Posts Tagged ‘labor unions’

NLRB: we’re coming after franchisors and subcontractors

In a long-feared ruling, the Obama National Labor Relations Board has ruled that a company that employs subcontractors or engages in franchising can over a wide range of situations be deemed a “joint employer” for purposes of liability for labor law violations and obligation to bargain over wages and working conditions with subcontractors’ or franchisees’ work forces. The decision imperils many of the most successful business models on the American economic scene. I’ve got a write-up at Cato observing that the ruling is likely to wreak havoc with, among many other sector, Silicon Valley and sharing-economy launches and asking “One wonders whether many of the smart New Economy people who bought into the Obama administration’s promises really knew what they were buying.”

More coverage of the NLRB’s Browning-Ferris ruling: Reuters (quotes me on the not-bright prospects for Hill action); Seyfarth Shaw; “Good week to change name of NLRB to National Labor Resuscitation Board.” [Jonathan Segal] And, from standpoints supportive of the ruling, Al-Jazeera and Prof. Catherine Fisk/On Labor.

Labor roundup

Labor roundup

NYC to carwashes: unionize or else

A new law in New York City aims to close car washes that don’t unionize, and workers’ own wishes in the matter would appear to be irrelevant. The bill would “requir[e] car wash owners to purchase a $150,000 surety bond to operate in city limits. … [But] businesses with collective bargaining agreements with unions in place only need $30,000 coverage.” [F. Bill McMorris, Free Beacon]

Supreme Court and constitutional law roundup

  • Supreme Court grants certiorari (as Cato had urged) in Friedrichs v. California Teachers Association, on First Amendment rights of individual public employees against unions, potentially major sequel to Harris v. Quinn (our coverage) and Knox v. SEIU (our coverage). More: Jason Bedrick, Cato;
  • More First Amendment: On same day, high court says Texas can turn down Confederate-flag license plates but that town of Gilbert, Ariz. impermissibly took content into account in regulating roadside signs [Lyle Denniston; Eugene Volokh on Gilbert and earlier, and on license plates] Ilya Shapiro has a wrap-up of other end-of-term cases;
  • Paging judicial-independence buffs: study finds Obama stands out for aggressive comments on pending SCOTUS cases [W$J via Jonathan Adler]
  • Abercrombie v. EEOC followup (earlier): If Thomas’s dissent has the courage of its convictions, maybe it’s because he was longest-serving chairman in EEOC history [Tamara Tabo] “SCOTUS requires employers to stereotype in ruling for EEOC in hijab-accommodation case” [Jon Hyman] Yes, employers can still have dress codes, but read on for the caveat [Daniel Schwartz]
  • “Illinois Uses Racial Preferences for No Good Reason,” Seventh Circuit take note [Ilya Shapiro and Julio Colomba, Cato]
  • Feds can refuse to register a “disparaging” trademark. Consistent with the First Amendment? [Shapiro, Cato]
  • More from Ilya Somin on anniversary of eminent domain Kelo v. New London decision [one, two, more]

If they choose our dues, low pay’s OK

“Labor leaders, who were among the strongest supporters of the citywide [$15 and indexing] minimum wage increase approved last week by the Los Angeles City Council, are advocating last-minute changes to the law that could create an exemption for companies with unionized workforces.” [Los Angeles Times] What’s more, these union “escape” clauses keep coming up in minimum wage statutes, as the U.S. Chamber has documented in a lengthy report. It’s almost as if these campaigns are run for unions’ benefit rather than that of their ostensible beneficiaries!

Related: Tim Sandefur, 2011, on a Los Angeles ordinance

that forces businesses that buy grocery stores to retain certain employees on their payroll for three months, even though they don’t want to. There’s an exception in the law for companies that have a collective bargaining agreement with a union. Thus the ordinance is little more than a tax on non-union employers — a restriction that exists for no other reason than to make it more expensive to operate a non-union grocery store.

Labor and employment roundup

Labor and employment roundup

Labor roundup

Labor and employment roundup

  • Jury convicts Ironworkers Local 401 boss in union violence case [Philadelphia Inquirer, CBS Philly, earlier here, etc. on Quaker meetinghouse arson and other crimes] Pennsylvania lawmaker proposes to end unions’ exemption from laws defining crimes of harassment, stalking, threatening [York Dispatch; more on exemption of unions from these laws]
  • Emergent regime under federal law: if you’ve ever offered light duty to a disabled worker or returning injured worker, you’d better offer it to pregnant worker too [Jon Hyman]
  • Everything you know about company towns is wrong [Alex Tabarrok]
  • “The EEOC issues you’ll want to keep an eye on in 2015″ [Littler Mendelson via Tim Gould, HR Morning]
  • Sued if you do: employers struggle to navigate between government rules encouraging, penalizing hiring of applicants with criminal records [WSJ, paywall] “Watch Your Back: The Growing Threat of FCRA Background Check Class Actions” [Gregory Snell, Foley & Lardner]
  • “Nearly 30 Percent of Workers in the U.S. Need a License to Perform Their Job: It Is Time to Examine Occupational Licensing Practices” [Melissa S. Kearney, Brad Hershbein and David Boddy, Brookings via John Cochrane]
  • “The Effect of Mandatory Sick Leave Policies: Reviewing the Evidence” [Max Nelsen] “Popularity of Obama’s paid sick leave proposal depends on workers not realizing it ultimately comes out of their paychecks.” [James Sherk]