COVID-19
Vaccine Mandate – The 5th U.S. Circuit Court of Appeals temporarily blocked the Biden Administration’s new vaccination mandate from taking effect. The court-ordered pause came in response to challenges from the Republican attorneys general of Texas, Louisiana, Mississippi, South Carolina and Utah, as well as several private companies. They argued that the Occupational Safety and Health Administration (OSHA), which will enforce the mandates, exceeded its authority. The 5th Circuit Court of Appeals – considered one of the most conservative in the country – wrote in their initial response last weekend that the legal challenges “give cause to believe there are grave statutory and constitutional issues with the mandate.” More details.
Vaccine Lawsuit – Trade associations representing retailers, truckers, and distributors filed a lawsuit against the Occupational Safety and Health Administration (OSHA) to block its vaccine-or-test mandate for private employers. The groups said that the rule, which will require businesses with 100 or more employees to mandate COVID-19 vaccinations or weekly testing by Jan. 4, will “inflict irreparable harm” on their member companies. They also contend in the suit that businesses would lose employees, incur “unrecoverable compliance costs” and face deteriorating conditions in “already fragile supply chains and labor markets.” The National Retail Federation, the American Trucking Association, the National Association of Convenience Stores, the National Association of Wholesaler-Distributors, and the National Federation of Independent Business joined the lawsuit, among other groups. More details.
Alabama – The governor signed legislation mandating that employers can’t fire workers for being unvaccinated against COVID-19 if the employee returns a new standardized state form to claim a religious or medical exemption. She also signed into law a separate bill requiring parental consent for minors to get vaccinated for COVID-19. The bills are part of the efforts in GOP-led states to fight the new federal vaccine requirements. More details.
Los Angeles, CA – The city council will vote this week on enforcement measures and modifications for its new law requiring citizens patronizing indoor restaurants, gyms, entertainment and recreational facilities, personal care establishments and some city buildings to show proof of full vaccination against COVID-19. The law went into effect on Nov. 8, but enforcement is not set to begin until Nov. 29. The city council is scheduled to consider changing the ordinance to require proof of vaccinations for only individuals who are 12 years old and over, instead of all eligible for a COVID-19 vaccine, which includes people over the age of 5. More details.
Wages
Disney – An Orange County, California Superior Court ruled this week that Disneyland does not have to pay a living wage to more than 25,000 cast members who sued the company for higher wages. The lawsuit alleged that Disneyland took a city subsidy by allowing the city of Anaheim to build a parking garage on company-owned land. While the city owns the garage, it leases operations to Disneyland for $1/yr – Disneyland leases the city the land for that same $1 annually – and Disney keeps the profits. The city took out a $550 million municipal bond to finance the garage and used it to also provide some funds to Disneyland and the Anaheim Convention Center. When that bond is repaid, ownership of the garage reverts to Disney. The lawsuit contends that per the city’s Measure L, voted into law in 2018, any private business in Anaheim receiving city subsidies is required to raise employees’ wages to $18/hr by 2022, plus subsequent cost-of-living increases. In his final ruling, the judge found that while Disney is receiving a “significant benefit” from the city, the company is not technically receiving a city subsidy. The workers plan to appeal. More details.
Ikea – The company announced it would raise its starting wage for U.S. workers to $16/hr with some hourly wages starting at $17/hr or $18/hr depending on location. The increase is effective starting on Jan.1, and will apply to all U.S. full-time, part-time, temporary, and seasonal employees. With the increase, Ikea said its average hourly wage will increase to $20/hr. In addition, the Swedish furniture giant has enhanced its comprehensive benefits package to include a minimum of five weeks of paid time away from work for all employees, education assistance, as well as back-up child and adult care. It also has added more inclusive health care benefits. More details.
Macy’s – The retailer announced it will raise its minimum wage, for new and current workers, to $15/hr by next May. Once the higher pay is in effect, Macy’s average base pay will be above $17/hr and average total pay will be $20/hr. The company is also adding an education benefit that will cover 100 percent of tuition, books, and fees. Macy’s is partnering with Guild Education on the program, which will include bachelor’s degrees, boot camps, English language learning, and professional certificates, among other options. More details.
Minneapolis, MN – The Federal Reserve Bank of Minneapolis released the findings of a study on the impact of local municipal wage policies, commissioned by the cities of Minneapolis and St. Paul. In 2017, Minneapolis became the first city in the Midwest to incrementally adopt a $15/hr minimum wage law. Businesses with more than 100 employees must pay at least $15hr by next July, while smaller firms have until 2024 to hit that level. St. Paul passed similar legislation last year with all employers required to hit $15/hr by 2027. Researchers found that the minimum wage increases led to a decline in restaurant jobs before the pandemic. In 2018 and 2019, most low-wage sectors in the cities didn’t see a statistically significant change in employment or hours worked because of the minimum wage increases, the bank’s research said. But a subset of one category — restaurant workers — saw a larger impact because they were making less to begin with. Still, researchers found similar trends in restaurant job losses in 2018 and 2019 as employers likely adjusted, knowing wages had to rise. They calculated that in 2018 and 2019, hourly wages at full-service restaurants in Minneapolis rose 4 percent and at limited-service restaurants 9 percent more than they would have if there had not been a city-mandated wage increase. At the same time, the number of restaurant jobs in Minneapolis declined by an additional 12 percent and 18 percent, translating into about 2,900 fewer jobs over those two years, the researchers calculated. More details.
Activism
McDonald’s – Workers in Los Angeles, San Jose, Oakland, Sacramento, and San Diego walked out this week over health and safety conditions and ongoing charges of systemic sexual harassment on the job. The workers also demanded the state legislature pass AB 257, the Fast Food Accountability and Standards (FAST) Recovery Act. Among other provisions, it would create a Fast Food Sector Council that would establish wage and benefit rates and other workplace standards for quick service restaurants. This concept – often referred to as sectoral bargaining – is popular among labor advocates. Earlier this year, the bill was tabled in committee due to a lack of support but is still pending although unlikely to advance in its current form. More details.
Starbucks – Despite a last-minute effort by the company to delay a pending unionization vote in three Buffalo-area stores, ballots were sent out this week to workers in those units. The National Labor Relations Board (NLRB) has set a Dec. 8 deadline for votes to be submitted by mail and will begin counting votes Dec. 9. In related news, workers at three additional stores in the area filed petitions this week requesting elections as well. More details.
Delivery
New York, NY – Legislation was introduced in the city council that would require delivery platforms to cover a driver’s out-of-pocket costs when it comes to things like medical care and property damage. If passed, the city would be the first to require food delivery companies to reimburse delivery workers when the workers incur costs related to a crash. The sponsor said the coverage would also extend to people like pedestrians who are struck by delivery workers, some of whom ride their bicycles or e-bikes on the pavement, which is not allowed, or drive the wrong way on streets. More details.
Sustainability
Chipotle – The company pledged to cut its carbon emissions by 50 percent by 2030, not only from its restaurants but also their supporting supply chain. Chipotle had already begun working on reducing greenhouse gas emissions from its own transportation fleet and restaurants, but the new goals will take a broader look at suppliers and the transportation system for products. Last year, the company tied compensation for executive team members to certain metrics for meeting these goals. More details.
Key Takeaways
- As predicted, employers have found themselves in the middle of a political fight between the Biden Administration and Republican governors over the vaccine mandate. Some Republican-led states are passing legislation that directly conflicts with requirements under OSHA’s vaccine mandate, putting companies in a position of having to choose which requirement to follow. While there is a stay order in place via the 5th Circuit Court of Appeals, most legal scholars believe the federal government is on firm legal footing and brands should prepare accordingly.
- The minimum wage study by the Federal Reserve of Minneapolis further boosts the industry’s arguments around mandates that escalate too quickly, leading to negative impacts for employees in the form of reduced employment opportunities. The industry would be wise to elevate the study as part of the ongoing debate around wages and benefits.
Podcast
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