats (for now). Four members resigned over the summer to consider running in the 2023 mayoral race. The individuals who have resigned to date include Cherelle Parker, Derek Green, Maria Quinones-Sanchez, and Allan Domb. Councilmembers Helen Gym and David Oh are said to be considering the mayoral race as well. PHILADELPHIA OUTDOOR DINING PRLA’s top priority in Philadelphia is securing a permanent path forward for outdoor dining in the city. Businesses, Philadelphians, and visitors alike love outdoor dining—the association is working hard to assure that all operators have access to the program and that it’s here to stay. PITTSBURGH CITY COUNCIL SHORTTERM RENTAL LEGISLATION Days after an April shooting at an Airbnb party on the city’s North Side, legislation was introduced to regulate short-term rental properties in the City. Council has held the bill from a vote while it continues to refine the details. •
18 • PENNSYLVANIA RESTAURANT & LODGING matters • Summer 2022 IT’S SAFE TO say that most organizations don’t set out to be inequitable when it comes to the compensation they provide to their employees. Still, HR departments need to take active measures to make pay equity a reality. A pay equity analysis is a way of researching pay rates within your organization and taking a closer look at any differences in pay relative to things like age, race, gender, job description and responsibilities, and seniority. Conducting periodic pay equity analyses is a good idea for at least two reasons. First, it may help shield the organization from potential wage discrimination lawsuits. More than any other time in history, a spotlight is being shined on wage gaps, and no company wants to be publicly exposed as being unfair in their pay practices. Second, a pay equity analysis is an effective way for companies to improve the pay situation within their own organizations. If the work has been done to ensure that you’re offering employees competitive rates and equitable opportunities for advancement, you’ll be more likely to attract and retain the best talent in your industry. Pay gaps that may seem small or insignificant at first add up rather quickly. By conducting a pay equity analysis, an organization is demonstrating that it wants to close the wage gap and calculate wages to offer equal pay for equal work. The goal is not to pay everyone equally but to understand why people are paid what they are paid and to make compensation as equitable as possible. To conduct a pay equity analysis, HR will need to have buy-in from organizational leadership, because if executives aren’t on board, the time and effort exerted in such an endeavor could very likely be wasted. One example of time (well) spent for a pay equity analysis is in the collection of data such as performance ratings, level of job-related education, and years of relevant experience. (Please note that in many cases, this data may not be found in an HRIS system, so collecting it may be very time and labor-intensive.) This process also includes the examination of differences in the work itself to determine if jobs are substantially similar or comparable. Does the work require similar skills, responsibilities, and effort? Is it performed under similar working conditions? Job titles and descriptions are helpful but should not on their own determine comparability. Also, remember that jobs in different company divisions or departments may still be comparable. Ultimately, if a difference in pay is discovered that cannot be justified under federal and applicable state law, the pay disparity must be remedied. Typically, this is achieved by making adjustments to compensation. Remember that an Purpose of Pay Analysis By Beth Boger—FocusHRO By conducting a pay equity analysis, an organization is demonstrating that it wants to close the wage gap and calculate wages to offer equal pay for equal work.
Summer 2022 • PENNSYLVANIA RESTAURANT & LODGING matters • 19 employee’s pay may not be reduced to remedy a pay equity issue, only increased. The goal is to make it “right,” and erring on the side of the employee—with documented evidence to support the company’s decisions made surrounding pay—is the safest option from a risk standpoint. Lastly, to prevent these issues from continuing, it is important that pay inequities revealed through this process are discussed with managers, as their understanding of pay equity will be key to maintaining an organizational attitude and approach of fairness moving forward. • Whether you need help troubleshooting your pay analysis—or help with other functions of your human resource department—FocusHRO’s certified staff can find solutions for your company. Visit www.FocusHRO.com/PRLA to learn more!
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Summer 2022 • PENNSYLVANIA RESTAURANT & LODGING matters • 21 LEGAL DOCKET The Attorney ask Non-Competition Agreements Under Increasing Scrutiny THERE ARE CONTINUING trends towards the limitation of Non-Compete agreements in an employment context versus the purchase and sale of a business. These agreements are ubiquitous, and arguably used to bind employees who are not in critical and sensitive positions, and therefore, it is difficult to conceive of a reasonable business necessity for one. A 2016 study by the Treasury suggests that a little under 20% of employees are covered by these agreements. While they may never completely disappear across the country, there are continuing trends towards limiting, if not completely prohibiting, these agreements. With that in mind, employers looking to lock in key employees need to at least be mindful of the issue and keep an eye on the trend line in the jurisdictions where they do business. Pennsylvania has not prohibited or curtailed Non-Compete agreements as of yet. However, there are decisions beginning in 1995 limiting the applicability of post-employment injunctions where an employee was terminated for failing to benefit the interests of the enterprise. The rationale is that if the employee was terminated for not being a benefit to the business, how critical can their knowledge and skill be to the employer? For want of space, suffice it to say that the case law interpreting these decisions is hardly clear. In light of national trends, the question is whether this portends further complications in enforcing restrictive covenants on post-employment activities in Pennsylvania and the East in general. For example, post-employment restrictions have been curtailed in California. The rationale for those restrictions has ostensibly related to the economic needs of Silicon Valley, which it was believed had required employee mobility to maintain its competitive advantage. There is a recognition that protection of trade secrets is necessary in an economy rooted in the development of new technologies. Thus, employees are free to move from employer to employer and even to bring along other employees and clients. On the other hand, provisions prohibiting the use of, copying, etc. of confidential employer information, in particular technical data and confidential client lists, may be enforced. In the latter case, there is a distinction between customers who are readily known and customer lists which are difficult for one reason or another to compile. The East Coast has not taken such a limiting view on these agreements, which some suggest gives Silicon Valley a competitive advantage. However, the trend line may well be pointed in the direction of increasingly limiting these agreements in the East as well. Maryland recognized that many of those covered by these agreements were not key employees. Maryland moved to limit application of Non-Compete agreements to employees who earn in excess of $15 per hour or $31,200 annually. Md. Code, Lab. & Empl. § 3-716. The statute is silent on whether it also applies to provisions which bar solicitation of employees (which provisions California does prohibit). Massachusetts has not banned NonCompete Agreements, but has taken steps in a statute passed in 2018 to borrow concepts from United Kingdom law to limit the economic impact of enforcement on employees. In the United Kingdom, an employer may, when appropriate, limit the ability of an employee to accept a job with a competitor. However, the employer must then compensate the employee for “being on the beach” by increasing the notice for termination. The employee remains employed during a period when they are barred from accepting employment elsewhere, but remains at home without any duties, unable to access confidential information. Thus, they are free to tend their garden, hence the term “Garden Leave.” The Massachusetts statute is, in effect, a post-employment benefit. (Their courts have resisted contracts providing for such benefits along the British framework because they forced employees to remain in an at-will employment relationship against their will.) Under the statute, agreements entered into after October 1, 2018, must provide “garden leave” during the period of the non-compete. It does not require a dollar for dollar payment, but rather something closer to half pay. Thus, the employee is not faced with a year or more of unemployment with no income source, which often happens since few have skill sets which permit them to move between industries readily. • Marc Tarlow SHUMAKER WILLIAMS, P.C. General Counsel, Pennsylvania Restaurant & Lodging Association
22 • PENNSYLVANIA RESTAURANT & LODGING matters • Summer 2022 EDUCATION & TRAINING School is back in session which means our ProStart students are back in the classroom learning the skills they need to flourish in the hospitality industry. We have some exciting challenges lined up with the schools this year, to keep students on their toes and engaged in a little friendly competition. Students will put their creativity to the test in our annual pumpkin carving contest this October. Follow PA ProStart on Facebook, Instagram, and Twitter for a chance to vote on your favorite design. Gordon Food Service and EFD Associates have partnered once again with PA ProStart for the Mystery Box Challenge this November. Each participating school will receive a box filled with mystery ingredients that they have to use to create a unique, three-course meal. Bragging rights and a $500 prize are on the line. This winter, students will showcase their skills, knowledge, and creativity in the second annual Cake Decorating Contest. Stay tuned to our social accounts for your chance to cast your vote! In April, we bring back the Fooled You challenge, where students make something out of completely different materials. Think Netflix’s “Is it Cake?” but with any type of food! Again, follow PA ProStart on Facebook, Instagram, and Twitter for your chance to vote on the entries. The PA ProStart Student Invitational will be March 1 at the Penn Stater Conference Center Hotel in State College. Teams of students compete in either the management or culinary arts categories where the first-place winners will go on to represent Pennsylvania at the National ProStart Student Invitation in May. This year, we’re expanding our format to include a baking competition—stay tuned to the Daily Update for more details. ProStart Update
Summer 2022 • PENNSYLVANIA RESTAURANT & LODGING matters • 23 Earlier this year, the guys behind It’s Always Sunny in Philadelphia launched a whiskey brand that pays tribute to the four walls the gang calls home. They released two Irish Whiskey products with proceeds from sales of both items benefiting the PRLAEF’s Hospitality Assistance Response of PA (HARP) fund. In September, the gang recorded an episode of their “It’s Always Sunny” podcast at The Met in Philadelphia, inviting local bartenders and HARP to the taping. Since 2006, the PRLA Educational Foundation has awarded nearly $375,000 in scholarship money to students pursuing culinary arts and hospitality management at the post-secondary level. Applications for the 2022/23 program will be accepted from October 1, 2022, to April 1, 2023. Scholarship Program Opens October 1 Hospitality Career Boot Camp this November The PRLAEF is piloting a new event this fall to introduce students to the opportunities and career pathways found in the hospitality industry. The event is open to central Pennsylvania students in grades 7 through 12 who are interested in learning more about hospitality and are not currently enrolled in a culinary arts or hospitality management program at their schools. Students will get an introduction to the industry with a day full of fun and learning about potential career opportunities. On the menu includes cooking and baking demonstrations, a dining etiquette class, and a tour of hotel operations. • HARP Event with Four Walls Whiskey/Always Sunny Podcast
24 • PENNSYLVANIA RESTAURANT & LODGING matters • Summer 2022 Minimize Risk. Maximize Protection. ServSafe® is the gold standard of food safety certification. Don’t let your food safety certification lapse. ServSafe Manager food safety certification classes are approved by the Pennsylvania Department of Agriculture and satisfy the “person in charge” requirements. The Pennsylvania Restaurant & Lodging Association offers a variety of convenient course options to help you and your staff stay in compliance with the law. Visit www.prla.org/servsafe for the full schedule, to register for a class, or more information. UPCOMING CLASSES NOVEMBER 11/1 Philadelphia 11/2 Lancaster 11/3 Pittsburgh 11/15 Greensburg 11/21 Allentown 11/22 Harrisburg DECEMBER 12/5 Philadelphia 12/6 York 12/12 Pittsburgh 12/14 Lancaster 12/15 Harrisburg web.prla.org/events
Summer 2022 • PENNSYLVANIA RESTAURANT & LODGING matters • 25 Have a story to share? Email info@prla.org Submit Story a
26 • PENNSYLVANIA RESTAURANT & LODGING matters • Summer 2022 WELCOME NEW MEMBERS Allied Adesso Capital Scottsdale, AZ Bodine Perry, Accountants and Advisors Pittsburgh Cyberweb Hotels LLC Tampa, FL DoorDash San Francisco, CA Greenstreet Coffee Co. Philadelphia Independence Bridge Consulting Philadelphia Plate IQ Oakland, CA Qwick Phoenix, AZ Relay Raleigh, NC Smithfield Culinary Smithfield, VA Steel City Grease Traps Inc. Pittsburgh Vitable Health Woodlyn Lodging Comfort Inn Reading Reading Radisson Hotel Philadelphia Philadelphia Sheraton Harrisburg Hershey Harrisburg Restaurant Balboa Catering Philadelphia Barnaby’s of Aston Media Barnaby’s of Havertown Havertown Barnaby’s of West Chester West Chester Birchtree Catering Philadelphia Brock & Company Inc. Malvern Champs Sports Grill State College Coach’s Bottleshop & Grille Pittsburgh Conroy Catering Inc. Philadelphia Dad’s Hat Mill Street Tasting Room Bristol Deejay’s BBQ Ribs and Grille Bridgeville Enola Sportsmen Association Enola Ferment on Market St Bensalem Fiore Rosso Bryn Mawr Garces Trading Company Philadelphia J.D. McGillicuddy’s Tinicum Essington Jamie Hollander Gourmet Foods and Catering New Hope JC’s Diner Mount Joy Jesse G. Greer VFW Post 1835 Franklin Jose Pistola’s Philadelphia Lucky’s Last Chance – Manayunk Philadelphia Lucky’s Last Chance – Queen Village Philadelphia Lucky’s Trading Co. Philadelphia O’Grady’s Family Restaurant Phoenixville Osteria Philadelphia Philadelphia Perfect Setting Catering Inc. Berwyn Plumsteadville Inn Pipersville Prestige Caterers Glenside Restaurant Aleksandar Philadelphia The Crossbar Havertown Tony’s Place Bar & Grill Ivyland Villa Capri Doylestown Whit Lounge Philadelphia XGolf Lehigh Valley Easton Other Angela Vendetti Consulting Lambertville, NJ Bridgewater Golf Club York Dauphin County School Of Technology Harrisburg PA Hospitality and Consulting LLC Harrisburg
Summer 2022 • PENNSYLVANIA RESTAURANT & LODGING matters • 27
Pennsylvania Restaurant & Lodging Association 100 State Street Harrisburg, PA 17101 ISSUE DEADLINE Fall 2022 Nov 4 Advertise in PR&LA Matters! Pennsylvania Restaurant & Lodging Matters is a quarterly, full-color, glossy news and information magazine targeted at PA’s decision makers in your industry. Each issue goes to all PRLA members: restaurant & lodging operators, general managers, executives, travel and tourism representatives, key legislators, PRLA allied members, and prospective PRLA members across Pennsylvania. ADVERTISING RATES STARTING AT $260! • PRLA members receive 10% off listed prices. •
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