Wages
Arizona – The Arizona Industrial Commission announced that the state’s hourly minimum wage will rise to $13.85/hr from $12.80/hr, and the hourly tipped minimum wage will increase to $10.85/hr from $9.80/hr effective Jan. 1, 2023. Under state law, the wages are tied to the Consumer Price Index and annual increases are likely going forward. Six other states – Maine, Montana, Ohio, South Dakota, Vermont, and Washington will soon raise their wages as well due to the recently-released CSI report to which their wages are tied. More details.
Florida – Effective Sept. 30, the state minimum wage will increase to $11.00/hr. The state tip credit will remain at $3.02/hr meaning the cash wage for tipped employees will increase to $7.58/hr. In 2020, Florida voters approved a constitutional amendment that annually increases the minimum wage by one dollar until it reaches $15/hr by 2026 and then ties it to inflation thereafter. More details.
Paid Leave
Colorado – The state published final regulations and guidance regarding benefits eligible employees will be entitled to under the state’s family and medical leave insurance plan (FAMLI). Among other benefits, an employee is entitled to up to 12 weeks of paid leave for qualifying reasons, plus an extra four weeks for pregnancy or childbirth-related reasons. Even though employees will not be entitled to FAMLI benefits until Jan. 1, 2024, Colorado employers must register with the state by Jan 1. 2023 and will need to begin withholding premium payments and submit quarterly wage reports through the state portal. Additionally, all employers will need to collect and remit premiums under the FAMLI program beginning Jan. 1, 2023, even if the employer intends to meet the FAMLI requirements through a private plan. However, employers will be eligible for a refund of these premiums if they have received approval by the state for a private plan with an effective date on or before Jan. 1, 2024. More details.
Maine – A study commissioned by the Maine Legislative Council and released this week found that a paid family and medical leave plan for the state could cost employers and employees a minimum of $266 million starting in 2024, depending on how generous the benefits are. The study was directed in advance of likely legislation in 2023 currently being crafted by the state’s Commission to Develop a Paid Family and Medical Leave Benefits Program, which includes lawmakers and employers. Separately, a coalition of progressive groups is trying to get a sweeping referendum on Maine’s 2023 ballot. More details.
Labor Policy
PRO Act – The Worker’s Power Coalition, the grassroots effort advocating passage of the onerous Protecting the Right to Organize (PRO) Act, announced new plans to pressure Senate Democrats and candidates to support the legislation. Efforts will be focused in Arizona, Colorado, Georgia, New Hampshire, Nevada, Virginia, Ohio, Wisconsin, and Florida. Organizers are planning to hold protests, visit offices, coordinate call campaigns, host town halls, and more. In related news, the U.S. House Committee on Education & Labor held a hearing entitled, “In Solidarity: Removing Barriers to Organizing” with witnesses including a Starbucks barista from Buffalo, NY who was an early leader in the organizing efforts there. More details.
Labor Department – The nomination of Jessica Looman, who has been the acting head of the Wage & Hour Division (WHD) of the Labor Department and nominated to be the permanent head, will be voted on next week in committee and likely advanced to the senate floor for a vote later this year. Her nomination followed the administration’s high-profile failure to win Senate confirmation of David Weil, who held the position during the Obama administration. As WHD chief during Obama’s second term, Weil signed-off on several regulations that drew fire from Republicans and industry groups. More details.
EEOC – Karla Gilbride, President Biden’s pick to fill the long-vacant general counsel position at the Equal Employment Opportunity Commission (EEOC) will also face a confirmation vote in committee next week. Gilbride is an attorney at the nonprofit legal advocacy group Public Justice and expressed personal support for attempts to end use of a subminimum wage for people with disabilities. Gilbride, who is blind, has a background in disability rights and discrimination law. More details.
New York – The state is soliciting comments regarding potential policy changes to strengthen the state’s Sexual Harassment Prevention Model Policy. The current policy was created in 2018 and requires all employers (regardless of size) to adopt a sexual harassment prevention policy and provide annual training to employees. Much of the current focus is regarding modernizing rules around remote employment. More details.
Starbucks – In advance of the chain’s annual Investor Day, the company announced new student loan repayment tools and a savings account program for all U.S. employees who are not union members. Starbucks continues to raise wages and offer benefits to its non-union employees and many market analysts believe it is partially responsible for the recent slowing of the unionization efforts underway. To date, workers at 327 stores in 37 states have filed to unionize and 236 Starbucks stores in 33 states have won union elections against 52 losses. More details
Labor Activism
Amazon – The National Labor Relations Board (NLRB) settled on terms for a unionization election for a warehouse facility in Schodack, NY near Albany. Voting will be held in-person in an outdoor tent in the facility’s parking lot from Oct. 12-17, with counting to begin Oct. 18. The company had questioned whether the Amazon Labor Union had secured enough petitions from the roughly 400 workers to call for an election but the agency ruled the threshold was met. More details.
Key Takeaways
- This week, the Cornell University School of Industrial and Labor Relations published a report citing 180 labor strikes involving roughly 78,000 workers in the first six months of this year, up from 102 involving 26,500 workers in the same period a year earlier. That includes 72 walkouts at Starbucks and nine at Amazon facilities. And, there have already been nearly 100 additional work stoppages so far in the second half of the year. Additionally, this week’s agreement ending a potential national rail strike – with generous pay and benefit increases for workers – is being widely viewed as a huge win for the unions. With the unemployment rate staying below 4%, brands should understand that the current labor environment isn’t going to change and worker leverage will be part of the business model for the foreseeable future.
- Over a decade ago, retailers, restaurateurs and other small business owners worked collaboratively to pass legislation placing limits on the debit card fees banks and their networks were charging merchants. That same coalition is currently working together on bi-partisan legislation to place similar restrictions on credit card fees as well as credit card processing networks. As skyrocketing food and labor costs continue to erode restaurant margins, the industry has a rare opportunity for progress in this space and relieve some pressure on bottom lines. Retail and convenience store brands are very publicly active in this space helping their industry trade associations make progress. Leading restaurant brands should be similarly engaged, visibly supporting industry association efforts on this issue.
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.