COVID-19
Arkansas – During a special session this week (which was convened on an unrelated issue), the senate advanced legislation that would require an exemption process for workers subject to a COVID-19 vaccine mandate from their employers. Per the bill, any employer that mandates the vaccine must also offer an exemption process that includes testing or proof of antibodies. If enacted, the requirement would end July 31, 2023, unless it is extended by lawmakers. The house will now consider the bill. More details.
Los Angeles, CA – The city council approved an ordinance requiring customers to show proof of a COVID-19 vaccine in order to eat, drink, or shop in indoor establishments across the city. Under the ordinance, customers who are not vaccinated can use an establishment’s outdoor space. Unvaccinated individuals can only enter the indoor portion of a store or restaurant for brief moments, either to use the bathroom, to pick up an order, or to pay, while wearing a well-fitting mask. A business found in violation of this mandate could face punishment that includes a warning or notice for a first violation, a $1,000 fine for a second violation, a $2,000 fine for a third, and a $5,000 fine for a fourth violation. Those who cannot be vaccinated for religious or health reasons must show proof of a negative COVID-19 test and proof of an exemption. More details.
Wages
Alaska – The state labor department announced that the minimum wage will not rise in 2022 and will remain at its current $10.34/hr. In 2014, voters passed a ballot initiative to adjust the minimum wage annually for inflation but the agency determined there was no inflation in 2021 therefore the wage shall stay the same. The state does not have a tip credit. More details.
California – The governor signed legislation that phases out by 2025 a subminimum wage for mentally or physically handicapped workers. It also terminates the program that issues licenses to employers who participate by 2022. More details.
Washington – The state labor department set the state’s new minimum wage for 2022 at $14.49/hr effective Jan.1. The state has no tip credit and servers make the full minimum wage. In 2016, Washington voters approved Initiative 1433, which set a statewide minimum wage at $11/hr for 2017 and then raised it to $11.50/hr in 2018, $12/hr in 2019, and $13.50/hr in 2020. Going forward, the initiative also called for the state to adjust annually based on increases in the CPI. This year’s increase is almost 6 percent. More details.
Bank of America – The company announced it is raising its U.S. minimum hourly wage to $21/hr, as it works to keep to its schedule of increasing the pay to $25/hr by 2025. In the last four years, Bank of America raised the minimum hourly wage to $20/hr from $15/hr. The new minimum means its workers now make $43,680/yr with benefits. That compensation level is well above the poverty line of $12,880/yr for one person and the $26,500/yr threshold for a family of four. More details.
Paid Leave
Budget Reconciliation -In search of a compromise, U.S. House and Senate negotiators are at odds over federal paid leave provisions in the federal reconciliation, or soft infrastructure bill. They are far apart on a price tag – $300 billion or $494 billion, respectively, on the program. A funding level of $300 billion is likely enough to cover three to four weeks of leave but not the 12 weeks that President Biden proposed. Specifics are still in flux as Democrats continue to negotiate a topline budget number. Options being considered include reducing the length of the benefit, capping how much workers take home, phasing in the program, and giving it an expiration date. More details.
Labor Policy
Biden Administration – A White House task force focused on worker organizing and empowerment met this week to discuss its new report meant to boost unions. The Biden-Harris administration has aimed to boost workers’ rights and paint itself as a pro-labor and pro-union administration. Vice President Kamala Harris who hosted the meeting said the report which will be released in late Oct. will recommend key changes via executive action. The group is vice-chaired by Labor Secretary Marty Walsh who said that one of the issues he hopes to address is improving opportunities for young people of color. More details.
Connecticut – Three workers laid off from a Connecticut turnpike service plaza McDonald’s unit filed a lawsuit in an early test of a COVID-19 worker’s rights bill. The new law narrowly passed in the closing hours of the 2021 legislative session. The “right to recall” law requires workers laid off during the pandemic to be recalled by seniority. The franchisee has been the target of a multi-year organizing drive and the same three workers have a separate claim before the National Labor Relations Board alleging they are facing retaliation for their involvement in the union drive. More details.
Seattle, WA – The city council unanimously approved a resolution effectively decriminalizing psychedelic drugs. According to the measure, “the investigation, arrest, and prosecution of anyone engaging in entheogen-related activities should be among the City of Seattle’s lowest enforcement priorities.” It urges the Seattle Police Department to “move toward the formal codification and adoption of that practice as departmental policy.” The city joins others such as Denver, Oakland, and Ann Arbor that have enacted similar ordinances. More details.
Activism
Budget Reconciliation – Numerous national paid leave advocacy organizations are calling on the CEO’s of companies with membership in both the U.S. Chamber of Commerce and the Business Roundtable to pressure those groups to endorse the spending package currently before Congress. The groups, which include MomsRising, Women Effect Action Fund, Paid Leave for All and the YMCA, highlighted the Business Roundtable and the Chamber of Commerce’s previous support for child care and paid leave investments. More details.
Delivery
New York, NY – The city has agreed not to enforce a new law requiring food-delivery services to share customer information with restaurants while a legal challenge from DoorDash Inc. plays out in court. Earlier this week, the city said in a filing in Manhattan federal court that it would put the law on hold until the suit DoorDash filed last month is resolved. The company said it was withdrawing its request for an order blocking enforcement of the law. The measure is part of a recently-passed package of bills aimed at regulating the food-delivery industry and shoring up the city’s restaurant industry. More details.
Sustainability
California – The governor signed numerous packaging and sustainability-related bills this week. Among them is a new law clarifying the symbols on packaging to better illustrate what is and is not recyclable. The state Department of Resources Recycling and Recovery now has until Jan. 1, 2024, to publish a study on what is recyclable. An additional bill expands on an existing state law that allows restaurants to distribute single-use straws only upon request. It now requires take-out restaurants to give consumers single-use condiment packages like ketchup and mustard and utensils like knives, forks and spoons only if asked. The governor also signed legislation that will ban the use of so-called PFA “forever chemicals” in food packaging starting Jan. 1, 2023, and by 2024 will require cookware manufacturers to disclose if hazardous materials are used in their products. More details.
McDonald’s – The company announced the setting of a new target to cut global greenhouse gas emissions to net-zero by 2050. The company also said it was working with the nonprofit Science Based Targets initiative (SBTi) to revamp its existing climate change targets. It aims to lower absolute emissions by about a third for both its suppliers and its nearly 40,000 company-run and franchised restaurants around the world by 2030. In related news, this week investment funds managing nearly $30 trillion in assets called for 1,600 of the world’s most polluting companies to set science-based emissions targets. More details.
Key Takeaways
- Preliminary data is appearing to show significant correlations between vaccine mandates and increases in vaccination rates. This week, the president essentially “doubled down” on his mandate policy and is increasingly pressuring employers to mandate vaccinations for their workforce. As more and more companies enact similar policies, large brands may find themselves the target of White House pressure to follow suit.
- McDonald’s followed RBI this week in making major commitments related to its carbon footprint. Expectations of brands are changing in this space and companies need to continue to think through its positioning on energy efficiency, emissions, and environmental impact.