Regulatory Wrap-Up: National campaigns for higher wages and benefits are alive and well

Wages

Massachusetts: A house committee is considering a revision to a 2004 law that explicitly denied managers the ability to share in tip pools. The law’s wide-ranging definition of manager has caused operational challenges for employers. Some employers wary of class action lawsuits have removed the risk by banning tip jars from their premises, resulting in lower take home pay for employees. The legislative fix has been debated in prior years and was defeated by one vote in the Senate in 2014.

Vermont: The Minimum Wage Study Committee, commissioned by the legislature to study the impact of a statewide increase, held an open hearing Oct. 2. The committee is considering several proposals that would raise the wage, ranging from $12.50/hr to $15/hr over various periods of time.

Birmingham, AL: Progressive Democrat Randall Woodfin bested two-term incumbent Democrat William Bell in Tuesday’s election. Among other issues in Woodfin’s platform is support of a $15/hr minimum wage. The city attempted to raise its wage in 2014 but was blocked by state law. The mayor-elect has promised to take that fight back to the state capitol.

Calumet City, IL: For the second time in a year, the city council chose to opt out of Cook County’s $13/hr minimum wage requirement. The mayor requested that the council revisit the issue on the heels of an April nonbinding $15/hr ballot measure that earned over 80% support from local voters.

Paid Leave

New Hampshire: A bipartisan paid leave bill passed 5-0 out of a house subcommittee and moves to the full committee for consideration. The bill, as currently constructed, would establish a paid leave program financed by a 0.5% payroll tax on employees. It would provide up to 12 weeks of paid leave, parental or sick time off, per year at 60% of the employee’s current salary.

Albuquerque, NM: The local paid sick leave ballot initiative failed by less that 1% this week. It would have mandated that large employers offer seven days of paid leave per year. Businesses with less than forty employees would have been required to offer five days per year. Representatives of the advocacy group Strong Families New Mexico have indicated they will pursue a recount given the close margin.

Washington, D.C.: The city council is slated to revisit the paid leave law in the coming weeks. The 2016 law guarantees district workers up to eight weeks of paid family leave through a program funded by a 0.62% payroll tax on district employers. There are several proposals under consideration intended to lessen the burden on the business community but maintain the benefits for employees. Proposal details range from a reduced tax rate to an opt-out for employers with their own qualifying paid leave program.

Taxes

South Dakota: The state officially filed a petition for certiorari to the U.S. Supreme Court in its landmark case seeking to force out-of-state sellers to collect the state’s sales tax from in state consumers. The state’s supreme court recently ruled for plaintiffs in the case - Wayfair, Overstock, and NewEgg - finding that the state cannot force collection on out-of-state sellers. The cert petition starts the official process for potential Supreme Court review, which could eventually overturn the outdated 1992 physical nexus precedent.

Wyoming: Newegg, Wayfair and Overstock, in response to the state’s litigation against them, called into question the constitutionality of the state’s recently passed economic nexus law. The law, similar to a South Dakota law mentioned above, mandates sales tax collection from out-of-state merchants with over $100,000 in sales (or 200 transactions) per year into the state.

Soda Taxes

Cook County, IL: Last week Commissioner John Daley announced his support for the repeal of the controversial soda tax. Daley previously supported the effort to tax sugary beverages, and his reversal ensures a majority of commissioners will vote for a repeal. However, two more votes are needed to secure a veto-proof majority.

Food

Chicago, IL: A bill under consideration by the city council would set new standards for the city’s food purchasing processes. If passed, Chicago would become the first locality outside of California to implement “good food” purchasing standards that would require the city to purchase food from suppliers that meet certain health, environmental and fair labor standards.

Labor Activism

Ben & Jerry’s: The Vermont-based ice cream maker, owned by Unilever, announced an agreement with a farmworker advocacy group that establishes labor standards for the company’s in-state milk suppliers. Some 90 dairy farms across the state will eventually be subject to a new code of conduct agreement, which includes wage requirements, mandatory breaks and living condition standards for farmworkers. For its part, the company agreed to pay an undisclosed premium to help cover the costs of enforcing the increased standards.

Joint Employer

U.S. House: The Save Local Business Act, which would rescind the 2015 NLRB ruling that redefined the joint-employer relationship, passed out of committee on a 23-17 vote and now moves to the House floor. Leadership has not yet calendared the bill but is expected to do so in the coming weeks in light of widespread business community and House Republican support. It remains to be seen if the legislation can garner enough Democratic support in the Senate to reach the President’s desk.

Immigration

Federal: The Trump Administration announced new immigration principles setting the stage for negotiations with Congress over the expiration of the Obama era “Dreamers” program. The principles include increased border secu