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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March 11
The partial government shutdown results in TSA agents losing their first full paycheck; the Fifth Circuit upholds the certification of a class of former United Airline workers who were placed on unpaid leave for declining to receive the COVID-19 vaccine for religious reasons during the pandemic; and an academic group files a lawsuit against the State Department over a policy that revokes and denies visas to noncitizens for their work in fact-checking and content moderation.
March 10
Court rules Kari Lake unlawfully led USAGM, voiding mass layoffs; Florida Senate passes bill tightening union recertification rules; Fifth Circuit revives whistleblower suit against Lockheed Martin.
March 9
6th Circuit rejects Cemex, Board may overrule precedents with two members.
March 8
In today’s news and commentary, a weak jobs report, the NIH decides it will no longer recognize a research fellows’ union, and WNBA contract talks continue to stall as season approaches. On Friday, the Labor Department reported that employers cut 92,000 jobs in February while the unemployment rate rose slightly to 4.4 percent. A loss […]
March 6
The Harvard Graduate Students Union announces a strike authorization vote.
March 5
Colorado judge grants AFSCME’s motion to intervene to defend Colorado’s county employee collective bargaining law; Arizona proposes constitutional amendment to ban teachers unions’ use public resources; NLRB unlikely to use rulemaking to overturn precedent.