NYC Comptroller’s Shareholder Proposal Threatens to Curb Employers’ NLRA Free Speech Rights and Employee Free Choice

On March 31, 2023, New York City Comptroller Brad Lander, on behalf of the five New York City retirement systems, announced a new shareholder proposal at Chipotle Mexican Grill, Inc., asking the board of directors to adopt a “policy of noninterference” at the company.

California Judge Temporarily Enjoins Implementation of FAST Recovery Act

On December 30, 2022, a Sacramento County Superior Court judge issued a temporary restraining order blocking the State of California—in particular, the California Department of Industrial Relations—from implementing the provisions of Assembly Bill (AB) No. 257, the Fast Food Accountability and Standards Recovery Act (FAST Recovery Act).

State and Major Locality Minimum Wage Updates for 2023

Several state and local minimum wage rates will increase in 2023, with a majority of the changes effective on January 1, 2023. The following chart lists state and certain major locality minimum wage increases for 2023—and future years, if available—along with the related changes in the maximum tip credit and minimum cash wage for tipped employees.

Eleventh Circuit Serves a Whopper of a Ruling on Franchisor’s ‘No-Poach’/‘No-Hire’ Agreement With Franchisees

Over the last several years, business-to-business “no-hire” and “no-poach” agreements have come under legal attack, including through enforcement actions by the Federal Trade Commission and criminal prosecutions by the U.S. Department of Justice. Even President Biden jumped into the fray on July 9, 2021, when he issued his “Executive Order on Promoting Competition in the American Economy.”

NYC Private-Sector Vaccine Mandate Becomes Optional Beginning November 1, 2022

On September 20, 2022, New York City Mayor Eric Adams announced that New York City’s private-sector vaccine mandate would become optional for businesses, beginning on November 1, 2022. The first-in-the-nation COVID-19 vaccination mandate for private-sector workers enacted by former mayor Bill de Blasio took effect on December 27, 2021.

California Governor Marks Labor Day 2022 by Signing FAST Recovery Act Into Law

On September 5, 2022, California Governor Gavin Newsom marked Labor Day 2022 by signing Assembly Bill (AB) No. 257, the Fast Food Accountability and Standards Recovery Act (FAST Recovery Act), into law. The new law creates the Fast Food Council within the California Department of Industrial Relations, which is tasked with setting minimum standards for fast-food industry workers related to wages, health and safety conditions, security in the workplace, the time off from work for protected purposes, and protections from discrimination and harassment.

California Bill Aimed at Providing Increased Rights to Fast-Food Workers Sent to Governor for Signature

On August 29, 2022, the California Legislature passed a heavily amended version of Assembly Bill (AB) No. 257, the Fast Food Accountability and Standards Recovery Act (FAST Recovery Act), which would provide increased rights to California’s more than 500,000 fast-food workers. The bill is now headed to Governor Gavin Newsom’s desk.

District of Columbia’s Tipped Wage Workers Fairness Amendment Act: Mandatory Training and Notice Requirements Take Effect

In 2018, the District of Columbia enacted the Tipped Wage Workers Fairness Amendment Act (TWWF), preserving the use of the tip credit in the District, but imposing significant obligations on employers that employ tipped employees, such as mandatory sexual harassment prevention training and notice requirements. Certain aspects of the TWWF are only now being implemented.

 

Ontario Appellate Court Ruling Leaves Employers Waiting for Determination on Interpretation of COVID-19 Leave Provisions

Employers in Ontario have been waiting for clarification on the interpretation of COVID-19 leave provisions throughout much of the pandemic. Employers had hoped that the Court of Appeal’s decision in Taylor v Hanley Hospitality Inc. would provide clarity on the implications of Employment Standards Act, 2000 infectious disease emergency leave (IDEL) on an employee’s employment status.

Minnesota Enacts Legislation Funding Unemployment Coffers, Authorizing Pay to Frontline Workers, and Requiring Notice

On April 29, 2022, Minnesota Governor Tim Walz signed Senate File (S.F.) No. 2677 into law, replenishing the state unemployment coffers and authorizing payments to various frontline workers. This new law requires Minnesota employers to provide notice to eligible frontline workers regarding potential additional benefits available to them.

No Vacation From Vacation Pay in Vacationland: Beware, Maine Employers!

In spite of significant opposition from Maine’s business community, including the Maine State Chamber of Commerce and leaders in the tourism, hospitality, and small business communities, Governor Janet Mills signed into law Legislative Document (L.D.) 225, “An Act Regarding the Treatment of Vacation Time upon the Cessation of Employment” on April 7, 2022.

Eleventh Circuit: Service Charges Are Wages, Not Tips, Under FLSA

On March 18, 2022, the Eleventh Circuit Court of Appeals ruled in Compere v. Nusret Miami, LLC, a collective action under the Fair Labor Standards Act (FLSA), that Nusr-et Steakhouse properly used automatically charged fees on bills to pay its employees’ wages because the fees were service charges. The plaintiffs, a group of tipped employees, had argued these fees were not service charges but instead were tips. The distinction is critical because service charges and tips are treated very differently under federal laws and regulations.

California Unmasks—California Department of Public Health Revises Guidance for Use of Face Masks in Indoor Settings

On February 28, 2022, the California Department of Public Health (CDPH) issued new guidance, further loosening the rules for wearing COVID-19–related masks in the state. Effective March 1, 2022, unvaccinated individuals are no longer required to mask in indoor public settings, although the CDPH included “a strong recommendation” that all individuals, “regardless of vaccine status, continue indoor masking.”

Los Angeles County and City COVID-19 Masking Orders Move Closer to California Department of Public Health Rules

On February 23, 2022, the Los Angeles County Department of Public Health (LACDPH) issued an order, effective February 25, 2022, that slightly loosened the rules for wearing COVID-19 masks in the county. One day after the LACDPH order, on February 24, 2022, Los Angeles Mayor Eric Garcetti issued the interim “Public Order Under City of Los Angeles Emergency Authority” that mirrored the new Los Angeles County order. While these revisions make the orders from both the county and city much more similar to the California state masking rules currently in effect, they remain stricter than the current state rules.

New York City Will Lift Mask and ‘Key to NYC’ Requirements

On February 27, 2022, New York City Mayor Eric Adams announced that if COVID-19 indicators continue to display low risk levels, the “Key to NYC” will be lifted, effective March 7, 2022. Individuals will no longer be required to show proof of vaccination to enter certain covered establishments, such as indoor dining, entertainment, and fitness establishments. Former New York City mayor Bill De Blasio implemented the Key to NYC through Emergency Executive Order 225 on August 17, 2021.

New California Bill Aims to Supersize Fast-Food Workers’ Rights

On January 31, 2022, the California State Assembly passed Assembly Bill (AB) No. 257, the Fast Food Accountability and Standards Recovery Act (FAST Recovery Act), which would potentially provide increased rights to the state’s more than 500,000 fast-food workers. If passed by the California State Senate and signed into law by Governor Gavin Newsom, the FAST Recovery Act would create the Fast Food Sector Council within the California Department of Industrial Relations (DIR) and add new statutory requirements aimed at holding fast-food franchisors liable for certain actions of its franchisees.

Illinois’s Lodging Services Human Trafficking Law Leaves Unanswered Questions for Restaurants and Truck Stops

On January 1, 2022, amendments to Illinois’s Lodging Services Human Trafficking Recognition Training Act (820 ILCS 95/) took effect, ostensibly adding restaurants and truck stops to the act’s purview. Under the amended act, “a lodging establishment, restaurant, or truck stop shall provide its employees with training in the recognition of human trafficking and protocols for reporting observed human trafficking to the appropriate authority.”

Nevada OSHA Targets Hospitality Industry

Nevada’s Occupational Safety and Health Administration (Nevada OSHA) is performing targeted inspections of Nevada’s hospitality establishments. Even though Nevada OSHA’s “Inspection Targeting Plan and Emphasis Programs” document was last updated in August 2021, the programmed inspections are continuing with local emphasis programs related to hotels (NAICS 721110) and casino-hotels (NAICS 721120).