Los Angeles Becomes Largest City to Enact $15 Wage Law

“Los Angeles - Feb 9, 2014: View Of Hollywood Boulevard In Sunset” by David Castillo Dominici
“Los Angeles – Feb 9, 2014: View Of Hollywood Boulevard In Sunset” by David Castillo Dominici

June 11, 2015-While the nation debates the issue and large companies promise some movement on their minimum wage floor, the City of Los Angeles has acted, and acted swiftly.   Wednesday night, by an overwhelming majority, the City Council voted to increase the City minimum wage to $15 per hour.  While the measure still needs to be signed into law by Los Angeles mayor, Eric Garcetti, he has already indicated that he will do so without hesitation.

This increase makes the minimum wage in Los Angeles double the Federal Standard and on parity with only a few jurisdictions.   The size and visibility of the city make the increase historic.  Mayor Garcetti and Mayor De Blasio of New York City have have both been vocal advocates of this change, yet, New York City’s leader has not managed to garner enough support to accomplish this goal.   It remains to be seen if this change on the West Coast will prompt a similar response in the East.

While labor advocates have applauded the action, many large employers have renounced it as crippling to their profitability during a time when the economy is still fragile.  Overtures are already being made to engage in massive lay-offs or corporate relocations.  The impact on these employers may not be as significant as these companies would have the public believe as the increase phases in over the course of several years, with provisions to extend the commencement time for smaller employers.

While the impact of the increase is being debated labor advocates and businesses will be keenly focused on signs of the impact on the Los Angeles economy and how it relates to the rest of the national employment picture.

To read the entire story:

http://americasmarkets.usatoday.com/2015/06/10/10-an-hour-minimum-wage-passed-in-la/?utm_source=feedblitz&utm_medium=FeedBlitzRss&utm_campaign=usatodaycommoney-topstories

NY Workers Have The Worst Commute in the Nation

Photo by Feelart  Stock photo - Image ID: 100219097
Photo by Feelart
Stock photo – Image ID: 100219097

March 19, 2015-(From The Gothamist) We already had an inkling that commuting in NYC was probably a bit worse than in other cities, but a new study really seals the deal. Comptroller Scott Stringer has released a study comparing New Yorkers’ commuting times to 29 other major America cities, only to find that we have the worst working week commute in the country by far. As Elvis Costello once said, I know it don’t thrill you, I hope it don’t kill you.

Read the entire story at: http://gothamist.com/2015/03/18/ny_commute.php

Papa John’s Drivers Win Wage Claims Against Franchisee

(Huffington Post)
(Huffington Post)

March 12, 2014–  When customers of Papa John’s Pizza Franchise, in New York City, were charged a mandatory $1.50 “service fee” they were, falsely, led to believe this was a tip for the delivery driver; however, it was kept, entirely, by the franchisee employer.  At least, this was among the allegations of the New York State Attorney General when he filed an employment lawsuit against the owner of five Papa John’s locations last year.

Last week, a New York State Supreme Court Judge agreed with the Attorney General when she ordered Papa John’s to pay, up to, six years in back wages, overtime, interest, and damages to these delivery drivers.  The court found that, in addition to keeping the “service charges”, the Defendant had utilized the delivery drivers to do numerous employee related tasks during their down time and, therefore, should have been compensated as employees. The court indicated that the tasks assigned were outside of the purview of what a delivery driver is expected to do.  The compensation and damage award is expected to exceed the sum of $2 million.

While the franchisee in this case has indicated an inability to satisfy the judgment, the drivers’ lawyers are considering whether the law will allow the franchisor, Papa John’s Corporate, to be held liable for the actions of the franchisee.  Last year similar labor cases held the McDonald’s Corporate liable for certain, egregious employment actions of their franchisees.

Cases like this will, undoubtedly, have both store owners and Corporate Franchisors examining their daily, routine labor practices with an eye on the possibility of future litigation.

To read more see: http://rhrealitycheck.org/article/2015/02/09/papa-johns-ordered-pay-almost-800000-wage-theft-case/

New York Food Workers Guaranteed Increased Wages

Photo by stockimages.  Stock Photo - Image ID: 100105597
Photo by stockimages.
Stock Photo – Image ID: 100105597

February 26, 2014- On February 24, 2015 the Acting Commissioner of New York State’s Department of Labor, Mario J. Musolino, announced the passage of certain dramatic wage changes which were, previously, proposed, studied, and debated for four months by the 2014 Hospitality Wage Board regarding the wages of tipped workers in the food and hospitality industries.  The direct impact of these changes is to increase the mandated, guaranteed wages for tipped food and hospitality workers.

Classically, workers in New York State that have relied, primarily, on tips for their compensation have been relegated to sub-minimum wages. Food and hospitality industry workers have relied on the benefit of the generosity of customer’s tips to offset the shortfall between their wage and the New York State Minimum guaranteed wage for all other workers.

Effective December 15, 2015 the NYS guaranteed cash wage for tipped workers in food and hospitality will be $7.50 per hour. This is the first such increase since 2011 when the standard for these workers became $5.65 per hour.

For New York City tipped food and hospitality workers the change allows for a $1 differential, or $8.50 per hour. This differential runs parallel to Governor Cuomo’s initiative to allow for a similar differential in the base minimum wage for all other New York City workers as compared the rest of New York State.

The Commissioner also committed to commence a study which examines the impact of the complete elimination of cash wages and tip credits in the food and hospitality industry in New York State.  The result of that study are expected later this year.

While the obvious impact of the measures are to increase the wages of tipped workers in New York State and New York City the ultimate true impact is not yet known. Currently, some food and hospitality spokespeople have indicated that the industry, in response to the Commissioner’s initiative, is examining a voluntary elimination of tipping for workers and the imposition of a service fee on all checks to consumers while transitioning workers to the State guaranteed minimum wage for all other workers.

Pres. Obama and Gov. Cuomo Fight to Raise Wages

January 22, 2015– In Tuesday Night’s State of the Union address, President Obama made increasing the Federal Minimum Wage a central theme of his economic platform. While this proposal is not new to the President’s agenda, he used a recovering economy and the signs of an increasing Presidential public approval rating to bolster his opportunity to be more vocal on the issue.

While individual states always have the ability to deviate more favorably to employees from the Federal government’s wage standard, the President highlighted the moral responsibility of the Federal Government in setting a heightened National baseline on wages.  He was unequivocal in the expression of his belief that wage increases are essential to improving the fabric of the American workplace and the life of the American worker.

To a Republican controlled Congress, the President challenged “To everyone in this Congress who still refuses to raise the minimum wage, I say this: If you truly believe you could work full time and support a family on less that $15,000 a year, go try it. If not, vote to give millions of the hardest working people in America a raise.” While this dramatic challenge may have resonated with the American people, it may be more rhetoric than policy as the, now Republican majority in the Congress, has vehemently refused to take up any measure increasing the Minimum Wage above the 2009 rate of $7.25 per hour.

The President also focused on other workplace related issues, which he was looking for Congress to take a leadership role in establishing national policy on, including paid sick leave, paternity leave, and universal day care. Once again, under the current make-up of Congress, passage of such legislation is also unlikely.

Meanwhile, in New York State, Governor Andrew Cuomo proposed a significant increase in the state’s current $8.75 per hour minimum wage to $10.50 per hour by 2016, outside of NYC. In a surprising change of position from his stance of late last year, the Governor also proposed a NYC differential of $1.00 per hour in NYC’s minimum wage, or $11.50 per hour by 2016. These increases would make NYC and NYS among the highest minimum wage jurisdictions in the country. Earlier this month, 21 other states implemented minimum wages hikes.

(see http://newyorkovertimelaw.com/blog/21-states-raise-minimum-wage-federal/)

In making his proposal the Governor focused less on the obligation of NYS citizens to support each other, or on the moral obligations of the NYS legislature, but more on New York keeping pace with the healthier state of the economy, “The world has changed. The market is strong and I believe the market, this market, at this rate of strength, can deal with this.” While the proposed wage promulgated by the Governor is far below his original proposal of $13 per hour, it is also unlikely to see clear passage with a New York State Senate in equal opposition as the US. Congress to such a measure.

While a substantial increases in the Federal and New York State minimum wage seem unlikely under the current political climate, the issue is of significant and consequential concern to a financially devastated American workforce. What it will take to transform this powerful political rhetoric into actual implemented legislation is unclear; however, it seems unlikely that these Executive standard bearers are, summarily, willing to concede the issue to their Republican opposition.

Is NYC Headed For a $15 Per Hour Minimum Wage?

As Congress and the President debate an increase in the minimum wage to $10.10 per hour, NYC’s Mayor deBlasio has rejected that increase as insufficient and has prepared to do battle with everyone from Gov. Andrew Cuomo to the President in order to establish a $15.00 per hour minimum wage in NYC.

Read about this in a story from the NY Daily News:

 http://www.nydailynews.com/news/politics/de-blasio-obama-10-10-minimum-wage-article-1.1814968