Posts tagged Grubhub
Pizza Hut franchisees lay off more than 1,200 delivery drivers in California as restaurants brace for $20 fast-food wages
December 26, 2023 // Mark Kalinowski, a restaurant-industry analyst, wrote in a note this week that he expected "more harm to come" in various ways as fast-food chains "take action in an attempt to blunt the impact of higher labor costs." Chains such as Chipotle and McDonald's said they planned to pass the costs of higher wages in California to customers by raising menu prices. In 2022, Gov. Gavin Newsom of California signed the FAST Act into law. It called for the minimum wage for fast-food workers to increase to $22 an hour in 2023. But corporate chains such as McDonald's, Chipotle, and Chick-fil-A, as well as franchise advocacy groups, fought the law. A coalition of restaurant-industry organizations said the law could raise costs for fast-food restaurants by $3 billion. They rallied to get a referendum on the ballot.
White House braces for legal challenges over acting labor secretary’s authority
July 26, 2023 // “Congress has become relatively useless at reining in executive power,” Painter, now a University of Minnesota professor, said. “Democrats were furious about Trump raiding the defense budget without the permission of Congress. But then Biden did his $400 billion student loan deal, and Democrats didn’t say a word." "The parties just switch playbooks depending on whether their guy is in the White House or not," he added.
Gig Worker Qualifies as an Employee, California District Court Concludes
April 25, 2023 // The U.S. District Court for the Northern District of California ruled on March 30 that the driver should be classified as an employee who is entitled to overtime pay and minimum wage protections under state law. The court ruling is "more of a warning shot to show the consequences of failing to comply" with state rules on employee classification, said Bryan Hawkins, an attorney with Stoel Rives in Sacramento. Theane Evangelis, an attorney with Gibson Dunn in Los Angeles who represented Grubhub, said, "We disagree with the court's ruling and are considering our legal options. Thanks to Proposition 22—which California voters overwhelmingly enacted and the California Court of Appeal recently upheld—drivers who use the Grubhub app will continue to enjoy the freedom and flexibility of working as independent contractors."
This fresh blow to newspapers — and our democracy — must be stopped | Editorial
October 4, 2022 // For nearly two centuries, and across the country, the job has been done by contractors who are not classified as employees of the newspapers. But now the state Department of Labor is strictly enforcing a law that’s been on the books since the FDR era, upending tradition by ordering these workers to be treated as employees. That means newspapers, or the firms they hire to handle delivery, would have to pay taxes to cover benefits like unemployment and disability, just as they do for full-time employees. It would cost the Star-Ledger, already diminished by layoffs and buyouts, about $3 million a year. The state’s intentions are good, even if its swing is a bit wild. This is part of a movement, mostly in progressive states, to combat the spread of abuses related to contract work. It was inspired first by the growing use of lower-paid contract workers on constructions sites, many of them working full-time and standing shoulder to shoulder with regular employees. And contract work has exploded in the gig economy, at companies like Uber and Grubhub.