Association eyes bipartisan policy goals to power industry growth
To strengthen the industry’s workforce and ensure it remains adaptable, the Association is working on several policies that impact wages, support operators, and promote continued success. Find out how the Association is working to ensure best outcomes for restaurant businesses as it advocates to
- expand the nation’s workforce
- reduce the costs in restaurant operations
- strengthen the food supply chain
Biden Administration FY2024 budget priorities
The story: Last week, the White House released its formal budget request for fiscal year 2024. The plan includes a national, comprehensive paid family and medical leave program. Specifically, the Social Security Administration would allocate $325B in funding to provide workers up to 12 weeks of partial wage replacement. Additionally, the budget calls on Congress to require employers to provide employees with up to 7 days of paid sick leave.
On the horizon: The White House budget proposal is highly unlikely to pass within the 2023-2024 Congressional session as is, and the Association is closely monitoring any changes. We will continue to provide updates and their impact on the industry as Congress considers what will be in the final bill.
United States Senate Committee on HELP hearing
The rundown: Last week, the Senate Committee on Health, Education, Labor, and Pensions held a hearing on the PRO Act titled "Defending the Right of Workers to Organize Unions Free from Illegal Corporate Union-Busting." On behalf of the majority, the heads of the AFL-CIO, SEIU International, and the Teamsters testified on alleged company interference with union organizing.
Our thoughts: Former Chairman of the National Labor Relations Board John Ring, President of the National Right to Work Committee Mark Mix, and minority witnesses pushed back on that narrative. Ring, Mix, and Republican senators testified that the PRO Act would upend labor laws and devastate the economy. The Association joined others in submitting a letter opposing the PRO Act before the hearing.
Sanders investigative authority
The rundown: On March 1, Bernie Sanders, chair of the Senate Committee on Health, Education, Labor and Pensions, announced his intention to seek an all-encompassing “Authorization for Investigation into Violations of Federal Labor Law by Major Corporations” at an Executive Session of the Committee on March 8, 2023.
The pushback: This level of access and authority is unprecedented, and former committee leadership has rarely used the authority Sanders pushed for. Further, Sanders was not seeking investigative authority on a specific matter, but rather was looking for blanket authority with no constraints.
Our win: In response to the announcement, the Association signed a business group letter calling out our concerns with the scheduled vote. We also engaged targeted Senate offices who had concerns with Sanders’ approach. Ultimately, Sanders decided not to seek a vote on the matter.
Reintroducing the Tipped Employee Protection Act
What’s happening: Last week, Rep. Womack and Sen. Braun sent a cosponsor request to reintroduce the Tipped Employee Protection Act. Currently, the Department of Labor (DOL) has a rule in place that complicates the manner in which restaurants compensate tipped employees. The legislation seeks to address the uncertainty created by the rule and to clarify that the DOL cannot revise the rule by regulation.
Why it matters: The DOL’s 2021 final rule creates a burdensome test for employers to determine when employees can receive a tip wage, or a subminimum wage supplemented by tips. Due to the nature of the restaurant industry, an employee might bounce between each wage type during a shift making it important to provide clear rules in this space.
State credit card swipe fee legislation
The issue: Each time a card is used at the point of sale, restaurants pay the card-issuing bank a transaction fee of between 2%–5% of the total tab. These fees are set by the card networks and are non-negotiable. In fact, merchants in the U.S. pay the highest interchange fees in the world. In 2021 alone, retailers paid $137.8B in credit and debit card processing fees.
Who’s involved: Currently, there are 9 states with legislation to remove the sales tax from being included in the swipe fee computation—Fla., Ga., Idaho, Maine, Miss., N.D., Tenn., Texas, and Wash.
