Wages
Hawaii – An initial hearing was delayed until Feb. 9 on legislation to eliminate the tip credit by 2028. Hawaii has a minimal tip credit and their current minimum wage is $14/hr with a server wage of $12.75/hr. More details.
Illinois – One Fair Wage held a rally outside the statehouse in Springfield where labor-friendly legislators announced they would be filing legislation to eliminate the tip credit. While no legislation has been officially filed, it could be introduced any day. Last year, the city of Chicago passed similar legislation that would phase out the tip credit over the next five years. More details.
Virginia – Legislation to incrementally increase the minimum wage to $15/hr by 2026 advanced out of the house and is headed to the senate. If the legislation were ultimately to get to his desk, the governor recently indicated that he is unlikely to support the measure saying, “market forces are working.” More details.
Paid Leave
New Jersey – Legislation expanding the state’s existing paid leave program advanced out of an assembly committee and is headed to the floor next week. Currently, the law applies to employers with 30 or more workers. Under this legislation, the threshold would drop to 20 immediately upon the signing of the law, drop to ten employees a year after that, and then down to 5 employees another year later. The bill leaves untouched current provisions that employees must have worked at least 20 weeks, earning no less than $283 weekly, or earn at least $14,200 in the first four of the five quarters preceding their benefits claim. More details.
Labor Policy
California – The author of last year’s FAST Act (AB 257) has introduced additional legislation allowing for some exemptions from the new law. AB 610 would carve out eight new exemptions from the definition of “fast food restaurant,” including “restaurants in airports, hotels, event centers, theme parks, museums, and certain other locations.” Current law exempts only bakeries operating in a prescribed manner and in operation since September 15, 2023, and certain restaurants in grocery establishments. Some unions, notably UNITE HERE, that were not party to the compromise struck last year were critical of the negotiated outcome applying to their members. No hearing on the bill has been scheduled to date. More details.
Hawaii – Captive audience legislation advanced out of a senate committee. If passed, the bill would make it unlawful for an employer to discharge, discipline, or otherwise penalize or threaten any adverse employment action against an employee because the employee declines to attend or participate in an employer-sponsored meeting that communicates the opinion of the employer about a political matter. It would also be unlawful to discipline a worker that declines to receive or listen to a communication from the employer that communicates the opinion of the employer about political matters. A companion bill has yet to be filed in the house. More details.
Virginia – Captive audience legislation unanimously advanced out of a senate committee. Similar to legislation under consideration in other states, it prohibits an employer from retaliating against an employee because such employee declines to attend or participate in an employer-sponsored meeting or receive an employer’s communications conveying an opinion about political matters. The bill further permits an employee alleging a violation of the bill’s provisions to bring an action in civil court within 90 days after such violation occurs for appropriate relief, including injunctive relief, reinstatement, compensation for lost wages, benefits, and other remuneration, interest, and reasonable attorney fees and costs. More details.
Labor Policy
Starbucks – This week in separate cases, a number of former Starbucks workers were reinstated, including Jan Brisback the high-profile labor organizer who helped launch the national organizing effort. Judges found in multiple instances that the company violated federal labor law by illegally firing workers who had participated in union organizing activities. The cases in New York and Colorado are the latest in a series of similar decisions finding that the company is retaliating against workers. The judges are calling for the workers to be reinstated with back pay. More details.
Labor Activism
Jose Andrés – Last week, employees at The Bazaar, Andrés’ upscale eatery in Washington, DC presented managers with a petition of support seeking to bargain collectively for better pay, health care, and more transparent tip-sharing policies. The group Unite Here Local 25 is seeking to represent would include roughly 140 workers, including servers, food runners, and bussers. As he has with other restaurants in his organization, Andrés has chosen to voluntarily recognize the union. Organizers said publicly that this was a crucial test for Andrés, given his close relationship with President Biden and the history of the building where The Bazaar is located. The restaurant sits two blocks from the White House and is located in the Waldorf Astoria hotel – formerly the Trump International Hotel – in the Old Post Office Building owned by the federal government and leased to the hotelier. More details.
California Fast Food Workers Union – The Service Employees International Union (SEIU) announced that it is forming a new union specifically for fast-food workers within the state. The SEIU hailed the California Fast Food Workers Union as the first of its type within the U.S. Not only does the union make progress toward their goal of sectoral bargaining, it will likely provide the two members – “fast food advocates” – on the soon to be formed Fast Food Council as outlined in the FAST Act, enacted last year. More details.
Alcohol
Colorado – Legislation that would repeal the current sunset of existing statutes allowing licensed businesses to continue selling alcoholic beverages for delivery or takeout advanced out of an additional senate committee. The current law, initially enacted during the pandemic to help sustain struggling restaurants, is set to expire in 2025. More details.
Misc.
Georgia – A powerful Republican state senator has filed the Georgia Restaurant Franchise Relations Act. The language is similar to other so-called Franchisee Bill of Rights, including the California Franchise Relations Act. It seeks to put conditions upon franchisors seeking to terminate a franchise, among other provisions. The senate bill currently has 10 cosponsors. There is no house companion bill. More details.
Key Takeaways
- Georgia is the latest red trifecta state where a franchisee with a well-placed relationship has put the industry on the defensive. Franchisors have had to fend off similar efforts in Arkansas, Alabama, and Florida. The franchise community needs to appreciate that the model will continue to face pressure from both sides of the aisle, and that ongoing education and engagement is important.
- The New York Times released an expose this week examining child labor within corporate supply chains’ U.S. operations. The piece documented children (often migrants) performing dangerous, unlawful tasks often staffed by subcontractors. This follows reporting by the Associated Press and others on efforts to reduce child labor protections as well as a reliance on prison labor in supply chains. Brands should appreciate that scrutiny is ramping up – both by the press but also by regulators. Expect that this will continue to be an area of focus.
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.