Regulatory Wrap-Up: Minimum wage and paid-leave ballot initiatives popping up
Wages
Massachusetts: SEIU-backed Raise Up Massachusetts has begun its long-promised effort to put a wage increase and paid leave proposal on the Nov. 2018 ballot following inaction during the 2017 legislative session. If passed, the rate would increase $1/yr to $15/hr by 2022 with future increases tied to an annual cost of living adjustment. The coalition must collect 64,750 signatures for the initiative by early Dec. 2017 and an additional 10,000 by June 2018. The attorney general’s office still has to approve the ballot language and the legislature could still take action in early 2018 on minimum wage, which could circumvent the ballot initiative process.
Michigan: The Restaurant Opportunities Center-backed Michigan One Fair Wage Committee filed a 2018 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. Pending approval by the Board of State Canvassers, the group will begin collecting signatures.
Cook County, IL: Municipalities continue opting out electing of the county-wide wage increase and paid leave laws that passed in Oct. 2016. To date, 107 (roughly 80%) of the 132 localities within the county have decided not to implement the ordinances.
Kansas City, MO: An initiative seeking to raise the city’s minimum wage to $15/hr by 2022 will appear on the Aug. 8 ballot. Should the measure pass, it will be in direct conflict with a state law barring municipalities from raising wages above the state’s $7.70/hr minimum. The city has not yet announced if it would challenge the state’s preemption law in court.
Montgomery County, MD: Following Councilmember Elrich’s introduction of another legislative effort to raise the minimum wage to $15/hr, a study commissioned by the county was released. It details the economic impacts of the proposed increase and found that the county would lose 47,000 jobs by 2022. County Executive Leggett commissioned the study when he vetoed a similar measure earlier this year. The council will hold a hearing Sept. 19 to review the findings.
Paid Leave
Massachusetts: As stated above, SEIU-backed Raise Up Massachusetts has begun its long-promised effort to put a wage increase and paid leave proposal on the Nov. 2018 ballot following inaction during the 2017 legislative session. The paid leave proposal would mandate 16 weeks of paid leave to care for a new child or ill family member and also includes up to 26 weeks for personal illness or injury. The leave program would be funded by employer contributions and businesses could require employees to pay up to half of the total cost of the program. The benefit would be capped at $1,000/wk. The coalition must collect 64,750 signatures for the initiative by early Dec. 2017 and an additional 10,000 by June 2018. The attorney general’s office still has to approve the ballot language and the legislature could still take action in early 2018 on the issue which could circumvent the ballot initiative process.
Michigan: The Michigan Time for Care coalition filed a 2018 ballot initiative that would mandate employers with more than 10 workers to provide one hour of paid leave for every 30 hours worked with a maximum of 72 hours of leave per year. Pending approval by the Board of State Canvassers, the organization will begin collecting signatures.
Albuquerque, NM: A state circuit judge ordered the removal of a paid leave ballot initiative that was supported by the business community from the Oct. 3 ballot. Supporters of the original paid leave initiative argued successfully that the competing language would confuse voters. The case is expected to be reviewed by higher courts prior to a final decision on what appears on the ballot.
Wage Theft
U.S. Congress: House and Senate Democratic leaders introduced the Wage Theft Prevention and Wage Recovery Act. The bill would create a $2,000 penalty for violations and a $10,000 for each subsequent violation. Penalties currently are capped at $1,100 per violation. The legislation will not pass in the Republican-controlled Congress but its introduction demonstrates growing momentum for the issue.
St. Petersburg, FL: The city council recently amended its wage theft ordinance which contains two new employer mandates. At the point of hire, an employer must provide written notice to the employee regarding rate of pay, overtime rate and other employee rights under the ordinance. Any changes during the employee's tenure must also be delivered in writing and records must be kept for three years. Employers must also post a notice that summarizes those rights under the ordinance. Employers who violate this new poster requirement may be fined up to $500 per violation.
Pay Equity
Maine: The legislature failed to override the Governor's veto of legislation that included provisions preventing employers from requesting salary history information during their hiring process.
New Jersey: Governor Christie vetoed legislation that would have prevented employers from requesting salary history from potential employees.
San Francisco, CA: Mayor Lee signed the Parity in Pay Ordinance into law following passage by the city council earlier this year. The law aims to close the wage gap between women and men, and applies to both private employers and city agencies. Effective July 1, 2018, employers are prohibited from asking job applicants about their salary history or from considering past salaries in determining what salary to offer and whether to hire the applicant.
Taxes
MTC: The Multistate Tax Commission (MTC) announced a special voluntary disclosure program for online sellers, who could have sales tax collection liabilities as a result of storing inventory in fulfillment centers across the country. Participating retailers that sell into states joining the program would be forgiven for any historical sales tax c