Wages
Labor Department – The Wage and Hour Division issued a guidance document reminding employers of their obligations when taking advantage of legal provisions that allow them to pay workers with disabilities less than the federal minimum wage. Per the statement, “the U.S. The Department of Labor will not tolerate wage theft or an employer’s failure to provide the important services and information required under Section 511 to workers with disabilities.” More details.
Austin, TX – The city council voted to raise the minimum wage for city employees (not private businesses) to $22/hr. The resolution directs the city manager to come up with a feasible plan as soon as possible to meet the threshold either this year or next. The current minimum wage is $15/hr. More details.
Walmart – The country’s largest private employer is increasing the average hourly wage of its 36,000-plus Walmart and Sam’s Club pharmacy technicians to more than $20/hr and will offer more frequent raises. Walmart also said that it plans to hire about 5,000 additional pharmacy technicians this year. The increase, effective this week, is the second pay increase during the past year for Walmart pharmacy workers. The company noted that the new investments work in tandem with its commitment to pay for eligible associates to become certified pharmacy technicians through numerous internal benefit programs and those certified pharmacy technicians can make an additional $3/hr. Walmart covers the costs for getting certified to be a pharmacy technician – from career diplomas, on-the-job training and test prep, to paying the certification exam fee. More details.
Labor Policy
California – The U.S. Supreme Court reversed California courts in a ruling that narrows the scope of the Private Attorneys General Act (PAGA). The 2004 state law creates a private right to action that allows employees to act as agents of state by filing claims of labor law violations. California’s PAGA was designed by the California legislature to offer financial incentives to private individuals to enforce state labor laws by recovering certain civil penalties. Aggrieved employees can seek recovery of civil penalties for Labor Code violations they suffered, in addition to penalties for all Labor Code violations by the employer in a representative action, as long as the employee suffered by at least one violation. Ultimately, the Court found that because the plaintiff – a Viking Cruise employee – had agreed to arbitration when signing her employee agreement, the Federal Arbitration Act (FAA) superseded California law. More details.
California – In a related PAGA story, Californians for Fair Pay and Accountability this week submitted over 638,000 signatures for a ballot initiative that would repeal the Private Attorneys General Act (PAGA), which allows employees to sue employers and collect a share of monetary penalties for state labor law violations. The campaign intended to place the initiative on the Nov. ballot later this year, but in May, they announced that they would submit signatures for verification after the suggested deadline and target the 2024 ballot. More details.
Massachusetts – The state supreme court invalidated a ballot question scheduled to go before the voters this fall that would mandate the continued classification of Uber and Lyft drivers as independent contractors, bringing an abrupt end to what was shaping up to be the most fraught and expensive ballot battle in the state. The court took issue with a provision of the measure that said drivers were “not an employee or agent” of a gig company because it appeared to be an attempt to shield Uber and Lyft from liability in the case of an accident or a crime. That provision was unrelated to the rest of the proposal, which was about the benefits drivers would or would not receive as independent contractors, according to the seven-judge panel. Therefore, the ballot measure contained two “substantively distinct policy decisions” which is a violation of state law. Uber and Lyft had already spent $17.8 million in the campaign. More details.
Home Depot – An administrative law judge ruled to dismiss a case filed by a former Home Depot staff member who said the company banned employees from wearing Black Lives Matter emblems on their uniforms. Lawyers for the unidentified former employee argued that he was wearing the slogans as part of the employees’ right to concerted activity. Concerted activity is defined as an activity that is taken to improve working conditions. However, the judge ruled that the plaintiffs did not sufficiently reason that argument. More details.
Labor Activism
Apple – Workers at a Towson, Maryland Apple store began casting ballots on whether to form the company’s first potential union at one of its U.S. outposts. Voting started earlier this week and the National Labor Relations Board is scheduled to start tallying on Saturday. Workers at the store are looking to form an independent union called the Apple Coalition of Organized Retail Employees, or “AppleCORE” for short, and have received assistance from the International Association of Machinists and Aerospace Workers. More details.
Seven Stars – Workers at three locations of the popular Rhode Island bakery have begun the process of unionization, citing a need for better benefits and pay. Nearly 50 employees signed letters to management asking to be voluntarily recognized as a union, specifically part of the United Food and Commercial Workers Local Union 328. The group includes baristas, counter staff, keyholders, and re-stockers from the stores on Point Street, Hope Street, and Broadway. Management has not made a decision on whether they will recognize the union or not. According to employees, if the request for recognition is denied then employees will petition for an election. More details.
Starbucks – To date, 296 stores in 38 states are in the process of holding a union election. 156 units have voted to unionize, 23 having rejected the union, and eight outcomes still undecided. More details.
Foundations – Prominent left of center foundations have joined with labor unions to form the Southern Workers Opportunity Fund, an entity that has pledged to raise $20 million and committed to steer those funds to organizing and advocacy campaigns in the South. Labor Innovations for the 21st Century Fund (LIFT), a 10-year-old philanthropy-labor collaboration that will manage the effort and has so far has secured commitments totaling $14 million from foundations that have contributed to LIFT over the course of its 10-year history, including the Ford and Kellogg foundations. The fund also includes contributions from the AFL-CIO, the Service Employees International Union, the Babcock, Surdna, Tara Health, and Robert Wood Johnson foundations. Decisions on which nonprofits will receive money will be made by a steering committee consisting of foundation and union leaders. More details.
Delivery
Illinois – The governor signed legislation, the Fair Food and Retail Delivery Act, which prohibits third-party delivery apps from posting menus, logos, or any other intellectual property of restaurants without their express written consent. If they do, restaurants can sue for damages or $5,000, whichever is greater. The law takes effect Jan. 1, 2023. More details.
Data Privacy
New Jersey – Data privacy legislation modeled on the Virginia and Utah laws advanced out of a senate committee. It is unclear how much momentum the bill currently has, and the legislature is scheduled to adjourn for the summer recess in a few weeks, returning in the fall. More details.
Sustainability
U.S. Senate – Federal legislation advanced out of a senate committee prohibiting interstate commerce of food packaging that contains intentionally added PFAS, which are defined as a “perfluoroalkyl or polyfluoroalkyl substance that is man-made with at least one fully fluorinated carbon atom.” These are also known as “forever chemicals.” The Keep Food Containers Safe from PFAS Act, was passed with a bipartisan 13-9 vote and now advances to the U.S. Senate floor. If passed, it will likely be conferenced with an FDA bill in the U.S. House. More details.
New Jersey – A senate committee discussed Extended Producer Responsibility (EPR) legislation that was recently introduced. While no votes were taken, the bill sponsor has pledged to further study the issue over the summer and may proceed with committee action in the fall. More details.
Key Takeaways
- House Republicans this week welcomed a recently-launched alternative to the U.S Chamber of Commerce to a Republican Study Committee (RSC) lunch. The new group, the American Free Enterprise Chamber of Commerce, is positioning itself as a conservative alternative to the U.S. Chamber. As the RSC Chairman stated in his welcoming remarks, Republicans have grown “increasingly frustrated with the U.S. Chamber of Commerce for supporting woke policies and enriching China.” The launch of the group is the latest data point that companies will continue to face reputational pressures from both sides of the political divide. Brands need to have a well-informed and well-thought out public affairs program. In this environment, company alignment is critical.
- The SCOTUS ruling regarding the California Private Attorneys General Act (PAGA) is a significant step in the business community’s efforts to ultimately repeal the law. However, many judicial decisions ultimately reveal legislative remedies for both supporters and opponents. In this case, while the decision is very important and being celebrated, it could be a pyrrhic victory, since many legal experts are opining that the decision left open the possibility for the state legislature to amend the law. Regardless, brands are encouraged to review any arbitration agreements they may have with their employees.
Podcast
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