Wages
Massachusetts – The Committee to Protect Tips, an industry-supported committee, is calling for an investigation into campaign finance violations by One Fair Wage (OFW), the leading proponent of a 2024 ballot initiative seeking to eliminate the tip credit. The Boston Globe reported that the group has highlighted significant donations from anonymous donors to raise voter awareness – a direct violation of electioneering rules applying to non-profit organizations such as OFW. It is unclear if and when an investigation will be launched. More details.
Michigan – An initiative to raise the state’s minimum wage to $15/hr will not make the 2024 ballot after state supreme court justices declined to overrule a previous decision by the Board of State Canvassers. The 2024 ballot proposal would have raised Michigan’s minimum wage to $15/hr by 2027, amending a state law that requires the current rate of $10.33/hr to rise to $12/hr by 2030. It also would have phased out Michigan’s current $3.84/hr tipped wage and required servers to make the full minimum wage by 2028. Last Oct., the Board of State Canvassers deadlocked on certifying the estimated 360,309 signatures already collected by Raise the Wage Michigan accusing the group of misleading voters after circulating a petition to increase the state’s minimum wage with slightly different language than canvassers had initially reviewed to approve a 100-word summary. The state supreme court ruled that is “not the role of this court to second guess… election disputes properly left to the bipartisan oversight of the Board.” More details.
Labor Policy
California – The assembly passed amended legislation mandating that the California Division of Labor Standards Enforcement establish a seven-person advisory committee to develop and approve, “through a majority vote, a comprehensive set of recommended regulations establishing janitorial standards for the purpose of protecting the health and safety of workers” by January 1, 2026. This is similar to the controversial Fast Food Council that California recently established and would likely result in workloading and production rate regulations. In developing the regulations, the committee shall consider the time it reasonably takes workers to properly clean a given space without a high risk of incurring repetitive motion injuries and consider, among other factors: standard of cleaning, such as daily, interim, or restorative, type of facility, tools and equipment, level of training, square footage to be cleaned, and the combination of tasks assigned throughout the shift. The bill was amended to remove a stipulation imposing a 2,000 square feet per hour production-rate limit for workers. The bill now heads to the senate. More details.
Vermont – The governor allowed legislation dubbed the “Vermont PRO Act” to become law without his signature. The new law will make it easier for both private and public sector workers to unionize by expanding the right to form a union. The bill also prohibits captive audience meetings and simplifies union elections in the public sector through majority sign-up or “card check.” The legislation passed with veto-proof majorities in both chambers and a potential veto would have easily been overridden. More details.
Labor Activism
Compass Coffee – A group of Compass Coffee workers in Washington, DC announced plans to unionize more than a third of its stores, pressing the D.C.-based chain to end its no-tipping policy and improve benefits and working conditions. Organizers said 84 percent of union-eligible employees at seven cafes signed authorization cards supporting membership with Workers United, an SEIU affiliate that has organized more than 425 Starbucks stores since 2021. The National Labor Relations Board (NLRB) requires signatures from at least 30 percent of eligible voters to qualify for a union election. They also delivered a letter of intent to Compass co-founder and chief executive Michael Haft on Friday afternoon. More details.
Bluestone Lane and OCF Coffee – Employees at all three Philadelphia locations of Bluestone Lane voted unanimously to unionize and affiliate with Workers United. And, a majority of employees at all three of Philadelphia’s OCF Coffee locations signed a letter requesting union recognition from their employer. The brand has not indicated if it will recognize the union.
Misc.
Illinois – Legislation is on its way to the governor that would ban the collection of credit and debit card interchange fees for sales taxes, excise taxes and tips for services. The ban, which is scheduled to take effect on July 1, 2025, would be the first of its kind in the nation. The measure, dubbed the Interchange Fee Prohibition Act, was included as part of the state’s budget, which was passed by the legislature earlier this week. Illinois Governor J.B. Pritzker has indicated he will sign the bill. More details.
Illinois – House-passed legislation that would have amended the Consumer Fraud and Deceptive Business Practices Act to provide that it is unlawful to advertise, display, or offer a price for goods or services that does not include all mandatory fees and charges died in the senate as the legislature adjourned. Similar legislation is highly likely to be reintroduced next year. More details.
Key Takeaways
- The bankruptcy of Rubio’s Coastal Grill, a California-based chain with almost 90 locations in the state along with Arizona and Nevada, is the latest negative headline attributed to fallout from the FAST Act. The company directly tied their decision to the “rising cost of doing business in California.” The California Business and Industrial Alliance estimates that nearly 10,000 jobs have been cut in the QSR industry since the FAST Act went into effect. It’s important that the industry and its allies continue to highlight the negative fallout. It will help in opposing copycat bills as well as other mandates.
- The industry enjoyed a huge victory in Michigan this week, knocking the minimum wage initiative off the ballot (again). The industry’s continued, dogged persistence on this issue has certainly dissuaded opponents from pursuing other issues in the state.
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.