Regulatory Wrap-Up: Wage, paid leave ballot measures in spotlight

9/11/2017

Wages

Massachusetts: The attorney general’s office certified a $15/hr. minimum wage initiative for the 2018 ballot. The language calls for a gradual increase from the current $11/hr. to $15/hr. by 2022 as well as a raise in the hourly tip wage from the current $3.75/hr. to $9/hr. by 2022. Proponents have until Dec. 6 to collect 64,750 signatures. The legislature can then choose to pass and enact the measure, or if no action is taken, proponents must collect additional signatures (roughly 11,000) before July 2018 in order to qualify for the Nov. 2018 ballot.

Michigan: A ballot initiative to increase the minimum wage to $12/hr. by 2022 and also incrementally increase the minimum wage for tipped workers until they reach the full minimum wage by 2024 was officially approved by the Board of State Canvassers. Proponents will begin collecting the roughly 252,000 valid voter signatures necessary to place the measure on the 2018 ballot.

Paid Leave

Massachusetts: The attorney general’s office certified a paid leave initiative that could appear on the 2018 ballot. The language allows for employees to take up to 16 weeks of family leave or 26 weeks of medical leave, but cannot exceed 26 weeks total in one year. Employees would receive 90% of their average weekly earnings, up to $1,000 per week with adjustments based on inflation beginning in 2021. The initiative would create a trust fund into which employers would pay 0.63% of employee’s annual wages, up to half of which can be deducted from employee salaries. The contribution rate would be subject to review beginning in 2021. As with the minimum wage ballot initiative, proponents have until Dec. 6 to collect 64,750 signatures. The legislature can then choose to pass and enact the measure, or if no action is taken, proponents must collect additional signatures (roughly 11,000) before July 2018 in order to qualify for the Nov. 2018 ballot.

Austin, TX: Advocates announced plans to push for a paid family leave ordinance this week. Council Member Greg Casar joined proponents in calling for the ordinance to move forward and said he hoped the council could complete legislation by February 2018.

Portland, ME: The mayor has proposed a paid leave ordinance which would require all businesses in the city to offer one hour of sick leave for every 30 hours worked. Employees could accrue no more than six full days of paid leave in a calendar year. The ordinance will be voted on by a city council committee on Sept. 16, although it is unclear if the full council will vote on the language prior to the conclusion of their 2017 term in November.

Washington D.C.: The D.C. Council may review the paid leave law that was passed last year that requires employers to offer eight weeks of paid family leave. Under the law, the program is funded by a 0.62% payroll tax paid for by employers. The funding mechanism has been hotly debated since the law passed. The mayor has publicly expressed serious concerns with the payment mechanism, although she did not veto the legislation. Several council members have proposed replacement legislation, supported by the business community, that decreases the financial burden on employers. The council is set to meet over the next month and is expected to revisit the issue.

Scheduling

New York: Governor Cuomo announced that the state labor department will hold public hearings on employee scheduling regulations. The long-awaited regulations are expected to apply to a wider range of businesses than the New York City law and will likely preempt the city regulations.

ADA Reform

U.S. House: Legislation passed the House Judiciary Committee 15-9 this week that is designed to protect businesses from excessive litigation for alleged violations of the Americans with Disabilities Act. The bill passed the same committee during the last Congress but failed to advance further. The bill has yet to be scheduled for floor action.

Labor Policy

Labor Department: President Trump announced the appointment of Cheryl Stanton to head the Department of Labor’s Wage and Hour Division. Stanton currently heads the South Carolina Department of Employment and Workforce. The Wage and Hour Division enforces federal minimum wage and overtime laws and drew criticism during the Obama Administration for its positions on joint employer liability.

Overtime: The Trump Administration officially ended its defense of the controversial overtime rule following a judge’s decision to block the regulation from going into effect.

Innovation

Autonomous Vehicles: The U.S. House passed legislation to create a regulatory framework for self-driving cars. The legislation would empower the Department of Transportation to promulgate rules within a year that allow driverless cars to share roads and require performance standards related to software, sensors and the interaction between passengers and cars. The U.S. Senate has yet to take up the legislation and safety concerns related to cargo trucks may take center stage in that debate.

Data Privacy

California: A ballot initiative proposed by the Californians for Consumer Privacy, would, if passed, allow consumers to opt out of personal data collection by all businesses in the state. The language would mandate that consumers be allowed to demand disclosures of any individual personal information that has been collected and whether or not that information was transferred or sold to another entity. The language also allows for consumers to demand that their personal information not be collected or resold without fear of discrimination. The proposed initiative comes as legislation seeking to create an opt-in system for consumer data collection by telecommunications companies remains stalled in the state senate.

Taxes

Massachusetts