Wages
Arizona – The house passed a concurrent resolution placing a constitutional question before the voters in Nov. that, if passed, would not only preempt localities from making their own minimum wage laws but also repeal a 2016 law that allowed localities to supersede state wage laws. Specifically, the legislation asks voters to declare that the regulation of employee benefits (including wages) “is of statewide concern.’’ It also says that not just wages but also other compensation, such as paid leave, meal breaks, and rest periods are “not subject to further regulation by a city, town, or other political subdivision of this state.’’ That language would be amended into the state constitution. If passed, the measure would immediately supersede minimum wages already enacted by voters in Tucson and Flagstaff that are higher than the state rate of $12.80/hr. It would also preclude voters in other communities from enacting their own standards. More details.
Virginia – A senate committee voted to kill three proposed repeals of a planned minimum wage increase, thwarting a major Republican legislative priority. Under current Virginia law, the minimum wage is set to rise each year until it hits $15/hr by 2026. After that, it will be adjusted annually to compensate for inflation. The bill would have eliminated those planned increases, freezing the minimum wage at its current rate, $11/hr. A similar bill was defeated in the senate earlier this session. More details.
Washington, DC – Proponents of Initiative 82 submitted 34,000 petition signatures to the city. The city requires 26,000 signatures spread across different districts in order for a measure to qualify for the June ballot. Initiative 82 would eliminate the tip credit in the city by 2027, gradually increasing from the current $5.05/hr to more than $15/hr by 2027. The rate will escalate each year thereafter based on inflation. Although the city council overturned a nearly identical measure passed by the voters in 2018, several of those members are no longer on the council, and were replaced by members who support tip credit elimination. More details.
Labor Policy
Arizona – Legislation to preempt localities from enacting restrictive scheduling mandates was voted down on its third reading in the house. If passed, it would have barred local governments from requiring companies to “alter, adjust, or in any way regulate an employee’s labor productivity during working hours.’’ It is unclear if the bill can, or will, be revived. More details.
Labor Activism
Amazon – The Retail, Wholesale and Department Store Union (RWDSU) filed unfair labor practice charges against Amazon in its second bid to represent workers at an Alabama fulfillment facility. The union alleges that Amazon removed pro-union literature from non-work areas, created a new rule that limits workers’ time in the facility before and after their shift to 30 minutes, and forced workers to attend anti-union meetings. Last April, this same location became the first large Amazon facility in the U.S. to hold a union vote. While workers there voted decisively against forming a union, the RWDSU went on to successfully challenge the vote. The NLRB ruled the company had illegally interfered with the vote and called for a rerun of the election to be held. That vote is currently underway and scheduled to conclude on March 28. More details.
Apple – Employees at several stores across the country are embarking on unionization campaigns. At least two U.S. Apple retail locations have begun the process while an additional six other stores are experiencing active organizing efforts. The workers’ demands include better conditions, higher wages, and paid sick leave and they admittedly have been encouraged to pursue unionization because of the high-profile efforts at other major corporate retail franchises like Starbucks and Amazon. More details.
Starbucks – The company suffered a legal setback this week. The NLRB ruled that each Starbucks location is its own bargaining unit and that the precedent applies nationwide. The company has continued to argue that locations share workers and the appropriate bargaining unit should be all stores in a metro area. The Board’s previous ruling applied narrowly to Buffalo. Additionally, Sens. Sanders, Gillibrand, and Kaine all participated in Starbucks Workers United events this week, expressing their support as did a number of state-level lawmakers.
Alcohol
Delaware – The governor signed legislation that makes permanent alcohol for take-out, curbside pick-up, drive thru, and includes outdoor eating areas. More details.
Virginia – The senate advanced house-passed legislation extending cocktails to-go until July 1, 2024. The bill now moves onto the governor for his likely signature. More details.
Delivery
Wisconsin – The assembly passed bipartisan legislation that would make it easier for restaurants to stop delivery services from adding them to their apps without their permission. The bill would require those delivery services to remove a restaurant from its digital network within three days if the restaurant requests it. As introduced, the measure would have required restaurant owners to agree to be listed on the apps and to ensure the menus listed are accurate. But after some amendments, the bill was watered down and as passed, would only allow for restaurants to opt out of being included on the apps. Additionally, a provision that would have required the delivery services to disclose commissions, delivery fees, and promotional fees was also removed. The bill was approved on a voice vote with no debate and now heads to the senate. More details.
Sustainability
McDonald’s – Billionaire investor Carl Icahn started a proxy fight with McDonald’s over the company’s animal welfare policies, most notably the treatment of pregnant pigs by suppliers. He is advocating for two board seats and has nominated Leslie Samuelrich and Maisie Ganzler for election at the company’s 2022 annual shareholder meeting. In recent years, Icahn has pushed McDonald’s for better treatment of pigs, specifically calling for the end of an industry practice that uses crates to house pregnant pigs so they can’t move. More details.
Misc.
Florida – Legislation targeting “woke ” corporate training and critical race theory in Florida schools continues to advance and cleared numerous procedural hurdles on the house floor. A final vote is imminent. Companion legislation in the senate is likely to advance soon. Opponents of the bill, which is a priority of the governor, say the bill’s true goal is to stifle potentially difficult classroom and workspace conversation of race, gender identity, and privilege. The legislation is highly likely to become law. More details.
Key Takeaways
- Other brands should take note of Carl Icahn’s activism this week for a few reasons. If successful, he could quickly become a very effective ally of the animal welfare community against a number of brands. Companies should be mindful that they could easily become a target in the future. Additionally, if the effort were ultimately successful, the change in purchasing policy by the company could fundamentally impact the entire market and potentially cause higher prices.
- The Maryland EPR legislation earned the support of the manufacturing community this week as well as the environmental community. While a number of details still need to be worked out, the major stakeholders have agreed to a legislative framework and the legislation is now very likely to move quickly through the process. Companies need to ensure any issues are addressed immediately. The final product in Maryland will be viewed as model legislation moving forward and failure to address issues in the Maryland legislation will create problems not only in Maryland but also in future jurisdictions that adopt that model.
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.