Category: Member Only

LCB Action: Emergency Liquor Permit

On Dec. 18, 2024, during its regularly scheduled meeting the Liquor and Cannabis Board (LCB) took the following action:

Emergency Liquor Permit Rules Finalized

The Board approved final rules to create a new rule section in Chapter 314-38 WAC to implement House Bill 2204 (chapter 91, Laws of 2024), in law as RCW 66.20.010(19), which authorizes the LCB to issue Emergency Liquor Permits to liquor manufacturers when an emergency or road closure prevents them or their customers from accessing the licensed facility. The new rule will be effective Jan. 18, 2025.

More information is available on the LCB Current Rulemaking Activity webpage. If you have any questions regarding this announcement, please contact rules@lcb.wa.gov.

Use of Volunteers and Interns: What Washington Wineries Need to Know

Written By: Kate Bradley, Jared Van Kirk & Emily Gant, Attorneys | Foster Garvey, Seattle

It’s Crush, and your wine club members are eager to help with harvest. Your neighbor offers to lend a hand with bottling your 2021s. A friend knows that you’re short-handed in the winery and offers to organize your case good storage. All of these folks are volunteers, hoping to support the winery as your friends, neighbors and colleagues. The question is – can for-profit wineries in Washington legally use these unpaid volunteers?

The short answer is no. While likely well-intentioned, a for-profit winery’s use of unpaid volunteers runs afoul of Washington law, as explained in more detail below.

Can members of the public volunteer with harvest, pressing, or other tasks?

We understand our clients’ and the public’s interest in getting involved with winemaking. Unfortunately, Washington law has a case of sour grapes. Under the law, volunteering is not allowed in a for-profit business. Volunteers are only allowed to work for an educational, charitable, religious, state or local government or non-profit organization.

Most wineries and vineyards are for-profit businesses, meaning that they should not have unpaid volunteers. Entities that are for-profit businesses must pay any individual working for them at least the minimum wage (sadly, compensating them with wine won’t be enough).

Do we need to pay our “interns”?

Generally, the organization must pay all persons that it “employs,” which is broadly defined to mean “suffer or permit to work.” However, nonprofits and public sector organizations typically are permitted to offer unpaid internships, even if the intern provides a service of value to the organization.

For-profit entities are a whole different varietal. Companies must first determine whether the intern is participating in a training program (and therefore not entitled to compensation) or is simply “employed.” Before unpaid interns or trainees are allowed, the U.S. Department of Labor (and Washington State) requires the company to meet criteria outlined in Fact Sheet #71: Internship Programs Under The Fair Labor Standards Act and also described below.

The main consideration is who is the “primary beneficiary” in the intern-employer relationship. Is the
Employer/Business benefitting from the work performed or is the individual benefiting more from the educational experience? So, you’ll need to read between the wines, if you will excuse the pun. Courts have identified several factors to consider when deciding if a worker is an employee versus truly just an intern:

  1. The extent to which the intern and the employer clearly understand there is no expectation of
    compensation.
  2. The extent to which the internship provides training that would be similar to that which would be given in an educational environment, including the clinical and other hands-on training provided by
    educational institutions.
  3. The extent to which the internship is tied to the intern’s formal education program by integrated
    coursework or the receipt of academic credit.
  4. The extent to which the internship accommodates the intern’s academic commitments by
    corresponding to the academic calendar.
  5. The extent to which the internship’s duration is limited to the period in which the internship provides the intern with beneficial learning.
  6. The extent to which the intern’s work complements, rather than displaces, the work of paid employees while providing significant educational benefits to the intern.
  7. The extent to which the intern and the employer understand that the internship is conducted without entitlement to a paid job at the conclusion of the internship.

If there isn’t an obvious tie to an educational program, then it is hard to classify an individual as an “unpaid intern.” When a company fails to satisfy even one of these requirements, the worker is considered an employee and must be paid at least the minimum wage (essentially then you’re partners in wine).

So, what is the takeaway? If your business is a for-profit entity, then unpaid volunteers are not allowed – it would be a pour decision. If your business is a non-profit entity, then an unpaid volunteer may be possible (sip sip hooray!).

No matter what option you are considering – further guidance is a good idea to make sure there’s no wine left behind. If you have questions about paying interns or volunteers, please contact our Labor, Employment & Immigration attorneys, Jared Van Kirk (jared.vankirk@foster.com | 206.816.1372) and Kate Bradley (kate.bradley@foster.com | 206.447.7908). If you have general Washington winery questions, please contact Emily Gant (emily.gant@foster.com | 206.816.1454)

New Website Resources for WWI Members

The Washington Wine Institute is excited to announce a new member-exclusive benefit: resource information for your winery all in one place behind the wwi.wine “Members Only” log-in. Current WWI members will soon receive a separate email from WWI staff with their winery’s log in information and instructions.

New web page topics include:  

  • LCB Licenses, Permits and Endorsements 
  • Tax Resources 
  • Licensing and Event FAQs 
  • Liquor License Starters Guide 
  • Grape Hauling Resources 
  • Washington Wine Institute Dues Payment Schedule 
  • And More to Come!
Log in to your member account to view the new web pages. Please email marie@wwi.wine for your login information.

 

Your membership is appreciated. Through member support, we are able to create new resources like this for wineries across Washington. A huge thank you to our current membership and we invite you to browse the new web pages, search for any helpful resources, and ask a question. Please direct any questions or feedback to Membership & Programs Manager Marie Schurk at marie@wwi.wine or at our contact page.

Need Help Thinking Through Your Music Licensing Options? WWI Can Help!

Do you have live and/or streaming music in your winery or tasting room? Have you been contacted by one or multiple music licensing agencies (BMI/ASCAP/SESAC) recently requesting that you purchase a license?

 

The world of music licensing is complicated and knowing if you need a music license is not simple nor straightforward. To make matters worse, the three national music licensing companies that own rights to all copyrighted music are communicating with our wineries in a very aggressive, negative manner that often ends with anger and frustration for all parties.

 

Recognizing that every member deserves to have a strong, dedicated resource helping them navigate the complexities of music licensing, WWI’s staff has become educated on the ins-and-outs of this issue and so far helped many wineries over the past year understand what they do (and equally importantly what they do not) need to do to make sure they are in compliance with federal copyright law.

 

So, if you have live and/or streaming/recorded music playing in your winery or tasting room and would like to make sure you are fully educated on how music licensing works and what you need/do not need in this arena, please don’t hesitate to contact us. Additionally, if you are contacted by any of these companies, do not hesitate to reach out to us and become educated so you do not allow them to intimidate or push you into purchasing licenses you may not need. Simply contact WWI at josh@wwi.wine.

 

Note: WWI does not provide legal guidance. However, we are happy to provide a list of local attorneys that may be able to assist you if you feel a legal interpretation of your music licensing situation is necessary.