Wages
Illinois – The 2025 state minimum wage rate is increasing to $15/hr for regular workers, $9/hr for tipped workers, and $13/hr for workers under the age of 18 who work less than 650 hours per year. This is the seventh and final increase to the state’s minimum wage as prescribed by legislation signed by the governor in 2019. It established a schedule of increases culminating with the $15/hr wage rate by 2025. More details.
Michigan – The stalemate continues over bipartisan legislation introduced during the lame duck session that would moderate pending increases in the minimum wage and freeze the current tip credit structure. The state supreme court had previously ruled that the state’s minimum wage will be raised from $10.33/hr to $12.38/hr starting on Feb. 21, 2025 and annual increases in the wage will be tied to inflation. The new legislation would incrementally increase the wage to $15/hr by 2029 but freeze the current tip credit at 38 percent. This week, House Republicans continued their boycott of the chamber over frustration due to the lack of action on the bill. The lame duck session is scheduled to conclude this week and changes for passage are diminishing rapidly. More details.
Paid Leave
U.S. Congress – The bipartisan House Paid Family Leave Working Group, a coalition of lawmakers seeking innovative solutions to support comprehensive paid family leave, released two discussion drafts that will likely form the basis of legislation in the next Congress. The first proposal establishes a competitive grant program run by the Labor Department as an incentive for states to establish their own paid family leave programs that utilize a public-private partnership model. The second discussion draft, the Interstate Paid Leave Action Network Act (I-PLAN Act), is intended to coordinate and harmonize paid leave benefits across states to make it easier for people to access paid family leave and for states to connect with one another. The sponsors are seeking public feedback until Jan. 10, 2025. More details.
Starbucks – The company announced it has doubled its paid parental leave policy for U.S. baristas working 20 hours or more weekly, now offering 18 weeks of paid leave for birthing parents and 12 weeks of paid leave for non-birthing parents, almost double the leave the average working mother receives after giving birth in the U.S., with paid and unpaid leave combined. The new parental leave policies start in March 2025. Starbucks claims it now has the best parental leave policy throughout the entire retail sector. The announcement coincides with a return to the bargaining table with Starbucks Workers United for the last time this calendar year. More details.
Labor Policy
NLRB – Last week, the U.S. Senate blocked Lauren McFerran’s renomination to the National Labor Relations Board (NLRB), opening the door for Republican control of the board starting next year under President-elect Trump. As a result, this week President Biden designated Gwynne A. Wilcox as Chair of the board. She is the first Black woman to chair the agency and the first Black woman to serve on the Board since its inception in 1935. However, her term will be short. President-elect Trump is expected to name Marvin Kaplan, the sole Republican board member at present, to that role shortly after being sworn in on Jan. 20. More details.
Labor Activism
Amazon – Members of the Teamsters union went on strike at Amazon this week in a labor action set to spread to six facilities in four states. The first location was a facility in Queens, New York then an hour later they were joined by workers in Skokie, Illinois (a Chicago suburb). The other locations set to be struck later Thursday morning include ones in Atlanta, San Francisco, Victorville, and the City of Industry, California. Amazon said that its operations will not be affected by any of the union’s actions. Although the Teamsters claim to represent 7,000 Amazon workers nationwide, that accounts for less than 1 percent of the company’s US workforce. More details.
Disney – The company agreed to pay $233 million to settle a class action lawsuit filed by Disneyland workers who allege that the company failed to meet local minimum wage requirements. The dispute emanates from a local ballot measure (Measure L) passed in 2018 mandating that “resort workers” employed by companies receiving local tax incentives were to be granted a higher minimum wage. The company contended that based on the wording of the measure their workers were exempt. The company sued but ultimately lost a protracted legal battle. However, the company did, in fact, adjust wages during this time period but in adherence to their local collective bargaining contracts and not the city standard. The preliminary settlement announced this week accounts for back pay with interest that is owed to more than 50,000 current and former employees of its Anaheim theme parks. A California state judge is scheduled to review the settlement on Jan. 17. If approved, each employee will receive a notice informing them of how much they will receive. More details.
Starbucks – Starbucks Workers United announced it had voted to authorize a strike ahead of the year’s last scheduled bargaining session, and subsequently announced strikes in three cities over the holidays. The union said 98 percent of its baristas voted to authorize a strike, and that it intends to expand strikes at locations in 2025 unless progress is made in negotiations. The union contends that the company has yet to bring a “comprehensive economic package to the bargaining table,” and other unfair labor practices remain unresolved. In a statement, Starbucks refuted the union’s account and said the company remains committed to reaching a final framework agreement. More details.
Misc.
FTC – The Federal Trade Commission (FTC) finalized a rule that requires businesses to disclose the total price, including fees, for any live event tickets or short-term lodging they offer consumers. The ruling is meant to prevent bait-and-switch pricing that omits mandatory fees and additional charges from advertised prices, which the agency called “deceptive.” The FTC proposed the rule in Oct. 2023 and the final rule was approved in a 4-to-1 vote and will go into effect within 120 days. The rule does not prohibit businesses from adding fees, nor does it limit the amount of fees they can charge. Of note, the lodging industry is supporting its own language on the issue which is included in the stalled funding bill in Congress. Fees commonly charged in restaurants (most notably service fees for large parties) are not covered by the new policy and are still permissible. More details.
FTC – The agency fined Grubhub $25 million for its deceptive trade practices. The investigation, in concert with the Illinois Attorney General, found that Grubhub engaged in illegal practices by misleading customers about the cost of delivery and the benefits of a Grubhub subscription, deceived drivers about the amount of money they could make, and listed restaurants on its app without their knowledge or consent and in some cases over their objections. In a statement, Grubhub denied wrongdoing. It said the company is committed to openness in its practices and said it cooperated with the FTC in its multiyear review. In addition to the settlement payment, Grubhub said it will make changes to its platform to make it easier for diners to understand fees and to better explain what delivery drivers could earn. The settlement also requires Grubhub to immediately remove from its listing any unaffiliated restaurants. The FTC said it doesn’t yet know how many consumers may benefit from the payout. After court approval of the agreement, the agency will put together a remediation plan. More details.
Key Takeaways
- The Starbucks Workers Union escalated its campaign this week. Union members voted to authorize a strike and workers will walk out of the first three locations today. The strike could escalate over the holidays with dozens of stores facing potential walk outs and shutdowns. Sysco Corporation is facing a similar situation by the Teamsters in Houston. Brands should take note of these developments and should be on the lookout for strike and protest activity adjacent to their locations. Other companies’ workers, who have never interacted with organizers, may find themselves, often easily identifiable in their work uniforms, walking past picket lines and being handed flyers and information by organizers.