Wages
Washington, DC – The Washington Post Editorial Board voiced their opposition to the city’s proposed ballot initiative to eliminate the tip credit. The paper cited higher menu prices at a time of sky-high inflation and rising food costs that would put more financial pressure on D.C. residents and deprive working families of opportunities to dine out. If approved by voters, Initiative 82 would slowly phase out tipping by 2027. The current cash wage for tipped employees is $5.05/hr and the city’s minimum wage is $16.10/hr. More details.
Labor Policy
Labor Department – The agency will publish a final rule in the Federal Register next week formally nixing former President Donald Trump’s employer-overseen apprenticeship program. It’s the last step in a process that began in Feb. 2021 when President Joe Biden signed an executive order revoking the Trump-era executive order that established the program and directed agencies to rescind any related regulations. Dubbed Industry-Recognized Apprenticeship Program (IRAP), it allowed the private sector to control its own apprenticeship programs. Registered apprenticeships, on the other hand, are regulated by the government. According to the agency document, the final rule will direct the department to work with existing IRAPs and their facilitators to become registered apprenticeship program sponsors or intermediaries. It will also connect IRAP apprentices with programs in the registered apprenticeship system. More details.
Chipotle – The company agreed to pay $7.75 million to the New Jersey Department of Labor and Workforce Development (NJDOL) to settle allegations of child labor law violations. Chipotle made workers under 18 work longer hours than the law allowed and denied them breaks to eat during their shift, according to a 2020 audit by the NJDOL that identified 30,660 instances of violations. In addition to paying out the settlement, the fast-food chain signed an agreement this week to work with the government to monitor its 85 stores across the Garden State for compliance with child labor laws in the future. Chipotle agreed to a compliance plan to prevent future violations, including by conducting internal audits of its practices, appointing a staffer in charge of child labor compliance, and training workers on the law, particularly managers and supervisors, according to the announcement. More details.
Labor Activism
Home Depot – A store in Philadelphia filed a petition to unionize with the National Labor Relations Board (NLRB). This move comes after 100-plus verified signatures were made, making way for what could become the nation’s first union at the big box home improvement retailer. The group is calling itself Home Depot Workers United. Organizers say that during the COVID-19 pandemic, many workers felt exploited by the lack of staffing and additional workload requests. That included working in different departments with little training and lack of compensation accounted for in the end. After a verification process, the NLRB will set a date for an election. More details.
Starbucks – After 64 days on the picket line, workers at a Brookline Starbucks who went on strike over allegations of unfair labor practices and a hostile work environment declared victory this week. Employees at the store near Boston University have been on strike around the clock since mid-July, making this the longest documented action against the global coffee chain. In a press release, unionized workers also claim their district manager said he is “actively seeking a replacement” for the current store manager. The store manager has been cited in multiple NLRB complaints from employees alleging intimidation, dramatic cutting of hours and “perpetuating harmful rhetoric” against employees of color and LGBTQ staff. More details.
Alcohol
Colorado – The Colorado Restaurant Association endorsed a ballot measure to legalize alcohol delivery by third-party companies. Proposition 126, also called “Third-Party Delivery of Alcohol Beverages,” would allow third-party delivery companies such as UberEATS and DoorDash to deliver alcoholic beverages from restaurants, bars, and liquor stores. The association said third-party alcohol delivery would help local businesses that are still struggling financially from reduced revenue during the COVID-19 pandemic. Additionally, CRA believes that if passed, the ballot language would also make permanent to-go alcohol. More details.
Key Takeaways
- This week, the city of Denver became the latest large metropolitan jurisdiction to experiment with Universal Basic Income (UBI). More than 140 people experiencing homelessness in Denver will each be provided up to $1,000 in cash a month for up to one year. The $2 million was allocated from the American Rescue Plan Act, according to the city. We now have close to 50 cities and states with some kind of UBI program and expect many more to emerge in the coming months as states and cities try to spend unused pandemic-relief funds.
- Conservative activists upped the ante this week in their efforts to pushback on corporate Environmental, Social and Governance (ESG) initiatives. Strive 500 E.T.F., which invests in large public companies, plans to use the power of shareholder votes to refocus large companies on maximizing profit instead of pursuing other ESG goals. One of the first issues they will tackle is hiring policies and are targeting companies, starting with Apple, urging them to halt their “racial equity audit” and to remove diversity considerations from its hiring and compensation policies. Additionally, the investment firm will warn companies, starting with Disney, to stay out of political issues not directly affecting their bottom lines. Brands are used to left-of-center entities leveraging shareholder activism to force outcomes – they should be increasingly prepared for scrutiny from the political right.
Podcast
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