Wages
Connecticut – Legislation to eliminate the tip credit by 2023 was heard in a joint committee. It is expected that the bills will be approved at the committee level but may face stiffer opposition as it continues through the process. More details.
Paid Leave
Maine – In February, a commission appointed by the legislature to examine a potential paid leave program for the state issued its final report recommending that citizens be eligible to take up to 16 weeks of paid leave each year to care for themselves or a family member, with no more than 12 weeks at a time for any particular event. That report was formally presented to the legislature this week and legislation mirroring those recommendations is being crafted. The recommendations suggest that workers taking leave should receive a weekly benefit equal to a portion of their typical earnings (either 80 or 90 percent). This benefit would be capped at 120 percent of the state’s average weekly wage (currently this would mean a cap on benefits of $1,240 a week). The program would be funded through payroll contributions, which the commission recommends splitting between employers and employees. The smallest employers (defined as those with fewer than 15 employees) would be exempt from contributing to the fund, though their employees would be fully covered. More details.
New Mexico – The senate approved legislation that would create a paid family and medical leave program in the state. The bill now moves to the house. The program would be funded by both employer and employer contributions and would allow employees 12 weeks of paid leave for the birth of a child or to care for themselves or a family member when they’re sick. Employees would also be allowed to take time away from the workplace if they’re dealing with domestic violence. The governor has not indicated whether or not she supports the legislation. More details.
Labor Policy
NLRB – The National Labor Relations Board (NLRB) signed a Memorandum of Understanding (MOU) with the Consumer Financial Protection Bureau (CFPB) to share information that would help address certain practices that harm workers and may run afoul of federal consumer protection laws, labor laws and regulations. The effort would address issues such as training repayment agreements when employers require workers to foot the bill for training and other purposes. While this does not directly go after ServSafe and other industry programs, it is indicative of the priority that the Biden Administration is placing on vigorous oversight of mandatory employee training. More details.
Michigan – The house passed legislation to repeal the state’s right-to-work law. Established by Republicans in 2012, the law allows workers in unionized jobs to opt out of paying union dues and fees. Michigan, a state steeped in labor history, could become the first state in nearly 60 years to reverse its right-to-work law. Late in the process house leaders added a $1 million appropriation to the Department of Labor and Economic Opportunity to respond to public questions about the legislation and implement it. The appropriation means that the legislation is not subject to a public referendum in which voters could reject the law. Gov. Gretchen Whitmer in her first term issued an executive directive promising to veto any legislation “that circumvents the right to a referendum.” The bill now moves to the senate for further action. More details.
Labor Activism
U.S. Senate – The HELP committee, chaired by Sen. Bernie Sanders (I-VT), held a hearing entitled, “Defending the Right of Workers to Organize Unions Free from Illegal Corporate Union-Busting.” Among the witnesses to testify was Mary Kay Henry, President of the Service Employees International Union (SEIU), who immediately launched into an assault on restaurant safety procedures during the COVID-19 pandemic, a defense of California’s FAST Act, and called attention to Starbucks’ conduct during its current union drive. More details.
Starbucks – The company announced that CEO Howard Schultz would voluntarily appear before the senate HELP committee one day ahead of an expected subpoena vote. Sen. Bernie Sanders has been hounding Schultz for months to answer questions before his committee about the chain’s handling of a unionization effort within its ranks. Schultz was invited by Sanders several weeks ago to appear voluntarily before the Senate HELP committee but he declined at that time. It is expected that in addition to a grilling of Schultz about Starbucks’ reaction to the organizing drives, the forum will be used to criticize all industry employers and the restaurant business model itself. More details.
Sustainability
Connecticut – A joint committee met to create an Extended Producer Responsibility (EPR) program in the state. In Jan., the governor announced his intent to introduce waste and recycling legislation meant to decrease a reliance on shipping waste out of state. During that press conference, the governor stated he will back an extended producer responsibility bill and propose changes to the state’s organic reuse and diversion programs. The governor’s EPR proposal would require packaging producers to take responsibility for their products at end of life. More details.
Washington – The house passed legislation banning the state’s largest utility, Puget Sound Energy, from extending natural gas hookups to any new buildings as of July 1. The bill now heads to the senate. If passed, it will be illegal for builders to place natural gas or propane in new construction as a primary source of energy. Instead, they are required to install a heat pump for both space and water heating. The code regulation allows natural gas as a backup energy source. The heat pump requirement is estimated to add $9,200 to a new home price. The legislation is codifying new regulations promulgated by the Washington State Building Code Council which sought a statewide standard since numerous jurisdictions, including Seattle, had adopted their own similar ordinances. More details.
Key Takeaways
- This week, the escalating national conversation around child labor was front page news as predominantly red states have begun to tinker with child labor laws as one response to the labor shortage issue facing many operators. Arkansas governor Sarah Huckabee signed legislation this week mandating that children under 16 no longer have to obtain permission from the Division of Labor to get a job and they will no longer need to get an employment certificate (which verifies their age, work description and work schedule) or get written consent from a parent or guardian. The federal Labor Department described that new law as “irresponsible.” Brands that hire young workers, especially those under the age of 16, need to be aware of and prepared for the political firestorm around this issue.
- California Governor Gavin Newsome announced that the state will no longer do business with Walgreens, following a corporate statement that the chain would not dispense abortion medication in 21 states. (In some of those states, dispensation is legal although Republican leaders have threatened legal action.) Walgreens later attempted to clarify its position, saying that it will dispense medication wherever it is legal to do so. The episode demonstrates the razor’s edge that companies must walk, as both Republicans and Democrats increasingly attack corporate decision-making.
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.