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
Start your day with our roundup of the latest labor developments. See all
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.