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NLRB Drops Joint Employer Appeal
What Just Happened: The National Labor Relations Board (NLRB) has officially dismissed its appeal of the Eastern District of Texas decision vacating the 2023 Joint Employer Rule. The 2020 Final Rule, which requires direct and immediate control to establish a joint employer relationship, remains in effect.
Why it Matters: The NLRB's decision to drop its appeal is a significant win for the Restaurant Law Center (RLC), a leading co-plaintiff in the legal challenge against the 2023 Rule, and the industry as a whole.
- The RLC-supported 2020 Rule provides clear guidance for employers.
- We remain vigilant against future attempts by the NLRB and the Administration to expand joint employer liability.
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Go Deeper: For more information, please see the attached press release.
New Federal Overtime Standards Take Effect
The U.S. Department of Labor has updated regulations to extend overtime pay eligibility to salaried restaurant employees earning up to $43,888 annually, a change expected to affect about 1M additional workers across various industries, with further increases in the threshold planned. A business coalition that includes the National Restaurant Association’s legal arm and the Texas Restaurant Association had filed a lawsuit in a U.S. District Court to halt adoption of the new overtime standard. Learn more.
OSHA Proposes New Heat Illness Prevention Rule
The Occupational Safety and Health Administration (OSHA) issued a proposed rule outlining steps employers would be required to take to protect indoor and outdoor workers from the risk of heat illness.
- This rule applies to all employers conducting outdoor and indoor work, with limited exceptions.
- Public comments are due 120 days after it is posted in the Federal Register.
Overview of the Proposed Rule: The National Restaurant Association (NRA) is analyzing the rule. Employer requirements include:
- Heat Injury and Illness Prevention Plan (HIIPP): Develop and implement a plan with site-specific information to evaluate and control heat hazards.
- Initial Heat Trigger Control Measures (80°F heat index): Provide cool drinking water, break areas with cooling measures, indoor work area controls, acclimatization protocols for new and returning employees, paid rest breaks if needed, and regular effective communication.
- High Heat Trigger Control Measures (90°F heat index): Mandatory rest breaks of 15 minutes every two hours, observation for signs and symptoms of heat-related illness, a hazard alert, and warning signs at indoor work areas with ambient temperatures that regularly exceed 120°F.
- Emergency Response Plan: Develop a heat emergency response plan and take steps if an employee is experiencing signs of heat-related illness.
- Training Requirements: Provide initial and annual refresher training for supervisors, heat safety coordinators, and employees.
- Recordkeeping Obligations: Maintain records of indoor monitoring data for at least six months.
- Cost-Free Implementation: Ensure all requirements are implemented at no cost to employees.
Next Steps:
- Review the Proposed Rule: Assess its potential impact on your operations.
- Provide Feedback: Because this is the first-ever nationwide heat standard, it's essential for the restaurant industry to weigh in. Please share your insights and concerns with the Association as we draft comments to submit to OSHA. Additionally, we encourage operators to submit comments once the rule is published in the Federal Register.
For More Information:
New Action Expands Loan Access for Energy-Reducing Retrofits, Solar Panel Installation
The Small Business Administration has lifted the lending cap for clean energy projects through its 504 Loan Program, which is designed to benefit small and medium businesses. The cap was previously set at $16.5M.
What this means: Restaurant operators interested in projects to reduce energy consumption through a building retrofit or to produce renewable energy will have greater access to capital.
More about the program: The 504 Program has 10-, 20-, and 25-year maturity terms available with an interest rate above the current market rate for 10-year U.S. Treasury issues.
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