Wages
California – The state’s minimum wage for all employers will increase to $16/hr effective on Jan. 1, 2024 based on the completion of an annual review called for by state statute. The current statewide minimum wage is $15.50/hr for all employers but numerous cities and counties have passed local minimum wages that surpass the state minimum. More details.
Minneapolis, MN – The city council approved an ordinance that would guarantee a minimum wage for Uber and Lyft drivers within the city limits. If signed by the mayor, drivers would get at least $1.40 per mile and $0.51 per minute, or $5, whichever is greater. The rule would only apply for the portion of each ride within the city. It would also guarantee riders and drivers are provided receipts, detailing how much the rider was charged versus what the driver received. The mayor’s sign off on the ordinance is in doubt, however, after he sent a letter to the council urging them to take more time considering the policy. The 7-5 vote fell short of the necessary nine votes to override a mayoral veto. If enacted, Lyft has threatened to stop doing business in the city and Uber has promised to reduce service. In May, Minnesota’s Democratic Governor Tim Walz vetoed a bill that would have mandated higher pay and job security for Lyft and Uber drivers in the state. Walz said at the time that ride share drivers deserve fair wages and safe working conditions, but it wasn’t the right bill to achieve those goals. Seattle, New York City, and Washington state have passed similar laws. More details.
Paid Leave
Oregon – The state began taking applications for paid leave benefits under the state’s newly-funded program. Employees can take time off for childbirth, to care for themselves or a family member for medical reasons and request safe leave if they or their child experience sexual assault, domestic violence, harassment, or stalking. Benefits will begin being distributed Sept. 3. The state estimates between 14,000-21,000 claims will be filed the first month. More details.
Labor Policy
Labor Department – The agency announced that it will observe “Labor Rights Week” for the week prior to Labor Day (Aug. 28 – Sept. 1). The goal of the initiative is to “ensure dignity, equity, and justice” for all U.S. workers “regardless of where they’re from.” The department is partnering with the Mexican Embassy and its 52 consulates, and other federal agencies for this annual observance. The associated government agencies are planning events and initiatives – including workshops, community fairs, legal consultations, and media campaigns – to boost engagements from workers and employers alike. The hope is to educate workers about their fundamental rights as U.S. workers and inspire employers to “take action.” More details.
California – The Senate-passed “captive audience” legislation was not heard due to the fact that the Assembly Appropriations Committee abruptly canceled its meeting. This bill would prohibit an employer from subjecting, or threatening to subject, an employee to discharge, discrimination, retaliation, or any other adverse action because the employee declines to attend an employer-sponsored meeting or affirmatively declines to participate in, receive, or listen to any communications with the employer or its agents or representatives, the purpose of which is to communicate the employer’s opinion about religious or political matters. The bill would also require the Division of Labor Standards Enforcement, upon the filing of a complaint by an employee, to enforce the bill’s provisions. The bill would authorize any employee who the employer has subjected, or threatened to subject, to adverse action on account of the employee’s refusal to attend an employer-sponsored meeting to bring a civil action, as specified, and to petition for injunctive relief. More details.
Illinois – The governor signed pay transparency legislation that requires employers to include pay ranges and benefits in job postings, expanding the state’s Equal Pay Act of 2003. The legislation goes into effect Jan. 1, 2025. The law also requires that employers notify workers of promotion opportunities within 14 days after the job is posted externally. The new law further mandates that companies must first share a salary range for a position before asking candidates about their wage expectations for the role. More details.
Labor Activism
Starbucks – Cornell University announced it will not renew its contract to serve Starbucks on campus when its current contract ends in 2025, according to an email sent out to the student body on Aug. 16. This decision comes in the wake of a National Labor Relations Board (NLRB) ruling that declared Starbucks had illegally retaliated against pro-union employees in its three nearby Ithaca, New York locations. One violation involved denying leave for Cornell student employees during their academic breaks. The university has a long history of rebuffing corporations engaged in anti-union practices. In 2017 Cornell ended a merchandise agreement with Nike over its failure to legally comply with labor practices. The details of this new decision will take several months to sort through and the agreement won’t officially end until 2025, but the school claims that steps will be made towards the transition to a new coffee vendor in the coming months. More details.
Delivery
Wisconsin – A senate committee heard legislation that would regulate third-party delivery platforms. The bill would prohibit the platforms from listing restaurants on their apps without prior consent. It also provides a process for restaurants to de-list from the platforms and outlines fines and penalties for unlawful listing. The legislature is currently in recess but the bill will likely move when the legislature reconvenes in Sept. More details.
Sustainability
Illinois – The governor signed legislation amending the state’s Food, Drug and Cosmetic Act to allow restaurants or retailers to fill or refill consumer-owned containers with ready-made or bulk food as of Jan. 1, 2024. This adds to consumers being allowed to fill or refill their own containers with bulk food offerings. Take-home bags or cups must be maintained to be clean, sanitary, and durable. Food establishments must adhere to multiple health safety requirements to prevent cross-contamination. More details.
Corporate Social Responsibility
Denny’s – The company is launching a career development program for employees and aspiring restaurant industry professionals. Called the GAIN program, the initiative is part of a three-year commitment to provide education and career advancement opportunities for team members. GAIN includes four main areas: GED accreditation, college credit, life skills, and career pathways for high school students. The program is free for Denny’s employees and designed to be flexible. Employees also have access to life skills classes, including personal finance, technology, conflict management, and communications. Some of these classes may be eligible for transfer into college credit. More details.
Misc.
New York, NY – The mayor signed legislation permanently allowing outdoor dining structures with the caveat that they be removed during the winter months (Nov. 30 – March 31). The legislation was originally championed by the mayor. Restaurants will need to secure a license from the city to participate in the program, with fees based on location and square footage. Many restaurant owners testified during the hearing process that an annual removal and reconstruction process would be cost prohibitive and they would likely scrap outdoor dining altogether. More details.
Key Takeaways
- In the next few weeks, the Chicago City Council will likely begin marking up pending legislation to eliminate the tip credit. The issue was a campaign priority of the new mayor and he committed to passing an ordinance within his first 100 days in office. Nearly half of the city’s aldermen are co-sponsors; however, a legitimate industry opposition effort could significantly muddy the waters and disrupt the momentum of the proposal. If passed, there is a strong chance that the industry faces similar statewide legislation in Springfield next year. This will be a defining moment for the industry. The QSR segment’s fierce, aggressive opposition to the FAST Act in California is likely the leading reason that we haven’t seen more FAST Act copycats in other blue states. A similar, aggressive opposition effort in Chicago, win or lose, is imperative for both the pending bill and more likely the fights soon to come across the country. Regardless of their footprints in Chicago or Illinois, all table service brands should be vigorously engaged in Chicago.
- With Labor Day just around the corner, brands should consider some form of communication to their field teams and franchisees reminding them that the Labor Day window is often used as a backdrop to protests, strikes and other pro-labor activities. Internal protocols and “dos and don’ts” should be reviewed to ensure they are commensurate with what we have been seeing in the labor activism space for the last few years.
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.