COVID
New York – Businesses have until Sept. 30 to pay an interest assessment surcharge of $27.60 per employee. The money will go to the state labor department. The agency will use the funds to pay the interest on approximately $8 billion that the state owes the U.S. Treasury. The state borrowed a total of $9.9 billion at a 2.27 percent interest rate in order to pay unemployment benefits to the thousands of people put out of work by COVID-19 and its subsequent shutdowns. The business community is mobilizing to fight back against the mandate. More details.
Wages
Biden Administration – The announcement this week that the government would forgive up to $20,000 in federal student loans per borrower has federal minimum wage connotations. In another effort to embed a $15/hr standard into federal rules, one proposed change in the repayment plan formula ties non-discretionary income to approximately a $15/hr wage level. Prior to this announcement (under current rules), a borrower with income of less than 150 percent of the federal poverty level qualifies for a $0 monthly loan payment. In 2022, that equates to roughly $20,385 before tax for a single individual or about $9.80/hr for a full-time worker. President Biden proposed raising that threshold to 225 percent of the federal poverty level about $30,577.50 of annual income, or $14.70/hr. When finalized, the policy would guarantee that “no borrower earning under 225 percent of the federal poverty level – about the annual equivalent of a $15/hr minimum wage for a single borrower will have to make a monthly payment,” according to the U.S. Department of Education. More details.
Paid Leave
SHRM – A Society for Human Resource Professionals (SHRM) survey of 3,000 employers showed a substantial drop-off over the past two years (35 percent down from 53 percent) of companies offering paid parental leave beyond what is required by the law, as well as a major falloff in overall offerings (44 percent to 27 percent). The drop is occurring at a time when there is renewed debate around parental leave in the context of discussions around abortion. More details.
Labor Policy
U.S. Congress – Top Republicans on the Senate and House labor committees urged the National Labor Relations Board (NLRB) internal watchdog to open an investigation into meddling allegations raised recently by Starbucks. Starbucks accused staff in one of the agency’s regional offices of improperly aiding union organizers during an election in Overland Park, Kan., and raised the possibility of similar misconduct in other parts of the country. The letter, signed by Sens. Richard Burr (R-N.C.) and Mike Braun (R-Ind.) and Reps. Virginia Foxx (R-N.C.) and Rick Allen (R-Ga.), asked Inspector General David Berry to “immediately investigate these allegations” and shield the NLRB staffer who brought the matter to Starbucks from retaliation. The four also asked the IG’s office to “conduct an audit to review whether the NLRB has been “neutral and objective” in administering Starbucks unionization votes more broadly. More details.
California – The FAST Act is expected to be debated on the senate floor next week which is the final week of legislative session. A number of amendments are under consideration. Industry groups have rejected many of them as insufficient and continue to oppose the legislation. All brands and operators should work with trade association partners to weigh in with legislators. More details.
Florida – A federal judge heard a new legal challenge seeking to block enforcement of Florida’s contentious bill restricting what Gov. Ron DeSantis calls “woke” workplace trainings about race. The second lawsuit filed against the so-called “Stop WOKE Act” targets how the law affects private businesses as opposed to public schools, claiming that it is causing “dramatic chilling effects on free speech” and will hamper diversity, equity, and inclusion trainings. Chief U.S. District Judge Mark Walker did not offer any substantial hints on how he would rule during the hearing, yet he had clear reservations about how companies could lead those trainings while remaining objective, as called for under the new state law. More details.
Starbucks – The NLRB filed a complaint this week alleging the company illegally withheld wages and benefits from thousands of unionized baristas. The NLRB has been seeking back payments and benefits for unionized workers since May and also trying to require CEO Howard Schultz to read a statement to workers about their union rights. The board said Starbucks’s denial of benefits and raises to union workers was intended to discourage union organizing. More than 230 locations have voted to join the Starbucks Workers United union since late 2021, driving a surge in unionization nationwide. More details.
Walmart – The company announced that effective immediately health-care plans will cover abortion “when there is a health risk to the mother, rape or incest, ectopic pregnancy, miscarriage, or lack of fetal viability.” Also, employees and their family members who are insured through Walmart will have travel costs covered if they cannot access a legal abortion within 100 miles of their location. The company is also launching a center for fertility services and increasing financial support for adoptions from $5,000 to $20,000. More details.
Labor Activism
Chipotle – Workers at a location in Lansing, MI voted to affiliate with the Teamsters, establishing the first union at the fast food chain nationwide. The vote which took place in the restaurant parking lot was 11-3 with two contested ballots. Workers cited wages and under scheduling as the impetus for their campaign. The union claims that some workers at the store make around $13/hr, but aren’t getting enough hours. The workers who have been organizing since late 2021 cited a wave of union victories at Starbucks as an inspiration for their campaign. More details.
Knead Pizza – Former employees of a now-shuttered restaurant in Harrisburg are filing unfair labor practice charges with the NLRB. Knead Pizza announced it was closing down its slice shop in Midtown Harrisburg, as well as its original location inside Broad Street Market. The decision to close permanently came after a group of workers requested that the company recognize their union. Nine out of 11 employees had signed the petition to join UNITE HERE Local 274. The workers allege the owners unlawfully closed down Knead Pizza after the employees presented their union petition. They also accuse the restaurant of retaliating against union activities by denying employees half-time pay for COVID-19-related store closures. More details.
REI – Workers at a Berkeley, CA store voted 56 to 38 in favor of joining the United Food and Commercial Workers (UFCW) union in a mail-in election becoming the second store in the chain to organize. REI, which is structured as a customer cooperative, has more than 170 stores around the country, many of them in urban centers where union support is high. Given the success of the first two campaigns, the company may well face organizing efforts at other stores in the near future. More details.
Trader Joe’s – Workers at a store in Boulder, CO, who were scheduled to vote in a unionization election this week, withdrew their petition citing coercion and intimidation by the Local 7 of the United Food & Commercial Workers union (UFCW). That local has been previously accused of heavy-handed tactics in other recent organizing campaigns. It is likely that the union refiles a petition for election, this time under the worker-led Trader Joe’s United. More details.
Key Takeaways
- With this week’s success at Chipotle, the unions have now penetrated a second major industry brand. This was an important step for the labor community in many respects, not the least of which is the introduction of the Teamsters into the mix. With deep pockets and a history of highly-effective organizing, the Teamsters could quickly escalate organizing activity in the industry if so motivated. Brands should monitor their activities closely.
- Industry efforts have forced the SEIU to support amendments to the FAST Act. The general consensus, however, is that the amendments do not go far enough, and in some cases, may actually make the legislation more problematic. The SEIU will seek to peddle the narrative that the amendments represent a compromised / negotiated bill. It will be critical for the industry to not allow that narrative to take hold. Operators need to work through industry groups to target key swing votes. The outcome in California next week (and others states beyond) will depend upon it.
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.