COVID-19
Vaccine Mandates – The issue of vaccine mandates has become the latest flashpoint with Republican governors actively opposing the Biden Administration’s policy. A number of Republican-controlled states have banned vaccine mandates over the past several months but last week, Texas Governor Abbott took direct aim at the federal mandate, issuing a contradictory executive order. And, Florida Governor DeSantis announced he will call a special legislative session to take similar action. Employers, of course, have been increasingly caught in the middle. Most employers continue to defer to the federal requirements.
OSHA – The Occupational Safety & Health Administration (OSHA) has begun the process of revoking prior approval of Arizona, South Carolina, and Utah’s workplace safety programs. In June, OSHA released a set of workplace safety regulations requiring health care employers to provide masks, physical barriers, social distancing and proper ventilation to ensure their employees are protected from COVID-19. There are 28 states and territories that have agency approval to develop and enforce their own workplace safety laws, as long as they meet federal standards. Utah, Arizona, and South Carolina (all run by Republican governors) are the only states in that group that have not come into compliance with OSHA’s health care worker rule, according to the agency. OSHA sent courtesy letters to the states this week letting them know they will propose revoking their plans’ approval. The agency will publish a notice for each state in the Federal Register announcing its proposal to revoke approval and explaining its reasons why. There will then be a 35-day comment period at the end of which officials will decide how to move forward. One likely route of action, should the states decide not to comply, would be a heightened level of regular OSHA inspections. More details.
National Restaurant Association – The industry’s leading trade organization sent a letter to the nation’s mayors this week asking them to continue supporting outdoor dining allowances enacted during the pandemic. As the country heads into winter and the pandemic shows signs of easing, many localities have rolled back provisions passed on a temporary basis to support struggling restaurant operators. The association specifically asked the nation’s mayors to extend any suspension of the regulations that prevented sidewalk and street side shelters from springing up before the pandemic. It also asked that the permitting process for the outdoor structures continue to be streamlined. More details.
In-N-Out Burger – The company refused to comply with San Francisco’s ordinance mandating that restaurants check vaccine cards (so-called vaccine passports) before allowing customers to dine indoors. The decision resulted in a temporary shutdown of the city’s only location. San Francisco health officials have had to remind employees at the In-N-Out location to check vaccine cards multiple times since late Sept. Despite the warnings, employees did not comply, forcing the city’s health department to shut down the restaurant on Oct. 14. This is the only time the agency has ordered a closure for a vaccine-card violation. The restaurant, located on Fisherman’s Wharf, has since reopened but for outdoor dining only. More details.
Wages
Tucson, AZ – City leaders are still discussing whether a local $15/hr minimum wage ballot initiative will appear on the Nov. ballot. The city council has openly opposed the effort and may pursue legal action to stop it. This week the city attorney wrote a letter to the city manager outlining that the ballot measure may be unconstitutional. At issue is specific language that prohibits employers from using a payment method that requires an employee to have a valid social security number. The city attorney says this provision is in conflict with federal and state law. More details.
Associated Bank – The large Midwest-based financial organization announced its minimum starting wage will increase to $17/hr effective Nov. 21. The change will impact roughly one third of the bank’s employees in 11 states. More details.
Activism
Amazon – An independent group of Amazon employees (called the Amazon Labor Union) plans to file an election petition with the National Labor Relations Board on Oct. 25. The organizing effort involves more than 2,000 workers across four Staten Island Amazon locations. The group’s stated goals are to achieve higher wages, create safer working conditions, and increase paid time off, breaks and medical-leave options, among other goals. More details.
Dollar General – Workers at a store in Barkhamsted, Connecticut will vote this week on whether to join the United Food and Commercial Workers (UFCW). The workers in the store said the union organizing drive was prompted by a verbal altercation in Sept. between two district managers and a store manager, where employees and customers could overhear screaming. Since the union organizing drive went public, the company has sent several corporate managers and union avoidance consultants to the site. More details.
One Fair Wage – The advocacy group co-hosted an event in New York City where New York State Comptroller Tom DiNapoli announced plans to pressure public restaurant companies to pay their workers an hourly minimum wage of $15/hr and eliminate tipping. Other groups that participated in the event include RAISE High Road Restaurants, Surdna Foundation, Robert F. Kennedy Human Rights, Interfaith Center on Corporate Responsibility (ICCR), and Adasina Social Capital. Napoli said New York Governor Kathy Hochul has the power, using an executive order, to eliminate tipping in the state. Of note, Darden, Brinker, Cheesecake Factory, Disney, Denny’s, and Dine Brands were referenced in his remarks. More details.
Labor Policy
OSHA – The U.S. Senate voted to invoke cloture and limit debate on the nomination of Doug Parker to head the Occupational Safety and Health Administration, likely clearing the way for his final confirmation early next week. Parker is currently the head of CalOSHA, California’s workplace safety agency. More details.
New York – The state labor department issued new guidance this week that bans employers in the state from testing employees for cannabis unless the worker seems visibly under the influence on the job. Under the new rules, workers smelling of pot smoke would not be grounds for a test; however, employers are within their rights to ban workers from possessing pot on the job site, according to the guidance. The rules come as a result of legislation passed earlier this year legalizing recreational marijuana in the state. More details.
McDonald’s – In a systemwide message this week, the company’s Chief People Officer announced that the organization has effectively achieved equal pay by gender at its U.S. company restaurants and is on track to do the same with its corporate workforce by next year. Currently, women are paid 99.16 percent of the pay men receive for comparable work and the company will erase the remaining gap during its 2022 pay cycle. In the message, the executive said that its 2021 analysis showed that it has substantially achieved equal pay by gender and race but that the company needs to keep monitoring the situation via regular pay changes and new employees. More details.
Delivery
FDA – The Food and Drug Administration (FDA) conducted a virtual conference this week, exploring possible regulations around food delivery. Agency representatives had questions including what happens when food is delivered and left unattended or exposed to the elements, and should companies use tamper-proof packaging. Regulations discussed by the FDA include mandating temperature-regulated packaging, as well as tracking the food from source to customer. More details.
Sustainability
Panera – The company announced that it will become the first fast-casual restaurant chain to commit to becoming climate positive by 2050. The chain is updating its climate goals to remove more carbon from the atmosphere than it emits by 2050. They also set shorter term goals for 2025, including increasing the percentage of its “Cool Food Meals” (low carbon footprint menu items) to 60 percent; transitioning to 100 percent circular packaging with the option to recycle, compost, or reusable packaging; and using renewable energy sources like wind and solar in at least half of its stores. Previously, Panera set a goal to reduce its direct carbon emissions by 15 percent by 2022, which it accomplished a year early. More details.
Misc.
Texas Roadhouse – The company announced that employees working at least 30 hours/wk will be eligible for $5,250 in annual tuition reimbursement, provided they attend an accredited university and maintain a C average. It was timed to coincide with their National Hiring Day on Oct. 25. McDonald’s, Raising Canes and Chipotle have similar tuition incentive programs. More details.
Key Takeaways
- An increasing number of business leaders and economists are coming to the conclusion that the labor shortage is not a short-term aberration but a structural issue with the American economy. If correct, the labor marketplace will look much as it does today moving forward. As such, the industry needs to engage more vigorously in broader macro conversations regarding workforce development, immigration, and employee classification. Not only will that help us adequately prepare for the future but will also allow us to move beyond traditional discussion of pay and benefits.
- Labor activists sense opportunity with New York Governor Hochul and are ramping up a full court press to have her unilaterally eliminate the tipped wage. Companies and associations need to engage in New York and continue to demonstrate why the tipped wage model works for employers and employees.
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 Nation’s Restaurant News website, SoundCloud, iTunes and Spotify.