Wages
New York City – The city council approved a new legislative package that will require third-party app companies, like Instacart and Shipt, to pay grocery delivery workers a minimum of $21.44/hr to match the increase food delivery workers received in April. The bills, five in total, will also mandate that the companies provide an option in their apps to give at least a 10 percent tip, before or at the same time an order is placed, and that the companies must pay workers within seven days of the end of a pay period. More details.
Portland, ME – The city council delayed their second vote to send a proposal to the Nov. ballot that calls for an increase in the city’s minimum wage from the current rate of $15.50/hr to $20/hr by 2028. The council has already voted once on sending the proposal to voters but has now put off the final vote until Aug. 11. Technical streaming problems due to overcrowding of the chambers over an unrelated, contentious issue forced the postponement of the entire meeting. More details.
Washington, DC – The city council voted 7-5 to remove language from the mayor’s 2026 budget proposal that would have repealed Initiative 26, a ballot measure passed by the voters in 2022 that gradually eliminates the tip credit by 2027. In early June, the council voted 8-4 to “pause” the increase scheduled for July 1 that would have raised the cash wage for tipped employees from $10/hr to $12/hr. That increase is now scheduled for Oct. The mayor and the city council chairman are still committed to forging a compromise on the issue and the budget process is far from over. More details.
Labor Policy
NLRB – The Acting General Counsel of the National Labor Relations Board (NLRB) issued a new memorandum declaring that any party that surreptitiously records collective bargaining negotiations has violated the National Labor Relations Act (NLRA). Though the memorandum, which is addressed to the agency’s regional directors, is not legally binding, it clarifies a new enforcement priority for the NLRB. Employers who suspect they’ve been recorded during collective bargaining sessions may now have recourse through the agency. Invoking precedent that prohibits parties from insisting that they should be allowed to bring a court reporter to labor negotiations during impasses, the General Counsel concluded that the logical extension of that precedent is that secret recordings of negotiations are also impermissible. More details.
NLRB – The Trump administration nominated Scott Mayer, chief labor counsel at the Boeing Co., and James Murphy, a former career NLRB lawyer, to fill the two open Republican seats on the National Labor Relations Board. Mayer has spent decades in corporate legal departments and management-side law firms. Beyond Boeing, he’s worked at InterContinental Hotels Group, MGM Resorts International, and Aramark, as well as Morgan, Lewis & Bockius LLP and Blank Rome LLP. Murphy first worked at the NLRB as a student law clerk in 1974 and has served on the staffs of dozens of board members throughout the years. He was most recently Board Chair Marvin Kaplan’s chief counsel. Although board members serve five-year terms, that time is pegged to the seat a member occupies rather than when they begin their terms. Trump tapped Mayer to fill the seat most recently held by former Chair Lauren McFerran, which has a term that expires in December 2029. Murphy would fill the seat last held by former Chair John Ring, which runs out in December 2027. Their nominations will now move to the U.S. Senate for consideration and if confirmed, the Board would now have a functioning quorum as well as a 3-1 Republican majority. More details.
OSHA – The Occupational Health and Safety Administration (OSHA) issued updated guidance on the penalty structure in Section 7 of the Occupational Safety and Health Act. The new policy, detailed in the Penalties and Debt Collection section of OSHA’s Field Operations Manual, expands the penalty reductions for small employers to include businesses that employ up to 25 employees. The aim is to make it easier for small businesses to invest in resources for hazard abatement and ensure future compliance. The new policy includes a 15 percent penalty reduction for employers who take immediate steps to address or correct a hazard and expands the penalty reduction for employers without a history of serious, willful, repeat, or failure-to-abate violations. Employers will be eligible for a 20 percent penalty reduction if they have never had an inspection by federal OSHA or an OSHA State Plan, or if they have had an inspection in the past 5 years that uncovered no serious, willful, or failure-to-abate violations. The new policy was effective July 14, 2025, and covers inspections initiated prior to that date that have not yet resulted in a penalty. The previous penalty structure will apply to any penalties imposed prior to that date. More details.
U.S. Senate – The Senate Committee on Health, Education, Labor and Pensions (HELP) heard the nominations of Crystal Carey to be General Counsel of the National Labor Relations Board (NLRB) and Brittany Panuccio to be a Member of the Equal Employment Opportunity Commission (EEOC). Carey is a management-side labor and employment lawyer with Morgan-Lewis and has argued numerous cases before the NLRB. Of particular note was Sen. Josh Hawley’s (R-MO) aggressive questioning of Carey and his concern over Carey’s potential refusal to enforce NLRB precedent that she disagrees with, particularly the board’s 2024 decision outlawing mandatory captive audience meetings. Carey has publicly criticized that ruling, arguing it went too far in limiting employers’ ability to communicate with workers. Panuccio is an attorney in the Department of Justice in Florida and if confirmed, the EEOC would regain a quorum with a 2-1 Republican majority and enable the agency to fully embark on its agenda, including the Trump administration’s anti-DEI efforts. The committee announced its intention to hold confirmation votes next week on a number of nominees including Panuccio but Carey was omitted from the list for now, likely as a result of her contentious confrontation with Sen. Hawley. More details.
U.S. Senate – The Senate Committee on Health, Education, Labor and Pensions (HELP) held a hearing on legislation aimed at extending portable benefits to independent contractors. The Unlocking Benefits for Independent Workers Act would allow independent contractors to receive access to workplace benefits such as retirement plans and health insurance access. The Modern Worker Empowerment Act proposes a standard federal employment test to determine whether an individual is an employee or independent contractor. And lastly, the Independent Retirement Fairness Act, would empower independent workers to participate in retirement benefits plans like single pension IRA plans and pooled employer plans. Labor groups are generally opposed to portable benefits plans, which they say are inferior to traditional employer-provided plans, even as Democratic-led states advance legislation aimed at shoring up benefits for gig workers. Democrats on the committee, outside of Sen. Sanders, were not reflexively opposed to many of the reforms discussed and while no votes were taken, it is likely that the package will ultimately receive some level of Democratic support. More details.
U.S. House – Joint employer legislation was introduced that would lock in the current, narrower joint employer definition that requires “direct and immediate control” over essential terms of employment. This would replace the shifting regulatory standards that have bounced back and forth for more than a decade, depending on which party controls the National Labor Relations Board (NLRB). Under a narrow joint employer standard, franchisees are considered independent operators responsible for hiring, firing, scheduling and supervising their own employees. But under broader definitions – like the one the NLRB attempted to implement in 2023 – franchisors could be held liable simply for having the potential to influence those decisions, even if they never exercised that power. A federal judge struck down the rule in March 2024, calling it overly expansive and difficult to enforce. Despite that legal win for franchise businesses, the concern remains that future administrations could revive similar language. The bill is designed to prevent that by codifying the narrower standard into federal law. More details.
Minneapolis, MN – Draft language of a proposed revision to the paid sick time law was released. The new proposal parrots the recommendation of the Workplace Advisory Committee – a panel mostly made up of labor community representatives and their allies – that has been advocating for mandatory “know your rights” training for all workers covered under the city’s paid sick leave law. The new proposed language states: “For each employee covered by an employer’s official or unofficial policy or practice of not providing or refusing to allow the use of sick and safe time in violation of section 40.240(a), two hundred fifty ($250.00) dollars payable to the employee. In the event an employer is found to have engaged in an official or unofficial policy or practice of not providing or refusing to allow the accrual or use of sick and safe time in violation of section 40.240(a), the city may also require the employer to coordinate a one-hour training, approved by the director, covering employee rights protected under this chapter. The employer must compensate any employee who attends the training at a rate at least equivalent to the employee’s base rate.” The sponsor of the measure met with industry representatives this week and made it clear training is only an option for a settlement agreement, not a requirement. She stated she would not support any mandatory employer paid training language, and that that language would not have solid legal standing. A hearing is scheduled for July 30. More details.
Food Policy
FDA – The U.S. Food and Drug Administration approved a new blue color additive derived from the fruit of the gardenia, a flowering evergreen. The color is approved for use in sports drinks, flavored or enhanced non-carbonated water, fruit drinks, ready-to-drink teas as well as hard and soft candy. Though soy, a potential allergen, is used to make the additive, the agency is still considering whether it has to be declared as a potential allergen. More details.
IFDA – The International Dairy Foods Association (IDFA) announced that dozens of U.S. ice cream producers are planning to remove artificial colors from their products by 2028. The producers, which together represent more than 90 percent of ice cream sold in the U.S., are the latest food companies to take voluntary steps to remove dyes since HHS Secretary Robert F. Kennedy Jr. in April said the U.S. aimed to phase out many synthetic dyes from the country’s food supply. The 40 ice cream companies will remove Red 3, Red 40, Green 3, Blue 1, Blue 2, Yellow 5, and Yellow 6 from their retail products, excluding non-dairy products. The formal announcement was made at an event in the U.S. Department of Agriculture headquarters with Kennedy, FDA Commissioner Marty Makary, and Agriculture Secretary Brooke Rollins. The IDFA said artificial dyes are safe, but that ice cream makers are taking the step in part to avoid disruption to sales from state efforts to phase out dyes from school foods and other food dye bans. More details.
Corporate Social Responsibility
OBBB – The multi-trillion dollar reconciliation bill that President Trump signed into law on July 4, will change, among other things, how the U.S. tax code treats charitable donations for corporations. Under the new law, corporations may now claim deductions for charitable contributions only if the aggregate of such contributions exceed 1 percent of the corporation’s taxable income. The deduction is eligible against only those dollars that exceed the 1 percent threshold. The 10 percent limit on charitable deductions for corporations will continue to apply. Disallowed deductions from the 1 percent floor and 10 percent limit can be carried forward five years. But if aggregated corporate contributions do not exceed 10 percent of taxable income, there can be no carryforward of contributions disallowed due to the 1 percent floor. This has ramifications for all corporate giving but in the restaurant industry in particular, the provision, as written, may disincentivize some companies’ food donation programs because it may be much more cost effective to simply dispose of excess food instead of donating it as the write-off for cost of goods sold may end up being more generous. More details.
Key Takeaways
- President Trump announced that Coca-Cola would be transitioning from high fructose syrup to “real cane sugar” in its flagship beverage. The company indicated that it was not ready to make a public announcement but clearly, the brand has been in communication with the Administration officials discussing ingredients. Steak-and-Shake was quick to laud and amplify the announcement as part of its “MAHA journey.” The Administration is actively searching for potential wins, and voluntary efforts by brands, in this space.
- New research published this month by the National Bureau of Economic Research found that the increase to a $20/hr minimum wage in April of 2024 caused employment in the state’s fast-food sector to decline by 2.7 percent. That translates to a loss of 18,000 jobs. Additionally, the vast majority of California’s fast-food workers, 89 percent, have had their work hours reduced and another 35 percent have seen their supplemental benefits reduced. The data is consistent with two other recent studies – first from Stanford University last summer and one from the Bureau of Labor Statistics last month. The Stanford study was originally attacked by Gov. Newsom’s office as well as media outlets that carried the story. But by last fall, Biden Administration data supported the Stanford study and in Nov., voters rejected yet another wage increase proposal. The Governor’s office has been largely silent on the BLA and NBER research – a testimony to the veracity of the studies. The industry needs to aggregate and fully leverage this new research.