COVID-19
National Reopening Update – A majority of states will reopen in the coming weeks and there’s a surprising lack of uniformity between federal, state and local guidelines / requirements. Ultimately, national employers are going to have to ensure that they’re compliant with all requirements down to the local level which will be no small feat. The National Restaurant Association is tracking state-level requirements at RestaurantsAct.com which also links to many state restaurant associations that are tracking local requirements as well. It’s also worth noting that many industry trade associations (restaurant, retail, hotel, etc.) have been advocating for consistency across the country.
Business Liability – As noted above, the patchwork of requirements presents a significant compliance challenge. This week, U.S. Senate Majority Leader Mitch McConnell stated that a business liability shield, including federal guidelines and safe harbors for employers, would be a top priority in the next legislative package. U.S. House Speaker Nancy Pelosi, for her part, rejected that notion and continues to focus on funding for state and local governments, bolstering social safety net programs and benefits for essential workers. The next relief bill is shaping up to be a highly contentious debate and the conversation in D.C. is likely to spillover into state capitols and into 2020 electoral politics. More details.
SBA Loan Program Update – Increased scrutiny of loan recipients is one of the few issues earning bipartisan support at the moment. U.S. House Speaker Nancy Pelosi, called for among other items, greater oversight of the Small Business Administration (SBA) programs this week, as did Sen. Chuck Schumer, her counterpart in the U.S. Senate. The Treasury Department announced that it intends to audit companies that are awarded loans larger than $2 million and Sen. Marco Rubio announced that he intends to make public a list of all companies awarded loans. Expect more “large” companies to face criticism for securing loans from both sides of the aisle, especially if they engaged in activities that would not be expected of distressed companies (executive payouts, acquisitions, etc.). It’s also worth noting that the program continues to struggle under intense interest from businesses across the country. The SBA portal crashed multiple times this week and the program is expected to run out of funds again. That dynamic is intensifying politicians’ interest in oversight.
May Day Strikes – Labor organizing efforts have been slowly but steadily escalating, particularly among grocery workers and delivery drivers. A number of groups that have organized workers at Instacart, Shipt, Postmates as well as their retail partners will hold “sick outs” on May 1. May 1 is International Workers’ Day, otherwise known as May Day, and historically it has been a day of action in a handful of metros across the country. Over the past few years, immigrants rights groups have also used May Day as the date for their national day of action. This year, labor organizers in the retail sector (stores, warehouses and delivery) are likely to have the largest actions. Some of their organizing efforts may spill over into the restaurant industry. More details.
Fight for $15, SEIU, ROC – Organizing efforts outside the restaurant industry are gaining real traction and could easily spill over into the restaurant sector, particularly in the delivery space. The SEIU, which has been organizing Chipotle locations in New York City, now appears to be making a concerted effort to target the brand in the Pacific Northwest. The union is calling for a “guac out” and organizing Postmates delivery drivers to refuse delivery of Chipotle for three days leading up to May 1. Their demands are consistent with other groups – paid leave, hazard pay and personal protective equipment. Chipotle is being targeted in the Seattle area and New York City by the same SEIU organizers that created the Fight for $15 movement. The efforts are effectively one and the same. Fight for $15, for its part, has been organizing worker strikes at McDonald’s locations and made a six figure digital advertising buy this week in targeted states. Finally, the Restaurant Opportunities Center (ROC) organized a series of actions against Caribou Coffee. Expect continued organizing activity focused on worker safety. More details.
Supply Chain – Supply chain disruptions due to outbreaks at meatpacking and food processing facilities over the past few weeks have been well documented in the press. The unprecedented step of President Trump using the Defense Production Act to reopen the plants will draw Congressional attention and scrutiny and focus the media’s attention on the supply chain. Brands should be prepared for a prolonged conversation around supply chain conditions and practices. More details.
Partnerships – The state of California launched a first-of-its-kind program (at least, on this scale) through which the state will purchase meals from restaurants to be delivered to seniors at a fixed cost of $16 for breakfast, $17 for lunch and up to $28 for dinner. More details. A federal effort is underway to expand the Restaurant Meals Program within the SNAP program. The SNAP CARRY Act would allow participants to purchase meals at restaurants. More details. Operators should continue working with local, state and federal policymakers on partnerships that address critical community needs and allow restaurants to stay open and operating.
Wages
Johnson County, IA – Despite a state minimum wage preemption law, many jurisdictions in Iowa set “recommended” minimum wage standards that are largely symbolic and unenforceable. Johnson County, which includes Iowa City and the University of Iowa, held a hearing this week on whether to “recommend” increasing their local wage to $10.63/hr.To Access Align's Analysis: Log In or Subscribe
San Carlos, CA – The city council voted to delay a pending increase in the minimum wage to $15/hr.To Access Align's Analysis: Log In or Subscribe
Paid Leave
Amazon – The company eliminated their “unlimited time off” policy for workers.To Access Align's Analysis: Log In or Subscribe
Labor Policy
Illinois – The state Workers’ Compensation Commission repealed a controversial emergency rule stating that if front-line workers are infected with COVID-19, it would be presumed to be a result of their work duties.To Access Align's Analysis: Log In or Subscribe
New York City, NY – The city council is scheduled to hear a package of controversial bills May 5. Three bills would dramatically expand benefits and pay for essential workers.To Access Align's Analysis: Log In or Subscribe
Delivery
Delivery Fee Caps – Numerous major cities continue considering caps on commission and delivery fees charged by third-party delivery platforms. New York City, Boston, Chicago and Los Angeles are currently debating caps between 5-15%.To Access Align's Analysis: Log In or Subscribe
Plastics
CDC – The Centers for Disease Control (CDC) released draft guidance this week calling for food retailers to exclusively rely on single-use plastics if possible.To Access Align's Analysis: Log In or Subscribe