February 2011 Archives

Commentary from Joy Dubost, Ph.D., R.D., director, nutrition and healthy living, National Restaurant Association

The U.S. Departments of Agriculture and Health and Human Services last month announced the long-awaited 2010 Dietary Guidelines for Americans. The nutrition guidance aims to improve Americans' diets and increase their physical activity to promote general health, reduce chronic disease and reduce the number of Americans who are obese or overweight. The federal government updates the guidelines every five years to keep pace with the latest science.

Watch our latest industry update video, where the National Restaurant Association's Senior Vice President of the Research & Knowledge Group Hudson Riehle summarizes the January Restaurant Performance Index and the impact of weather and food prices on restaurants.

For previous industry update videos, visit our Research & Insights section.

The National Restaurant Association's Restaurant Performance Index (RPI) stood at 100.2 in January, down 0.8 percent from its December level, due in large part to harsh weather.  Despite the decline, January marked the fourth time in the last five months that the RPI stood above 100, which signifies expansion in the index of key industry indicators.

"The RPI's January decline was due in large to part to dampened sales and traffic levels as a result of extreme weather in some parts of the country," said Hudson Riehle, senior vice president of the Research and Knowledge Group for the National Restaurant Association. 

"Although restaurant operators reported softer same-store sales and customer traffic results in January, their outlook for sales growth and the economy remained optimistic," he added. "Overall, the economic fundamentals of the restaurant industry remain positive, which will likely lead to stronger sales and traffic levels in the months ahead," Riehle added.

Restaurants are learning there's more to recycle from a wine bottle than the glass.

A handful are participating in programs that turn corks from emptied bottles into footwear, floor tiles, shipping cartons and other high-durability goods.

The pioneers say the effort is a highly visible way of demonstrating an establishment's commitment to conservation. They also use it to enlist patrons in restaurants' green efforts, hopefully strengthening a connection.

The National Restaurant Association is encouraging members to participate in Share Our Strength's Dine Out for No Kid Hungry.

Share Our Strength aims to raise $3 million this year for its campaign to end childhood hunger in the United States. Last year, 4,153 restaurants raised more than $1.5 million, double the amount raised in 2009. The NRA is a founding sponsor of the event formerly known as the Great American Dine Out.

Participating restaurants use bounce-back coupons, consumer donations and challenges and other creative methods to raise money for Share Our Strength's No Kid Hungry Campaign. Or they can donate a percentage of sales during the event week, set for Sept. 18 through 24.

The National Restaurant Association - through its Conserve: Solutions for Sustainability initiative - has signed on as a co-founding sponsor of the first sustainability conference exclusively focused on the restaurant and foodservice industry.

The International Foodservice Sustainability Symposium (IFSS) will tackle complex environmental issues, including emerging technologies, green building and food, and will be held May 24-25, 2011, in Chicago, immediately following NRA Show 2011.

"The IFSS will provide foodservice professionals with the information and tools they need to make critical decisions about complex sustainability issues," said Dawn Sweeney, President and CEO of the National Restaurant Association.

A new National Restaurant Association collaboration will help restaurants reduce organic waste and enhance recycling and composting practices.

The initiative with Atlanta-based Zero Waste Zone will measure the impact of perishable organic waste-management efforts, identify best practices and provide resources to restaurants. The collaboration is part of the Association's Conserve: Solutions for Sustainability initiative.

Elemental Impact, which administers the Zero Waste Zone program, announced the plan Wednesday to mark its second anniversary. Elemental Impact is a non-profit organization that aims to bring sustainable operating practices to the corporate community. It provides methods to reduce, recycle and compost waste in restaurants and other businesses that are easy to implement and make good business sense.

At the urging of the National Restaurant Association and many other groups, the U.S. House voted Feb. 18 to put a temporary brake on Department of Education regulations that would deny federal financial aid to students attending certain for-profit and career colleges.

As tax day approaches, make sure you're taking full advantage of important tax benefits Congress enacted for businesses in 2010.

The National Restaurant Association offers a member webinar Thurs., March 3, 2 p.m. ET, to help operators understand the provisions, including a 15-year tax depreciation schedule for restaurant improvements and new construction and expanded expensing for new equipment. Register here.

The National Restaurant Association today announced the recipients of the annual 2011 Kitchen InnovationsT (KI) Award. An independent panel of judges comprised of internationally recognized food facilities consultants, multi-unit executives and design experts selected KI Award recipients for their innovations that provide new solutions to restaurant and foodservice operators.

KI products will be showcased in the interactive Kitchen Innovations Pavilion area of NRA Show 2011 (May 21-24 in Chicago).

The 2011 Kitchen Innovation Award recipients are:

The National Restaurant Association today filed comments with the National Labor Relations Board asking the agency to withdraw a proposed mandate that would require U.S. businesses to post an 11" x 17" notice about the National Labor Relations Act.

More than 30 state restaurant associations joined the NRA in the comments urging the NLRB to withdraw its proposal. The NRA also joined with 78 other national organizations in filing comments as part of the Coalition for a Democratic Workplace. The CDW also opposes the NLRB poster mandate.

"In essence, the NLRB is seeking your help in organizing your workforce," said Angelo Amador, the Association's vice president of labor and workforce policy. "If the proposed rule became final, it would mandate that employers post a pro-union-biased notice of rights under the National Labor Relations Act in the workplace and includes some new penalties for noncompliance. It also creates a new source of 'drive-by' litigation for trial attorneys."

One of the NLRB's five Board members dissented from the December proposal because he said "the Board lacks the statutory authority to promulgate or enforce" the proposed workplace poster. Read the NLRB's notice of proposed rulemaking, the NRA/state restaurant association comments, and the CDW comments.

Restaurateurs and hospitality managers will find the best opportunities of the year to boost their bar programs at the National Restaurant Association's 2011 International Wine, Spirits & Beer Event (IWSB) - the industry's only event focused exclusively on growing restaurant and hospitality bar programs.

IWSB will feature opening sessions by industry-leading experts Kevin Zraly and Jim Koch, plus several focused education sessions on beverage alcohol trends, glassware, culinary cocktails, and more. 

"Beverage alcohol can be an important part of the overall restaurant experience, and a significant driver of restaurant sales - up to 27.5 percent at fine dining restaurants, according to National Restaurant Association research - so keeping up to date with the latest trends, techniques, equipment and strategies is crucial to success," said David Gilbert, Chief Operating Officer of the National Restaurant Association.

Restaurateurs are one step closer to helping repeal a new federal law that requires businesses to file many more 1099 tax forms with the IRS starting in 2012.

The enhanced 1099 information-reporting mandate has generated huge controversy since Congress passed it as part of the health care reform bill last March. Restaurateurs and other business owners say it will drown their operations in paperwork.

Yesterday, the House Ways & Means Committee voted to repeal the additional 1099 reporting -- a critical first step in bringing the measure to the House floor. The Senate voted last month to repeal the new 1099 mandate, but all eyes are on the House because all revenue bills need to start in the House. The House could take up the bill in March.

The mandate requires businesses to use 1099 forms to report all cash/check payments of $600 or more in a year to vendors, contractors and business partners who supply products and services. An NRA member who operates a small restaurant in Arvada, Colo., told the House Small Business Committee this month that he'll be tracking payments to 200 to 300 vendors if the measure takes effect.
 
There's one major sticking point: Since the 1099 mandate is expected to raise more than $20 billion, lawmakers need to agree whether and how to replace that money if they repeal the mandate. In a sign of the complicated debate on the issue, the House committee yesterday passed two measures: one without any offsetting revenues and a second that pays for 1099 repeal by modifying another part of the health care law.

The NRA continues to press Congress to repeal the new 1099 requirements as soon as possible.

Restaurateurs concerned about the impact of government on their businesses have a chance to talk to Congress about it: the National Restaurant Association's 25th Annual Public Affairs Conference, April 13 to 14, Washington, D.C.

Registration is now open for the event, which will draw hundreds of politically active restaurant owners to the nation's capital. Confirmed speakers include Rep. Kristi Noem (R-S.D.) and the Daily Caller's Tucker Carlson. The highlight of the event is a full day of meetings with lawmakers in state-delegation visits to Senators' and Representatives' offices on Capitol Hill.

Hot topics for this year's conference are expected to include merchant swipe fees, health care reform, immigration reform, regulatory overload, and rising commodities prices. March 15 is the deadline for hotel reservations and early-bird registration. Visit www.restaurant.org/paconference for details. 

The Riverhead, N.Y., campus of Suffolk County Community College is a textbook example of how culinary education is adapting to the locavore movement.

A short drive from a major farming area and one of the world's great incubators of restaurant trends, the school provides a preview of the sustainability IQ restaurateurs can expect from tomorrow's kitchen talent. The college kitchens recycle fryer oil, feature sinks with low-flow faucets and participate in school-wide conservation initiatives.

Recently, the culinary program began striving to boost students' appreciation of what's growing in their backyard. Opened three years ago, the facility is nestled between the North and South Forks of Long Island, the fish-shaped island east of Manhattan. The North Fork is known for vineyards, potatoes, strawberries, peaches and many vegetable-crisper staples. It also hosts commercial fishing, as does the ocean-abutting South Fork.

We always knew that our "America's Restaurants: Industry of Opportunity" video was great, but now we have it confirmed! The National Restaurant Association received the highly regarded Association TRENDS All-Media Contest award yesterday.

Premiered last year, the Industry of Opportunity video illustrates the abundant possibilities for advancement and ownership that restaurants provide. The video features personal stories of industry leaders and successful entrepreneurs sharing their journey to success in the restaurant business.

The contest judges evaluated entries based on appearance, arrangement, art quality, content, presentation, appropriateness and effectiveness. Three winners - gold, silver and bronze - were selected for each of 27 categories. The Industry of Opportunity video won gold in the best informational CD, video or podcast category.

The NRA and its members are sending Congress loud-and-clear messages to support the timely and accurate implementation of a law passed last year to make merchant "swipe fees" for debit cards more reasonable.

Like many restaurateurs, Henry Irving Dunnock rose from an entry-level kitchen job to own his own business. He started as a short-order cook, opened the Oriole Cafeteria chain in 1922 in Baltimore, and became president of the National Restaurant Association in 1938.

In those days, the NRA was based in Chicago, and the membership roster included restaurant titans J.W. Marriott and Vernon Stouffer.

Dunnock's story might have remained forgotten, but a Baltimore Sun column recently brought it to life. 

The NRA thanks Rep. Shelley Berkley (D-Nev.), who has reintroduced her bill to restore the tax deductibility of business-meal spending to 80 percent. Berkley represents the Las Vegas area. Her bill is H.R. 468.

The NRA encourages restaurateurs to help Rep. Berkley in building a strong cosponsor list. In a written statement recently submitted to the House Ways & Means Committee on tax reform overall, the NRA reiterated the importance of a higher deduction for business meal spending. 

"We applaud Rep. Berkley for reintroducing this bill," said Nevada Restaurant Association President and CEO Katherine Jacobi. "Our operators, especially those in the Las Vegas strip corridor, have experienced a direct correlation between restaurant traffic and the reduced meal tax deduction."

Chef Andre Rochat, owner, Andre's at Monte Carlo Resort and Alize at the Palms Hotel & Casino, Las Vegas, said "We saw a big drop in business lunch and dinner when they changed the deduction. Lawyers, real estate agents, insurance agents, and people who work from their home just don't come in anymore; we need to get the business back in our restaurants."

The recent announcement that travel and tourism spending has increased means good news for the restaurant industry. International travelers to the United States support more than 1 million travel and tourism jobs.

The Commerce Department recently announced that real travel and tourism spending rose 8 percent in the third quarter of 2010, the greatest quarterly increase since the first quarter of 2004.

The remarkable growth last year is excellent news for small and medium-sized businesses, said Francisco Sãnchez, undersecretary of commerce for international trade. Those businessess represent more than 80 percent of the travel and tourism industry.

Restaurant owners and executives are becoming increasingly diverse, according to new National Restaurant Association research.
 
Nearly 50 percent of restaurants are owned by women, and Hispanic restaurant ownership has increased 42 percent in the past five years, the research shows. Furthermore, restaurants employ more minority managers than any other industry.
 
"The restaurant industry provides opportunity for millions of people from all backgrounds," says Scott DeFife, the NRA's executive vice president for policy and government affairs. "More women and people from diverse backgrounds are becoming restaurant entrepreneurs or are pursuing lifelong, successful careers in the industry."

In continued efforts to align the organization to fully execute its multi-year strategic plan, the National Restaurant Association has named Hans Lindh as senior vice president of Membership and Industry Relations. In this new position, Lindh will oversee growing and improving membership outreach and the development of strategic partnerships.
 
"Hans has been a valuable member of our membership team over the past year as a special advisor, and has already greatly contributed to reaching some of our strategic goals," said James Balda, chief marketing and communications officer for the National Restaurant Association. "We are excited to have Hans join us full time to further enhance our member value propositions and partnerships with other industry organizations. As the restaurant industry is recovering from the economic downturn, it is more important than ever to offer value-added services that help our members boost profitability."

Lindh has been Special Advisor Strategic Sponsorship for the National Restaurant Association since January 2010. Before this, Lindh was vice president of Restaurant Industry North America at American Express, based in New York City. In this role, he was responsible for expanding the company's merchant business and trade relationships across the fullservice restaurant industry. Prior to that, he was American Express' head of Lodging & Restaurant Industries for Europe/Africa/Middle East, based in London.

2011 is shaping up to be a better year for restaurants than the past three, and that's especially true in the South Atlantic states, according to the National Restaurant Association's 2011 Restaurant Industry Forecast.

Of the nine U.S. Census regions, the South Atlantic is expected to post the strongest restaurant sales growth at 3.9 percent, totaling $93.9 billion among its eight states (Delaware, Florida, Georgia, Maryland, North Carolina, South Carolina, Virginia and West Virginia) and the District of Columbia.

Driving growth in those states - as for the industry as a whole - are solid advancements in employment, disposable income and population. Some states in the South Atlantic region were hit harder than many other states by the recession, and as a result, sales growth will accelerate faster in those areas as the economy recovers.

Restaurateurs are discovering they can conserve resources and cut some construction costs by using materials salvaged from other facilities.

By giving a second life to floors, ceilings, windows, cabinets or sinks stripped from establishments being torn down or renovated, restaurants are easing environmental strain in two ways. They use less virgin wood, metal, granite and other natural materials in construction or rebovation, and they divert bulky scrap from landfills.

National Restaurant Association member Starbucks has made reuse of building materials a cornerstone of its Shared Planet initiative. Where possible, it uses elements recovered from the area, such as gym floors or college campus seating, to give stores a local feel.

The National Restaurant Association welcomes Reps. Sam Farr (D-Calif.) and Jo Bonner (R-Ala.) as the newly announced co-chairs of the Congressional Travel & Tourism Caucus for the 112th Congress.

The National Restaurant Association is seeking innovative food and beverage products that have a significant impact on the restaurant and foodservice industry, and will recognize the "best in class" at its annual trade show this May.

An independent panel of expert judges from a cross-section of industry segments will select the recipients of the first annual Food & Beverage Product Innovations Awards, to be showcased at NRA Show 2011.

We're currently accepting applications from manufacturers who have made significant advancements and innovations in ingredients, preparation, processing, and packaging of food and beverage products launched in the U.S. marketplace between January 1, 2010 and May 21, 2011. The product may be designed for one, several or all operator segments.

A Colorado restaurateur today called on Congress to repeal a provision of 2010's health care reform law that threatens to overwhelm small businesses with paperwork by requiring them to report to the IRS and vendors transactions valued at more than $600 in a year with many vendors, contractor and business partners.

Valentine's Day is the second most popular holiday to dine out, and this year restaurants will welcome 70 million Americans who are looking to celebrate the day with a special meal.

New research from the National Restaurant Association shows that about one-third of consumers (31 percent) say they will dine out this February 14.

When it comes to factors involved in choosing where to dine out for Valentine's Day, most consumers (42 percent) say they pick their favorite restaurant or their companion's favorite restaurant for their special meal. Twenty-one percent select a restaurant with a romantic atmosphere.

The Association also surveyed member restaurants on what type of promotions they offer around Valentine's Day. Sixty-three percent said they will offer special menu items, and 45 percent said they will feature a prix fixe menu.

Read our news release for more details.

The National Restaurant Association today ran the second ad in our 2011 "America Works Here" campaign to reach U.S. lawmakers and opinion leaders with messages about the impact of America's restaurants on the U.S. economy.

Today's ad features NRA member Amy Igloi-Matsuno, Amy's on the Bay, Port Orchard, Wash. Print and digital ads run in today's Politico, and we run the print ad in The Hill newspaper Feb. 14.

See the ad, learn more about the campaign, and let us know if you're interested in helping to spread the word.

Sustainability is more than a trend - it's the new way of doing business in the restaurant industry. The National Restaurant Association announced Tuesday that it will work with Georgia-Pacific Professional to identify best practices in the areas of recycling and sustainability, both of which are key components of profitability for the restaurant industry.

"Georgia-Pacific Professional's commitment to supporting our 'Sustainability & Social Responsibility' imperative is instrumental in advancing the goals of the National Restaurant Association and the industry at large," said Dawn Sweeney, President and CEO of the National Restaurant Association and National Restaurant Association Educational Foundation.

Through an unrestricted research grant from Georgia-Pacific Professional, the Association will conduct an in-depth study of consumer perceptions related to restaurant operator recycling practices and the correlating effects on consumer traffic and restaurant sales.

The White House and some members of Congress say they are trying to get rid of red tape for the nation's businesses.

The White House launched a "Startup America" campaign with the goal of "knocking down barriers in the path of men and women in every corner of this country hoping to take a chance, follow a dream, and start a business," the President said. The initiative aims to get more venture capital to small businesses, and boost entrepreneurial activity generally, including in low-income areas.

This comes on the heels of the President's mid-January request to federal agencies to review regulations with the goal of getting rid of "absurd and unnecessary paperwork requirements that waste time and money ... and do more to account for -- and reduce -- the burdens regulations may place on small businesses. Small firms drive growth and create most new jobs in this country. We need to make sure nothing stands in their way," the President wrote in a Wall Street Journal column last month.

The National Restaurant Association has submitted a list of some key federal regulations that concern us to Rep. Darryl Issa (R-Calif.), who chairs the House Oversight and Government Reform Committee. He's asked hundreds of associations to give him examples of regulatory burdens their industries face.

In efforts to help its members effectively recruit, retain and manage employees, the National Restaurant Association has formed a strategic partnership with leading talent management solution provider PeopleMatter to bring innovative human resources solutions to its member restaurants.

"PeopleMatter's talent management tools are an easy-to-use, innovative, adaptable technology that will help our members find, hire, train and engage their workforces as never before," said David Gilbert, chief operating officer of the National Restaurant Association.

Association members will gain access to PeopleMatter's suite of SaaS-based (Software-as-a-Service), automated HR technology tools that will help hire, schedule and engage their workforces.

The Senate voted by an overwhelming 81 to 17 margin Feb. 2 in favor of repealing a controversial mandate that will force businesses to file many more 1099 forms than in the past.

The mandate, which takes effect next year, requires businesses to file 1099s with the Internal Revenue Service to report cash/check payments of more than $600 in a year to all contractors and vendors of products or services.

The expanded 1099 mandate was part of last year's health care reform law.

Although hundreds of House members are lined up in support of H.R. 4, a House version of the 1099-repeal bill, the House has not yet voted.

The National Restaurant Association strongly supports repeal of the expanded 1099 mandate, and will testify Feb. 9 before the House Small Business Committee on this issue. The Senate's overwhelming vote puts pressure on the House to vote too. All revenue measures must start in the House.

In his latest commentary, the National Restaurant Association's Chief Economist Bruce Grindy breaks down the latest jobs report.  Although the national unemployment rate fell sharply for the second consecutive month to 9.0 percent in January, employers only added 36,000 jobs.  What's behind these divergent numbers? 

For the second consecutive month, the job reports left many economists scratching their heads.  According to the Bureau of Labor Statistics (BLS), the national unemployment rate fell 0.4 percent for the second consecutive month, landing at 9.0 percent in January.  This represented the largest two-month drop in the jobless rate since 1958, when it fell from 7.1 percent to 6.2 percent in a two-month period. 
 
Normally this would be great news, and a sign that the economic recovery is really picking up steam.  A sharp decline in the unemployment rate would typically be accompanied by equally impressive gains in the number of jobs.  However, employers reported adding only 36,000 jobs in January and 121,000 jobs in December, certainly not enough to expect such a dramatic decline in the unemployment rate.  
 

The National Restaurant Association applauds the inclusion of four Association members on Fortune Magazine's list of  "100 Best Companies to Work For."

Fortune cited Marriott International, Kimpton Hotels & Restaurants, Darden Restaurants, and Starbucks Coffee Co. as among the "100 Best Companies" after conducting a broad, random survey of employees. The survey sought employees' attitudes about their company's management, their job satisfaction and camaraderie. The magazine surveyed employees who worked at companies at least seven years old with at least 1,000 U.S. employees.

The NRA members' representation on the list proves the restaurant and food service industry is the "industry of opportunity" for business, jobs, and careers, NRA President and CEO Dawn Sweeney said.

Restaurants are getting more traction in their sustainability efforts by reconsidering what they put on the floor.

Demand from the commercial sector has greatly expanded the array of eco-friendly floor coverings available today, says Chris Davis, CEO, World Floor Covering Association. Some options might surprise restaurateurs. No longer are green possibilities limited to natural materials like bamboo, stone or wood.

"Certain carpets are recyclable, certain carpet fibers are recyclable, and then there are carpets made from recycled materials," he says. "If you consider the overall lifespan of the product, vinyl is very green because of its durability."

Americans love to dine out. In fact, 88 percent of adults say they enjoy going to restaurants, so it makes sense for restaurant operators to pay close attention to consumer trends to build business and guest satisfaction.

The National Restaurant Association's 2011 Restaurant Industry Forecast provides insight into the mind of today's consumer and what they are looking for when dining out. Major trends we can expect to see this year include use of social media, and increasing interest in mobile foodservice (i.e. food trucks).

Facebook, mobile phone applications, and online review sites have become part of many Americans' everyday life. The Restaurant Industry Forecast shows that social media savvy consumers (frequent users of at least one social media tool, including Facebook, Twitter, mobile phone applications such as Foursquare, or online review sites such as Yelp) are more active in the restaurant community. These individuals dine out more frequently than the general public: 92 percent eat a meal at a sit-down restaurant at least once a month (compared with 84 percent of all adults) and 87 percent purchase a meal or snack quickservice restaurant or carry-out place at least once a month (versus 83 percent of all adults).

Last summer's financial-reform law made some important changes for merchants who accept debit and credit cards. One of the primary changes: Effective July 22, 2010, restaurateurs and other merchants can choose to discount prices for guests who pay by certain methods -- whether cash, check, debit card or credit card.

Certain restrictions apply. For example, the rules require merchants to clearly disclose the practice and offer the discount to all customers. And merchants cannot differentiate between bank issuers or card networks if they offer discounts for credit- or debit-card purchases. Read more about the law here.

Now that the law has been in effect a little over six months, the National Restaurant Association would like to understand more about restaurateurs' experience with it. Have you chosen to discount prices for guests who pay by a certain method? Have you had any trouble or challenges in communicating this to guests? Any feedback from your guests? Let us know. E-mail Denise Roach.

Watch the National Restaurant Association's Senior Vice President of Research & Knowledge Hudson Riehle summarize our newly released 2011 Restaurant Industry Forecast. Industry sales will turn positive after three years of nevative real sales growth, job creation will accelerate and restaurants will continue to be a major contributor to the nation's economic recovery.

 More information on the 2011 Restaurant Industry Forecast can be found in our Research & Insights section.

The restaurant industry will have its best year since before the economic downturn, with real sales growth turning positive and job growth accelerating, according to the National Restaurant Association's 2011 Restaurant Industry Forecast that was released Tuesday.

"As the national economy is slowly improving, the restaurant industry is climbing out of its most challenging period in decades to post positive real sales growth in 2011," said Hudson Riehle, senior vice president of the Research and Knowledge Group for the National Restaurant Association. "As in 2010, restaurant industry job growth is expected to outpace the national economy this year, emphasizing the importance of industry to the nation's economy."

Restaurant industry sales are expected to reach a record $604 billion this year, a 3.6 percent increase over 2010 sales, which equals 1.1 percent in real (inflation-adjusted) terms.

The Department of Homeland Security's Immigrations & Customs Enforcement office defended its worksite enforcement strategy at a recent Capitol Hill hearing.

At a Jan. 26 House Judiciary subpanel hearing on "ICE Worksite Enforcement: Up to the Job?" an ICE witness testified that the agency launched more than 2,700 investigations of employers for hiring unauthorized workers in FY 2010, more than twice the nearly 1,200 conducted in FY 2008. The federal government levied $7 million in fines against employers in FY 2010, up from about $675,000 in FY 2008. ICE first announced an aggressive approach to I-9 audits and workplace investigations in April 2009.

Subpanel chair Elton Gallegly (R-Calif.) was among those who said the Obama Administration isn't doing enough to deal with illegal workers. Gallegly and ICE both pressed for more employer use of E-Verify, the electronic verification system to check whether new hires are eligible to work in the United States.

E-Verify was piloted in 1997, went online in 2005, was made mandatory for many federal contractors and subcontractors in 2009, and is now mandatory for at least some businesses in 14 states. About 238,000 businesses use the system, the DHS reports. The NRA has formed an E-Verify task force to study problems with the system.