Justin Cassera is a student at Harvard Law School.
In today’s news and commentary, private payrolls fall unexpectedly, the NYC Council overrides veto on publishing pay data, and workers sue Starbucks over unreimbursed expenses.
On Wednesday, payroll processing firm ADP released an employment report showing that private companies had cut 32,000 workers in November. The news was unexpected, coming in well below estimates of a 40,000 increase and following a hopeful October report showing a gain of 47,000 positions. The losses were overwhelmingly fueled by cuts in businesses with less than fifty employees. The ADP report will certainly affect the Federal Reserve’s decision to cut or keep steady its key interest rate. The Fed is certainly feeling the pressure of its dual mandate as inflation remains above the 2% target while the labor market is balanced “on a knife-edge.” Futures traders currently have the probability of a rate cut pegged at 90%.
On Thursday, the New York City Council voted 40-7 to override a mayoral veto and require large employers in the city to periodically report aggregated pay data broken down by employees’ race and gender. The new law, Int. 982A, will only apply to businesses with 200 or more employees and has a multi-year implementation ramp. The council hopes that this measure will pressure employers to address pay disparities for women and people of color. The submission of data will be able to be done anonymously.
Workers in California have filed a lawsuit against Starbucks alleging that the company has failed to reimburse employees for expenses associated with its new dress code. The lawsuits, filed on Thursday under the Private Attorneys General Act, allege violations of the California Labor Code. The lawsuits also raise claims of unpaid reimbursement for use of the workers’ personal cellphones and vehicles. “This is unjust for a billion-dollar company like Starbucks to nickel and dime its employees like me who are already scraping by and living paycheck to paycheck,” Serrana Cypret, lead plaintiff in one of the lawsuits, said in a statement. The lawsuits come amidst ongoing strikes against Starbucks and with the support of Starbucks Workers United union.
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.