- Shake Shack will return the $10 million it received from the Payroll Protection Program so that other small businesses have a chance at gaining financial assistance.
- The PPP ran out of funding after two weeks, leaving many small businesses empty-handed, many of which have less access to other company-saving means than chains like Shake Shack.
- Shake Shack is also just one of the many chain restaurants that got millions of dollars the PPP, which has led to frustrations about how PPP funding was distributed.
- Congress is working on getting more funding for the PPP, with a plan that could add another $310 billion, as well as $75 billion to help hospitals and $25 billion to expand testing nationwide.
Shake Shack Returns Loan
Shake Shack is returning the $10 million it received from the Payroll Protection Program so that businesses in higher need for financial assistance can get it.
The New York-based burger joint, which is publicly traded and has 275 locations worldwide, released a statement on Monday morning announcing their decision.
“We’re thankful for [the loan] and we’ve decided to immediately return the entire $10 million PPP loan we received last week to the SBA so that those restaurants who need it most can get it now,” CEO Randy Garutti wrote.
Chain restaurants and hotels with under 500 employees per location were eligible for the PPP loan. According to Garutti, very few, if any, chain restaurants employ more than that per location. He said that the PPP “came with no user manual and it was extremely confusing” but that his company ultimately decided to apply “to protect as many of our employees’ jobs as possible.”
Garutti released this statement along with Danny Meyer, the CEO of Union Square Hospitality Group, which founded Shake Shack. While Shake Shack has taken a financial hit as a result of the coronavirus, USHG is facing harder times. USHG is an independent restaurant group in New York, and it closed all of its restaurants in March. The group also laid off 2,000 employees.
Independent Businesses Get Left Out
USHG was able to get some loans approved, but not enough. Like many other small businesses in the country, the PPP ran out of funding before it could give them their much-needed boost. Still, on top of Shake Shack, other chains like Ruth’s Chris Steakhouse, Potbelly Sandwich Shop, Kura Sushi and more got a pretty penny from the loan.
“If this act were written for small businesses, how is it possible that so many independent restaurants whose employees needed just as much help were unable to receive funding?” the statement by Garutti and Meyer continued. “We now know that the first phase of the PPP was underfunded, and many who need it most, haven’t gotten any assistance.”
While both Shake Shack and USHG are based in the Big Apple, small businesses around the country are feeling the impacts of this. April Richardson, the owner of local D.C bakery DC Sweet Potato Cake told CNN she applied for the PPP and got nothing. Richardson was hoping for far less than the millions places like Shake Shack received, with the report noting that a potential $23,000 would have gone a long way for her bakery.
Since she did not get it, she had to ask three of her employees to file for unemployment.
“It’s a reminder to small businesses that our voices are dampened,” she told CNN. “What are we doing this for? Why are we in business just to be told we’re not good enough because we’re not big enough?”
The Future of the PPP
Because the funding ran out so quickly and was spread to chains who seemingly do not need it as much as hyperlocal businesses, Garutti and Meyer laid out suggestions for how Congress should amend the PPP going forward. They advised legislators to spread funding more efficiently and assign restaurants to banks so that locations without pre-existing bank relationships are not left out. They also urged them to remove the clause that states that businesses rehire employees by June.
“That timeline is unlikely achievable for full service restaurants,” they wrote, specifically referencing spots based in New York, which has become the epicenter of the U.S. outbreak.
There are plans in motion to add more funding to the PPP. Treasury Secretary Steven Mnuchin is hopeful that Congress can get something agreed on as soon as Monday, with a vote by Wednesday. This deal would send another $310 billion to the PPP. Another $75 billion would help hospitals and another $25 billion would expand testing nationwide.
It is unclear how negotiations will go, as Democrats have been pushing for more hospital funding, while Republicans want that funding to be allocated in an entirely separate piece of legislation.
See what others are saying: (CNN) (Wall Street Journal) (NPR)
Google Is Banning “Sugar Dating” Apps as Part of New Sexual Content Restrictions
The change essentially targets apps like Elite Millionaire Singles, SeekingArrangements, Spoil, and tons of other sugar dating platforms.
Sugar Dating Crackdown
Google has announced a series of policy changes to its Android Play Store that include a ban on sugar dating apps starting September 1.
The company’s Play Store policies already prohibit apps that promote “services that may be interpreted as providing sexual acts in exchange for compensation.”
Now, it has updated its wording to specifically include “compensated dating or sexual arrangements where one participant is expected or implied to provide money, gifts or financial support to another participant (‘sugar dating’).”
The change essentially targets apps like Elite Millionaire Singles, SeekingArrangements, Spoil, and tons of other sugar dating platforms currently available for download.
What Prompted the Change?
The company didn’t explain why it’s going after sugar dating apps, but some reports have noted that the move comes amid crackdowns of online sex work following the introduction of the FOSTA-SESTA legislation in 2018, which was meant to curb sex trafficking.
That’s because FOSTA-SESTA created an exception to Section 230 that means website publishers can be held liable if third parties are found to be promoting prostitution, including consensual sex work, on their platforms.
It’s worth noting that just because the apps will no longer be available on the Play Store doesn’t mean the sugar dating platforms themselves are going anywhere. Sugar daters will still be able to access them through their web browsers, or they can just sideload their apps from other places.
Still, the change is likely going to make the use of these sites a little less convenient.
See what others are saying: (The Verge)(Engadget)(Tech Times)
Activision Blizzard CEO Apologizes for “Tone Deaf” Response to Harassment Suit, Unsatisfied Employees Stage Walkout
Organizers of a Wednesday walkout say they “will not return to silence” and “will not be placated by the same processes that led us to this point.”
After a week of growing criticism against its workplace culture, the CEO of Activision Blizzard has finally apologized for how the company first responded to allegations of sexual harassment and assault in its offices.
“Our initial responses to the issues we face together, and to your concerns, were, quite frankly, tone deaf,” CEO Bobby Kotick said Tuesday in a letter to employees. “It is imperative that we acknowledge all perspectives and experiences and respect the feelings of those who have been mistreated in any way. I am sorry that we did not provide the right empathy and understanding.”
In its initial response, Activision Blizzard denounced the disturbing allegations brought forth in a lawsuit by the California Department of Fair Employment and Housing (DFEH) as “irresponsible.” The company added that it came from “unaccountable State bureaucrats that are driving many of the State’s best businesses out of California.”
But many current and former employees soon disputed that claim. In fact, at the time, more than 2,500 had signed their name to an open letter condemning the company for its response, which they described as “abhorrent and insulting” to survivors.
In his letter, Kotick promised employees that Blizzard will take “swift action to be the compassionate, caring company you came to work for.”
As part of a series of new policies, he said the company will now offer additional employee support and listening sessions, as well as potential personnel changes to leadership.
“Anyone found to have impeded the integrity of our processes for evaluating claims and imposing appropriate consequences will be terminated,” he added.
Kotick also said Blizzard will add “compliance resources” to ensure that leadership is adhering to diverse hiring directives.
Lastly, he promised that the company will remove “inappropriate” in-game content. In a similar statement on Tuesday, Blizzard’s World of Warcraft team said it’s actively working to remove “references that are not appropriate for our world,” though it didn’t specify what those references were.
It now appears that many of the references being removed are of the game’s former Senior Creative Director, Alex Afrasiabi, who is cited in the lawsuit as someone who hit on and made unwanted advances at female employees. Moreover, the suit also directly accuses him of groping one woman.
“Afrasiabi was so known to engage in harassment of females that his suite” during company events “was nicknamed the “[Cosby] Suite” after alleged rapist Bill [Cosby],” the suit claims.
Organizers of a company-wide employee walkout, which was announced Tuesday and occurred Wednesday, still argue that Kotick’s latest message doesn’t address their larger concerns.
Among those are “the end of forced arbitration for all employees,” “worker participation in oversight of hiring and promotion policies,” “the need for greater pay transparency to ensure equality,” and “employee selection of a third party to audit HR and other company processes.”
“We will not return to silence; we will not be placated by the same processes that led us to this point.”
Ahead of the walkout, Blizzard reportedly encouraged its own employees to attend, saying those workers would face no repercussions and “can have paid time off” during the demonstration, according to The Verge.
Frito-Lay Workers End Nearly Three-Week Strike After Securing Higher Wages and a Guaranteed Day Off
Employees also negotiated an end to “suicide shifts,” which are two 12-hour shifts that are only eight hours apart.
Hundreds of Frito-Lay workers in Kansas have put an end to their nearly three-week strike over alleged mandatory overtime assignments that resulted in extremely long work weeks and so-called “suicide shifts.”
The term “suicide shift” refers to working two 12-hour shifts with only eight hours of rest in between. That can be especially hard on employees who claim to have worked up to 84 hours in a single week. For context, that’s 12 hours a day without a single day off.
One of the reasons workers have found themselves taking on more hours and days at plants is because consumer snacking has increased during the pandemic — so much so that Frito Lay’s recent net growth has exceeded every single one of its targets. That’s why at one point, the striking workers asked consumers to boycott Frito-Lay products in a show of solidarity.
The strikes began July 5 and concluded on July 23 following an agreement reached by union leaders and PepsiCo., Frito-Lay’s parent company. Under that deal, all employees will see a 4% wage increase over the next two years. They’ll also be guaranteed at least one day off a week, and the company will no longer schedule workers with only eight hours off between shifts.
Following the agreement, Anthony Shelton, the president of the union representing the workers, said that they’ve “shown the world that union working people can stand up against the largest food companies in the world and claim victory for themselves, their families and their communities.”
“We believe our approach to resolving this strike demonstrates how we listen to our employees, and when concerns are raised, they are taken seriously and addressed,” Frito-Lay said in a statement. “Looking ahead, we look forward to continuing to build on what we have accomplished together based on mutual trust and respect.”
The Long, Bitter Road to an Agreement
When the workers went on strike, they lobbed several very disturbing accusations against Frito-Lay.
In fact, the workers were pushed so hard that according to one employee who wrote in the Topeka Capital-Journal, “When a co-worker collapsed and died, you had us move the body and put in another co-worker to keep the line going.”
While Frito-Lay dismissed this account as “entirely false,” other employees continued to protest conditions in the plants. Many even argued the 90-degree temperatures they had to stand in to protest outside were preferable to the 100-degree-plus temperatures and smokey conditions in the factories.
During the strikes, PepsiCo. actively disputed that its employees are overworked, describing their claims as “grossly exaggerated” and saying, “Our records indicate 19 employees worked 84 hours in a given work week in 2021, with 16 of those as a result of employees volunteering for overtime and only 3 being required to work.”
It also said an initial concession more than met the striking employees’ terms, but the union backing those workers disagreed, and further negotiations were held until the final deal was reached.