COVID-19
Vaccine Mandate – The Occupational Safety and Health Administration (OSHA) has formally withdrawn its emergency temporary standard (ETS), which mandated that large companies require their employees to receive COVID-19 vaccinations. The withdrawal of the standard comes after the U.S. Supreme Court voted 6-3 to maintain the current stay and opined that OSHA did not have the authority to issue the mandate. While rescinding the standard, OSHA noted that “notwithstanding the withdrawal of the vaccination and testing, OSHA continues to strongly encourage the vaccination of workers against the continuing dangers posed by COVID-19 in the workplace.” More details.
Minneapolis, MN – A hearing was held in a lawsuit brought by seven bar and restaurant owners opposing the city’s new vaccine-or-testing requirements. The attorney representing the business owners argued that the new rules exceeded the mayor’s emergency powers and that the city already has measures in place, such as a mask mandate, to curb the spread of the coronavirus. The new requirements, he said, had cost his clients business and they “will never get these monies back.” The city attorney argued that the mayor has the power to issue regulations to protect public safety, health and welfare during emergencies. He noted that the city council has so far allowed those rules to remain in place. The hearing comes five days after owners of the seven establishments – Smack Shack, the Gay 90s, Sneaky Pete’s, Wild Greg’s Saloon, Urban Forage, Jimmy John’s and Bunkers Music Bar and Grill – filed a lawsuit against the city and the mayor, seeking to stop enforcement of the new rule that customers must show proof of vaccination or a negative COVID-19 test. More details.
Wages
Hawaii – Two senate committees advanced legislation raising the minimum wage to $18/hr by 2026, a significant jump from its current $10.10/hr. The bill now heads to the senate floor for consideration. In a related development, legislation was introduced to eliminate the tip credit but it has not seen committee action to date. More details.
Paid Leave
Federal – The White House is considering a watered-down paid leave proposal which would be much more narrowly tailored than the 12 weeks of paid family and medical leave for all workers Biden proposed in his original social spending package, Build Back Better. This version would be more likely to provide all workers with two weeks of Covid-related sick leave at full pay and 12 weeks of Covid-related family and medical leave at two-thirds pay. The program would be short-lived, with an expiration date likely later this year. More details.
California – The governor and legislative leaders announced they reached an agreement on a framework to once again require employers to provide paid COVID-19 supplemental sick leave. Under the plan, workers at businesses with 26 or more employees who test positive for the virus or have to care for a family member with COVID-19 would get up to two weeks of supplemental leave. It would be retroactive and cover COVID-19 absences from Jan. 1. It will also provide up to 40 hours of additional paid sick leave, and another 40 hours if a worker or a family member tests positive. The details will likely be finalized through the budget process and will likely include restoring business tax credits. More details.
Washington – The state’s new paid leave program, enacted in part as a response to the pandemic, has nearly exhausted its funds and is facing insolvency. Under the law, eligible workers receive 12 weeks paid time off for the birth or adoption of a child, or for a serious medical condition (or caring for a family member with a serious medical condition), or 16 weeks for a combination of both. An additional two weeks may be used if there is a serious health condition with a pregnancy. While over 70 percent of the premiums are paid by the employee, the program has been so popular that the governor is requesting additional funds from the legislature. More details.
Labor Policy
California – The state assembly will vote early next week on final passage of AB 257, the Fast-Food Accountability and Standards (FAST) Recovery Act. Among other provisions, it would create a Fast-Food Sector Council that would establish wage and benefit rates and other workplace standards for quick service restaurants. This concept – often referred to as sectoral bargaining – is popular among labor advocates. More details.
Mississippi – A senate committee gave a “do pass” recommendation to a house-passed bill creating a state “actionable right” for any employee paid less for equal work based on gender. Federal law already provides such a right, but taking an employer to task in federal court is a more difficult, and often more costly for aggrieved employees. Mississippi is the last state in the nation without an equal pay provision in state law. The bill overwhelmingly passed the house and is expected to easily pass the senate. More details.
New York, NY – The mayor signed a new pay transparency law mandating that any employer trying to fill a position based in New York City will have to advertise the minimum and maximum salary. The range for the listed maximum and minimum salary would extend from the lowest salary to the highest salary that the employer in good faith believes it would pay for the advertised job, promotion, or transfer. There are eight states and a handful of cities that have pay transparency laws but the new law, which takes effect in May, is considered one of the stricter ordinances in the country. More details.
Alcohol
Delaware – Legislation is on its way to the governor’s desk that would make permanent alcohol for take-out, curbside pick-up, drive thru, or in outdoor eating areas. The governor’s signature is expected. More details.
Delivery
New York, NY – The city announced it will begin enforcement of a new law making it mandatory for third-party food delivery apps to obtain a Department of Consumer and Worker Protection (DCWP) license in order to operate in the city. In addition to requiring a license, the law requires platforms to inform workers how much each customer tips for delivery, and their total pay and tips for the previous day. The law also sets caps on the fees that the apps can charge restaurants and requires platforms to have a written agreement with a restaurant to list it. This provision is also expected to result in workers having better access to restaurant bathrooms when they pick up orders. If an app lists the phone number of the restaurant, it must include the restaurant’s direct number. More details.
Labor Activism
Tudor’s Biscuit World – Workers at a West Virginia franchise of the regional biscuit chain voted 7-5 to reject efforts to form a union. It would have been the first of its kind in the state. Immediately after the vote, union organizers announced that they had filed unfair labor practice charges against the company. United Food & Commercial Workers (UFCW) Local 400 alleges that Tudor’s Biscuit World fired employees of the Elkview franchise and used union-busting techniques to discourage others from voting in favor of a collective bargaining unit. And as such, the vote should be thrown out. More details.
REI – Employees at a Manhattan REI store filed a union election petition this week. Employees at the SoHo store asked the NLRB for an election involving around 115 employees. They are seeking to affiliate with the Retail, Wholesale and Department Store Union (RWDSU) (the same union that has been coordinating an organizing campaign targeting Amazon warehouse workers). More details.
Diversity Equity & Inclusion
Human Rights Campaign – Nine restaurant companies including, Chipotle Mexican Grill, Darden, McDonald’s, Papa John’s, Shake Shack, Starbucks, Sweetgreen, Wendy’s, and White Castle received a 100 percent rating on the organization’s Corporate Equity Index. The index is used to score and rate corporations on how inclusive and equitable they are for the LGBTQ+ community. The aforementioned brands were dubbed, “best places to work for LGBTQ and equality.” More details.
Key Takeaways
- As
federal infrastructure dollars begin to be distributed, the Biden
Administration is pushing for massive, new investments in workforce training,
recruitment, and job placement for skilled workers to rebuild America’s
infrastructure. Currently, there aren’t enough tradesmen and craftsmen to
execute the trillions of dollars of construction work included in the
Investment and Infrastructure Jobs Act (IIJA). The Administration’s efforts
could further exacerbate the current labor challenges for entry-level
employers. Brands should be aware of developments in this space, as well as the
potential impacts to the labor market.
- The legislative and regulatory environment regarding alcohol is heating up. The industry is working hard to protect COVID-era gains around cocktails to-go and home delivery. Meanwhile, many “control” states are considering privatizing their distribution systems, which may impact how operators purchase and take delivery of alcoholic beverages from suppliers. It is an important issue area that will need an increased level of brand engagement this year.
Podcast
Check out our Working Lunch podcast each week that includes further analysis into these legislative issues, policy, politics and much more. You can find Working Lunch on the Nation’s Restaurant News website, SoundCloud, iTunes and Spotify.