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    Who Will Stand Up for Renters? Their Elected Representatives, Who Also Rent.

    In California, legislators come out as tenants to form a renters’ caucus.When Matt Haney entered the California Legislature, he discovered he was part of a tiny minority: a legislator who rents.Mr. Haney has never owned property and, at 41 years old, has spent his adult life as a tenant. His primary residence is a one-bedroom apartment near downtown San Francisco. The rent is $3,258 a month. (He also paid a $300 deposit for Eddy and Ellis, two orange cats he adopted from a shelter during the pandemic.)“When I got there last year, it seemed that there were only three of us out of 120,” Mr. Haney said of the renters in the Legislature. “That’s a very small number.”Looking to highlight their renter status and the 17 million California households that are tenants — a little less than half the state — last year, Mr. Haney and two Assembly colleagues, Isaac Bryan and Alex Lee, founded the California Renters Caucus. A fourth Assembly member, Tasha Boerner, joined after the caucus was formed. The group added a state senator, Aisha Wahab, after she entered office this year.Mr. Haney said there was briefly a sixth, more politically conservative member who attended one meeting but never came back. It’s possible they have other colleagues who are renters and have yet to come out.“Being a renter is not necessarily something people project or put on their website,” Mr. Haney said.That much seems to be changing. From cities and statehouses to U.S. Congress, elected officials are increasingly playing up their status as tenants and forming groups to push for renter-friendly policies.Politics is about being relatable. Candidates pet dogs and hold babies and talk about their children. Given how many families are struggling with the cost of housing and have lost hope that they could ever buy, it makes sense that elected officials would now start talking about being tenants.London Breed, the mayor of San Francisco, talks frequently about her rent-controlled apartment in the city’s Haight-Ashbury district. Lindsey Horvath, a member of the Los Angeles County Board of Supervisors — the powerful body that oversees a $43 billion budget and more than 100,000 employees — predicates discussions of housing policy with her status as a renter.In June, federal legislators followed California with a renter caucus of their own, although that one has looser criteria. Representative Jimmy Gomez, who is chair of the Congressional Renters Caucus as well as a Democrat from Los Angeles, said instead of actual tenants his group targeted members from renter-heavy districts, even if they own a home, as he does.“Good elected officials are going to fight for their constituents, no matter what,” Mr. Gomez said.Besides, he added, the strictest definition of “renter” can obscure economic insecurity. His parents, for instance, were homeowners who never made more than $40,000 combined and lived in inland California without air conditioning. Other people own nothing but rent a $7,000-a-month penthouse.“Are they considered the same?” he said.When asked how many of his colleagues did not own a home, Mr. Gomez said, “My gut is that it’s less than 10.”The five members of the Renters Caucus: from left, Isaac Bryan, Tasha Boerner, Matt Haney, Aisha Wahab and Alex Lee, at the Capitol Building in Sacramento, Calif.Aaron Wojack for The New York TimesIn addition to advancing Democratic priorities like subsidized housing and tenant protections, these legislators are making a bet that being perceived as a pro-renter is politically advantageous in an era in which a growing number of Americans are renting for longer periods, and often for life. Mr. Haney and Mr. Gomez both describe their caucuses — subsets of legislators organized around a common purpose — as a first for their bodies. Which is easy to believe.Homeownership is synonymous with the American dream. It is supported by various federal and state tax breaks and so encoded in the American mythology and financial system that historians and anthropologists assert that it has come to symbolize a permanent participation in society. The underlying message is that renting is temporary, or should be.“There is a pretty foundational bias against renters in American sociological and political life,” said Jamila Michener, a professor of government and public policy at Cornell. “So when policymakers say, ‘Hey, this is an identity that’s relevant, and one we are willing to own and lean into,’ that’s significant.”About two-thirds of Americans own their dwellings, and survey after survey shows that the aspiration of owning a home is no less potent today than it was for previous generations. But the number of renters has grown steadily over the past decade to about 44 million households nationwide, while punishing housing costs have migrated from coastal enclaves to metropolitan areas around the nation.More salient to politicians, perhaps, is that renters are increasingly well-off — households that make more than $75,000 have accounted for a large majority of the growth in renters over the past decade, according to the Harvard Joint Center for Housing Studies. At the same time, the struggle to find something affordable has escalated from lower-income tenants to middle-income families that in past generations would very likely have owned their homes.In other words, renter households are now composed of families much more likely to vote. And after a pandemic in which homeowners gained trillions in home-equity wealth while renters had to be supported with eviction moratoriums and tens of billions in assistance, the fragility of their position has been made clearer.“As cost burdens show up in places where we don’t expect it, there seems to be more political momentum around addressing these problems,” said Whitney Airgood-Obrycki, senior research associate at the Harvard Joint Center for Housing Studies.By organizing around an economic condition, lawmakers are embracing a concept that renter advocates refer to as “tenants as a class.”The idea is that while renters are a large and politically diverse group — low-income families on the edge of eviction, high-earning professionals renting by choice, couples whose desire for suburban living but inability to afford a down payment has made single-family house rentals one of the hottest corners of the real estate business — they still have common interests. Those include the rising cost of housing and the instability of being on a lease.“It’s a lens that I don’t think has been captured in the same way as race, gender, age, ability, et cetera,” said Mr. Bryan, the California Assembly member and renters’ caucus member whose district is in Los Angeles. “I’m excited to be among the first five legislators in California history to develop what the political consciousness is around this status.”That the ranks of tenants also include legislators, albeit not many of them, is one of the points California lawmakers said they wanted to make by forming the renters’ caucus. It also plunged them into the surprisingly thorny question of who is and is not a tenant.Does the list include lawmakers who rent a dwelling in Sacramento but own a house or condominium in their district, a criterion that would qualify a good chunk of the Legislature? The group decided no. How about Mr. Lee, the Assembly member and renters’ caucus member, whose district residence is his childhood bedroom, in a home his mother owns? He doesn’t own property, so sure.Despite having only five members, the California Renters Caucus, like the state it represents, is racially diverse but dominated by Democrats (there are no Republicans in the caucus). Its members are white, Black and Asian. Mr. Lee is a member of the Legislature’s L.G.B.T.Q. caucus. Ms. Wahab is the first Muslim American elected to the California Senate.Politically speaking, the outlier is Tasha Boerner, who lives in the San Diego suburb Encinitas and is the caucus’s more conservative member (as California Democrats go). Despite being the group’s longest-serving member in the Legislature, Ms. Boerner, 50, was initially not identified as a tenant by her colleagues on the renters’ caucus.“No one ever called my office because I’m a white mom living in Encinitas,” she said. “They thought, ‘She must be a homeowner.’”Ms. Boerner frequently disagrees with her colleagues about the efficacy of policies like rent-control, she said, though she voted for a statewide rent cap several years ago. She is also more skeptical of the state’s efforts to speed construction by taking land-use control from cities, and she voted against a bill that effectively ended single-family zoning in the state.And yet Ms. Boerner is also a lifetime renter who has moved three times since assuming office. Her current home is a three-bedroom apartment that she shares with her two children and her ex-husband, in part because it’s cheaper than if the parents had separate places.“Families who rent come in all shapes and sizes, and what I hope to bring is a little diversity,” she said. “We have disagreements, as any caucus does, but coming together and saying, ‘Hey, this is a demographic who matters’ — that is the importance.” More

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    Franchisers, Facing Challenges to Business Model, Punch Back

    Discontented franchisees have found allies among state legislators and federal regulators in pushing for new laws and rules, but change has been slow.When you visit a McDonald’s, a Jiffy Lube or a Hilton Garden Inn, you may assume you’re visiting one business. More likely, you’re actually visiting two: the operator of that particular location, known as the franchisee, and the larger company that owns the intellectual property behind it, or the franchiser.Conflict is inherent in that relationship, but it has hit a boil in recent months, as franchisees say they’re being squeezed out of the profits their business generates through new fees, required vendors and constraints on their ability to sell.On Monday, the Government Accountability Office released a report finding that franchisees “do not enjoy the full benefit of the risks they bear,” citing interviews with dozens of small-business owners who said they lacked control over basic operations that determined their ability to earn a profit.They’ve found a sympathetic ear in the Biden administration and in several state legislatures, giving rise to a growing wave of proposals to limit the power of franchisers.Franchisers have been largely successful in heading off new laws and rules, which the chief executive of McDonald’s, Chris Kempczinski, has described as an existential threat.“The reality is that our business model is under attack,” he said in February at the convention of the International Franchise Association, a trade group for franchisers, franchisees and franchise suppliers. “If you’re not paying attention to these pieces of legislation because you think they don’t impact you, think again.”The chief executive of McDonald’s says the franchising industry’s business model is “under attack” because of a push for new laws and rules.Haiyun Jiang/The New York TimesFranchising has been a feature of American capitalism for decades, allowing brands to grow quickly using investment from entrepreneurs who commit their own capital in exchange for a business plan and a logo that consumers might recognize. The Federal Trade Commission requires franchisers to disclose factors including start-up costs and the company’s financial performance to those considering buying a franchise, and some state laws govern considerations like transfer rights.But much of the relationship is largely unregulated — changes a franchiser can make to contracts, for example, and which vendors can be required.Keith Miller, a Subway franchisee in California who has become an advocate for franchisee rights, said the lack of oversight had given rise to an increasing number of disputes. “There’s more of a squeeze on the franchisees than ever,” he said. Franchisees’ royalty payments used to cover things like marketing, new menus and sales tools, he added, but “now you seem to have to pay for your services.”The franchise industry says that its business model remains beneficial to individual owners, and that additional regulation would protect substandard franchisees at everyone else’s expense. Matthew Haller, chief executive of the International Franchise Association, cited a 2021 survey by the market research firm Franchise Business Review in which 82 percent of franchisees said they supported their corporate leadership.But legislative battles at the state level reflect rising tension.Hotel franchisees, squeezed by lost revenue during pandemic lockdowns, say they have also been hurt by the hotel brands’ loyalty programs, which require the hotelier to rent rooms at a reduced rate. A bill in New Jersey that would limit those loyalty programs, as well as rebates that brands can collect from vendors that franchisees are required to use, faces fierce opposition from the American Hotel and Lodging Association. In a statement, the association’s chief executive, Chip Rogers, said the bill would “completely undermine the foundation of hotel franchising by limiting a brand’s ability to enforce brand standards.”Laura Lee Blake, the chief executive of the 20,000-member Asian American Hotel Owners Association, said hoteliers had reached desperation. “There comes a point when you’ve tried and tried to meet with the franchisers to ask for changes, and they refuse to listen,” she said.In Arizona, legislation introduced to enhance franchisees’ ability to sell their businesses and prevent retaliation from franchisers if they band together in associations has also faced resistance. The bill was approved by two committees in February and March, but the International Franchise Association hired two lobbying firms to fight it. In a Republican caucus meeting, opponents attacked the legislation as a “sledgehammer” that would bring the government into private business relationships. The bill’s sponsor, Representative Anastasia Travers, a freshman Democrat, said she was taken aback by how quickly opposition snowballed, and ultimately gave up on it for the 2023 session.“Time has not been my friend,” Ms. Travers said.A similar bill in Arkansas, which the International Franchise Association initially said would be “the most extreme franchise regulation of any state,” was amended to strip entire sections, including one that would have prevented franchisers from imposing any requirement that “unreasonably changes” the financial terms of the relationship as a condition of renewal or sale.After the bill was slimmed down — leaving provisions such as one restoring the existing statute, which had been rendered ineffective by a subsequent law, and another requiring the franchiser to establish material cause before terminating the franchise — the industry group withdrew its opposition, allowing swift passage.A Subway location in New York. “There’s more of a squeeze on the franchisees than ever,” said Keith Miller, a Subway franchise owner in California.Carlo Allegri/ReutersIn an email to supporters before the votes, the franchise association’s vice president for state and local government relations, Jeff Hanscom, credited the Arkansas agribusiness giant Tyson Foods for being “instrumental in negotiating this outcome.” Tyson Foods did not respond to a request for comment.At the federal level, franchisers may face greater challenges.The Biden administration is moving on two fronts. One is the Federal Trade Commission, which issued a request in March for information about the ways in which franchisers control franchisees. The initiative could result in additional guidance or rules — putting the industry on high alert.The second front is the National Labor Relations Board, which has proposed making it easier for franchisers to be designated as “joint employers” that would be liable for the labor law violations of franchisees if they exerted significant control over working conditions. Franchisers maintain that this would “destroy” the business model, because it would subject them to unacceptable risks.Franchisers attribute the flurry of activity to union influence. The Service Employees International Union, in particular, has long fought to get McDonald’s designated as a joint employer so it would be easier to mount an organizing effort across the chain, rather than store by store.Robert Zarco, a Miami lawyer retained by an association of 1,000 McDonald’s owners, said that to avoid the joint-employer designation, and the extra liability it would bring, franchisers could choose to weaken their grip on franchisee operations.“If the company wants to not be considered a joint employer, it’s very simple to fix,” he said. “Unwind all those excessive controls that they have implemented that are outside of protecting the brand and the product and service quality.”The franchise association’s federal lobbying spending hit a high of $1.24 million in 2022, alongside millions more spent in recent years on federal elections, and doesn’t include money spent by the individual franchise brands.The high stakes are evident in other ways, as well.The Franchise Times, a 30-year-old independent trade publication with six editorial employees, writes about day-to-day events in the industry: acquisitions, executive leadership changes, technology trends. When strife arises, such as lawsuits and bankruptcies, it writes about those, too.The publication’s legal columnist, Beth Ewen, wrote several stories this year about Unleashed Brands, a portfolio of franchises that has drawn lawsuits from franchisees. In response, the company published a markup of one of Ms. Ewen’s stories in red pen font with “DEBUNKED” stamped across the top. (The organization had given similar treatment to an article about the company by The New York Times. Both publications stand by their reporting, and Unleashed did not ask for corrections.)In March, a new website popped up at the address “NoFranchiseTimes.com.” Its front page was devoted to an attack on what it called “editorial bias,” “denigrating the businesses that support their publication.”It called for the publication’s advertisers — which include law firms, vendors and brands — to cancel their purchases.Michael Browning Jr., the chief executive of Unleashed Brands and a member of the International Franchise Association’s board, emailed the trade group’s membership saying that while he had not created the website, he supported its message and thought the group should revoke The Franchise Times’s membership. Mr. Browning did not respond to a request for further comment.The association declined to revoke the membership, and the publication says its advertising revenue is up from last year. But to Ms. Ewen, a 35-year veteran of business reporting, the episode shows that the industry is trying to divert attention from real problems — and that some members are playing hardball.“They’re trying to hit at our business model and our ability to keep going,” she said. “There’s a lot of people spending a lot of time trying to get us and others to stop doing these stories.” More

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    California Senate Passes Bill Reining In Amazon Labor Model

    The bill would curb production quotas at Amazon and other companies that critics say are excessive and force workers to forgo bathroom breaks.In the latest sign of the growing scrutiny of Amazon’s labor practices, the California State Senate on Wednesday approved a bill that would place limits on production quotas for warehouse workers.The bill, which passed the Senate 26-to-11, was written partly in response to high rates of injuries at Amazon warehouses. The legislation prohibits companies from imposing production quotas that prevent workers from taking state-mandated breaks or using the bathroom when needed, or that keep employers from complying with health and safety laws.The Assembly, which passed an initial version in May, is expected to approve the Senate measure by the end of the state’s legislative session on Friday.“In the Amazon warehouse space, what we’re trying to take on is this increased use of quotas and discipline based on not meeting the quotas, without a human factor in dealing with a reason why a worker might not make a quota,” Assemblywoman Lorena Gonzalez, the bill’s author, said in an interview last week.Gov. Gavin Newsom had not indicated before the vote whether he would sign the bill, but his staff was involved in softening certain provisions that helped pave the way for its passage.Experts said the bill was novel in its attempts to regulate warehouse quotas that are tracked by algorithms, as at Amazon, and make them transparent.“I believe one of Amazon’s biggest competitive advantages over rivals is this ability to monitor their work force, prod workers to work faster and discipline workers when they fail to meet quotas,” said Beth Gutelius, research director at the Center for Urban Economic Development at the University of Illinois Chicago.“It’s unprecedented for a bill to intervene like this in the ways that technology is used in the workplace,” added Dr. Gutelius, who focuses on warehousing and logistics.Business groups have strongly opposed the bill, complaining that it will lead to costly litigation and hamstring the entire industry even though it is primarily intended to address labor practices at a single company.Amazon has not commented on the bill but has said that it tailors performance targets to individual employees over time based on their experience level and that the targets take into account employee health and safety. The company has emphasized that fewer than 1 percent of terminations are related to underperformance.The bill would require Amazon and other warehouse employers to disclose productivity quotas to workers and regulators, and would allow workers to sue to eliminate quotas that prevent them from taking breaks and following safety protocols.While it is unclear how big an impact the bill would have on Amazon’s operations, limiting the company’s hourly productivity quotas would probably affect its costs more than its ability to continue next-day and same-day delivery.“I think it’s all about money, not about what the system is set up to handle,” said Marc Wulfraat, president of the supply-chain and logistics consulting firm MWPVL International. “If you said to me, ‘Bring the rate down from 350 to 300 per hour,’ I’d say, ‘OK, we need to add more people to the operation — maybe we need 120 people instead of 100.’”A report by the Strategic Organizing Center, a group backed by four labor unions, shows that Amazon’s serious-injury rate nationally was nearly double that of the rest of the warehousing industry last year.“They would say, ‘Always pivot, never twist,’ all this stuff you’re supposed to do,” said Nathan Morin, who worked in an Amazon warehouse in California for more than three years packing and picking items before leaving in December. “But it’s oftentimes impossible to follow the proper body movements while also making rate.”The company has vowed to improve worker safety and said it had spent more than $300 million this year on new safety measures.Amazon is under growing pressure from unions and other groups over its labor practices. A regional office of the National Labor Relations Board has indicated that it is likely to overturn a failed union election at an Amazon warehouse in Alabama on the grounds that the company improperly interfered with the voting.The objections to the election were brought by the Retail, Wholesale and Department Store Union, which spearheaded the organizing campaign.The International Brotherhood of Teamsters, which backed the California bill and whose local officials have helped to derail a tax abatement for Amazon in Indiana and approval for an Amazon facility in Colorado, has committed to providing “all resources necessary” to unionize Amazon workers.“This is a historic victory for workers at Amazon and other major warehouse companies,” Ron Herrera, a Teamsters official who is president of the Los Angeles County Federation of Labor, said in a statement. “These workers have been on the front lines throughout the pandemic, while suffering debilitating injuries from unsafe quotas.” More