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Federal Updates
📌 President Trump’s Executive Order imposing tariffs on goods from more than 67 countries took effect Aug. 7. However, some countries were given extensions, including Mexico, which received another 90-day pause. Canada’s tariff rate increased from 25% to 35% effective Aug. 1 (see Fact Sheet), but all USMCA-compliant goods are currently exempt. Shipments of goods already in transit before Aug. 7 are also exempt, but those rerouted to evade tariffs will face a new 40% transshipment penalty. According to the order, the European Union, which reached a framework deal with the U.S. on Aug. 1, is being charged a 15% tariff on goods including European foods, wine, and spirits. A 50% tariff on Brazilian goods was expected to take effect Aug. 6, on products such as coffee and beef. The U.S. and China are continuing to negotiate a deal, and officials from both countries recently agreed to seek an extension of the 90-day pause currently in place. President Trump has until Aug. 12 to sign off on that plan. The National Restaurant Association has been working extensively to share industry concerns and sent a letter to the U.S. Trade Representative, urging that food and beverage be exempted from tariffs. They also issued a press release on Friday, Aug 1, advocating that USMCA-compliant goods remain exempt during ongoing talks with Mexico and Canada.
📌 The D.C. City Council passed a compromise amendment (7-5) to the city’s budget that permanently reinstates the tip credit in D.C. The amendment provides immediate relief to operators by replacing the elimination of the tip credit with a nine-year phase-in and setting the tipped wage at 75% of the minimum wage starting in 2034. For most of the last two years, tipped workers, operators, and the Restaurant Association of Metropolitan Washington have been sharing their stories and educating lawmakers about the damage the law was creating. These groups worked with D.C. Mayor Muriel Bowser and the City Council to replace Initiative 82.
📌 As legislators head home for the summer recess, it’s our chance to meet with them and let them know how their work impacts the restaurant industry. If you’re interested in hosting an event with your legislators, please contact NYSRA’s Public Affairs Director, Kevin Dugan, at Kevin@nysra.org.
📌 The Trump administration and the U.S. Department of Labor are renewing the Payroll Audit Independent Determination (PAID) program. If an employer discovers a minimum wage or overtime violation in their pay practices, they can use the PAID program to self-report those violations, correct the issues, and avoid litigation and fines from the US Department of Labor. If anyone has any questions, please contact Sarah Decker, Community Outreach and Resource Planning Specialist for the U.S. Department of Labor, Wage & Hour Division.
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