Insiders’ guide to retail-related legislative developments - May 14
Wages
Connecticut - A last-minute effort to pass compromise legislation increasing the minimum wage to $12.10, instead of the proposed $15/hr, failed to pass either chamber before the legislature adjourned for the year.
Vermont - The house passed a bill to increase the state’s minimum wage to $15/hr by 2024. In February, the senate passed a similar bill with a shorter transition, increasing to $15/hr by 2022. The house bill will need to be approved by the senate in its current form or it could be amended into a compromise bill in a conference committee. The governor has stated he is likely to veto the increase.
Paid Leave
New Jersey - Following the passage of the statewide sick leave law, a senate committee advanced a bill expanding the state’s existing paid family leave law. The bill would increase the amount of time provided to care for a newborn from six to twelve weeks and increase the pay workers receive during that time. The bill would also lower the compliance threshold to cover businesses that employ 30 workers, down from the current standard of 50.
Vermont - The senate passed a paid leave bill similar to a previously-passed house bill. The senate bill allows twelve weeks for parental leave and up to six weeks for care for a sick relative. The program is funded by employees through a 0.136 percent payroll tax on the first $150,000 earned. The bill will need to be conferenced with the house-passed legislation in order to advance to the governor. He has threatened to veto the bill citing his previous pledge not to raise taxes. It does not appear that the legislature would have enough votes to override a potential veto.
Scheduling
Chicago, IL - Labor interests and several city aldermen renewed their push for the proposed citywide “fair work week” ordinance that has, to date, failed to move forward. The group released a survey highlighting employer scheduling practices that they deem detrimental. Such practices include “on call” scheduling and a lack of advanced notice of schedules.
Joint Employer
NLRB - According to the recently-released Trump Administration’s spring agenda, the NLRB is considering clarifying its position on the joint employer issue through the rulemaking process. Going back to 2015 when the Obama-era Board overturned the long-standing joint employer precedent, employers have called for greater clarity and hoped for either the Board or Congress to establish guardrails, clearly defining what constitutes a joint employer relationship. The rulemaking process, which could stretch over a year, would provide that opportunity. The Board has not established a timeline to act but listed this as a “long term action.”
Labor Policy
U.S. Senate - Senator Bernie Sanders has introduced legislation that, if passed, would significantly strengthen labor’s leverage in the workplace. Among other actions, the bill would codify a recent California court decision regarding a new three-part test relating to the definition of an independent contractor. The bill would also preempt state right to work laws and implement a “card check” union voting system. While there is no chance this bill advances in this Congress, it will serve to rally labor interests as the midterm elections approach.
Labor Department - Also included in the recently-released Trump Administration’s spring agenda was an indication that there will be a delay in the issuance of the Labor Department’s new overtime regulation to sometime in early 2019. While there is no cause for concern at this juncture, future delays may present considerable challenges. The Labor Department also intends to issue a rule proposal which will update the regular rate requirements under the FLSA sometime in the fall of 2018. Finally, the agency has announced that it intends to issue a proposed rule on tip pooling by August 2018. It intends to use this new proposed rule to withdraw the controversial Obama-era tip pooling rule and to clarify a recently enacted provision in Congress’s budget bill.
Labor Department - A top Trump ally, former chief counsel to the Trump transition team, was named to the influential post of principal deputy assistant secretary for policy. He now leads the office charged with counseling Labor Secretary Acosta on policy developments and overseeing the crafting of regulations across the department.
New Jersey - The state legislature is considering a bill that would nullify aspects of non-compete agreements for certain types of workers. The bill is in the early stages of the legislative process in the general assembly. There has been a growing interest by federal and state lawmakers to regulate non-compete or no-poach agreements.
New York City, NY - Mayor de Blasio signed the New York City Sexual Harassment Act, which is a slate of bills including a mandate that employers with fifteen or more employees provide city-approved sexual harassment prevention training.
Taxes
Georgia - The governor signed into law a bill that expands sales tax collection obligations to sellers with more than $250,000 in sales or more than 200 sales into the state.
Soda Taxes
Pennsylvania - A house committee advanced legislation that would preempt local governments from implementing
Connecticut - A last-minute effort to pass compromise legislation increasing the minimum wage to $12.10, instead of the proposed $15/hr, failed to pass either chamber before the legislature adjourned for the year.
Vermont - The house passed a bill to increase the state’s minimum wage to $15/hr by 2024. In February, the senate passed a similar bill with a shorter transition, increasing to $15/hr by 2022. The house bill will need to be approved by the senate in its current form or it could be amended into a compromise bill in a conference committee. The governor has stated he is likely to veto the increase.
Paid Leave
New Jersey - Following the passage of the statewide sick leave law, a senate committee advanced a bill expanding the state’s existing paid family leave law. The bill would increase the amount of time provided to care for a newborn from six to twelve weeks and increase the pay workers receive during that time. The bill would also lower the compliance threshold to cover businesses that employ 30 workers, down from the current standard of 50.
Vermont - The senate passed a paid leave bill similar to a previously-passed house bill. The senate bill allows twelve weeks for parental leave and up to six weeks for care for a sick relative. The program is funded by employees through a 0.136 percent payroll tax on the first $150,000 earned. The bill will need to be conferenced with the house-passed legislation in order to advance to the governor. He has threatened to veto the bill citing his previous pledge not to raise taxes. It does not appear that the legislature would have enough votes to override a potential veto.
Scheduling
Chicago, IL - Labor interests and several city aldermen renewed their push for the proposed citywide “fair work week” ordinance that has, to date, failed to move forward. The group released a survey highlighting employer scheduling practices that they deem detrimental. Such practices include “on call” scheduling and a lack of advanced notice of schedules.
Joint Employer
NLRB - According to the recently-released Trump Administration’s spring agenda, the NLRB is considering clarifying its position on the joint employer issue through the rulemaking process. Going back to 2015 when the Obama-era Board overturned the long-standing joint employer precedent, employers have called for greater clarity and hoped for either the Board or Congress to establish guardrails, clearly defining what constitutes a joint employer relationship. The rulemaking process, which could stretch over a year, would provide that opportunity. The Board has not established a timeline to act but listed this as a “long term action.”
Labor Policy
U.S. Senate - Senator Bernie Sanders has introduced legislation that, if passed, would significantly strengthen labor’s leverage in the workplace. Among other actions, the bill would codify a recent California court decision regarding a new three-part test relating to the definition of an independent contractor. The bill would also preempt state right to work laws and implement a “card check” union voting system. While there is no chance this bill advances in this Congress, it will serve to rally labor interests as the midterm elections approach.
Labor Department - Also included in the recently-released Trump Administration’s spring agenda was an indication that there will be a delay in the issuance of the Labor Department’s new overtime regulation to sometime in early 2019. While there is no cause for concern at this juncture, future delays may present considerable challenges. The Labor Department also intends to issue a rule proposal which will update the regular rate requirements under the FLSA sometime in the fall of 2018. Finally, the agency has announced that it intends to issue a proposed rule on tip pooling by August 2018. It intends to use this new proposed rule to withdraw the controversial Obama-era tip pooling rule and to clarify a recently enacted provision in Congress’s budget bill.
Labor Department - A top Trump ally, former chief counsel to the Trump transition team, was named to the influential post of principal deputy assistant secretary for policy. He now leads the office charged with counseling Labor Secretary Acosta on policy developments and overseeing the crafting of regulations across the department.
New Jersey - The state legislature is considering a bill that would nullify aspects of non-compete agreements for certain types of workers. The bill is in the early stages of the legislative process in the general assembly. There has been a growing interest by federal and state lawmakers to regulate non-compete or no-poach agreements.
New York City, NY - Mayor de Blasio signed the New York City Sexual Harassment Act, which is a slate of bills including a mandate that employers with fifteen or more employees provide city-approved sexual harassment prevention training.
Taxes
Georgia - The governor signed into law a bill that expands sales tax collection obligations to sellers with more than $250,000 in sales or more than 200 sales into the state.
Soda Taxes
Pennsylvania - A house committee advanced legislation that would preempt local governments from implementing