Minimum Wage
Hawaii – A conference committee will convene late this afternoon to work out differences in minimum wage legislation passed by both chambers. The senate recently overwhelmingly advanced legislation increasing the minimum wage to $18/hr by 2026. The bill also phases out the tip credit, reducing it to 35 cents/hr beginning Oct. 1, 2022, and fully eliminating it by Jan. 1, 2026. Hawaii’s current minimum wage is $10.10/hr.
Paid Leave
Business Coalition – Over 350 companies announced their support for a national paid leave program saying that the policy is essential for U.S. workers, and should apply to all people no matter what type of job they have. Specifically, they endorsed a provision in the Build Back Better legislation guaranteeing that all Americans would be able to take paid time off from work if they or a family member became sick or had a new child. While some industry suppliers were part of the announcement, no restaurant companies were included. More details.
Labor Policy
Mississippi – The governor signed legislation that would make the state the 50th and last to enact an equal pay law. The new law mandates businesses with at least five employees must pay equal wages to women and men who work full-time jobs that require “equal skill, education, effort and responsibility” and that are done “under similar working conditions.” Several exceptions are allowed, including seniority, merit, quantity or quality of production and “any factor other than sex,” including salary history and whether there was competition to hire an employee. More details.
McDonald’s – The U.S. Court of Appeals for the D.C. Circuit rejected Fight For $15’s challenge of a 2019 settlement between the company and individual workers. For context, in 2014, the National Labor Relations Board (NLRB) brought a case against McDonald’s and its many franchisees, asserting that the company and its franchisees were in fact, joint employers. Under federal labor law, the NLRB can settle claims against businesses despite objections of unions or workers involved in a case. This particular case was settled in 2019 but Fight For $15 sued, arguing that the settlement was inadequate because it didn’t resolve the key question of whether McDonald’s could be held liable for unlawful labor practices by its franchisees. They also argued that a member of the NLRB who took part in approving the settlement had a conflict of interest and should’ve been recused. The court ruled that those claims weren’t properly presented. More details.
Labor Activism
Chipotle – Shareholders of Chipotle Mexican Grill will be asked to vote on two proposals that call for more transparency on the company’s efforts to address diversity, equity and inclusion. One, known as Proposal 6, calls for a third-party racial-equity audit to analyze how the 3,000-unit fast-casual chain is addressing civil rights issues and their impact on the business. A second, known as Proposal 7, calls for the chain to publish qualitative data on workforce composition, retention and promotion rates of employees by gender, race and ethnicity. Chipotle’s annual shareholder meeting is May 18. More details.
Starbucks – To date, there are now 41 units that have voted to unionize, four that rejected the union, and two additional elections under review. The campaign is causing increased attention by the investment community and the company’s stock has slid 12% since Schultz took the reins on April 4. The S&P 500 fell just 2% in the same time period. More details.
Alcohol
South Carolina – A senate committee advanced legislation to permit home delivery of alcohol and extend curbside purchasing of alcoholic beverages. The legislation now heads to the senate floor where similar legislation died last year. More details.
Sustainability
Hawaii – A conference committee was appointed to work out differences in legislation that has passed both chambers that would establish an extended producer responsibility program in the state. The legislation would require certain producers of consumer goods to register with the state health department and pay an annual fee based on the amount of packaging volume the covered producer places on the market each calendar year. Additionally, the bills provide for the deposit of fees into a special extended producer responsibility fund and some of those monies be allocated toward the creation of a report that assesses the resources needed to reduce the volume of packaging waste sent to landfills.
Los Angeles, CA – The city council voted to begin the process of eliminating single-use plastics in all city facilities. The council subsequently voted to begin a study to examine potentially banning single-use plastics in all private businesses in the city as early as next year. More details.
Key Takeaway
- All corporate brands should be closely watching the ongoing war on Disney by the Florida governor. The pushback on the company has been warmly received in conservative media circles and continues to be a flashpoint for activists. The Wall Street Journal has been documenting polling that continues to show growing animosity in the Republican base toward big business and corporate entities. The relationship between the business community and its traditional political allies is becoming increasingly strained and brands need to continually assess if and how they engage in the political process.
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 Restaurant Business online website, SoundCloud, iTunes and Spotify.