Hannah Belitz is a student at Harvard Law School.
A coalition of labor and community groups has accused Build Your Dreams (BYD), a Chinese-owned company that manufactures electric vehicles in L.A. County, of various wage and labor violations. According to the Los Angeles Times, the allegations include violations of L.A.’s “living wage” rules, which mandate minimum pay for city contractors, broken promises to hire local workers, and unsafe working conditions at a local plant. Labor activists have also recently fought with BYD over the possibility of unionizing its workers. L.A. city officials are investigating the allegations of living wage violations, and have already requested that BYD turn over various documents.
Politico reports that lawmakers are pushing to repeal or scale back the “Cadillac Tax,” which imposes taxes on employer-based health coverage plans whose premiums exceed certain amounts. Employers can avoid paying the tax if they reduce employee health care benefits, which has led to strong opposition from many unions and lawmakers. Some of the lawmakers who oppose the tax are seeking to include changes in a broader tax package, but it remains unclear whether President Obama would veto the whole package, which would jeopardize other tax breaks that the lawmakers want to pass.
At the New York Times, Neil Irwin suggests that Federal Reserve officials should look to Shake Shack as an example of how to raise wages without necessarily increasing costs for consumers. At the popular burger joint, labor costs are going up, “but the price increase the company envisions is small.” Averaging out 2015 and 2016, Shake Shack’s prices will rise at a rate of approximately 2% annually — the same rate at which the Fed aims. Other fast food joints, including Domino’s Pizza, Del Frisco’s, Chipotle, and Chili’s all provide similar examples. Instead of dramatic price raises to offset wage increases, each of these companies is looking at other means by which to manage their budgets.
In local Boston news, three Jamaica Plain restaurants plan to add a hospitality surcharge to every bill in an effort to make wages more fair. According to the Boston Globe, the restaurants will add a 3% “hospitality administrative fee” to all diners’ bills, in addition to a 7% fee and automatic 15% gratuity for parties of six or more. The hospitality surcharge seeks to remedy the wage gap between back-of-house employees, like cooks, and front-of-house employees, like waiters and waitresses, who typically make 2.5 times more than their back-of-house counterparts.
Daily News & Commentary
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July 31
EEOC sued over trans rights enforcement; railroad union opposes railroad merger; suits against NLRB slow down.
July 30
In today’s news and commentary, the First Circuit will hear oral arguments on the Department of Homeland Security’s (DHS) revocation of parole grants for thousands of migrants; United Airlines’ flight attendants vote against a new labor contract; and the AFL-CIO files a complaint against a Trump Administrative Executive Order that strips the collective bargaining rights of the vast majority of federal workers.
July 29
The Trump administration released new guidelines for federal employers regarding religious expression in the workplace; the International Brotherhood of Boilermakers is suing former union president for repayment of mismanagement of union funds; Uber has criticized a new proposal requiring delivery workers to carry company-issued identification numbers.
July 28
Lower courts work out meaning of Muldrow; NLRB releases memos on recording and union salts.
July 27
In today’s news and commentary, Trump issues an EO on college sports, a second district court judge blocks the Department of Labor from winding down Job Corps, and Safeway workers in California reach a tentative agreement. On Thursday, President Trump announced an executive order titled “Saving College Sports,” which declared it common sense that “college […]
July 25
Philadelphia municipal workers ratify new contract; Chocolate companies escape liability in trafficking suit; Missouri Republicans kill paid sick leave