Wages
Colorado – At least five cities and one more Colorado county are considering raising their local minimum wage, which if approved, could go into effect as soon as Jan. 1. The city councils of Boulder and Longmont heard presentations in Aug., while Lafayette, Erie and Louisville are scheduled to hear consultant reports this month. Adams County spent August collecting feedback from citizens and plans to have an update Tuesday at its next study session for the board, according to county officials. Local governments in Colorado were allowed to enact their own minimum wage after legislation passed in 2019 allowing no more than 10% of the state’s 332 local governments the ability to adopt a local minimum wage. For the five cities, which together hired consulting firm ECONorthwest to do an economic analysis, the interest was to get minimum wage in line with the higher rates in Denver, currently at $18.29/hr, and unincorporated Boulder County, where hourly wages shot up to $15.69/hr this year. More details.
Florida – The state’s minimum wage will increase on Sept. 30, rising from its current $12/hr to $13/hr and the server wage increasing from $8.98/hr to $9.98/hr. The increases are a result of a voter-approved ballot measure in 2020 that will ultimately push the minimum wage to $15.00/hr by 2026. More details.
Seattle, WA – During a city council meeting this week, progressive activists demanded that the city council not allow the city’s current tiered minimum wage system to continue permanently. Seattle’s current minimum wage is $19.97/hr, but businesses that employ fewer than 500 employees can pay $17.25/hr if they pay $2.72/hr toward medical benefits, or if the employee earns $2.72/hr in tips. That tip credit is set to expire at the end of this year if the city does not act to extend it. Legislation is pending to amend the city’s minimum wage ordinance to permanently establish the current minimum compensation as the pay standard for small employers. After public outcry from Workers Strike Back and other community members, the sponsor pulled proposed Council Bill 120830 in order to have discussions with stakeholders to find a “balanced solution.” More details.
Labor Policy
California – Captive audience legislation is on its way to the governor. The bill, SB.399 or the California Worker Freedom from Employer Intimidation Act, would prohibit employers from taking adverse actions against or threatening such actions against employees who refuse to attend or participate in meetings where an employer would communicate its opinion about religious or political matters, including meetings about unionization. The ban would be enforced by the Division of Labor Standards Enforcement, would allow an employee to seek injunctive relief for violations of the bill, and provides for a private right of action to recover damages caused by the alleged adverse action. The bill is sponsored by the California Labor Federation and the California State Council of Teamsters. More details.
Labor Activism
Massachusetts – Uber and Lyft drivers kicked off their campaign to pass a ballot measure this Nov. to win the right to unionize. If passed, Question 3 would provide for unionizing and collective bargaining for transportation network drivers, require the state to oversee the negotiations between the parties and approve the negotiated recommendations on wages, benefits, and terms and conditions of work; and, require collective bargaining agreements to be approved by at least a majority of riders who have completed at least 100 trips during the previous quarter. The SEIU and the local Machinists Union are behind the effort and have pledged to spend seven figures to get it passed. Uber announced that they had no plans to actively oppose the measure. In June, Uber and Lyft reached an agreement with the state to grant increased employment benefits and rights for drivers, who now earn at least $32.50 per hour from the time they accept a ride until they drop off passengers. The deal did not establish drivers as employees, however, allowing the companies to continue to treat them as independent contractors. More details.
One Fair Wage – This week, actress Chrissy Teigen, Meena Harris (niece of Vice President Kamala Harris), and One Fair Wage (OFW) hosted a celebrity event in West Hollywood, CA. Celebrities waited tables for an hour to “celebrate their big win in Michigan and uplift their 2024 voter work in Michigan, Arizona, Ohio, and California.” More details.
Unite Here – Thousands of hotel workers in nine cities went on strike over the Labor Day weekend in what is known as a “limited duration walkout”. Most of the workers have returned to work except for 700 workers in San Diego. Unite Here has used that strategy in previous strikes, including one at 65 hotels in Los Angeles and Orange counties, California, that started on the July 4 weekend last year. The union later staged a series of rolling strikes at different properties in subsequent months, often tied to busy travel periods. The union has not ruled out using the same rolling strikes strategy this time, or expanding the strike to other locations. Union members at a total of 65 hotels nationwide had authorized a strike going into this past weekend. The limited duration strikes are a relatively new strategy for US unions, but they’re common in some other countries, notably in Europe. The strategy is intended to help workers keep as many days of pay as possible during a contract negotiation. More details.
Key Takeaway
- The general election is fewer than 60 days away and since our last Presidential election in 2020, many states have passed or amended existing laws regarding worker’s rights to time off for voting and the obligation of employers. Brands should review their policies and, especially in the case of franchised systems, ensure their operators are aware of all applicable local and state laws with regard to voting accommodations. A lack of communication – or miscommunication – in this space could create an easily avoidable employee relations problem as well as negative media attention.
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.