This past week, the California State Senate passed a measure that would block most employers from forcing workers to agree to arbitrate labor disputes instead of filing claims with state agencies or courts. AB-465, sponsored by the California Labor Federation, would prohibit companies from requiring employees to waive their legal rights to provisions of the state labor code as a condition of employment, and therefore has elicited pointed opposition from the California Chamber of Commerce, which has called the bill a “job killer.”
Workers constructing Russia’s World Cup venues allege that they have not been paid for months, despite the budget for the arena increasing fivefold since the country was designated as the host of the 2018 competition in December 2010, the Guardian reports. Fifty workers have threatened to sue two subcontractors for 14 million roubles, or a little over 200,000 USD, for unpaid wages. In addition to nonpayment, workers have complained of poor work conditions and lax safety standards, pointing to the numerous accidents and deaths at the stadium site since construction began in 2011. Allegations of corruption and inflated construction costs form a backdrop to this controversy, with one businessman being sentenced to four years in prison for embezzling 146 million roubles of state funds in 2013.
Jeff Spross asks at The Week whether McDonald’s disgruntled franchise owners should ally themselves with their workers against their parent company. Spross notes that many of McDonald’s franchisees don’t like the franchise model, which requires that they pay the “corporate mothership” up to 22 percent of their revenue and comply with a long list of costly operational requirements. And while, as Professor Kalnins of Cornell University points out, franchisee owners are fairly well-to-do, McDonald’s has cracked down on its franchisees in recent years, controlling most of the prices on the menu and squeezing franchises so that they are forced to pay workers less to turn a profit. The result is that dissatisfaction among McDonald’s franchise owners is at an all time high.
A paid suspension typically does not constitute a adverse employment action under the substantive provision of Title VII of the Civil Rights Act, the Third Circuit held earlier this month in Jones v. Septa, No. 14-3814, 2015 U.S. App. LEXIS 14094 (3d Cir. August 12, 2015). Affirming the lower court’s judgment that the former SEPTA employee’s paid suspension did not constitute an adverse employment action, Judge Hardiman, writing for the panel, reasoned that paid suspensions are not adverse actions, as they do not qualify as failures to hire; terminations; or changes in compensation, terms, conditions, or privileges of employment.
At the New York Times, Noam Scheiber observes that the Obama administration has been pursuing an “aggressive campaign” to restore protections for workers that have been eroded in recent decades. Indeed, Obama has introduced new regulations that would make millions of Americans eligible for overtime pay and a guidance suggesting employers are misclassifying workers—just in the last two months. However, Scheiber notes that, while liberals and union supporters have applauded Obama’s record in labor rights, they also have criticized the President for undercutting workers with his efforts to promote global trade agreements and balanced budgets.
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.