Hot Off the Grill Edition #3
"Hot Off the Grill" - Edition #3
Introducing our sizzling new edition of newsletters: "Hot off the Grill"! We're fired up to bring you the latest and greatest industry updates, straight from the grill to your inbox. Curated by the National Restaurant Association and industry leaders, "Hot off the Grill" is your go-to source for the hottest industry topics happening across the county. So, sit back, relax, and let us serve you the freshest updates straight from the grill!
Overtime Increase Made Final
The News: The Department of Labor (DOL) released its final overtime rule today, significantly increasing the minimum annual salary threshold determining overtime pay eligibility under the Fair Labor Standards Act (FLSA) from $35,568 to $58,656.
Key Takeaway: The rule will gradually come into effect, with an increase to $43,888 on July 1, 2024, and an increase to $58,656 effective Jan. 1, 2025.
What’s New: The final rule includes an automatic update to the overtime threshold every 3 years based on available wage data at that time.
- The DOL expects to announce the first such update on July 1, 2027, which will affect both the standard salary and highly compensated employee (HCE) exemption thresholds.
- This approach was specifically opposed by the National Restaurant Association and Restaurant Law Center in comments submitted last year.
The Impact: Unless specifically exempted, an employee covered by the FLSA must receive pay for hours worked over 40 in a workweek at a rate not less than 1½ times their regular pay rate.
- Beginning on July 1, 2024, any employee earning under $43,888 will be owed overtime pay.
- On Jan. 1, 2025, any employee earning under $58,656 will be owed overtime pay.
- This means that employees who were previously exempt from overtime pay may now be eligible, and employers may need to adjust their pay structures and work schedules accordingly.
Learn more: DOL: Final Rule on Overtime FAQ, Association/RLC: Webinar on Proposed Rule
Final Rule on Pregnant Workers Fairness Act
What Happened: The U.S. Equal Employment Opportunity Commission (EEOC) recently issued its final rule and interpretive guidance implementing the Pregnant Workers Fairness Act (PWFA), which became law last year. The final rule will take effect June 18.
Why it Matters: The final rule aims to provide clarity and guidance regarding employers' obligations to accommodate pregnant employees and applicants with known limitations related to pregnancy, childbirth, or related medical conditions.
Learn More: EEOC: Final Rule and Interpretive Guidance – The Pregnant Workers Fairness Act, EEOC: Summary of Key Provisions –PWFA Final Rule
Association Sends Letter to Congress on Trade
What’s Happening: Last week, the Association, as part of the Americans for Free Trade coalition, submitted comments to the House Ways & Means Committee and the Senate Finance Committee ahead of their hearings with Ambassador Tai regarding the Administration’s 2024 Trade Policy Agenda. The comments urge policymakers to put an end to the China Section 301 tariffs.
Why It Matters: Importers have paid more than $211B in Section 301 tariffs on covered products imported from China, according to U.S. Customs and Border Protection. These taxes continue to create tremendous uncertainty and increase the cost of doing business in the United States
All Eyes Are on The FTC
What’s Happening: This week, the Federal Trade Commission (FTC) is holding key meetings.
Today: The FTC voted to issue a final rule banning non-compete agreements as an unfair method of competition. The Association is reviewing the final text of this rule.
Key takeaway: Under the final rule, existing non competes for senior executives can remain in force, which is a change the Association supported.
Tomorrow: The FTC will hold an administrative hearing on its proposed rule targeting so-called “junk fees.”
Learn more: How this rule would impact restaurants.
That’s A Wrap On #PAFC24
What happened: Last week, the Association hosted its 38th annual Public Affairs Conference.
By the numbers: Nearly 600 restaurant operators and advocates from 40 states and U.S. territories gathered in Washington, D.C. for this year’s event, which culminated in over 200 meetings with policymakers on Capitol Hill.
Key takeaways: Thank you to everyone who attended. Stay tuned for details regarding next year’s conference and further #PAFC2024 highlights on the @RestaurantsActsocials.
In the News...
Restaurants bring the industry's concerns to Congress.
Nearly 600 operators made their case to lawmakers as part of the National Restaurant Association’s Public Affairs Conference. “It’s one thing for the National Restaurant Association to say swipe fees have doubled over the last decade. It’s another for you to say how much you’ve paid for swipe fees,” association CEO Michelle Korsmo told attendees in opening the conference.
New Association economic outlook analysis
The widely forecasted recession didn’t materialize last year, and there is growing optimism that the economy will remain stout in 2024.
Franchisors ask Biden to pull the plug on a broadened joint employer definition.
Franchisors and the National Restaurant Association are rallying to persuade President Biden not to veto a congressional resolution aimed at overturning a regulatory change by the NLRB regarding the definition of "joint employer, "which they argue would have detrimental effects on franchisors and their ability to expand through franchising. “We hope President Biden will give serious consideration to signing the resolution,” said Sean Kennedy, the Association’s EVP of public affairs.
New ad warns Credit Card Competition Act is needed to block China Union Pay from U.S. credit cards.
A new television commercial being aired by the Merchants Payments Coalition warns that there is no bar to China’s payment network processing Americans’ credit card data unless Congress passes the Credit Card Competition Act. The 30-second ad and similar digital banner ads are running in Washington, D.C., and targeted markets around the country.
New migrants get work permits. Other undocumented immigrants want them, too.
Long-term undocumented immigrants, along with their employers, feel overlooked and frustrated as President Biden's administration extends work eligibility to newly arrived migrants, prompting calls for similar opportunities for those who have been in the country for years. “It’s offensive that my employees and other immigrants are being leapfrogged by new arrivals,” said Sam Sanchez, a Chicago restaurateur and a Board member of the National Restaurant Association.
Potential changes in restaurant pay stir mixed reactions
“Eliminating the tip credit in New York would be absolutely devastating,” said Andrew Rigie, head of the New York City Hospitality Alliance. According to its survey, 88% of restaurants believe eliminating the tip credit would be a “disaster. If the tip credit is eliminated, in response restaurants would have to significantly increase their prices on consumers, who are already price sensitive. And that would result in many cases of them maybe tipping less,” he said