Regulatory Wrap-Up: Labor policy returns to the spotlight
Wages
Arkansas - The state supreme court issued an order directing the attorney general to either approve the ballot initiative to raise the state’s minimum wage or provide language that she deems appropriate. The order came after the attorney general rejected three previous attempts by authors to submit valid ballot language. As a result, Attorney General Rutledge reluctantly chose to approve the language which, if passed, would raise the state’s wage to $12/hr by 2022. Advocates now have until July 6 to collect and submit 80,000 valid signatures in order for the measure to be approved for the ballot.
Michigan - Advocates submitted over 370,000 signatures for approval in support of a ballot initiative to increase the state’s minimum wage to $12/hr by 2022 as well as phase out the state’s tipped wage by 2024. The state Bureau of Elections will begin the process of validating the signatures, and if approved, the language will appear on the Nov. ballot.
Vermont - Governor Scott vetoed legislation that would have raised the state’s minimum wage to $15/hr by 2024. It does not appear that the legislature has enough votes to override the veto.
Anaheim, CA - Senator Bernie Sanders is headlining a June 2 rally in support of a ballot initiative that would raise the minimum wage to $15/hr for hotels that receive city tax subsidies. It would rise to $18/hr by 2022 with future increases tied to cost of living. Advocates recently submitted signatures in support of the initiative appearing on the ballot, but the city has yet to conclude the certification process.
Paid Leave
Vermont - Governor Scott vetoed legislation that would have established a state-run paid family leave program funded by employees through a payroll tax. It does not appear that the legislature has enough votes to override the veto.
San Antonio, TX - A labor advocacy group, Working Texans for Paid Sick Time, submitted over twice the number of required signatures to the city clerk’s office in support of a paid leave ballot initiative. The language mirrors the law in Austin, TX which passed earlier this year and is the subject of litigation. If the signatures are approved, the initiative will appear on the Nov. ballot.
Equal Pay
Connecticut - The governor signed into law a bill that prohibits employers from asking about a job candidate’s salary history prior to offering employment.
Labor Policy
U.S. Supreme Court - In a much anticipated and far-reaching decision, the U.S. Supreme Court issued an employer-friendly ruling that could impact at least 25 million workers. In a 5-4 vote, the court ruled that companies may use arbitration clauses in employment contracts to prevent workers from banding together in class action lawsuits related to workplace disputes.
NLRB - Despite a December decision by the federal labor board that narrowed the circumstances under which micro-units could be created, an NLRB regional director ordered a union election for a sub-group of employees at the Boeing Company. The director found that they "share a sufficiently distinct community of interest." This marks the second ruling this month in which a regional director upheld a micro-unit, in spite of the NLRB's Dec. ruling. The two rulings may further spur NLRB General Counsel Peter Robb to demote and reduce the influence of regional directors, whom many in the business community regard as too pro-labor.
Las Vegas, NV - For the first times in decades, a mass strike of hospitality union workers may be imminent. In a move that could cripple Las Vegas resorts, nearly 25,000 members of the Culinary Union who work at 34 different casino-resorts voted to strike at any time beginning June 1. The contracts of 50,000 unionized workers are set to expire at midnight May 31 and union negotiators are working to secure new, five-year contracts. If they don’t, workers could shut down area casino-resorts in protest.
New York City, NY - Similar to efforts in Seattle, New York City is taking steps to extend employment law protections to ride-sharing contractors. The Independent Drivers Guild, a quasi-union for drivers, petitioned the New York City Taxi and Limousine Commission to set a livable wage rule that applies to drivers for apps like Uber and Lyft in the city. Their proposal would also prohibit apps from charging more than 20 percent over what workers are paid. The commission has sixty days to consider the proposal.
McDonald’s - Fight for $15 attacked McDonald's on two fronts this week. The SEIU-backed group organized protests and disruptions at the Illinois state house and delivered a letter to McDonald's corporate headquarters, stating the company "perpetuates systemic racism in the U.S. by blocking raises for people of color." In conjunction with the Time's Up Legal Defense Fund, the union also assisted McDonald's cooks and cashiers in filing 10 complaints with the Equal Employment Opportunity Commission, alleging workers have faced sexual harassment, assault and retaliation on the job.
Taxes
Louisiana - A much-debated tax package passed the house and now heads to the senate. Among other provisions dealing with sales taxes, the package includes language that expands sales tax collection obligations to sellers with more than $100,000 in sales or more than 100 sales into the state annually. The language is modeled after the landmark South Dakota law that is awaiting a decision from the U.S. Supreme Court regarding its constitutionality which is expected sometime in June.
Seattle, WA - Large companies with locations in the city have pledged financial resources to place an initiative on the Nov. ballot that would repeal the recently-passed $250 per employee “head tax.” The effort would need to collect roughly 18,000 valid signatures by June 14 in order to qualify the measure for the ballot. Activists have announced a “boycott list” of companies that have registered opposition to the tax.
Trade
China - A little over a week after Treasury Secretary Mnuchin stated that the pending trade war with China was “on hold,” the Trump administration declared it would implement a series of previously announced efforts designed to protect U.S. intellectual property. Those efforts include $50 billion in tariffs on imported goods, broad investment restrictions and the continuation of litigation at the World Trade Organization related to China’s violations of intellectual property laws. The list of the targeted imports will be released on June 15, according to the White House.
Organized Crime
Tennessee - Legislation that increases the recommended sentence for participation, financing and/or supervision of organized retail crime, as defined in current law, was signed into law by the governor. The law also requires pawn shops and other second-hand stores to report the resale of gift cards (via the established gift card database) to law enforcement within 24 hours.
CEO Pay
AFL-CIO Study - The AFL-CIO released an annual report on average CEO pay. The report highlights a 361-1 average ratio of CEO to median worker pay and an increase of 6.4% in CEO pay at S&P 500 companies versus a 2.6% increase for production and non-management workers.
Key Takeaways
Legislature Status for Week of 5/29/18
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 Nation's Restaurant News website, or by clicking here, and when you download the podcast and subscribe on iTunes here.
Arkansas - The state supreme court issued an order directing the attorney general to either approve the ballot initiative to raise the state’s minimum wage or provide language that she deems appropriate. The order came after the attorney general rejected three previous attempts by authors to submit valid ballot language. As a result, Attorney General Rutledge reluctantly chose to approve the language which, if passed, would raise the state’s wage to $12/hr by 2022. Advocates now have until July 6 to collect and submit 80,000 valid signatures in order for the measure to be approved for the ballot.
Michigan - Advocates submitted over 370,000 signatures for approval in support of a ballot initiative to increase the state’s minimum wage to $12/hr by 2022 as well as phase out the state’s tipped wage by 2024. The state Bureau of Elections will begin the process of validating the signatures, and if approved, the language will appear on the Nov. ballot.
Vermont - Governor Scott vetoed legislation that would have raised the state’s minimum wage to $15/hr by 2024. It does not appear that the legislature has enough votes to override the veto.
Anaheim, CA - Senator Bernie Sanders is headlining a June 2 rally in support of a ballot initiative that would raise the minimum wage to $15/hr for hotels that receive city tax subsidies. It would rise to $18/hr by 2022 with future increases tied to cost of living. Advocates recently submitted signatures in support of the initiative appearing on the ballot, but the city has yet to conclude the certification process.
Paid Leave
Vermont - Governor Scott vetoed legislation that would have established a state-run paid family leave program funded by employees through a payroll tax. It does not appear that the legislature has enough votes to override the veto.
San Antonio, TX - A labor advocacy group, Working Texans for Paid Sick Time, submitted over twice the number of required signatures to the city clerk’s office in support of a paid leave ballot initiative. The language mirrors the law in Austin, TX which passed earlier this year and is the subject of litigation. If the signatures are approved, the initiative will appear on the Nov. ballot.
Equal Pay
Connecticut - The governor signed into law a bill that prohibits employers from asking about a job candidate’s salary history prior to offering employment.
Labor Policy
U.S. Supreme Court - In a much anticipated and far-reaching decision, the U.S. Supreme Court issued an employer-friendly ruling that could impact at least 25 million workers. In a 5-4 vote, the court ruled that companies may use arbitration clauses in employment contracts to prevent workers from banding together in class action lawsuits related to workplace disputes.
NLRB - Despite a December decision by the federal labor board that narrowed the circumstances under which micro-units could be created, an NLRB regional director ordered a union election for a sub-group of employees at the Boeing Company. The director found that they "share a sufficiently distinct community of interest." This marks the second ruling this month in which a regional director upheld a micro-unit, in spite of the NLRB's Dec. ruling. The two rulings may further spur NLRB General Counsel Peter Robb to demote and reduce the influence of regional directors, whom many in the business community regard as too pro-labor.
Las Vegas, NV - For the first times in decades, a mass strike of hospitality union workers may be imminent. In a move that could cripple Las Vegas resorts, nearly 25,000 members of the Culinary Union who work at 34 different casino-resorts voted to strike at any time beginning June 1. The contracts of 50,000 unionized workers are set to expire at midnight May 31 and union negotiators are working to secure new, five-year contracts. If they don’t, workers could shut down area casino-resorts in protest.
New York City, NY - Similar to efforts in Seattle, New York City is taking steps to extend employment law protections to ride-sharing contractors. The Independent Drivers Guild, a quasi-union for drivers, petitioned the New York City Taxi and Limousine Commission to set a livable wage rule that applies to drivers for apps like Uber and Lyft in the city. Their proposal would also prohibit apps from charging more than 20 percent over what workers are paid. The commission has sixty days to consider the proposal.
McDonald’s - Fight for $15 attacked McDonald's on two fronts this week. The SEIU-backed group organized protests and disruptions at the Illinois state house and delivered a letter to McDonald's corporate headquarters, stating the company "perpetuates systemic racism in the U.S. by blocking raises for people of color." In conjunction with the Time's Up Legal Defense Fund, the union also assisted McDonald's cooks and cashiers in filing 10 complaints with the Equal Employment Opportunity Commission, alleging workers have faced sexual harassment, assault and retaliation on the job.
Taxes
Louisiana - A much-debated tax package passed the house and now heads to the senate. Among other provisions dealing with sales taxes, the package includes language that expands sales tax collection obligations to sellers with more than $100,000 in sales or more than 100 sales into the state annually. The language is modeled after the landmark South Dakota law that is awaiting a decision from the U.S. Supreme Court regarding its constitutionality which is expected sometime in June.
Seattle, WA - Large companies with locations in the city have pledged financial resources to place an initiative on the Nov. ballot that would repeal the recently-passed $250 per employee “head tax.” The effort would need to collect roughly 18,000 valid signatures by June 14 in order to qualify the measure for the ballot. Activists have announced a “boycott list” of companies that have registered opposition to the tax.
Trade
China - A little over a week after Treasury Secretary Mnuchin stated that the pending trade war with China was “on hold,” the Trump administration declared it would implement a series of previously announced efforts designed to protect U.S. intellectual property. Those efforts include $50 billion in tariffs on imported goods, broad investment restrictions and the continuation of litigation at the World Trade Organization related to China’s violations of intellectual property laws. The list of the targeted imports will be released on June 15, according to the White House.
Organized Crime
Tennessee - Legislation that increases the recommended sentence for participation, financing and/or supervision of organized retail crime, as defined in current law, was signed into law by the governor. The law also requires pawn shops and other second-hand stores to report the resale of gift cards (via the established gift card database) to law enforcement within 24 hours.
CEO Pay
AFL-CIO Study - The AFL-CIO released an annual report on average CEO pay. The report highlights a 361-1 average ratio of CEO to median worker pay and an increase of 6.4% in CEO pay at S&P 500 companies versus a 2.6% increase for production and non-management workers.
Key Takeaways
- This week the Time’s Up Legal Defense Fund, financed by Hollywood and entertainment industry executives and committed to ending sexual harassment, partnered with Fight for $15 and Our Walmart to focus on assisting working women. The organization announced it would provide financial resources and legal assistance for complaints filed against McDonald’s and Walmart. The partnership will further politicize the issue and even “best in class” internal policies such as zero tolerance and aggressive internal investigations into sexual harassment incidents will not deter these groups from pursuing legal action.
- Conventional wisdom, even among labor organizers, is that strikes hold limited effectiveness. Over the past few decades, short strikes have only been utilized in a handful of circumstances, and rarely ever in the hospitality sector. Depending on how negotiations unfold in Las Vegas, unions may challenge that conventional wisdom. It’s worth keeping an eye toward the proceedings because it will serve as a proof point for hospitality-sector unions moving forward.
- The recent decisions by the Supreme Court on key labor cases have been fairly consistent, demonstrating a clear - but thin - pro-employer majority. As the court decides increasingly more cases involving union dues, election rules and other management/labor disputes, we can begin to be more predictive of how cases will be determined. Look for large labor-friendly states to continue looking for creative ways around these new precedents.
Legislature Status for Week of 5/29/18
- The United States Senate is in recess this week
- The United States House is in recess this week
- Thirteen state legislatures are meeting actively this week: California, Illinois, Louisiana, Massachusetts, Michigan, New Jersey, New York and Rhode Island.
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 Nation's Restaurant News website, or by clicking here, and when you download the podcast and subscribe on iTunes here.
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