Paid Leave
Washington – A new analysis of the financial health of the state’s paid family leave program estimates the fund will have an $8.7 million deficit by the end of the year, leading to recommendations of another increase in the premiums on workers’ wages. The report recommends raising the rate to 0.79 percent of workers’ wages, up from the 0.6 percent rate that went into effect earlier this year. The Employment Security Department which said its projections are slightly different than the actuary report has estimated that a 0.9 percent premium rate is necessary. Officials say they are still in the process of calculating the latest data and will announce the new rate in the coming weeks. Under the law, eligible workers receive 12 weeks paid time off for the birth or adoption of a child or for a serious medical condition of the worker or the worker’s family member, or 16 weeks for a combination of both. An additional two weeks may be used if there is a serious health condition with a pregnancy. More details.
Labor Policy
Labor Department – The agency released their long-awaited proposed rule on independent contractors. The new rule broadly parallels the model adopted by the Obama Administration that was later scuttled by the Trump Administration. The proposal includes an “economic realities test” which allows the agency to take into account a wide array of factors such as employer control and workers’ own investments in equipment when determining employee status. It also directs the agency to analyze the “totality-of-the-circumstances” for a given worker, rather than look for discreet criteria in making determinations regarding employment status. It does not include a so-called ABC test, the three-prong blueprint that employers must meet if they want to classify a worker as an independent contractor that Labor Department officials have repeatedly said they do not have authority to implement without congressional authorization. The proposal will be subject to a public comment period before it can be finalized and is expected to face heated opposition from employer groups. Comments are due by Nov. 28. More details.
NLRB – The Inspector General of the National Labor Relations Board (NLRB) announced that they are looking into how regional officials are adhering to its protocols for elections conducted by mail to “determine if any external factors are impeding” voting and evaluating the agency’s internal controls on election integrity. The areas of focus broadly track with accusations made in mid-Aug. by Starbucks, which said that an NLRB official came to the company with evidence that other agency staff in at least one location had improperly interfered in an election by aiding union organizers during the process. More details.
Labor Activism
Amazon – Workers at a warehouse in Southern California have filed a petition to form a union with the NLRB. Employees at the Moreno Valley warehouse are seeking to be represented by the Amazon Labor Union. The union of current and former Amazon workers successfully unionized a Staten Island warehouse, referred to as JFK8, earlier this year. Should an election be authorized by the NLRB, it would be the first time employees at an Amazon facility in California have held a vote on whether to join a union. More details.
Lowe’s – Employees at a store in New Orleans are petitioning the NLRB to unionize. Under the guise of Lowe’s Workers United, the group filed a petition with the NLRB seeking to unionize a group of around 172 staff. Managers at the store were informed by union organizers that the petition had garnered the minimum 30 percent of signatures required. If successful, this would be the first location in the chain to organize. More details.
Starbucks – Multiple NLRB judges ruled this week that the company had illegally fired pro–union workers in Michigan, Missouri, and Kansas. In one case, a judge ruled that Starbucks must offer workers reinstatement, reimburse “any loss of earnings and other benefits,” and not make any anti-union threats. In another case, a former manager testified that the company instructed him to single out and discipline union supporters. The union has accused the company of unlawfully firing over 80 workers because of their activism.. More details.
Scheduling
Labor Department – The agency held a roundtable discussion led by Labor Secretary Marty Walsh that included Rep. Rosa Delauro (D-Conn) and & Pizza CEO Michael Listoria focusing on pending legislation requiring employers to give advance notice of scheduling. The bill would require two weeks advance notice, mandatory periods between work shifts and compensation for late schedule changes. Since there is no current federal law, the agency has limited jurisdiction over scheduling issues. More details.
Key Takeaways
- Publicly-traded brands need to begin preparing to comply with the Securities & Exchange Commission’s (SEC) pending rule requiring detailed disclosure about the financial impact of climate change on their business – including power sources for company’s operations (electricity and fuel) and carbon emissions from company’s footprint (supply chains and beyond). Importantly, that data will need to be verified in their audited financial statements. If finalized in the next few days, it is likely that by Jan. 1, 2023, businesses will have to begin collecting that data for the initial submission date of Jan. 1, 2024. While the business community is working hard to amend the rules as much as possible, the final rule will likely look significantly like the original proposal. Brands should prepare accordingly.
- This week, the Schultz Family Foundation (founded by Starbucks CEO Howard Schultz in 1996) in partnership with Harvard Business School and the Burning Glass Institute launched the American Opportunity Index, a scorecard that ranks large companies by how well they create economic mobility for their workers. The index assesses the 250 largest U.S. public companies based on the real-world experience of more than three million of their employees. It focuses on worker outcomes, not corporate policy or practice. Compiled through a data analysis of career histories, job postings, and salary sources, the index studies the progress of workers in jobs that are open to those without a college degree, among other things. A number of retail brands scored well. McDonald’s and Starbucks were the only restaurant industry brands to make the list.
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.