Preventing binding legislation
By Mike Mitchelson

Just because it’s a short session at the state legislature this year—from March 1 to May 22—doesn’t mean the Minnesota restaurant industry can relax. Sure, legislators are mostly preoccupied with a state bonding bill, and, given their performance last year, they’ll probably need all the time they can get to hash out partisan differences to pass it.

Still, there are issues affecting the industry this year, most notably Gov. Tim Pawlenty’s suggestions for immigration reform—which includes a $5,000 fine for business owners for hiring illegal immigrants. Hospitality Minnesota would also like to see language introduced to prevent potential obesity lawsuits against restaurant owners, said Tom Day, vice president of government affairs for the organization. But the most pressing issue is at the Federal level—amending possible legislation that would increase the Federal minimum wage with a tip credit, Day added.

“We’re leaving no stone unturned at the national level; even though we’re staking additional resources out there, it’s important,” he said. “We’re working with the National Restaurant Association (NRA) and a few other states that don’t have a tip credit.”

Federal minimum wage bills were defeated twice in 2005. Whether the issue is voted on this year is anyone’s guess, Day said. “Senator Ted Kennedy, (D-Mass.), continues to push the bill, but is he sincere in his efforts to increase minimum wage? Or are these political, partisan votes to get people to either vote for, or against it?”

Last year’s votes were contingent on a “gentleman’s agreement” in the senate, which required a 60 vote majority to pass the bill, Day explained. If there is a desire to pass it this year with a simple majority, then chances are it would pass. Neither Hospitality Minnesota nor the NRA are pushing for a minimum wage bill, which would most likely raise the Federal minimum wage $1.25, increasing the rate to $6.40. That would raise Minnesota’s minimum wage—which was just raised to $6.15 in August 2005. “If our amendment gets put in there, it would automatically build in a 25-cent tip credit,” Day said. “Server wages would be 25 cents lower than federal minimum wage, locking servers into what they’re getting right now. So we’re not going to cut their pay.”

Peter Mihajlov, a founding partner of Parasole Restaurant Group, is deeply involved in legislative matters for Minnesota’s restaurant industry. He agreed the tip credit amendment to any Federal minimum wage legislation is “the top priority.” Even if the federal minimum wage bill doesn’t happen this year, it will, eventually, he added. “You just don’t know (when it will happen) until it gets some movement.”


Picking battles

With the short legislative session “you have to pick and choose your battles,” Day said. One battle will be to introduce legislation to protect restaurant owners from obesity lawsuits. “Gov. Pawlenty mentioned in the state of the state address that childhood obesity was one of his top issues, and we’re curious as to how he’s going to address it.”

The industry’s position, in general, is that moderation and exercise are the main tools to fight obesity. “You don’t blame the food for being obese,” Day said. While the most notable obesity lawsuit to date—against McDonald’s in 2004—was thrown out of court, there is still reason to be wary. “There is one (lawsuit) still pending that we’re watching. Eventually it will happen. If you can sue because you spilled coffee in your lap… .So we need to build stop gaps to support (restaurants).”

About 20 states have passed obesity lawsuit language, Day added, and the language introduced to the Minnesota legislature would offer similar protections. “If you are sick from the food, yes, you’re entitled to something from the claims in a lawsuit. But if you eat at a place repeatedly and all of a sudden you realize you’ve gained weight, you can’t blame the food provider.”


Immigration

Gov. Pawlenty’s proposed immigration legislation introduced in the House of Representatives would fine employers $5,000 if they hire—even unknowingly—an illegal immigrant. “This (fine) is the most disturbing aspect of the proposed legislation,” Mihajlov said, adding that immigration is a “federal issue.”

Day called Pawlenty’s proposal a “lose-lose situation,” setting up the employer for potential discrimination lawsuits if they were to question a potential employee’s background if their paperwork looked “marginally questionable.”

“Changes need to made, but they need to be made at the Federal level; there needs to be a universal playing field,” Day said. “For the governor to be saying, we’re going to charge you $5,000, … even if you follow the law and accept the documentation given to you, it’s ridiculous.”

The restaurant industry wouldn’t be what it is today without the influx of the Hispanic population, Mihajlov said. “And it’s not just the Hispanics, now. There are many other ethnic groups that are coming in and working hard. And we wouldn’t know what to do without them.”

It’s not just the hospitality industry that benefits from the immigrant populations, Day added. Hospitality Minnesota is working with a broad coalition to combat the proposed legislation, including dairy farmers, turkey growers and the landscape industry. “We all are dependent on hardworking individuals, and oftentimes the migrant workers are going to perform better for you,” Day said. “And it’s a great opportunity for them to grow into the business, learn the trade, then go out and turn that hard work into their own business.”


Smoking ban blowing smoke?

Both Day and Mihajlov said that while a state-wide smoking ban is unlikely to come up in this year’s short legislative session, it’s still an issue to watch. “We’d obviously prefer businesses to choose whether to be non-smoking,” Mihajlov said.

“Most legislators are in firm agreement that it’s not going to be an issue this session,” Day said. “I think next year we’ll have to take a serious look at it. …Plus, it’s an election year, and the senators and representatives aren’t going to want to take a vote that’s going to immediately anger half their constituency, one way or the other.”