Wages
California – Despite advancing out of a senate committee, legislation imposing a $25/hr minimum wage for healthcare workers is meeting stiff opposition. In an effort to court more moderate and rural Democrats, the sponsor has modified the bill, pushing back the effective date to June 2025 and capping any inflation adjustments thereafter at 3.5 percent. Chances for final passage remain unclear. More details.
Minnesota – The governor vetoed legislation requiring Uber and Lyft to pay their drivers at least $1.45 per mile they drive a passenger, as well as $0.34 per minute. (The Minneapolis-St. Paul region has a slightly lower rate, $1.34 per mile.) It also would have established an appeals process through which drivers could request a review if they feel they have been improperly deactivated from the platform. And, it would have required additional transparency around how drivers’ earnings are calculated. The governor felt that the bill could have had negative unintended consequences for people with disabilities. More details.
Evanston, IL – The city council voted to hold at least two public forums to solicit public input on a proposal that would increase the local wage to $17.08/hr by 2026 and eliminate the tip credit. The sponsor donned a One Fair Wage shirt when introducing the bill. More details.
Paid Leave
Maine – A committee heard proposed paid family and medical leave legislation. As introduced, the bill mandates that workers at businesses with fewer than 15 employees would receive up to 12 weeks of paid leave to care for a newborn baby or for other reasons, such as an extended illness or to care for a sick or disabled family member. Payroll taxes would begin in 2025 with the first benefits to be paid out starting in May 2026. The benefits would be paid for with a 0.7 percent to 1 percent payroll tax, with employers and employees each contributing half. The sponsors know they have an uphill battle and spent much of the hearing seeking compromise. Additionally, the governor weighed in for the first time on the bill and, while taking no position, recommended changing the plan to reduce the burden on businesses, including tighter eligibility standards for workers who ask for time off and less generous pay for those who qualify for leave. More details.
Minnesota – The governor signed legislation creating a state-run paid family and medical leave program. The program offers up to 20 weeks of time off for a serious medical condition or caring for a family member, including bonding with a newborn. Both chambers of the legislature passed a paid leave bill earlier in the session, but differences had to be worked out in committee and each chamber agreeing to the changes. Benefits will start in 2026 as well as the additional payroll tax increase to fund the program. More details.
Immigration
U.S. House – A bipartisan bill to comprehensively reform the nation’s immigration process was introduced. The legislation, dubbed the Dignity Act, touches on border security and infrastructure, creates new pathways for asylum, and offers legal options for unaccompanied minors entering the country. If passed, it would shift the nation’s goal from eliminating all unlawful border crossings to instead being better positioned to detect and interdict those that present a threat or national security concerns. Notably, the bill creates the Dignity Program and a “Dignity” legal status, which would grant undocumented people in the U.S. legal status, as well as work and travel authority. It also would grant them a permanently renewable legal status for as long as they meet the criteria, potentially impacting as many as 11 million undocumented people. Additionally, it mandates the gradual phase-in of E-Verify and includes a safe harbor for good faith and federal preemption. More details.
Labor Policy
California – As of this writing, floor action on a joint employer bill focused squarely on the quick service restaurant sector is imminent. While originally scheduled for a vote on May 25, it was delayed likely due to a shortage of votes. A vote could happen any minute. 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.
California – Legislation to further strengthen the state’s existing “Ban the Box” legislation was defeated in a senate committee. If passed, SB 809 would have made it unlawful for a prospective employer to inquire into, directly or indirectly ask the applicant, or consider the conviction history of an applicant, including any inquiry about conviction history on any employment or promotion application, with some exceptions. It would have further prohibited an employer from ending an interview, rejecting an application, or otherwise terminating the employment or promotion application process based on conviction history information provided by the applicant or learned from any other source. Similar legislation is likely to be reintroduced next year. More details.
New York – Legislation advanced out of an assembly committee that will provide additional recourse for employees that feel they have been victims of wage theft. The onerous bill would allow individual employees to put a personal lien on the owners, managers, or shareholders of a business during the investigation process in advance of any finding of wrongdoing. This is a significant escalation in the national wage theft dialogue and brands should engage accordingly. More details.
New York – FAST Act-like legislation was introduced. It expands the scope of the existing wage board’s authority in the state, adding benefits and working conditions as criteria for current and future boards. It further changes the terminology of the board and would rename them “worker boards.” The bill’s prospects for passage are unclear at this point. More details.
New York – Captive audience legislation advanced out of the assembly labor committee and now moves on to an additional committee stop. The bill prohibits employers from coercing employees into attending or participating in meetings sponsored by the employer concerning the employer’s views on political or religious matters, including union organizing. The bill was passed unanimously save for one abstention. More details.
Texas – Preemption legislation is on its way to the governor’s desk that would make large segments of employment and labor law the purview of the state. Of particular interest to restaurant operators are revisions to the labor code that make laws concerning employment leave, hiring practices, scheduling practices and any other terms of employment that exceed or conflict with federal or state law the responsibility of the state. More details.
Key Takeaways
- Not surprisingly, leading industry detractors like One Fair Wage (OFW) and the Restaurant Opportunities Center (ROC) are seizing the opportunity to impugn the industry related to the employment of minors. Last week, they released a report that stated that 64 percent of child labor law violations involve a restaurant as the employer. They used the report release as a rationale to protest at the recent National Restaurant Association Show in Chicago. Both OFW and ROC have a long history of support and coordination with unions. Expect to see these talking points emerge in union campaigns targeting restaurants.
- The legislation in New York to expand the scope of the existing wage board statute is, in effect, a copycat FAST Act bill. While the bill isn’t moving, the industry needs to remain vigilant and appreciate that future versions of the FAST Act are likely to appear in many different forms.
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.