Regulatory Wrap-Up: Spotlight on immigration raids, wages and paid leave

Wages

Massachusetts: Ahead of the deadline for the first round of signatures, Raise Up Massachusetts announced that they have secured the required number to place an initiative on the 2018 ballot. The initiative would raise the state minimum wage to $15/hr by 2022. The signatures must now be validated by state election officials. Activists will have additional time to gather signatures (should they need it) by June 19, 2018 if the legislature fails to act on the issue.

Missouri: According to recent filings, advocates pushing for a $12/hr minimum wage increase on the 2018 ballot have received more than $500,000 in funding from unions and other labor-backed groups. The proponents have until May to turn in enough signatures (a relatively low threshold) to qualify for the Nov. ballot.

New Jersey: At Governor-elect Murphy’s first press conference with legislative leaders, he stated that a $15/hr statewide minimum wage will be one of his first priorities when he is sworn in on Jan. 16.

Vermont: Anticipating the recommendation of a special legislative committee to increase the state’s minimum wage to $15/hr, the Senate President Pro Tem stated that the increase is one of his top priorities for the 2018 legislative session. The committee plan calls for an increase to $15/hr but does not specify the length of time over which the increase would phase in.

Paid Leave

Maryland: Governor Hogan announced plans to introduce a compromise paid leave bill in the 2018 session. The governor vetoed a bill earlier this year that may have enough support in the Democrat-controlled legislature for a veto override. The governor's proposal seeks to allow smaller businesses a longer implementation timeline and includes state preemption. The proposal was met with opposition from Democratic leadership in both chambers.

Massachusetts: Ahead of the deadline for the first round of signatures, Raise Up Massachusetts announced that they have secured the required number to place a paid family leave initiative on the ballot in addition to a $15/hr minimum wage mandate. The signatures must now be validated by state election officials. The proposal seeks to provide a maximum of 16 weeks of paid leave at up to 90% of average weekly wages with a maximum of $1,000/wk. It would also create a trust fund into which employers would pay 0.63% of each employee’s annual wages. Activists will have additional time to gather signatures (should they need it) by June 19, 2018 if the legislature fails to act on the issue.

New Hampshire: With bipartisan support, a bill to establish a paid leave program financed by a 0.5% payroll tax on employees recently passed out of a house committee and will move to the floor for consideration next session. It would provide up to twelve weeks of paid leave, parental or sick time per year at 60% of the employee’s current salary.

Wage Theft

San Diego: Several local restaurants are being sued for adding surcharges to customers’ bills to offset added costs associated with the recent escalation in the city’s minimum wage. The pending lawsuits allege deceptive advertising, claiming customers were not made aware of the surcharge until after the meal.

Santa Monica, CA: The city attorney’s office announced its first successful prosecution of a business owner for failing to pay the city’s minimum wage and retaliating against an employee for asserting her wage rights. The retail shop owner must pay employee back wages, fines and complete community service hours.

Scheduling

New York: New statewide regulations were officially published Nov. 22 and are subject to a 45-day comment period before taking effect. The new rules are applicable to employers as defined under the state’s Miscellaneous Industries and Occupations wage law, which only applies to traditional retailers. Restaurants are covered under a separate statute, the Hospitality Industry wage law. The new “call-in” pay regulations will only impact retailers, while restaurant employers remain subject to the existing state regulations governing “call-in” pay.

Los Angeles: An opinion piece in the Los Angeles Times suggests that L.A. city or county government may take up restrictive scheduling in the near future. There have been rumors over the past year of potential legislative activity in L.A., following the path of San Francisco and Seattle. Similar legislation at the state level has failed to move, which may add additional motivation for local policymakers to take action.

New York City: The city’s “fair workweek” laws went into effect Nov. 26. The city ordinances mandate that fast food employers provide 14 days advance notice of work schedules, offer new hours to existing employees prior to bringing on new workers, allow employees voluntary paycheck deductions to non-profits of their choice and prevent employers from scheduling employees for multiple shifts with less than 11 hours between shifts. The city law also calls for specific record keeping requirements for retailers as well as fast food employers.

Soda Taxes

Multnomah County, Ore.: Advocates announced that they have collected enough signatures to place a 1.5 cent per ounce tax on sugary drinks on the May 2018 ballot, but they made the strategic decision to wait for the November 2018 ballot, determining they have a better chance at passage with higher turnout in Portland and other areas of the county in November.

Tax Reform

U.S. Senate: The U.S. Senate’s tax reform legislation passed 51-49, as a result of last minute negotiations with key Republican Senators. The language that passed the Senate differs from what previously passed the U.S. House. The most likely path forward is that the bill will go to a conference committee and be voted on again in both chambers before it is advanced to the President’s desk.

Labor Policy