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Restaurant Employees Across Oregon Praise Legislature's Correction of Onerous State Requirements

Restaurant Association Sponsored Bill Would Allow Servers to Work During Peak Hours, Receive Higher Compensation

Restaurant employees have better options for working at peak hours, if Governor Kulongoski signs a bill that has come to his desk. Oregon's House unanimously passed Senate Bill 403, the last step in a welcome bi-partisan piece of legislation that gives tipped employees in restaurants better opportunities to make more money.

Senate Bill 403 directs BOLI to allow tipped employees the option of waiving their state mandated meal period that often falls during the middle of high volume activity in restaurants. Currently, any employee who works at least six hours is required to be relieved of all duties for a 30 minute break (paid or unpaid). This meal period must be applied as close to the middle of a shift as possible. For a server earning tips, the middle of the shift is often the time that represents the best opportunity to earn tips.

After receiving more than 100 letters from restaurant employees asking for relief, the Oregon Restaurant Association filed a petition for rule change with the Bureau of Labor and industries. That proposal was denied by BOLI last fall, however the Association worked closely with Labor Commissioner Gardner to draft a bill that would achieve the outcome desired while putting limits on potential employer intimidation.

The new law would allow any tipped employee to decide whether to waive their meal periods. It would also require that they give the employer notification of intent to opt back in to taking their meal period if they choose to do so. This law only applies to tipped employees and does not allow the waiver to be a condition of employment or mandatory. The bill gives protection for employee and employer alike.

Senate Bill 403 has unanimously passed both the House and Senate, and is headed to the Governor's desk where it is expected to be signed. The effective date of this change will be January 1, 2008.