U.S. Supreme Court
California – The U.S. Supreme Court upheld a California animal welfare law that could have national impacts to the pork marketplace. The voter-approved law mandated that pork sold in the state (regardless of whether or not it was produced in-state) must come from breeding pigs housed in spaces that allow them to move around freely. The law was challenged by two trade groups that said it interfered with interstate commerce and sound business practices. There was no dispute that the state may regulate the treatment of pigs in its borders. The case hinged on whether or not the law’s impact on business practices in other states ran afoul of the U.S. Constitution’s commerce clause.
Wages
New York – One Fair Wage held a rally in Albany calling for the elimination of the tip credit. Among those arrested was actress Susan Sarandon. Labor activists have been disappointed with the wage increase included in the recently-finalized budget deal, asserting that the increase to $17/hr by 2026 was not nearly aggressive enough. More details.
Chicago, IL – The new mayor, Brandon Johnson, will take office next week and he has unveiled his plans for the first 100 days of his administration. Included in that agenda is a $4 per employee per quarter head tax and elimination of the tip credit. More details.
Paid Leave
Minnesota – The senate passed a paid family and medical plan on a party line vote of 34-33. All Democrats voted in favor and all Republicans opposed. Sponsors changed the bill before the final vote to give some employers more flexibility in crafting plans while still ensuring that workers had access to time off during major life events. The bill would give workers up to 12 weeks paid family leave and up to an additional 12 weeks paid sick leave annually. A similar, but slightly amended bill, passed the house by a similarly razor-thin majority last week and the changes will be worked out in a conference committee. The legislature is scheduled to adjourn May 22. More details.
Vermont – A house-passed universal paid family leave bill has been tabled in the senate as the legislature has chosen to use the last few hours of the legislative session to focus on a child care reform package. The session is scheduled to adjourn today, May 12. Due to legislation passed last year, the state already has a voluntary program that will begin on July 1, 2023 for state employees. On July 1, 2024, the program will expand to offer paid family and medical leave insurance to other public and private employers with two or more employees. On July 1, 2025, individuals who do not have access through their employer’s program (and employers with just one employee) can purchase insured coverage from the state’s individual purchasing pool. Proponents have signaled that they will make another effort at a mandatory program next year. More details.
Labor Policy
California – A joint employer bill focused squarely on the quick service restaurant sector received a hearing in the Assembly Appropriations Committee. It has been placed on the suspense file meaning it is ready for floor action in the next few weeks. The bill would require that a fast food restaurant franchisor share with its fast food restaurant franchisee all civil legal responsibility and civil liability for the franchisee’s violations of prescribed laws and orders, or their implementing rules or regulations. The bill would authorize enforcement of those provisions against a franchisor, including administratively or by civil action, to the same extent that they may be enforced against the franchisee. The language is similar to the joint employer language removed from AB-257, the FAST Act. And, the sponsor of the FAST Act is sponsoring this bill. More details.
Hawaii – Pay transparency legislation is on its way to the governor’s desk. Effective Jan. 1, 2024, all employers must disclose an hourly rate or salary range for job listings unless the job listings are for positions with employers having fewer than fifty employees, public employee positions subject to collective bargaining, or positions that are internal transfers or promotions within a current employer. The bill prohibits an employer from discriminating between employees because of any protected category established under state law and from paying wages to employees in an establishment at a rate less than the rate at which the employer pays wages to other employees in the establishment for substantially similar work. More details.
Tennessee – The governor signed legislation that would ensure that local governments cannot legislate in various aspects of labor and employment law including hours, employee output, benefits, and wages. More details.
Labor Activism
Starbucks – The company is closing two additional locations in Ithaca, NY that had previously voted to organize citing financial difficulties. Starbucks Workers United is claiming retaliation. In related news, also in New York, employees at stores in Buffalo and Rochester have filed petitions with the National Labor Relations Board seeking to decertify Starbucks Workers United as the bargaining representative for those two stores. Decertification petitions, like union election petitions, trigger an election overseen by the board where workers vote to either stay with the union or to strip it of its status as bargaining representative for the workplace. More details.
Alcohol
Washington – The governor signed legislation allowing most on-premise, liquor-license holders to sell pre-mixed drinks in sealable containers with takeout orders. A temporary version of similar rules was set to expire at the end of June and the new law takes effect July 1. License holders who will be able to offer to-go cocktails, glasses of wine and beer (in factory-sealed or tamper-evident packaging) include full-service restaurants, taverns and snack bars; domestic wineries, breweries, microbreweries and distilleries; nonprofit arts institutions and catering companies. Though available at no additional cost, these businesses would have to receive formal approval from the Liquor and Cannabis Board, adhering to the agency’s rules. More details.
Sustainability
Maryland – The governor signed a heavily-amended Extended Producer Responsibility (EPR) bill. The new law calls for establishing an advisory council and requiring the Maryland Department of the Environment to hire an independent consultant to conduct a statewide recycling needs assessment. The assessment must cover details of the state’s current solid waste and recycling systems, including its infrastructure and capacity, as well as key costs and revenues. It must also determine disposal and recycling methods by material type and amount, as well as estimate how many materials are currently not being recycled. The original legislation had called for the establishment of a formal EPR program and it should be expected that similar legislation returns next year. More details.
Key Takeaways
- The Supreme Court ruling on California’s animal welfare law has major national implications. In addition to the impact in California, Massachusetts has a similar law currently tied up in the courts that will be impacted by the decision. And, other like-minded states may be emboldened to pass similar laws either through legislation or the ballot. If that were to happen, it could force significant structural changes to how we produce pork and potentially other animal-based proteins.
- So far this year, meaningful efforts at tip credit elimination or FAST Act copycat legislation have failed to get significant momentum. That could change very quickly in the City of Chicago if the new mayor and administration are successful in their pursuit of eliminating the tip credit. If that were to happen, could Cook County (which houses Chicago) follow? Or at the state level where both the House Speaker and the Senate President are from Cook County? Industry mobilization in Chicago will be critical. If the response from the business community is tepid, expect the labor community to immediately pursue statewide legislation in Springfield.
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.