Wages
Tennessee – Legislation to raise the state minimum wage to $20/hr was defeated in a house committee. More details.
Minneapolis, MN – The city council voted to override a mayoral veto and require that ride-hailing services increase driver wages to the equivalent of the local minimum wage of $15.57/hr. The council first passed the measure last week in a 9-4 vote despite Mayor Jacob Frey’s promise to veto it. The measure requires ride-hailing companies to pay their drivers $1.40/mile and $0.51/minute for the time spent transporting a rider or $5/ride, excluding tips, whichever is greater. In the event of a multi-city trip, that only applies to the portion that takes place within Minneapolis. As a result of the vote, both Uber and Lyft announced they will cease operations in the city when the law takes effect May 1. More details.
Paid Leave
Biden Administration – The president revealed his plan to establish a national paid family and medical leave program in his 2025 budget proposal. Biden’s budget, revealed Monday, would establish a national paid family and medical leave program administered by the Social Security Administration. It would provide eligible employees up to 12 weeks of leave to care for and bond with a new child; care for a seriously ill loved one; heal from their own serious illness; address circumstances arising from a loved one’s military deployment; or, find safety from domestic violence, sexual assault or stalking, according to the Administration. Biden also wants to require employers to provide seven job-protected paid sick days each year to all workers. The budget also includes measures restoring the expanded Child Tax Credit and establishing an “affordable” child care program for families earning less than $200,000. Chances for passage are remote. More details.
Labor Policy
California – The Fast Food Council held its initial meeting in Oakland. This meeting was introductory only with no policy measures under discussion. Seats on the Council have been given to Joseph Bryant, executive vice president of the SEIU, and Maria Maldonado, director of the California Fast Food Workers Union. Labor is also represented by two other members, the fast-food workers Anniesha Williams and Angelica Hernandez, both of whom were appointed by the governor. Representing employers are Michaela Mendelsohn, a six-unit El Pollo Loco franchise, and SG Ellison, CEO of the 300-store Taco Bell and Arby’s franchisee Diversified Restaurant Co. Serving as proxies for fast-food franchisors are Joe Johal, CEO of the Wendy’s operation that runs corporate stores in the state, and Richard Reinis, an attorney and former CEO of Great Circle Family Foods, a Krispy Kreme area developer. The Council is chaired by an industry outsider, Nicholas Hardeman, chief of staff since 2016 for California Senate President pro Tempore Emeritus Toni G. Atkins. Hardeman is expected to cast the deciding vote in any deadlock between the labor and employer representatives. More details.
Washington – Legislation is on its way to the governor that would prohibit captive audience meetings. The legislation would prohibit employers from firing, disciplining, or threatening adverse employment actions against workers who refuse to attend meetings on political matters, including unionization. The governor is expected to sign making Washington the sixth state to enact this type of law. More details
St. Louis, MO – Predictive scheduling legislation has been tabled indefinitely by the city council and will not get a hearing this session. However, a new session will begin later in the Spring. The bill would require employers to provide advance notice of schedules to employees, to pay employees for time on-call, and to pay for time scheduled in the event of late cancellation of shifts. It is unclear if the sponsor will reintroduce the bill. More details.
Misc.
Hawaii – Senate-passed so-called junk fee legislation was deferred in a house committee and remains on hold. It would define as a deceptive practice any advertisement, display, or offer a price for goods or services that does not include all mandatory fees or charges. More details.
Illinois – Legislation advanced out of an assembly committee that would mandate upfront disclosures of the total price of goods or services for a wide range of industries, from entertainment to housing. The bill provides that it is illegal for a person or entity to advertise, display, or offer a price for goods or services that does not include all mandatory fees and charges other than taxes or fees imposed by a unit of government or shipping costs. Additionally, the bill would also give the attorney general’s office more power to go after individuals and companies that add surprise fees. More details.
Rhode Island – A house committee recommended that so-called junk fee legislation be held for further study. It would define as a deceptive practice any advertisement, display, or offer a price for goods or services that does not include all mandatory fees or charges. More details.
Key Takeaway
- The national narrative around “junk fees” continues to evolve as an increasing number of states pursue legislation. Two troubling themes for operators to contend with is the emergence of the phrase “deceptive trade practices” into this conversation along with the subsequent enforcement arm in most states – the state attorney general. Having the term “deceptive” anywhere near a conversation on service charges is troubling. That provides a rationale for attorneys general to more closely scrutinize the industry’s business practices. Brands need to be very careful in this space.
- While the initial meeting of the Fast Food Council will be light on policy, the proceedings of the next few meetings will be important to watch, especially how the staff interacts with the council itself. While there is the veneer of some “balance” on the council, the staff will certainly be labor community alums and activists and if it is a staff-driven process like the NLRB, employers will still be playing defense. The process, certainly at the outset, needs to be watched very closely.
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.