Melissa Greenberg is a student at Harvard Law School.
President Trump released his budget yesterday, and it proposed sharp reductions in spending for entitlement programs. The budget also included a cut of 19.8 percent in funding for the Department of Labor. Despite decreases in funding to the Department, the budget includes a proposal for a paid family leave program, which would allow states to grant six weeks of paid maternity and paternity leave. The program would be funded through changes to unemployment insurance. Although the New York Times reports that President Trump’s budget “stands absolutely no chance of being enacted by Congress,” the article notes that congressional Republicans might “seize the moment to impose some austerity of their own without going nearly as far as [Mick Mulvaney, director of the Office of Management and Budget] or Mr. Trump would like.”
Yesterday, Uber announced that it made a mistake calculating its drivers’ commissions in New York. The company based payments to drivers on fares after taxes were taken out instead of basing drivers’ pay on fares before taxes were deducted. Last year, the New York Taxi Workers Alliance filed a suit alleging that the company had been taking taxes out of workers’ pay even though the drivers’ contracts with Uber only allow the company to take its 25 percent cut out of payments to drivers. The New York Times suggests that the mistake impacted tens of thousands of drivers and these inappropriate deductions could amount to more than $200 million. Read more here.
Politico reported that Secretary of Labor Alexander Acosta will not delay the partial implementation date of the fiduciary rule scheduled for June 9th. In an op-ed in the Wall Street Journal, Acosta stated that the Department has “found no principled legal basis to change the June 9 date while [it] seek[s] public input. Respect for the rule of law leads [the Department] to the conclusion that this date cannot be postponed.” However, the Department of Labor has pledged to review the rule despite the initial implementation date going forward as planned. Politico predicts that given the length of the rulemaking process the rule’s second implementation date will also remain in place.
The Wall Street Journal published an article reporting on the Fight for $15’s success in achieving its goal of a $15 minimum wage despite its inability to achieve its other goal, unionization of the workers involved in the campaign. California, New York, and numerous cities are all on the path to a $15 minimum wage. The article explores the SEIU’s strategy in funding the Fight for $15. The union has put more than $16 million into regional organizing and public relations, even though the campaign has not translated into increased union membership and dues. Despite the questions raised by the Wall Street Journal, SEIU president Mary Kay Henry says that the Fight for $15 is an important part of the union’s agenda, stating that the Fight for $15 “makes ‘the labor movement understand that you can make a bold demand.’”
Daily News & Commentary
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July 3
Unions seek a preliminary injunction to prevent USDA downsizing; the D.C. District Court issues a preliminary injunction against new student loan regulations; Matt Bruenig releases an analysis of Starbucks’ ongoing legal battle against Starbucks Workers United.
July 2
First Circuit denies federal worker unions’ mandamus petition; federal court denies preliminary injunction against new union reporting rule; House introduces the Securing Agriculture’s Workforce Act.
July 1
Trump nominates Keith Sonderling as Labor Secretary; DOL eliminates disparate-impact liability from Title VI regulations; OPM finalizes rule allowing suitability-based removal of federal employees for post-appointment conduct.
June 30
SCOTUS ends removal protections for agencies; staff at NYC cocktail bar vote to unionize.
June 29
In today’s News and Commentary, student-athletes file a class action suit challenging the NCAA’s new Age-Based Rule, a federal judge declines to issue a preliminary injunction against FEMA’s reduction in force but expedites proceedings, and Gavin Newsom opposes California’s proposed billionaire tax in favor of a federal approach. On Thursday, DeJuan Campbell, at basketball player […]
June 28
Philadelphia utility workers announce July 4 strike; national parks workers vote to unionize; Michigan considers “right to disconnect” bill.