Two of the largest issues impacting the restaurant community were approved and now go to the full floors of each house for votes next week.
SB 3 (Leno-D) increases the minimum wage to $11 per hour on January 1, 2016, $13 per hour on July 1, 2017 and beginning in 2019, the state minimum wage would be adjusted annually with the rate of inflation. The measure includes no mitigating components, such as: a total compensation provision to account for tips or a teen wage provision.
Also released from committee for a full floor vote next week is AB 357 (CHIU-D/Webber-D), which would restrict employers with 500 or more employees and 10 or more locations nationwide to rigid and unworkable two week scheduling mandates.
AB 357 seeks to impose a one-size-fits-all approach on every restaurant covered under the proposal, but fails to take into account that not every restaurant model is identical or operates in the same standardized manner.
Furthermore, the employer would be required to provide the employee with the following "compensation" per shift for each previously scheduled shift that the employer moves to another date or time or cancels and each previously unscheduled shift that the employee is required to work, as follows:
- One hour of compensation if less than seven days' notice, but more than 24 hours;
- Two hours of compensation for a shift less than four hours, or less if the employer provides less than 24 hours' notice; and
- Four hours of compensation for each shift more than four hours if less than 24 hours' notice is given.
An employer would be required to "compensate" an employee for each on-call shift the employee is on"on-call", but is not called in to work, as follows:
- Two hours of compensation for each on-call shift of four hours or less;
- Four hours of compensation for each on-call shift of more than four hours.
While this proposal is somewhat modeled after a San Francisco ordinance, it is important to note that the San Francisco ordinance is not in effect and won't be until July 2015. This proposal is a massive, untested experiment that will undoubtedly have negative consequences for restaurant operators, employees and the consuming public.
AB 67 (Gonzalez-D) originally required double pay on Christmas and Thanksgiving. The bill was approved by the committee with an amendment to remove any reference to Christmas, but still requiring double pay on Thanksgiving.
The CRA state advocacy team has been focusing on the broader membership of the state legislature in anticipation of next week's votes and will continue to meet with lawmakers about the problems, complexities and negative impacts these proposals will have on an industry already struggling to absorb the existing cumulative costs of the new paid sick leave law, increased unemployment insurance taxes and compliance with the Affordable Care Act.
Please watch for email alerts from Voter Voice, which will ask you or your operators to send letters and make phone calls to your lawmakers.