Employer/Employee Policy & Politics in the Trump Era

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2 Employer/Employee Policy & Politics in the Trump Era Stephanie Childs, Vice President of Policy, National Restaurant Association Shannon Meade, Director, Labor and Workforce Policy, National Restaurant Association 2

3 Political Landscape Election House; Senate Overview Trump Administration 1 st 100 Days Regulatory Rollback and Reform Executive Orders Federal Labor and Workforce Issues Healthcare Overtime Joint Employer Immigration Reform Key Players Alexander Acosta, Nominee for Secretary of U.S. Department of Labor Tom Price, Secretary, U.S. Department of Health and Human Services Phil Miscimarra, Chairman, National Labor Relations Board Trends in Key States Minimum Wage Restrictive Scheduling 3

4 US Senate 114th Congress v. 115th Congress Democrats Republicans Independents Control of the 114 th Senate ( ) Control of the 115 th Senate ( ) Republican Senate Majority Republican Senate Majority

5 US House th Congress v. 115 th Congress Democrats Republicans Independents Vacant Control of the 114 th House ( ) Control of the 115 th House ( ) 218 Needed for Majority 218 Needed for Majority Republican House Majority Republican House Majority 5

6 President Trump s Plan Executive Orders Legislative Action w/ Congress Trade Issue notification of intent to withdraw from TPP. Negotiate fair, bilateral trade deals that bring jobs and industry back to our shores Energy Cancel job killing restrictions on the production of American energy, to create million of high paying jobs Immigration Direct Department of Labor to investigate all abuses of visa programs that undercut American workers Regulation Formulate rule that says for every one new regulation that is introduced, two old regulations must be eliminated National Security Ask DoD & Chairman of Joint Chiefs of Staff to develop a plan to protect America's infrastructure from cyber attacks Ethics reform Impose five year ban on executive officials becoming lobbyists after leaving the administration; lifetime ban on executive officials lobbying on behalf of a foreign government Repeal and Replace Obamacare Middle Class Tax Relief Act An economic plan to grow the economy 4% per year; create at least 25 million new jobs through massive tax reduction and simplification, trade reform, regulatory relief. End Illegal Immigration Act Fully-funds construction of a wall on southern border; a 2-year minimum prison sentence for illegally reentering Restoring Communities Act Create a Task Force On Violent Crime; increasing funding for programs that train and assist local police; federal law enforcement agencies and prosecutors American Energy & Infrastructure Act Leverage public-private partnerships, and private investments through tax incentives, to spur $1 trillion in infrastructure investment over 10 years. School Choice and Education Opportunity Act Give parents the right to send kids to public, private, charter, magnet, religious, home school of choice. Ends common core, 6

7 Top Federal Labor-Workforce Issues Healthcare Overtime Rule Joint Employer Rule Immigration Reform 7

8 Healthcare Reform Replacing the Affordable Care Act Will Take Time Disagreement within Republican Caucus and between Republicans and Democrats Working with HHS and Congress to reduce the cost of health insurance and promote flexible market solutions Address reporting and compliance issues that have added cost to restaurant bottom lines and reduced employment flexibility 8

9 Overtime Rule Final rule published May 2016 Increased the salary threshold for exempt employees to $47,476 a year from $23,660; automatic increases every 3 years. Currently on hold Nationwide temporary injunction granted November 2016 Incoming Secretary Acosta s views 9

10 Joint Employer Rule NLRB 2015 Browning-Ferris decision held that two companies could be considered joint employers through indirect and potential control of employees. Reverses nearly 30 years of labor law. Previously actual or direct control over employees and essential terms of employment. Expanded scope of joint employer liability for small businesses. NRA pursuing a legislative fix to codify the direct control standard. 10

11 Immigration Reform President Trump Executive Orders Border Security (Border wall) Interior Enforcement Travel Ban ( extreme vetting ) Buy American, Hire American (government procurement, H-1B visas) President Budget Request - $15M for E-verify NRA Industry Principles An efficient, reliable federal employment verification system Improved border security that still promotes travel and tourism A new essential worker program for the service sector 11

12 Key Administration Players Tom Price, Secretary, U.S. Health and Human Services Former Congressman from Georgia s 6 th Congressional District Physician by training Key opponent of the Affordable Care Act Alexander Acosta, Nominee for Secretary of the U.S. Department of Labor Previously held 3 senate-confirmed positions under President Bush (NLRB Board Member; Attorney General for Civil Rights Division at DOJ; U.S. Attorney in Miami) Currently serving as Dean of the Florida International University Law School Confirmation hearing; final vote expected this week Philip Miscimarra, Chairman, National Labor Relations Board Appointed Chairman on April 21 st Currently sole Republican on the Board Board Member since 2013 Former management-side labor attorney in private practice at Morgan Lewis 12

13 Major State/Local Trends Minimum Wage Restrictive Scheduling 13

14 $15 is the New $10 Minimum Wage $20 by 2020? In the absence of federal action, all advocacy is at state/local Level Indexed to Inflation

15 Minimum Wage Increases by State California $15.00 by 2020 New Jersey $ 8.38 by 2015 Delaware $ 8.25 by 2015 New York $15.00 by 2018 Connecticut $10.10 by 2017 Rhode Island $ 9.60 by 2016 Washington, DC $11.50 by 2016 Alaska $ 9.75 by 2016 South Dakota $ 8.50 by 2015 Arkansas $ 8.50 by 2017 Nebraska $ 9.00 by 2016 Minnesota $ 9.50 by 2016 Michigan $ 9.25 by 2018 West Virginia $ 8.75 by 2016 Maryland $10.10 by 2018 Vermont $10.50 by 2018 Massachusetts $11.00 by 2017 Hawaii $10.10 by 2018 Oregon $14.75 by 2022 Colorado $12.00 by 2020 Arizona $12.00 by 2020 Maine $12.00 by 2020 Washington $13.50 by 2020

16 Restrictive Scheduling Legislation Enacted in San Francisco (Seattle effective in July 2017) Applies only to chain restaurant and retail workers Requires offering more hours to existing workers before hiring part time workers Mandates advanced notice for scheduling employees 2 weeks Outstanding Legislation in New York City 2017 Expectations Statewide Fights: CA, OR, CT, and MA

17 National Restaurant Association Educational Foundation Workforce Training Initiatives ProStart A high school career and technical education program teaching culinary arts and restaurant management fundamentals. Gives students a platform to discover and develop new interests and talents Teaches employability skills, i.e., teamwork, professional behavior, time management, communication, etc. Apprenticeship The U.S. Department of Labor Office of Apprenticeship awarded the National Restaurant Association Educational Foundation a $1.8 million contract to create a federally registered hospitality apprenticeship program for the restaurant, foodservice and hospitality industry. Together with the American Hotel & Lodging Association First-ever apprenticeship program the Hospitality Sector Registered Apprenticeship (HSRA) project will be offered to career-minded individuals seeking management positions 17

18 Thank You! Contact Information: Stephanie Childs Shannon Meade 18