Wages
Hawaii – The governor signed a minimum wage increase to $18/hr by 2028 and an increase in the tip credit to $1.50. Hawaii’s current minimum wage is $10.10/hr. The first increase will come this Oct. when the wage will rise to $12/hr. More details.
Portland, ME – The city council debated (but took no action) on a minimum wage ballot referendum. The council is considering putting a measure on the ballot while the local affiliate of the Democratic Socialists of America (DSA) continues collecting petitions to place an $18/hr initiative on the Nov. ballot. More details.
Labor Policy
California – The Senate Judiciary Committee is scheduled to hear the Fast Food Accountability and Standards (FAST) Recovery Act June 28. This hearing is the second of three committee hearings. Among other provisions, the legislation would create a Fast Food Sector Council that would establish wage and benefit rates and other workplace standards for quick service restaurants. This concept – often referred to as sectoral bargaining – is popular among labor advocates. More details.
Labor Department – The Biden administration released its Spring 2022 Unified Agenda of Regulatory and Deregulatory Actions, outlining federal agency goals for the months ahead. Of note, the Wage and Hour Division is currently reviewing the overtime regulations. The agency provided notice of its intent to consider changes to the overtime regulations in last fall’s regulatory agenda and has been holding regional listening sessions around the country. A Notice of Proposed Rulemaking on overtime rules is scheduled for Oct. 2022. The Wage and Hour Division also recently announced it has hired over 100 new investigators to ensure compliance with federal employment law. OSHA, for its part, recently extended a comment period to June 30, 2022 for a proposed rule on tracking workplace injuries and illnesses. The rule would require establishments with 100 or more employees in designated industries to submit information electronically once a year on certain OSHA forms. A final rule is scheduled for Dec. 2022. More details.
NLRB – As noted above, the Biden administration released its Spring 2022 Unified Agenda of Regulatory and Deregulatory Actions. The National Labor Relations Board (NLRB) expects to “engage in rulemaking on the standard for determining whether two employers, as defined in Section 2(2) of the National Labor Relations Act (Act), are a joint employer under the Act.” The Board plans to issue a Notice of Proposed Rulemaking in Sept. 2022. The Board is likely to either amend or rescind the current “direct and immediate” standard and replace it with a broader standard that would expand joint employment liability. More details.
Labor Activism
Apple – Workers at a Towson, Maryland Apple store overwhelmingly voted to unionize by a margin of 65-33. This store is the first to unionize in the history of the company. Workers at a number of other Apple retail locations, particularly in the New York City area, are collecting signatures for their own unionization efforts. More stores are likely to attempt to organize in the coming months. More details.
Chipotle – Workers at an Augusta, Maine Chipotle announced that they intend to form a new union, Chipotle United. If successful, the location would become the first unionized store in the Chipotle system. Workers have received assistance from the Maine AFL-CIO; however, they have stated they intend to remain independent. The president of the Maine AFL-CIO certainly recognizes the larger opportunity. He was quoted as saying that because Chipotle owns its locations, “workers there can join together across stores and state borders to build power and force the company to negotiate with them.” Last week, the workers at the store walked out over what they said were unsafe conditions, including low staffing, inadequate training, and lack of support. More details.
Starbucks – Unionization efforts at the chain continue to grind forward with 169 stores having now voted to unionize. This week, the NLRB regional director in Buffalo announced a lawsuit against Starbucks seeking a nationwide injunction against the company. It is the latest use of the so-called 10(j) filing against Starbucks and other high-profile employers battling organizing efforts. The lawsuit could have far-ranging impacts. It asks a federal court in Buffalo to issue a nationwide injunction against Starbucks for alleged (and unproven) unfair labor practices during the union elections held late last year.
Alcohol
Study – The R Street Institute, a conservative think tank, released a study this week that refutes recent assertions that the expansion of to-go cocktails and alcohol delivery has led to an increase in drunk driving. Over the course of the past year, opponents of expanded retail sales of alcohol have intensified efforts to return to pre-pandemic alcohol retail practices. Expect increased debate over the real and perceived impacts of retail practices. More details.
Diversity, Equity & Inclusion
Florida – A federal judge will decide whether to block Florida from enforcing a high-profile new law backed by the governor that limits how race can be brought up in the classroom and workplace. The new law targets any traces of critical race theory inside Florida’s school system and “woke” corporate trainings at companies. More details.
Key Takeaways
- All QSR operators should engage on the FAST Act next week through their trade association partners. The industry is at a critical juncture. The mood in the state capitol after this hearing will likely impact whether the bill is heard in the next committee or on the floor. For that reason, it is essential that the industry floods legislators’ email inboxes and phone lines ahead of the hearing, and outnumber the SEIU with call-ins into the committee phone line during the meeting itself. Trade association partners can provide action alerts with scripts and call-in info.
- Expect upcoming U.S. Supreme Court rulings (and the associated political disruption) to present new challenges (and potentially opportunities) for some brands. For instance, the overturning of Roe v. Wade is likely to generate increased scrutiny on companies’ health care and paid leave policies. Similarly, the striking down of New York’s law related to carrying firearms could incentivize advocates to push the bounds of firearm carry policies and laws. And, restaurant and retail brands have periodically found themselves in the middle of that debate as advocates have attempted to carry guns into retail locations. As state’s adjust to the new realities following court decisions, retailers need to think through how existing or new policies may thrust the brand into the middle of intense political fights.
- Unionization efforts at Chipotle and Apple should shatter any remaining illusions that the recent wave of organizing efforts is a “Starbucks issue,” or limited to the coffee segment. The retail segment will continue to see spikes in organizing for the foreseeable future.
- July and January are when jurisdictions often raise wage and benefit requirements based on automatic escalators. Companies should ensure that compliance teams are aware of automatic increases across the country.
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.