| | | | |  | | By Nick Niedzwiadek | With help from Grace Yarrow
| | COLLISION COURSE: The National Labor Relations Board has beefed up enforcement under President Joe Biden. But those ambitions may run headlong into a judiciary stocked with conservatives by Biden’s predecessor. “They've tried to move the line aggressively, and I do think you're going to see increasingly hostile federal judges,” Ed Egee, vice president for government relations at the National Retail Federation and a former NLRB staffer. The Supreme Court, where former President Donald Trump selected half of its six-member conservative majority, earlier this year announced plans to take up Starbucks’ challenge to one of the NLRB’s most powerful enforcement tools. Elsewhere at least two lawsuits have been filed in Texas courts — one by an anti-union group and the other by SpaceX — alleging that the independent agency and its board is, in fact, too insulated from the president and therefore unconstitutional. Meanwhile business groups, including the Chamber of Commerce, are challenging the NLRB’s joint-employer rule (also in Texas). That places each of these cases within the 5th Circuit, which has become to the Biden administration what the 9th Circuit was to Trump’s — a foil that would regularly shoot down its policies on a range of issue and the go-to destination for lawsuits. As such the NLRB is set to spend much of 2024, and potentially beyond, defending its authority over private sector labor disputes on unfriendly turf. “There’s been broad attacks on basically the administrative state writ large,” Jeffrey Hirsch, a labor law professor at the University of North Carolina at Chapel Hill and a former NLRB attorney. “Employers are taking advantage of that overall circumstance to challenge the board when they don’t like what it’s doing.” Already a Trump-appointed judge has already thrown a wrench in a uniquely convoluted spat involving the agency and Starbucks, which has repeatedly clashed with the NLRB in recent years amid a rancorous unionization effort at the coffee chain. In that case, NLRB officials in Buffalo sought an injunction against the company, which made a series of discovery requests to build its defense. District Judge John Sinatra granted some of those subpoena requests, but NLRB prosecutors separately alleged that Starbucks’ tactic violated labor law — and an agency judge largely agreed, ordering Starbucks to withdraw them. That prompted Sinatra to dismiss the injunction case after demanding the NLRB abandon its proceeding and comply with his order, which the agency refused and appealed to the 2nd Circuit Court, which held a hearing on the matter Jan 19. Nick has more for Pro subscribers here. GOOD MORNING. It’s Monday, Feb. 5. Welcome back to Morning Shift, your go-to tipsheet on labor and employment-related immigration. As always, it is a #GDTBATH. Send feedback, tips and exclusives to nniedzwiadek@politico.com and gyarrow@politico.com. Follow us on X, formerly known as Twitter, at @NickNiedz and @YarrowGrace.
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| | JOBS JOBS JOBS: The U.S. economy added more than 350,000 jobs in January, blowing past experts’ expectations and filling the Biden administration’s sails as it heads into campaign season, our Victoria Guida and Zachary Warmbrodt report. Criticism of a president’s economic policies is a go-to election tactic, and the enduring strength of the top-line numbers help neutralize such attacks. At the same time, economists are still predicting a slowdown in economic growth — leaving some opportunity for Republicans. Political polling still shows most voters disapprove of Biden’s handling of the economy. But there are other signs that Americans are starting to feel better about the way things are going. Consumer confidence has crept upward and in January hit its highest point since Dec. 2021, according to The Conference Board. To wit, our Adam Cancryn and Meridith McGraw report on how the bullish economic news is upending the Trump campaign’s messaging on the issue. “You can’t blame the president when policies go wrong, and then say he’s not responsible if things are going right,” Stephen Moore, a senior fellow at The Heritage Foundation and an economist with FreedomWorks, told the pair. More workplace news: “Former Messenger employees sue shuttered news site,” from our Kelly Garrity.
| | | MISCLASSIFICATION MISSILE: Employers' misclassification of workers as independent contractors could potentially violate competition law, a commissioner at the Federal Trade Commission said Friday, our Josh Sisco reports for Pro subscribers. “I think the next step in confronting misclassification is making sure that we use every tool in our toolbox to fight it — including competition law,” FTC Commissioner Alvaro Bedoya said at a conference in Miami. He said the workers were subject to potentially illegal restraints on their job activities — a potential legal issue if they are truly independent actors — and businesses who did classify workers as employees were undercut by competitors that did not. Bedoya noted recent actions out of the Labor Department and National Labor Relations Board tackling this issue and said “it’s time for competition authorities to step up to the plate.” More agency news: “OPM offers guidance for agencies implementing salary history ban,” from Government Executive. Top-Ed: “Companies Must Protect Children From Dangerous Jobs,” by acting Labor Secretary Julie Su in Newsweek.
| | LAXENING CHILD LABOR: Florida House lawmakers voted to loosen child labor laws, allowing 16- and 17-year-olds to work more than six consecutive days for an unlimited amount of hours, our Lawrence Ukenye reports for Pro subscribers. Republicans rejected amendments to the bill that would require employers to report workplace sexual harassment and inform employees of their rights. "This bill is about choice and opportunity for families," said the bill’s sponsor, GOP state Rep. Linda Chaney. "I trust that our families and that our teens will make the right choice for them in their own individual situation." Florida Democrats argued the bill will endanger minors. “What we’re doing here is creating a cheap workforce for big business,” state Rep. Robin Bartleman, a Democrat, said on the House floor. More child labor news: “NY Comptroller: State child labor investigations lag in NYC as cases pile up,” from Gothamist. Even more: “How a teen’s job violated child labor laws,” from The Washington Post.
| | | IN THE DISTRICT: On Friday, 140 workers at The Bazaar, a José Andrés restaurant in D.C., gained voluntary recognition of their union from the José Andrés Group, according to UNITE HERE Local 25. Restaurant employees announced plans to unionize days before under Local 25. The internationally-recognized Andrés owns 31 restaurants. The Bazaar specifically has become a popular meeting spot for the Democratic elite, as it’s located in the formerly Donald Trump-owned hotel, which is now the Waldorf Astoria, our Lauren Egan reported last year. The day after The Bazaar workers launched the union efforts, the Waldorf Astoria hosted the Washington Press Club Foundation’s 78th annual congressional dinner. Workers stood outside the event to take photos with attendees, including about 10 members of Congress, according to the union’s social media posts. More union news: “Anheuser-Busch strike ‘appears unavoidable,’ says Teamsters union,” from Fast Company.
| | | SHADOW BULLY PULPIT: Donald Trump has been out of office for over three years, yet in some ways he exerts a stronger gravitational pull over House Republicans as he ever has, our Burgess Everett, Olivia Beavers and Meridith McGraw report. Powerful committee chairs are keeping him in the loop before moving forward with major legislation like the bipartisan tax deal, and Trump’s hardline opposition to Ukraine assistance and immigration has emboldened House conservatives and created headaches for Senate would-be dealmakers. His influence has only grown as he becomes increasingly likely to once again be the party’s presidential nominee, yoking congressional Republicans’ fortunes to his come November. More hill news: "Senators unveil long-awaited border deal," from our Daniella Diaz, Burgess Everett and Ursula Perano.
| | | | DON’T MISS POLITICO’S GOVERNORS SUMMIT: Join POLITICO on Feb. 22 to dive into how Governors are wielding immense power. While Washington remains gridlocked, governors are at the center of landmark decisions in AI and tech, economic development, infrastructure, housing, reproductive health and energy. How are they setting the stage for the future of American politics, policies and priorities? How are they confronting major challenges? Explore these questions and more at the 2024 Governors Summit. REGISTER HERE. | | | | | |  | what we're reading | | — “How AI is quietly changing everyday life,” from POLITICO. — “Minority Business Grants: A New Front in the Legal Battle Over Racial Preferences,” from The Wall Street Journal. — “Cleaning Latrines by Hand: ‘How Could Any Human Do That?’” from The New York Times. — “Companies’ hard-line stance on returning to the office is backfiring,” from The Washington Post. THAT’S YOUR SHIFT! | | | | Follow us on Twitter | | | | Follow us | | | | |
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