COVID-19
Philadelphia, PA – Next week, city officials will likely announce the implementation of a COVID-19 vaccine mandate at all indoor dining establishments, requiring both patrons and employees to show proof of vaccination. The proposed mandate would bring the city closer in line with cities like New York and San Francisco that require proof of vaccination for entry at restaurants and indoor events. If implemented, it could take effect later this month. More details.
New York, NY – The mayor announced major expansions to the “Key to NYC” program, the first-in-nation vaccination mandate for workers and customers at indoor dining, fitness, entertainment, and performance venues. Starting Dec. 14, the program will require children aged 5-11 to show proof of one vaccination dose for those venues. Starting Dec. 27, New Yorkers aged 12 and older will be required to show proof of two vaccine doses, instead of one, except for those who have received the Johnson & Johnson vaccine. The mayor also announced a first-in-the-nation vaccine mandate for all private sector workers. The mandate which will take effect on Dec. 27 will apply to roughly 184,000 businesses. A local lawyer has announced his intention to file a class action lawsuit on behalf of the city’s unvaccinated workers. More details.
Wages
Labor Department – The Restaurant Law Center, an affiliate of the National Restaurant Association, along with the Texas Restaurant Association, filed a lawsuit challenging the Labor Department’s new 80/20 rule. In the lawsuit, the Restaurant Law Center and Texas Restaurant Association argue that the agency has overstepped its authority and is “attempting to re-write the statute via regulation.” More details.
California – A proposed ballot initiative, entitled the Living Wage Act of 2022, was filed with the state attorney general’s office. The organizer, a wealthy entrepreneur and political activist, said he will finance the signature-gathering process to qualify the ballot initiative for the Nov. 2022 election. The measure would gradually increase the state minimum wage starting in 2023, ultimately rising to $18/hr for all-sized businesses by 2026. The current minimum wage is due to reach $15/hr for large businesses in Jan., and for all businesses by 2023. More details.
Florida – Legislation was introduced to reestablish a subminimum training wage via a ballot initiative in 2022. If passed, the training wage would likely go into effect in 2024 and likely to be somewhere below $15/hr but above $10/hr. More details.
Howard County, MD – The county council passed legislation raising the county’s minimum wage by more than $4/hr by 2025 which will be the highest level in the state. The minimum hourly wage will rise from $11.75/hr to $16/hr by Jan.1, 2025. The move is expected to affect about 40,000 workers in the county, according to the council. The server wage for tipped employees will remain frozen at $6.08/hr. More details.
Paid Leave
Walmart – In response to the Omicron variant, the nation’s largest retailer is extending its COVID-19 leave policy for associates through March 31, 2022, as well as reintroducing its vaccine incentive for frontline associates to provide $150 after an associate becomes fully vaccinated. The COVID-19 leave policy, which was implemented in March 2020 during the initial surge of the pandemic, provides up to two weeks of paid time off if an associate contracts COVID-19, if a facility is part of a mandated quarantine or if an associate is required to quarantine by a health care provider, government agency or Walmart. More details.
Labor Policy
Joint Employer – In a court filing this week, the International Franchise Association and the U.S. Chamber of Commerce asked for a federal court’s permission to become a third party in a lawsuit filed by the Service Employees International Union (SEIU) against the National Labor Relations Board (NLRB). The original suit seeks to overturn the Trump-era NLRB’s 2020 redefinition of joint employer. They argued that at least two of the five Board members should have recused themselves due to conflicts of interest. If IFA and the Chamber are granted third party status in the matter they could now press for the recusal of the former SEIU lawyers who now serve as NLRB directors, David Pouty and Gwynne Wilcox. More details.
Labor Activism
Starbucks – Employees at a Buffalo-area Starbucks store have voted to form a union, making it the only one of the nearly 9,000 company-owned stores in the United States to be organized. The result, announced on Thursday by the National Labor Relations Board, represents a major challenge to the labor model at the giant coffee retailer, which has argued that its workers enjoy some of the best wages and benefits in the retail and restaurant industry and don’t need a union. The union was leading in an election at another store, but by a margin smaller than the number of ballots the union was seeking to disqualify through challenges. The challenges must be resolved by the labor agency’s regional director in the coming days or weeks before there is a result. Workers at a third store voted against unionizing, according to the board, though a union lawyer contended that some ballots had been delivered to the agency and not counted. The election occurred through mail ballots that were due Wednesday. In November, workers at three more Buffalo-area stores filed the paperwork needed to hold union elections, but it was unclear when votes would take place for those outlets. Starbucks and Workers United, the union vying to represent the workers, have five business days to submit their objections to the election results, the labor board said. If objections are filed, there could be a series of hearings and appeals that delay certification of the votes. If no objections are filed, the results could be certified as early as Dec. 16. More details.
Misc.
McDonald’s – McDonald’s announced that it plans to invest $250 million over the next five years to help new franchisees in the U.S. finance restaurants as part of a global effort to increase the diversity of the company’s base of owner-operators. It is the first global recruitment effort to get new franchisees into the system in company history. It is the latest in a broad set of efforts to improve the Chicago-based company’s record on diversity at a time when it is under fire for allegedly discriminating against Black workers, franchisees, and vendors. The company said it plans to reduce the upfront equity requirements for qualified new franchisees. The $250 million will be used to provide prospective new franchisees with alternative means of financing to reduce the barrier to entry for qualified candidates. The company said that this could help diversify its franchisee base. More details.
Key Takeaways
- The
Starbucks’ headlines this week served as a wake-up call to restaurant operators
and executives that haven’t been closely following the spike in labor
organizing since the beginning of the pandemic. Everyone should be alarmed (if
you weren’t already). But a company’s responses should be focused and measured.
While a poor decision by an individual manager anywhere in the country could
create an issue in a single store, the uptick in organizing is largely centered
in a handful of metro areas across the country. Focused, positive employee
relations programs in those hotspots are critical to inoculating brands.
- Historically, high-profile events like the successful unionization campaign by Starbucks workers in Buffalo can spur additional activism. Unions large and small will look to seize on any perceived momentum from the vote. This could be looked at as the proverbial first shot in what could be a protracted engagement with a newly energized labor movement.
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.