| | | | |  | | By Lawrence Ukenye | |  A new Washington State law taking effect on July 1 will prevent companies from using production quotas at warehouses. | Johannes Eisele/AFP via Getty Images | | | BIG DAY FOR STATE LABOR: On Monday, a bevy of new labor regulations will take effect, highlighting states’ newfound eagerness to take up the issue in the absence of significant labor legislation from Washington. As the Department of Labor rushed to finalize various rules before its mid-May deadline, several states took matters into their own hands. A few have crafted policies to strengthen workers’ rights — while others have sided with businesses and begun rolling back employee protections. Here’s what you need to know. — Washington State will join New York and California in implementing a bill that restricts companies’ use of production quotas in warehouses. The law applies to all employers who have at least 100 nonexempt employees at a single warehouse or companies that have at least 1,000 employees at one or more warehouses in the state. Sen. Ed Markey (D-Mass.) unveiled a similar federal bill in Congress in May with the support of Teamsters President Sean O’Brien and Amazon workers. — California will require employers to develop plans to prevent workplace violence and will task managers with tracking incidents. The law was inspired by an incident in May 2021, when a disgruntled employee shot and killed nine of his colleagues at a light rail yard in San Jose, sparking a legislative push to prevent future tragedies. “I’m grateful to my colleagues in the legislature for standing up for workers and businesses at this time of rising workplace violence,” State Sen. Dave Cortese (D-San Jose) said in a statement after the bill was passed. — A Florida law preventing local governments from implementing heat protections for workers will go into effect on Monday. Groups criticized Florida Gov. Ron DeSantis, who signed the bill in April, saying the law would put the state’s more than 2 million outdoor workers at risk. The new law comes after DeSantis also signed a bill backed by business groups that allows 16- and 17-year-olds to work more than six consecutive days for an unlimited amount of hours during the school year — part of the state’s efforts to find other ways to allow young people to join the workforce. GOOD MORNING. It’s Monday, July 1. Welcome back to Morning Shift, your go-to tipsheet on labor and employment-related immigration. No, the Chevron ruling has nothing to do with gas stations. Send feedback, tips and exclusives to nniedzwiadek@politico.com and lukenye@politico.com. Follow us on X at @NickNiedz and @Lawrence_Ukenye.
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| | |  Sen. Bill Cassidy (R-La.) penned a letter to agencies urging that they comply with the Supreme Court's recent Chevron ruling. | Nicholas Kamm/AFP via Getty Images | FIRST IN SHIFT: Sen. Bill Cassidy (R-La.), the top Republican on the Senate HELP Committee, sent letters to leaders at the DOL, NLRB, EEOC and Employee Benefits Security Administration on Sunday, requesting information on how they plan to comply with the Supreme Court’s recent Chevron ruling. Cassidy took aim at several Biden labor rules he believes fall outside the agencies’ authority, including the administration’s walkaround rule, joint-employer rule and fiduciary rule. He also criticized the EEOC’s implementation of the Pregnant Workers Fairness Act, claiming the agency inserted its own abortion politics into the law. “For too long, Chevron deference allowed unelected bureaucrats, insulated from political accountability, to exercise power that exceeds their authority," he said in a statement to Shift. "Such unfettered power is a perversion of the Constitution." Read Cassidy's letters to the DOL, NLRB, EEOC and EBSA here.
| | COURT BLOCKS OVERTIME RULE: A federal court in Texas dealt a blow to the Labor Department’s expanded overtime rule late Friday, shortly before it was set to take effect on Monday, Nick reports. District Court Judge Sean Jordan temporarily barred DOL from enforcing the new overtime rule — finalized in April — on the grounds that the agency’s design is overly reliant on workers’ salary levels rather than their job duties, as stipulated by the Fair Labor Standards Act’s so-called “executive, administrative and professional exemption.” DOL’s rule would extend overtime pay guarantees to workers making just under $44,000, up from the $35,568 cutoff set in 2019. The threshold would jump to $58,656 at the beginning of 2025. AND ANOTHER BLOW FROM SCOTUS: The Biden administration’s ability to advance its labor policies on numerous fronts could take a major hit after the Supreme Court on Friday handed courts more power over the fate of agency rules, Lawrence reports. The court’s conservative majority ruled 6-3 to overturn the so-called Chevron doctrine, a four-decade-old legal precedent that required judges to uphold federal regulations if a statute is opaque and an agency develops regulations that are a “reasonable” interpretation of the law. The Labor Department, its subagencies and the EEEOC are fending off lawsuits on numerous recent regulations, and plaintiffs could get a substantial boost in some cases from the court’s decision. More on Chevron: "The Supreme Court unspools Washington’s big business — and puts new strain on Congress," from POLITICO Pro Staff. Even more: "K Street cheers SCOTUS’ Chevron ruling," from our Brendon Bordelon and Caitlin Oprysko.
| | WHAT’S GOOD WITH WIOA: The Senate HELP Committee is giving industry groups until Friday to submit their comments about the chamber’s discussion draft text for reauthorizing the Workforce Innovation and Opportunity Act. The committee held a closed-door meeting with stakeholders on June 21 after some groups told Shift that they hadn’t been kept in the loop on negotiations. The Skills First Coalition, led by IBM and other education providers, saw positive elements in the draft text circulated among groups but was dismayed by the lack of certain provisions present in the House-passed version. “There are already so many barriers and disincentives for employers to engage,” Yelena Vaynberg, a government & regulatory affairs executive at IBM, told Shift. “This could fundamentally completely lead to employers just throwing up their hands and saying, ‘Hey we're not going to do this.’” While the House’s reauthorization of the bill required half of its funding go toward direct occupational skills training, the Senate’s draft included no such requirements. A Republican aide on the Senate HELP Committee told Shift that the discussion draft was intended to gather feedback and does not represent a finalized agreement among lawmakers. Chair Bernie Sanders’ (I-Vt.) office did not respond to Shift’s request for comment.
| | WINDY CITY LABOR MOVES: Chicago will roll out a new ordinance that expands paid time off for employees on Monday. Workers will accrue one hour of paid leave, including sick leave, for every 35 hours worked and can begin requesting it after working for 90 days. The new policy was a priority for Chicago Mayor Brandon Johnson and many labor groups, including the Chicago Federation of Labor. “We believe that Chicago is the most pro-worker city in the nation and our ability to get this work done here raises the tide for all workers,” Andrea Kluger, deputy chief of staff for governmental affairs at the Chicago Federation of Labor, told Shift. More state news: "As AI gains a workplace foothold, states are trying to make sure workers don’t get left behind," from the Associated Press. Even more: "Robots notch some wins in the fight over AI and jobs," from our Lara Korte.
| | | | SUBSCRIBE TO GLOBAL PLAYBOOK: Don’t miss out on POLITICO’s Global Playbook, our newsletter taking you inside pivotal discussions at the most influential gatherings in the world. Suzanne Lynch delivers the world's elite and influential moments directly to you. Stay in the global loop. SUBSCRIBE NOW. | | | | | | | | ENDORSEMENT SOON?: Former President Donald Trump sang the praises of Teamsters President Sean O’Brien at a rally in Virginia, floating the possibility that the union could endorse his reelection campaign. "I think maybe the Teamsters go with us...I think they have some good leadership,” he said. “I think a lot of unions are coming our way." O’Brien has also secured a speaking slot at the Republican National Convention later this month, heightening speculation that Teamsters could be the first major union to back Trump.
| | EVERYONE’S HAPPY: Uber and Lyft agreed last week to adopt a $32.50 minimum hourly pay in Massachusetts and will no longer back a ballot initiative aimed at allowing drivers in the state to become independent contractors rather than employees, Reuters reports. Both companies will pay a combined $175 million as part of the deal, with more than $140 million going to drivers. Workers on the platforms will also gain access to a tranche of benefits including paid sick leave, accident insurance and health stipends. Massachusetts Gov. Maura Healey celebrated the agreement as a win for workers, while Uber and Lyft touted the deal for allowing drivers to remain independent. More workplace news: "Another Contentious U.S. Election Means a Worker Productivity Dip," from Bloomberg.
| | | — "Junior Bankers Log 100-Hour Weeks Again, And Tensions Are Up," from Bloomberg. — "State Department announces new AI program, more hiring," from our Maggie Miller. — "Your Boss Will Freeze Your Eggs Now," from The New York Times. THAT’S YOUR SHIFT! | | | | Follow us on Twitter | | | | Follow us | | | | |
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