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New York City Expected to Implement Bill Requiring a “Valid” Reason For Terminating Fast Food Workers

 

Last week, the New York City Council approved a bill that would prohibit fast food workers in the city from being fired without a “valid” reason and would these workers to appeal a termination through arbitration.

Let us start first with a look at the prohibition on employers terminating fast food workers without a valid reason.  This is particularly troubling, from the viewpoint of an employer, given that New York is an “at will” employment state.  (For those unfamiliar with “at will” employment, an employer may terminate an employee for any reason or no reason, so long as the act of terminating an employee is not illegal or a form of retaliation.)  However, this bill seems to rewrite things by requiring fast food employers to have a “valid” reason for terminating an employee.  This is obviously a deviation from the “at will” standard already in place for the state.

Moving to the second part of the bill which would allow these terminated workers to appeal the termination through arbitration.  This gives me less concern, again from the viewpoint of an employer for a few reasons.  Arbitration tends to be a more costly venture compared to going through the court system.  As a result, this could impede many terminated fast food workers from contesting their termination, given in all likelihood their limited financial situation.   In addition, an arbitrator’s award is difficult to overturn compared to a ruling from a judge.  Except in limited circumstances, an arbitrator’s ruling cannot be contested, whereas it is possible to appeal a judge’s ruling to higher courts.

It is expected that New York City Mayor Bill de Blasio will sign this bill into law shortly.  Assuming that happens, fast food employers in the city had better buckle up for a bumpy ride ahead.


For additional information:  https://www.nytimes.com/2020/12/17/nyregion/nyc-fast-food-workers-job-security.html

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