Wages
California – Legislation imposing a $25/hr minimum wage by 2025 for healthcare workers passed out of the senate and is on its way to the assembly. After 2025, the bill ties the wage to inflation. The original legislation called for a $25/hr minimum wage by July of 2024 but the sponsor met stiff opposition and rolled back the effective date as well as some other minor changes. Chances for passage in the assembly are high. More details.
Louisiana – Legislation to increase the minimum wage to $14/hr by 2028 was defeated on the senate floor. While not unexpected, it surprisingly advanced out of the Republican-controlled Finance Committee earlier in the week. Louisiana does not currently have a state wage and follows the federal law. More details.
Poll – According to a new poll of over 1,200 likely voters released by progressive Data for Progress, 74 percent of likely voters support raising the federal minimum wage to $20/hr (almost three times the current level of $7.25/hr). A majority of 50 percent of respondents said they “strongly support” the proposal, while 24 percent said they “somewhat” support it. The numbers indicate support across the political spectrum. Support is strongest among Democrats, with 89 percent saying that they favor raising the minimum wage to $20/hr, but Independents and Republicans back the idea as well, with 74 percent and 60 percent support from both groups, respectively. More details.
Paid Leave
Maine – On a party line vote, a joint committee advanced proposed paid family and medical leave legislation. As introduced, the bill mandates that workers at businesses with fewer than 15 employees would receive up to 12 weeks of paid leave to care for a newborn baby or for other reasons, such as an extended illness or to care for a sick or disabled family member. Payroll taxes would begin in 2025 with the first benefits to be paid out starting in May 2026. The benefits would be paid for with a 0.7 percent to 1 percent payroll tax, with employers and employees each contributing half. The contested bill has additional committee stops before heading for final votes. More details.
Pennsylvania – The house will hear legislation next week that would create a paid family and medical leave program for the state. The program would allow from 12-20 weeks of paid time off in case of illness or caregiving to others. The program would be funded through employee and employer contributions. Despite what happens in the house, the legislation is unlikely to move in the senate. More details.
Labor Policy
NLRB – National Labor Relations Board (NLRB) General Counsel Jennifer Abruzzo issued a memorandum stating that most non-compete agreements are unlawful, and directed field offices to more vigorously pursue such cases. Abruzzo also requested that such cases be forwarded to her office for consideration by the full Board. This action coincides with a pending proposed rule from the U.S. Federal Trade Commission, which enforces antitrust law, that would ban companies from requiring workers to sign non-compete provisions. More details.
NLRB – The NLRB continues to pursue expanded enforcement penalties and fees to its rulings. In another memorandum from the general counsel’s office, Abruzzo instructed regional offices to seek prompt compliance with Board orders, providing remedies to a statutory violation. The memorandum stated that “upon the issuance of a Board order that provides for a remedy of a statutory violation,” regional offices will “promptly send a written communication” with a “short deadline period” for a respondent to reply with its intent to comply with or challenge the Board order. The Board issued a decision in Dec. 2022 that held that as part of seeking make-whole remedies, victims of an unfair labor practice should be compensated “for all direct or foreseeable pecuniary harms suffered,” arguably pushing beyond its statutory limits of what is recoverable in an unfair labor practice (ULP) case. While this directive will only impact a narrow population of respondents in ULP matters, employers with a case before the Board should expect that matter to move forward quickly following the Board’s issuance of an order with remedies. More details.
California – By a slim margin, a joint employer bill focused squarely on the quick service restaurant sector advanced out of the assembly and is on its way to the state senate. The bill would require that a fast food restaurant franchisor share with its fast food restaurant franchisee all civil legal responsibility and civil liability for the franchisee’s violations of prescribed laws and orders, or their implementing rules or regulations. The bill would authorize enforcement of those provisions against a franchisor, including administratively or by civil action, to the same extent that they may be enforced against the franchisee. The language is similar to the joint employer language removed from AB-257, the FAST Act. And, the sponsor of the FAST Act is sponsoring this bill. More details.
California – Right to recall legislation passed out of the senate and is on its way to the house. The bill establishes the Displaced Worker Retention and Transfer Rights Act to prohibit a chain employer (defined as 100 or more establishments) from closing a covered establishment without first giving a displacement notice to workers and requires the employer to provide workers the opportunity to transfer to a location of the chain within 25 miles of the closing establishment. It further requires employers to maintain a preferential transfer list and make job offers based on length of service as well as prohibits a chain employer from taking adverse action against a covered worker for asserting these rights. More details.
New York – Legislation advanced out of another assembly committee that will provide additional recourse for employees that feel they have been victims of wage theft. The onerous bill would allow individual employees to put a personal lien on the owners, managers, or shareholders of a business during the investigation process in advance of any finding of wrongdoing. This is a significant escalation in the national wage theft dialogue and brands should engage accordingly. More details.
Labor Activism
California – The senate advanced legislation requiring the Health Department to make a list of all certified food handler training programs along with the cost of each program available on its website by Jan. 1, 2025. It now moves to the assembly. Local public health departments would be required to provide a link of this page on their website, or include the same list on their website. In addition, the bill would require an employer to pay the employee for any cost associated with the employee obtaining a food handler card. That includes but is not limited to the time it takes for the employee to complete the training, the cost of the food handler certification program, and the time it takes to complete the certification program. The bill further requires an employer to relieve an employee of all other work duties while the employee is taking the training course and examination. And, an employer would be prohibited from conditioning employment on an applicant or employee having an existing food handler card. The bill was originally filed in response to the New York Times piece regarding the National Restaurant Association and its ServSafe program. More details.
Detroit, MI – The city council unanimously voted to create an Industry Standards Board for arena workers at Little Caesars Arena, Ford Field, and Comerica Park. The city passed an ordinance in 2021 to create an Industry Standards Board, which labor leaders at the Service Employees International Union say is the first-of-its-kind in the nation. The ordinance allows workers in a common industry to join together to petition and form a tripartite table of workers, employer associations, and government representatives to recommend industry-wide workplace standards. Workers told city council members there is inconsistent pay, working hours, and expectations at Detroit’s sports arenas and that multiple employees work at all three to make ends meet. Several years ago, Michigan enacted substantial local preemption laws so the city’s action may be a prelude to litigation. More details.
Prince George’s County, MD – County leaders and One Fair Wage, in partnership with Capitol One bank, announced a new grant program called “Keep Restaurant Workers in Prince George’s County,” and aims to help local restaurateurs phase out the tipped minimum wage. An estimated 20 to 30 establishments will receive a grant valued between $5,000 to $7,500 each and while the money is not expected to pay the workers’ full wages, it will “help restaurateurs transition to the new model.” To apply, not only will a restaurateur have to commit to paying all their workers $15/hr by Dec. 31, but also have to complete a training program within a month of the program’s start date. Plus, the restaurateur has to attend at least 3 advocacy events and will become a free member of RAISE High Road Restaurants. Restaurateurs will have to return the funding to One Fair Wage if they fail to meet any of the requirements. More details.
Amazon – Hundreds of home office staff members walked off the job on Wednesday afternoon demanding a flexible remote work policy and renewed commitments to reducing carbon emissions to zero. The walkout is a collaboration between Amazon Employees for Climate Justice and an informal group of employees who oppose Amazon’s mandated return to office. Employees say recent layoffs and the mandate (which they say increases emissions as workers commute) have left them questioning whether Amazon executives are leading the company in the “right direction.” More details.
Barboncino – Employees at a Brooklyn, NY location filed for a unionization election with the NLRB. The group’s leaders had asked the restaurant’s co-owners to recognize the union by Friday, May 26, which would have allowed the group to sidestep a vote. That deadline passed, and employees will now seek to formalize the union through a ballot election supervised by the NLRB. The group is called Barboncino Workers United and affiliated with the Workers United organization currently organizing Starbucks employees. More details.
REI – Workers at a store in Durham, NC voted 20-12 in favor of union representation by the United Food & Commercial Workers Union (UFCW). This is the sixth store in the chain to vote in favor of unionization. The employees went on strike for four days earlier this month after claiming the co-op retaliated against one of the union organizers. The workers are demanding guaranteed minimum hours, more reliable scheduling, better wages and expanded access to benefits. They also want the HVAC system in the store repaired. More details.
A Day Without Immigrants – Thousands of immigrant rights activists protested in numerous jurisdictions across the country pushing back on anti-immigrant legislation in many states. The effort started in Florida where a new law takes effect July 1 that increases penalties for knowingly transporting undocumented immigrants, bans local governments and other organizations from “issuing identification documents” to undocumented immigrants and requires healthcare facilities to collect and report information on patients’ immigration status. It also sets aside $12 million for the governor to transport migrants to other locations that are considered “sanctuaries.” More details.
Alcohol
Illinois – Legislation extending the current cocktails to-go law is on its way to the governor. The current law was set to expire on Jun. 1 of 2024 but the new measure will extend that to Aug. 1, 2028. The governor is expected to sign the bill. More details.
Sustainability
California – The senate advanced legislation that would require all companies earning at least $1 billion in annual revenue and doing business in the state to provide information on their global carbon footprints starting in 2026, including emissions from direct operations, energy use, and supply chains. It now moves to the assembly. The bill would be more stringent than the SEC’s proposed climate disclosure rule, which would only apply to publicly traded companies and wouldn’t require all of them to disclose supply-chain emissions also known as Scope 3. The disclosures would require third-party verification and would be handled by the California Air Resources Board, which would contract with a nonprofit organization to create a public database. The bill would allow the attorney general to bring civil action against non-compliant companies, a scaling back of the previous version’s proposed authority to levy fines for violations. It has already advanced out of two committees. More details.
Key Takeaways
- This week, a consumer-led class action lawsuit was filed in California claiming that Delta Air Lines inaccurately billed itself as the world’s “first carbon-neutral airline” and should pay damages. The complaint in federal court alleges the airline relied on carbon offsets that were largely bogus. While not related to the restaurant industry, it comes at a time of increasing scrutiny over companies’ environmental claims. In April, we reported that for the first time since 2013, the Federal Trade Commission (FTC) is updating its “Green Guides” that form the parameters of what is allowable language when companies are making environmental marketing claims. Brands need to be aware of the changing environment around these types of corporate commitments.
- It’s not uncommon that shareholder meetings become forums for environmental, labor and other activists to pursue their agendas. In the past few years, especially during and immediately post-pandemic, employee health and safety emerged as a leading issue of which activists were seeking enhanced corporate commitments. This year, the issue has turned to protecting employees from violence from customers, especially gun violence and has been led by the group, United for Respect. As this conversation escalates, brands – whether they are publicly-traded or not – should prepare accordingly to sufficiently answer inquiries about their employee protection procedures from shareholders, activists, the press, and employees themselves.
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.