Wages
Massachusetts – Proponents of a minimum wage increase have opted to pursue a minimum wage increase through the legislative process rather than a ballot initiative in 2024. Raise Up Massachusetts will support pending legislative efforts to increase the wage to $20/hr by 2027, and then link the wage to inflation going forward. The server wage would increase to $12/hr by 2027 and then also be linked to the CPI going forward. Recent polling data showed muted enthusiasm for such a significant increase. For context, the group has led successful ballot measures on paid sick leave and taxes on incomes over $1 million; however, they have never pursued a ballot measure in a presidential election year. More details.
Anaheim, CA – An Orange County judge rejected a lawsuit by a local UNITE HERE chapter challenging the city’s decision to hold a special election on a minimum wage for hotel workers on Oct. 3. The city delayed the original Sept. 12 date for administrative reasons frustrating the union’s efforts for a quick election. The proposed increase to $25/hr would also automatically adjust based on inflation going forward. The vote was in deference to an initiative supported by the same union that received enough signatures to qualify for the ballot. In addition to the wage piece, it would also limit the square footage hotel maids can clean to 4,000 square feet per day in 8 hours. If they are required to work more, they would be paid twice their hourly rate for their entire shift. It would also require all rooms to be cleaned each night that they are occupied. More details.
Minneapolis, MN – The city council officially proposed an ordinance that would guarantee a minimum wage for Uber and Lyft drivers within the city limits. If passed, 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. 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 rideshare 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
Colorado – In advance of the state’s recently-enacted paid family leave law that will launch Jan. 1, the agency overseeing the program launched a new portal where citizens can more easily contribute to their portable leave accounts. Over 100,000 Coloradans have enrolled since June 1. The state will begin enforcement of the program next spring. More details.
Oregon – On Aug. 14, the state will begin 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
NLRB – The National Labor Relations Board (NLRB) retooled its legal framework for assessing the legality of workplace rules and employer handbook policies, scrapping the employer-friendly standard set during the Trump administration. Under the new standard, employer policies will be ruled unlawful if an employee interprets them as reasonably restricting their rights, even if the rule could also be interpreted as not restricting workers’ rights. This analysis applies regardless of the employer’s intent, according to the ruling. More details.
NLRB – One of two federal lawsuits challenging the NLRB General Counsel’s positioning on captive audience meetings was adjudicated this week. The case, brought by the Associated Builders & Contractors of Michigan, challenged the legality of a recent agency directive stating that companies’ mandatory, anti-union meetings violate federal labor law. The judge in the case found that the group lacked standing to sue because it couldn’t show that it suffered a sufficient concrete injury or threat based on General Counsel Jennifer Abruzzo’s memo on “captive audience meetings.” A separate but similar case filed in Texas is still pending. More details.
Delivery
New York, NY – Initial arguments were heard this week on a consequential lawsuit by food delivery platforms DoorDash, Grubhub, and Uber Eats challenging New York City’s new minimum wage law for app food delivery workers. All three companies sued the city, maintaining that the law would hurt delivery workers more than help them. DoorDash and Grubhub filed a suit jointly to the Supreme Court of the State of New York, while Uber (the parent company of Uber Eats) filed its lawsuit separately. The law, which was announced last month, would increase pay for app delivery workers to $17.96/hr before tips on July 12, and raise pay again to nearly $20/hr in April 2025. Pay would be adjusted annually for inflation going forward. The DoorDash and Grubhub lawsuit alleges that the new regulation is legally flawed because it targets only meal-delivery services and not grocery-delivery services. Another sticking point is language that would compel the companies to pay workers for hours that they are available to take orders while logged into the delivery apps, even if they don’t actually make any deliveries. More details.
DoorDash – 13 workers filed complaints against the company in the last week alleging wage theft and the cases are now being investigated by the city Department of Consumer and Worker Protection (DCWP). The investigation falls under a 2022 local law that guarantees app-based food delivery companies pay workers weekly. The complaints cover alleged missed pay mostly between April and May of this year, and collectively amount to nearly $22,000 in lost wages. The activist group coordinating the effort, the Workers Justice Project, is filing more than 50 additional complaints totaling an additional $55,500, all of them regarding wage theft allegations against DoorDash. More details.
Misc.
New York, NY – The city council passed legislation permanently allowing outdoor dining structures with the caveat that they be removed during the winter months (Nov. 30 – March 31). The legislation was championed by the mayor. Many restaurant owners testified that an annual removal and reconstruction process would be cost prohibitive and they would likely scrap outdoor dining altogether. More details.
Key Takeaway
- Employers need to brace themselves for a deluge of new employee-friendly rules and regulations coming from the Labor Department, the NLRB and the Equal Employment Opportunity Commission (EEOC) in the next few weeks. New regulations on overtime, joint employer, misclassification, and health and safety standards are but a few of the proposals on tap over the next month or two. Brands need to be diligent in their oversight of this space as the rules of the road with regard to the workplace are changing dramatically and quickly.
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.