COVID-19
Business Liability – As we noted last week, a business liability shield (or explicit safe harbor) is shaping up to be the next major battle on Capitol Hill. The partisan faultline on this issue is sharp with top Democrats vocally opposing proposals by the White House and trade groups. Democrat’s focus is on worker protections, hazard pay, benefits and other safety net programs, as well as funding for state and local governments. A compromise is probably achievable but will likely include substantial concessions by both sides. It’s worth noting that at least some Republicans have demonstrated a willingness to entertain Democratic priorities with Sen. Romney proposing his own hazard pay bill this week. Meanwhile, the first wave of COVID-19-related lawsuits have already been filed in courthouses across the country and there are certainly more on the horizon. As federal efforts sputter, expect states to jump in on both sides – pursuing actions against employers and moving to create safe harbors. New Hampshire policymakers discussed a state-level liability shield this week. More details.
SBA Loan Program Update – The press and policymakers continue to focus on the oversight of the Small Business Administration (SBA) loan programs. Expect large companies and chains to continue to face scrutiny. Meanwhile, the SBA continues to release additional guidance via FAQs. Of note, the SBA provided additional guidance this week related to recalling laid off employees. Many expect the agency to release information on debt forgiveness soon. More details.
CDC Guidance for Restaurant Operators – The Associated Press reported this week that the White House chose not to release Centers for Disease Control and Prevention (CDC) guidance for restaurant operators and other employers. It viewed the guidance as too prescriptive and instead wanted to allow states the flexibility to set their own requirements. The CDC specified how restaurants should operate during various phases of reopening and while the guidance is not in effect, it is still instructive. The White House indicated that the administration will release some version of the guidance soon. More details.
Wages
Joe Biden – The presumptive Democratic nominee called for a $13/hr minimum wage increase for workers deemed essential.To Access Align's Analysis: Log In or Subscribe
Ohio – A judge rejected a lawsuit brought by the campaign working to place a measure on the Nov. ballot (Ohioans for Raising the Wage) that would raise the state’s minimum wage to $13/hr. In March, the group filed a lawsuit to significantly alter the state’s signature gathering process due to COVID-19.To Access Align's Analysis: Log In or Subscribe
Vermont – The state senate passed legislation providing nearly $60 million in “hazard pay” grants to essential workers, including restaurant workers.To Access Align's Analysis: Log In or Subscribe
Fremont, CA – The city council voted to take the first step in potentially delaying the scheduled July 1 increase in the minimum wage from $13.50/hr to $15.00/hr.To Access Align's Analysis: Log In or Subscribe
Study – A new study, Dropouts Need Not Apply? The Minimum Wage and Skill Upgrading, finds that recent minimum wage increases, in effect, limit opportunities for the most in-need of entry-level jobs (those without high school diplomas).To Access Align's Analysis: Log In or Subscribe
Paid Leave
Colorado – The legislature officially abandoned any effort to pass paid leave legislation this year. At the same time, the state supreme court approved two paid leave measures for the Nov. ballot. A third proposal will likely be approved as well.To Access Align's Analysis: Log In or Subscribe
Oakland, CA – The city council will vote next week on a proposal to mandate employers provide 80 hours (or ten days) of paid sick leave to workers affected by the coronavirus pandemic.To Access Align's Analysis: Log In or Subscribe
Philadelphia, PA – Legislation has been introduced in the city council to extend emergency COVID-related paid sick leave benefits to gig workers.To Access Align's Analysis: Log In or Subscribe
Labor Policy
California – The state attorney general is suing both Uber and Lyft for misclassification of workers as independent contractors.To Access Align's Analysis: Log In or Subscribe
Philadelphia, PA – Philadelphia’s Domestic Workers Bill of Rights took effect last week. The law is aimed at protecting the city’s 16,000 nannies, house cleaners, and home care workers and is a-first-of-its-kind. It stipulates that employers and workers have a written agreement outlining pay rates, schedules and benefits.To Access Align's Analysis: Log In or Subscribe
Activism
ACLU – The American Civil Liberties Union (ACLU) officially linked arms with the Service Employees Industrial Union (SEIU) and Fight for $15 to call on McDonald’s franchisees to provide a higher level of paid and sick leave.To Access Align's Analysis: Log In or Subscribe
Fight for $15 – The Fight for $15 held its largest “Walkout Wednesday” to date.To Access Align's Analysis: Log In or Subscribe
Edelman Trust Barometer – In a sharp contrast to recent findings that business leaders had become more trusted than government officials, the COVID-19 epidemic has reestablished elected officials and policy leaders as the most trusted institution.To Access Align's Analysis: Log In or Subscribe
Delivery
Florida – The governor indicated that he would encourage the legislature to permanently extend his executive order allowing delivery of adult beverages.To Access Align's Analysis: Log In or Subscribe
New Jersey – Legislation cleared an assembly committee that would extend by six months the current executive order permitting any business with a retail consumption license or distillery to sell mixed drinks in pint containers and other alcoholic beverages in containers of any size for takeout or delivery.To Access Align's Analysis: Log In or Subscribe
Delivery Fee Caps – Cities continue to consider caps on commission and delivery fees charged by third-party delivery platforms. Washington, DC enacted a cap of 15% on fees. Two other cities, Jersey City, NJ and Cincinnati, OH are also debating the issue.To Access Align's Analysis: Log In or Subscribe
Miscellaneous
Washington, DC – An effort to ensure that small businesses could collect on COVID-19-related claims against their business interruption insurance policies was suspended as a majority of the council raised serious concerns over the proposal.To Access Align's Analysis: Log In or Subscribe