March 24, 2026 · Workforce Development Committee · 4,796 words · 9 speakers · 69 segments
We have a quorum. We'll proceed as a full committee. Members, please review the minutes from the March 3rd meeting. Are there any additions, deletions? Without objection, the minutes will be approved. Hearing no objection, the minutes are approved. The first order of business is to call Senate Bill 331 for its second hearing. We hear testimony today from three individuals. The first will be Scott Lieberman with the City of Centerville.
Welcome to committee, sir. Proceed. Thank you. Chair Kaler, Vice Chair Reynolds, Ranking Member Ingram, and members of the Ohio Senate Workforce Development Committee, On behalf of the City of Centerville, thank you for the opportunity to provide testimony in support of Senate Bill 331. My name is Scott Liberman, and I serve as the Law Director for the City of Centerville in Montgomery County. I have practiced law for over 30 years and have served as Centerville's Law Director for more than 20 years. I'm here today on behalf of the city and other political subdivisions across Ohio that operate hospitality-based public amenities. I would also like to acknowledge the presence of our City of Centerville Assistant City Manager and Finance Director, Tyler Rourke. As law director, it was brought to my attention based on guidance from the Ohio Ethics Commission that a public servant working in a hospitality role, such as a restaurant server, is prohibited from accepting anything of value from any source other than their public employer as compensation for performance of their duties. However, it is commonly expected by patrons of hospitality venues, including those operated by political subdivisions, such as golf courses, that servers will receive gratuities for their services. This creates a clear conflict between existing ethics guidance and customary industry practice. As a result, this is an area of law in need of revision to ensure that political subdivisions remain competitive in offering amenities and services to the public. The City of Centerville provides high-quality public amenities that serve residents and visitors alike, including parks, event venues, and the golf club at Yankee Trace, a premier public golf facility. These amenities rely heavily on seasonal and part-time employees in roles that are traditionally tipped in the private sector, such as food service, event staff, and beverage card attendance. Under the current interpretation of Ohio's ethics laws, these employees may be prohibited from accepting gratuities, even when performing the same duties as their private sector counterparts. As a result, local governments are placed at a significant disadvantage in recruiting and retaining staff for these positions. This challenge is especially evident at the golf club at Yankee Trace, where customer-facing roles are directly comparable to those at private golf courses that permit gratuities. In an already competitive labor market, it is difficult to recruit seasonal employees. asking individuals, many of whom are young or entering the workforce for the first time, to perform service-based roles without the ability to accept gratuities makes these positions far less attractive and in many cases difficult to fill. Senate Bill 331 offers a practical and narrowly tailored solution by allowing public hospitality employees to accept gratuities while maintaining appropriate safeguards to ensure integrity in public service. This legislation recognizes the realities of today's workforce and helps level the playing field between public and private employers without shifting costs to taxpayers or altering base compensation structures. Importantly, this bill does not expand tipping to positions involving authority or decision-making. Instead, it is limited to roles where gratuities are customary and expected by patrons. It also ensures that gratuities cannot be used to offset wages, thereby preserving fair compensation practices. For communities like Centerville, this legislation supports the continued ability to operate high-quality public amenities, deliver excellent customer service, and maintain a strong seasonal workforce. Without this flexibility, municipalities would continue to face unnecessary barriers to staffing positions essential to the success of these facilities. Thank you for the opportunity to testify today and for your consideration of Senate Bill 331 in support of Ohio's local communities. I, or the Assistant City Manager, would be happy to answer any questions that you have today.
Thank you. Thank you for your testimony, sir. Any questions from the committee? Ranking member?
Thank you, Mr. Chair. Thank you very much, Senator Bill. My brother lived there many, many years ago, and then another friend of mine. You guys have a fabulous fireworks display during the summer. Anyway, I just have the one question about the compensation, and it's understood that you're not supposed to adjust it, but are they at the minimum wage now, or are you paying them something more than the minimum wage?
That may be a question for my assistant city manager, but I believe that they are paid competitive. They're above minimum wage.
Okay. I didn't want us to stick them there and then just say, okay, but now you get tips. Okay. Thank you.
Senator Huffman.
Thank you. Thank you for being here. What happens today if I eat dinner tonight at Yankee Trace? and I leave $5 on the table or a tip. How do you guys handle that?
Well, generally under the law, that would probably be prohibited. The money would probably just go into the general fund. We have the issue with, you know, obviously we don't allow police officers or trash collectors to be tipped, but it's typical that during the season, during the Christmas season, customers will give money to our trash collectors. All that money is pulled and used to buy pizzas for the men or to give them away to the public during other events.
Thank you. I guess I was going to ask that same question. When I go to a state park and there's a lodge and I eat at the restaurant, I'm allowed to tip. You're saying I can't do that.
According to some of the Ohio ethics opinions, if they are public employees, you could not do that.
Okay. I guess my other question is, I know it's customary to give things to sometimes your postal. I live out in the country, the same postal carrier drive-bys my house every day. Can I not give a postal employee a tip or a gift at Christmas?
Those are federal employees, so they go by different rules.
and I believe that there is a de minimis amount that is allowed to go to postal workers Okay Any other questions Thank you very much for your testimony Thank you Next we hear from Jim Boyle on behalf of Scott Tuma City of Parma Law Department
Welcome. Welcome. Thank you, Senator, and members of the committee. Again, and I'd like to echo the comments made by my fellow law director colleague from Centerville. My name is Jim Boyle, and I'm an assistant law director at the City of Parma, working with Parma Law Director Scott Tuma. And on behalf of the City of Parma, I certainly cannot thank this body enough for the fortuitous timing of this piece of legislation. As the Ohio's seventh largest city, I want to express how important this legislation will be for our community. For over a century, Parma has owned and operated Ridgewood Golf Course in the center of our city. In an era where some cities need to sell their assets to balance their budget or sell city-owned property to eager developers, Parma has steadfastly held and protected Ridgewood Golf Course as property available to our residents and the entire community. Over the past several years, Parma's community leaders have worked collaboratively to develop and construct a state-of-the-art Ridgewood Golf Club and Event Center at this golf course. The new facility will have community meeting space, event pavilions, golf simulators, and the Flamingo Pub, which will have food and drinks. And this will serve both the golfing and non-golfing communities. However, as we look at the current law and the questions from this body, I think point out the inherent dilemmas that exist with positions that are traditionally been viewed as positions that would receive as part of their compensation tipping. And I think it is especially compounded in entering suburbs like Parma, where hiring is more difficult, where maintaining and retaining skilled professionals is more difficult, and compensating them in a fair manner so that we don't lose these skilled employees to other competing entities is really, really pronounced. What the golf course and the community center will provide is a sense of community, a sense of belonging, and a sense of ownership in the city of Parma. It's very difficult to rule and live in an inner ring suburb, and these are the type of creative working that I commend this body in a bipartisan manner of bringing forth such legislation. The questions asked of the Center of the Law Director are the exact dilemmas that we and Parma went through in our minds in terms of how we could make this situation work. The fortuitous nature of this legislation cannot come at a better time for all of us. So on behalf of my boss, Law Director Scott Tuma, and Mayor Timothy DeGieter from the City of Parma, I thank you for the opportunity. In the interest of brevity, I won't compound the comments made by my fellow law director, but I join him in all of those comments as well. Thank you very much.
Any questions from the committee? Yes, Senator Blackshear.
Thank you, Mr. Chair, and thank you so much for your testimony. Is it safe to assume that when people enter into these traditionally tip roles, when they find out that they cannot accept tips, they tend to quit? It is a distinct negative aspect of employee retention.
They may think that he'll be able to work it through, but your questions, Senator, are exactly correct. Yes, they will find greener pastures in the hospitality industry.
Any other questions? Senator Huffman.
Just real quick. So as the last witness said, do you guys pay people above minimal wage?
We do, Senator. And I asked, seated with me is the recreation director who runs the golf course, the 125-acre golf course in the center of Parma. And I asked them that exact question, so I would be prepared for your question. Yes, we do pay them above a minimum wage. But it is not, it is a seasonal-type job, and so, yes, the retention is the biggest issue that we face.
And follow-up real quick.
Yes.
You may not be able to answer this, but do you foresee going back to a traditional wage once they can receive tips, or that all depends on the economics of the situation?
Chair, to the Senator, that's an excellent question. I don't know the answer to that. My expectation is that if this body is, in my mind, sage enough to pass this piece of legislation, my expectation would be that we would have to reassess the manner in which these hospitality employees are compensated and make sure that their compensation is fair for the work that they do, but also maintains the ability to retain these individuals in their positions.
Any other questions? Thank you very much for your testimony.
Thank you. Appreciate it.
Next we'll call up Jonathan Hudson, City of Springboro.
Thank you, Chairman Kaler, Vice Chair Reynolds, Ranking Member Ingram, and members of the Ohio Senate Workforce Committee. Thank you for the opportunity to present testimony in support of Senate Bill 331, legislation to allow certain municipal employees to accept gratuity in a limited set of roles and settings in which tips traditionally supplement service income. My name is Jonathan Hudson and I serve as Finance Director for the City of Springboro and Warren County. A special thanks to be given to our State Senator Steve Wilson for his role in introducing Senate Bill 331 and joint sponsorship of Senator Blackshear. We would first like to share our appreciation to the committee for your consideration on this legislation. Senate Bill 331 represents a thoughtful and we believe needed update to state law that supports both the day-to-day realities of municipal operations and the workforce we rely upon to deliver high-quality recreation and hospitality services to the public. You've heard from some of our peer communities in neighboring counties about a wide variety of recreation facilities that would be covered under this legislation. All of us share a common exposure to the current law and its effect on each of these communities' operations. These places are often staffed by seasonal and part-time employees who interact daily with visitors and create the customer service that our residents value. In many of these settings, tipping is both traditional and expected, Yet current ethics interpretations prevent public sector employees from accepting gratuities even when performing duties identical to those in private hospitality settings. In Springboro, as referenced in Senator Wilson's proponent testimony, the city-owned Heatherwood Golf Club is a central part of that experience. As the premier public golf course in southwest Ohio and one of the city's most recognizable community assets, it relies on roughly 125 seasonal staff members each year. approximately 70% of these seasonal workers are high school or college age. Their work is vital in supporting all of Heatherwood's operations, including golf operations, concessions, events, and beverage cart services. These seasonal service-oriented positions are historically precisely the types of hospitality-oriented roles in which gratuities are customary in the private sector, and patrons often express a desire to tip staff for the service they receive. Likewise, the Springboro Performing Arts Center, which welcomes approximately 35,000 visitors annually, fuels both cultural vibrancy and the local economy with many patrons dining in nearby restaurants before or after performances. While it's difficult for us to provide an exact measure of the direct and indirect activity these facilities bring to Springboro annually, our staff estimates that these assets together generate more than $10 million in annual economic activity. These amenities shape the identity and character of the city, and our success depends heavily on the seasonal and part-time workforce that interacts directly with the public. Under current law public employees in these service roles are barred from accepting gratuities even when their day duties mere those performed at private facilities were tipping as standard The limitation compounds an existing challenge for municipalities where we already struggle to compete with private sector employers that have greater flexibility in management of their payroll resources when compared to the regulation on public budgeting. This disparity makes municipal employment less attractive and ultimately constrains our ability to maintain the level of service that residents and visitors associate with Springboro's amenities. Springboro and other municipalities take our obligation to uphold Ohio ethics law seriously. We believe that Senate Bill 331 offers a reasonable framework that preserves ethical safeguards while recognizing the realities faced by public operators who must compete for talent in the same labor market as private businesses in the recreation and hospitality spaces. On behalf of the City of Springboro, I respectfully ask for your support for Senate Bill 331, and I'm happy to answer any questions you have at this time.
Thank you for your testimony. Questions from the committee? Ranking member?
Thank you, Mr. Chair, and thank you for this. And here again, I'm going to kind of ask you the same question that I asked previously, which is in regard to the salary that you currently pay and the expectation that new hires for this summer are not going to be taken back to a less than minimum wage because many tip receivers receive less than other employees. And so I want to ask the question, but I want to make the statement that my expectation is that that wouldn't happen because you're still going to lose those people if, indeed, you take them down to some lesser salary and then allow them to accept tips, especially depending on how do you plan to treat those tips? Will they be pooled or will they be to the individual?
Chair, thank you for that question. We historically have always started our employees at above minimum wage. That's the market we found ourselves in and competing for quality employees. So we would have no intention of removing ourselves from that pay scale, and I think our employees would not look kindly on it if we did. We have never pulled tips in our operations. It's always gone directly to the attender or the person providing the services and the customer.
Other questions?
I'm sorry. I'm just going to clarify. The people are already being tipped. Historically, since this interpretation came out, we have never tipped. So we've stopped. We've even taken it off the credit card machine that pops up. It's no longer on there. But back in the day, we did.
Other questions? Senator Huffman.
If you went back to a traditional model, half of minimum wage, isn't it by law you're required to make sure that their tips are above the minimum wage?
Correct, yes. They're still a minimum. They still have to make a certain amount of money. Historically, that's never been a problem back when they were accepting tips. But if there is a minimum, the city is required to supplement it.
Okay, thank you.
Other questions?
I guess I had a question. It says customary tipping, and things have expanded lately. It seems like I'm asked to tip anywhere. I know I went to a fast food restaurant with my grandchildren. I got a tray of food, an empty cup that I was going to go fill up at the pop machine, and I carried the food to my seat, and I was asked for a tip. I guess where does customary – I mean what is customary these days?
So customary for operations at Heatherwood is we don't operate a restaurant like some of the other municipalities have talked about at theirs. We operate a traditional snack shop. So that would historically be where that type of tipping would take place. The beverage cart attendant out on the course, they prepare the drink, they bring your hot dog, or the cart staff who take your bag off the cart, put it on, help you take it to the car. That's historically those spaces for us.
Okay. Thank you.
Any other questions? Thank you for your testimony. I appreciate it. If you'll look on your iPad, you'll see testimony from Tomathan DeGieter, Josh Lunesbury, and Sean Kasich. They're not here, so I can butcher their name all I want. This will stand as the second hearing on Senate Bill 331. The next order of business is to call House Bill 268 for a second hearing. We'll hear proponent testimony from Michelle Burris with the Ohio Justice and Policy Center. See, I got your name right this time. I'm very proud of you. I have a great aide. I have a wonderful aide.
Good morning, Chair Kaler, Vice Chair Reynolds, Ranking Member Ingram, and members of the Workforce Development Committee. Thank you for allowing me to testify on behalf of the Ohio Justice and Policy Center in support of House Bill 268, legislation aligning the eligibility timeline for the Certificate of Qualification for Employment with the Certificate of Qualification for Housing. I want to thank Representatives Humphrey and Click for introducing this important legislation. OJPC believes House Bill 268 can help give those with criminal records a needed second chance by giving employers both discretion in hiring and protection from negligent hiring lawsuits while expanding the pool of qualified candidates for employment to include those with criminal records who would otherwise be discouraged or prohibited from applying. Ohio can further expand the freedom of people with criminal records and empower them to positively participate in their communities to break generational cycles of poverty and strengthen Ohio's economy and small businesses. I've been in this committee before and have certainly shared statistics with all of you about the impact of collateral sanctions on both our economy, our communities, and individuals, as well as the general impact of Ohio's over-incarceration. So no need to repeat them for the purposes of this bill. But it's worth noting that all of this is very compounding when we're considering that the root causes of crime and poverty are lack of education, untreated mental health and addiction, and collateral sanctions account for billions of dollars in lost wages, which is a cost that is borne on all of us. The Certificate of Qualification of Employment is not a new court process or tool. Our organization has created one-pagers. I've provided them to staff for your benefit so that you can actually see the step-by-step process for both the Certificate of Qualification for Employment as well as the Certificate of Qualification for Housing and so that you have some familiarity in a more refined way to better understand what it is folks are presenting to both the Ohio Department of Rehabilitation and Correction as well as the court system when they are applying to have the CQE granted. So people are, it requires an application from an individual to a court for relief from legal barriers for specific jobs or licenses. They must demonstrate evidence of positive behavior and explain professional goals for the court to review. It takes several months from application to resolution. It does not seal or expunge a criminal record, which are other relief tools for justice impact job seekers. It does, however, allow a court to make a rehabilitation determination since the last offense was committed and qualify an individual's readiness to work. And in doing so, one with a felony conviction and a CQE has an almost equal chance to being invited to an interview as one with no criminal record Job seekers with a felony conviction and no CQE received about one as many invitations It a pretty significant finding considering one in 11 Ohio adults have a felony conviction and most applications for CQE have been approved. House Bill 268 will reduce the application waiting period for those with felony offenses By eliminating the requirement that the person waits until all periods of supervision have expired and allowing CQE applications one year after the date of release from incarceration, House Bill 268 is creating more consistency for courts and expediting opportunities for Ohioans who need a second chance and are ready to fill jobs. Chair Kaler, Vice Chair Reynolds, Ranking Member Ingram, and members of the Workforce Development Committee, thank you again for allowing me to present the Ohio Justice and Policy Center's strong support for House Bill 268. I would be happy to answer any of your questions.
Thank you, Ms. Burris. Any questions from the committee? Looks like you're going to get off easy. Thank you very much. All right. It was the one-pagers, huh?
That was it.
Thank you all. Next is Joseph Martinez. Mr. Martinez, welcome to committee.
Thank you. Good morning. Chairman Kaler, Vice Chair Reynolds, Ranking Member Ingram, members of the Senate Workforce Development Committee, thank you for the opportunity to provide testimony today in support of House Bill 268 and efforts to expand access to certificates of qualification for employment or CQE. My name is Joseph Martinez and I stand before you not just as a professional, but as someone who represents what rehabilitation, recovery, and second chances can truly look like when given the opportunity. For 16 years, I struggled with substance use and contributed to the very problem that our systems are working to address. In 2021, I made the decision to enter treatment. I completed multiple levels of care and began rebuilding my life. I chose to give back to the community that saved my life. I became an Ohio certified peer recovery supporter and began working in a treatment center supporting individuals battling addiction. I advanced my credentials, continued my education, and today I work as a counselor at Behavioral Concepts of Ohio, serving individuals and families impacted by mental health and substance use disorders. I am also currently a senior at Walden University pursuing a bachelor's social work degree. Despite my recovery, my service, and my professional growth, I encountered major barriers. In 2024, I applied for my Chemical Dependency Counselor Assistant Preliminary, that's a very long title, or CDCA Pre, and was denied due to a prior offense. I was advised to pursue a CQE, something I had never heard of before. I followed the process. I filed a petition. I went through this legal system. My request was denied. I then pursued expungement, which was ultimately granted, but only after navigating a complex, confusing, and discouraging system. My story is not unique. Across Ohio, countless individuals have done the work to rehabilitate their lives, live ethically and actively contribute to their communities, yet still face unnecessary barriers to employment. These barriers do not just impact individuals, they impact families, communities, and our workforce. House Bill 268 is a meaningful step forward by allowing individuals to apply for a CQE one year after release instead of requiring years of waiting. this legislation removes unnecessary delays that can discourage progress and hinder reintegration. It aligns with the Certificate of Qualification for Housing program and recognizes that individuals who are working to rebuild their lives should have a fair opportunity to demonstrate their rehabilitation. Barriers to employment increase the likelihood of recidivism and limit individuals' ability to contribute positively to society. When individuals are given reasonable opportunities, they do not just benefit themselves, they strengthen their communities, support their families, and help address critical workforce shortages, especially in fields like behavioral health. The CQE is designed to recognize rehabilitation and reduce barriers. House Bill 268 enhances that purpose by making the process more accessible while still maintaining judicial oversight and accountability. I am living proof that people can change. More importantly, I represent many others across this state who are working every day to rebuild their lives and give back. This legislation is not just about me. It's about creating pathways for all individuals committed to rehabilitation and ready to contribute to their communities. I ask you to see individuals like me not for the worst thing we have done, but for the consistent daily work we have put in to become who we are today. House Bill 268 gives people that chance not just to work, but to belong, to contribute, and to prove that rehabilitation is not just possible, it is powerful. Thank you for your time and consideration, and I would be happy to answer any questions you may have.
Well, Mr. Martinez, thank you very much for your testimony. Congratulations on turning your life around. You are a great example of what we need to do in the state and in our community. So thank you very much for your testimony.
Thank you.
Any questions from the committee?
I just had one question about you said you applied for the CQE and were denied. What were the reasons they gave at the time?
I believe lack of education, if I'm being fair.
I'm sorry, education for them or for you?
On behalf of the county or maybe the judge. So I've actually read the law, I've reviewed it. Let me just say I reviewed it because I'm not a legislator, I'm not an attorney. But it appears that I did meet the criteria when I did apply for my CQE. However, it was on the record that I was the first individual in Sandusky County history to apply for one. So I believe it was simply just lack of understanding. However, that judge did give me some very vital advice. He said to go to Cuyahoga County, where my crimes originated from, and that's what I chose to do. So my complete record, all my civil rights have been reinstated. So ultimately, in all fairness, he does have to make decisions that affect not just me, his family, and the community, as well as the committee. So I understand.
So they didn't know what a CQE was. You didn't know what a CQE was.
I'm learning what a CQE is.
Okay.
Yeah.
Thank you very much. So it's understanding.
Right.
Understandable.
Other questions? Well, thank you very much again for your testimony.
Thank you so much.
Appreciate it.
You're welcome.
Members, please look at your iPads for written testimony from Jason Varney, Allie Allens, but I won't even say it, Prison Fellowship Representative Zach Eccles and Tia Amet from City Works. Tiana. Tiana, thank you very much.
You're welcome.
This will stand as the second hearing for House Bill 268. With no further business before the committee, we're adjourned.