Wages
Harris Campaign – For the first time, Vice President Harris officially endorsed an increase in the federal minimum wage “to at least $15/hr.” While she has long called for an increase in the federal wage, she hadn’t specifically cited a number previously. The announcement comes on the heels of former President Trump’s highly publicized visit to a McDonald’s location in Feasterville, PA. More details.
South Dakota – The state announced new minimum wage rates for 2025. As of Jan. 1, the state minimum wage will increase 30 cents to $11.50/hr and the server wage for tipped employees will rise to $5.75/hr. The state wage is tied to the CPI per legislation passed in 2015. More details.
Paid Leave
New York, NY – Legislation has been introduced in the city council to amend the current paid sick leave law to include care for both pets and service animals. The proposal would allow pet owners to use paid sick leave to care for “an animal.” The vague wording, i.e., “an animal kept primarily for companionship in compliance with all applicable laws would be covered,” would expand coverage far beyond traditional pets, such as cats and dogs. The bill was referred to a committee and its prospects are unclear. More details.
Labor Policy
NLRB – The U.S. Court of Appeals for the Ninth Circuit heard oral arguments appealing the new NLRB (National Labor Relations Board) Cemex standard. The new standard finds that “if an employer subsequently commits an unfair labor practice that requires setting aside an election, the petition…will be dismissed, and the employer will be subject to a remedial bargaining order.” The Board held that an election must be set aside, and a bargaining order issued for an unfair labor practice charge committed during the period leading up to an election, unless it is “virtually impossible to conclude that the misconduct has affected the outcome of the election.” The company in question, Cemex, is arguing that the Board exceeded its authority by broadening its use of bargaining orders to combat illegal activity during union organizing elections. Based on the questioning by the court, at least two members of the three-judge panel appeared sympathetic to the agency’s position. Given the importance of the Cemex decision and the potential conflict with Supreme Court authority, it is likely that the party on the losing end of the appeal may seek certiorari from the U.S. Supreme Court. Regardless, even if the Ninth Circuit reverses the Cemex decision, the NLRB will likely continue to take the position that the holding on appeal is limited to the facts of that particular case, and that the new standard espoused in Cemex remains the law – until it is reversed by the U.S. Supreme Court or subsequent NLRB precedent. More details.
Starbucks – An Administrative Law Judge with the NLRB invoked the newly-installed standard under the Cemex decision and ordered the company to recognize the Starbucks Workers Union as the exclusive bargaining representative of the workers at a store in Great Neck, NY. The management team at the store had been accused of coercion, intimidation, and retaliation among other charges during the unionization campaign at the store in 2022. All 15 employees at the unit had signed cards requesting an election but the union ended up losing when votes were tallied. The ALJ found that the nature of the violations was severe enough to dismiss the election results and issue a bargaining order. More details.
Trader Joe’s – A NLRB Regional Director dismissed the union decertification petition from a group of workers at its Hadley, MA location which had become the first Trader Joe’s in the country to unionize, winning an election on July 28, 2022. That vote was 45-31 in favor, with 59 percent support. In August, the National Right to Work Foundation announced the decertification petition, after enough of the store’s 77 employees had signed the petition. The regional director who oversees the Region 1 Office in Boston ruled in favor of dismissal citing a pending unfair labor practice complaint against Trader Joe’s, in which an administrative law judge decision has not yet been made. National Right to Work filed a request for review appealing the decision. The next step is for the full board to rule on the appeal. More details.
Misc.
FTC – The Federal Trade Commission (FTC) launched legal proceedings against Qargo Coffee and its founders, citing significant breaches of the Franchise Rule. The complaint, filed by the FTC, alleges that Qargo Coffee and founders Mark Bastorous, Bernadette Bastorous, and Samir Shenouda failed to provide essential information to potential investors. The omissions pertain to critical franchise disclosures, including one founder’s previous association with the troubled BurgerIM franchise. The agency considers such information vital for individuals assessing the financial and operational risks associated with investing in a franchise and has stepped up its vigilance of franchise contracts stressing transparency and a need to protect investors from unfair business practices. More details.
Key Takeaways
- Donald Trump used a franchised McDonald’s location in Bucks County, Pennsylvania as the backdrop for a press conference and campaign event this week. Both candidates have now used the brand in different ways in an attempt to boost their own campaigns. In fact, the former President Trump made a number of comments during the press conference, asserting that the Vice President Harris has fabricated her McDonald’s employment story. (Harris’ summer job working at McDonald’s has been a central part of her campaign’s narrative that she had a middle class upbringing.) The brand has managed the situation about as well as could be expected. However, brand risks remain. For instance, worker advocates were quick to point out that Trump didn’t follow food safety protocols (like wearing a head covering), and the press was quick to note that location had been cited by the health department for related issues in the recent past. The brand was also pulled into various conspiracy theories as the unfortunate (and unrelated) announcement by the CDC of an e. coli outbreak at some McDonald’s locations on the other side of the country. As politicians and interest groups hijack brands to advance their own interests, it can become increasingly difficult for brand to manage their own reputations.
- Gallup released a report on voter attitudes toward taxation, finding broad support across all voter groups (including Republicans) that corporations do not pay their fair share in taxes. The spread across partisan groups this year ranges from 93 percent among Democrats to 54 percent among Republicans, with Independents at 65 percent. That sets up a challenging environment for the business community at all levels of government, and particularly at the federal level, heading into 2025 tax policy conversations.
Podcast
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