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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October 19
FDA reverses course on policy prohibiting off-duty union activity; FAA and NATCA reach deal to secure pay increase for air traffic controllers.
October 18
Federal judge again halts cancellation of the Bureau of Prisons’ CBA; tabletop gaming workers face roadblocks in union recognition.
October 16
Department of Labor reduces wage-and-hour enforcement at unionized workplaces; Fain's victory poses question of federal monitor's extension.
October 15
New reporting examines the rollback of child labor protections; California tries to block a strike; NLRB charges Wisconsin mental health provider with firing workers during union drive.
October 14
Eleventh Circuit overturns ERISA exhaustion rule; DHS finalizes removal of automatic renewal for work permits; AFGE challenges SSA over flexible scheduling policy.
October 13
Chicago hotel workers remain on strike; a coalition of Democratic states sues the Labor Department over canceled unemployment insurance grants; the Federal Labor Relations Authority establishes a new mediation framework for federal worker disputes.