Insider’s guide to retail-related legislative developments - April 30
Wages
Labor Department - A group of Democratic senators led by Elizabeth Warren is asking the administration for more information about a Labor Department waiver program that allows some employers to pay disabled workers less than the minimum wage.
Arkansas - The attorney general rejected a proposed citizen initiative to raise the state minimum wage to $12/hr by 2022 citing ambiguous language that would have been unclear to voters. The measure, as drafted, would have also allowed localities to raise wage levels higher than the state rate. The individual who submitted the language has promised to re-submit new language. If the new language is approved, proponents would need roughly 67,000 signatures to be validated in order for the initiative to appear on the Nov. ballot.
Colorado - The house passed a bill that would allow localities to increase their minimum wage levels beyond the statewide rate of $10.20/hr. The bill will move to the Republican-majority senate, where it is unlikely to pass.
Vermont - A house committee passed the senate-approved bill to raise the minimum wage to $15/hr. by 2024. The bill has a good chance of passing the house prior to the May 4 adjournment. The governor has stated he plans to veto the bill in its current form, citing the potential economic impact of the increase
New York City, NY - A group of restaurateurs is publicly petitioning the city to allow surcharges on customers’ bills. Operators point toward a steady stream of new mandates that have increased operating costs in the past few years. The city council is unlikely to take up the issue.
Paid Leave
New Hampshire - The push for a paid leave program died in the senate this week following Governor Sununu’s announcement of his opposition to the bill. Due to concerns over cost and long-term viability, the senate voted to study the bill further, effectively killing the legislation.
New Jersey - Governor Murphy has stated he plans to sign the paid leave bill into law on May 2. The bill’s effective date is 180 days after the governor acts, which is now projected to be Oct. 29.
Austin, TX - City business groups have initiated litigation challenging the validity of the recently-passed paid leave law.
Dallas, TX - Several councilmembers are supporting local activists’ efforts to advance a paid leave ballot initiative identical to the recently-passed law in Austin. Labor-backed groups, such as the Workers Defense Project, are currently collecting signatures. They will need to submit roughly 65,000 valid signatures by June 11 to qualify for the November ballot.
San Antonio, TX - As in Dallas, labor activists are pushing a paid leave ballot initiative modelled off the recently-passed Austin law. Signature gatherers would need to collect roughly 75,000 signatures to place the measure on the ballot.
Equal Pay
New Jersey - Governor Murphy signed into law one of the strongest equal pay measures in the country, which could become a model for other states. The law expands the current standard of “equal pay for equal work” to equal pay for “substantially similar” work. It will go into effect on July 1 and allows employees to sue for up to six years of back pay and treble damages among other provisions.
Wage Theft
Primanti Bros. - The Pittsburgh-based restaurant company settled a wage-violation class action case for $2.1 million. The lawsuit involved 922 tipped workers over a three-year period.
Papa Johns - Several Boston-area franchisees are being sued in a class action claim for alleged violations. The lawsuit claims that the companies failed to properly inform customers that delivery fees would not be paid to delivery drivers.
Taxes
Seattle, WA - A bill was introduced in the city council to establish an “employee hour tax” to fund an expansion of homeless services in the city. The language calls for a levy of $0.26 per hour worked for all employees in the city and would apply to businesses with more than $20 million in taxable gross income in the most recent calendar year. The per hour tax would transition into a 0.7% payroll tax beginning in 2021. In 2009, when current mayor Tim Burgess was a councilmember, the city repealed a per employee tax. It is safe to assume the council will support a measure that taxes large businesses to pay for city services, but it is unclear at this time whether the mayor supports the effort.
Multistate Tax Commission - An association of state tax commissioners has approved model legislation that mirrors the 2010 Colorado reporting law for out-of-state online sellers. The model bill, which other states may look to pass, mandates that retailers with no physical presence in a given state notify buyers that a tax may be due. It also requires the retailers provide relevant purchasing information to the state on sales where no tax was collected. Most experts believe that should the economic nexus case currently pending before the Supreme Court (South Dakota v. Wayfair) be decided for Wayfair, states will begin passing the MTC model reporting bills in an effort to collect the missing revenue.
Labor Policy
Worker Centers - Ahead of a congressional hearing this week, the U.S. Chamber released a report outlining the evolving role of worker centers in the labor movement. It argued that these groups (non-profits) should be subject to the same rules that govern unions. The U.S. Chamber report and testimony provided in the Committee on Education and the Workforce specifically called on the Labor Department to investigate the role and appropriate level of regulation for groups such as the Restaurant Opportunities Centers U
Labor Department - A group of Democratic senators led by Elizabeth Warren is asking the administration for more information about a Labor Department waiver program that allows some employers to pay disabled workers less than the minimum wage.
Arkansas - The attorney general rejected a proposed citizen initiative to raise the state minimum wage to $12/hr by 2022 citing ambiguous language that would have been unclear to voters. The measure, as drafted, would have also allowed localities to raise wage levels higher than the state rate. The individual who submitted the language has promised to re-submit new language. If the new language is approved, proponents would need roughly 67,000 signatures to be validated in order for the initiative to appear on the Nov. ballot.
Colorado - The house passed a bill that would allow localities to increase their minimum wage levels beyond the statewide rate of $10.20/hr. The bill will move to the Republican-majority senate, where it is unlikely to pass.
Vermont - A house committee passed the senate-approved bill to raise the minimum wage to $15/hr. by 2024. The bill has a good chance of passing the house prior to the May 4 adjournment. The governor has stated he plans to veto the bill in its current form, citing the potential economic impact of the increase
New York City, NY - A group of restaurateurs is publicly petitioning the city to allow surcharges on customers’ bills. Operators point toward a steady stream of new mandates that have increased operating costs in the past few years. The city council is unlikely to take up the issue.
Paid Leave
New Hampshire - The push for a paid leave program died in the senate this week following Governor Sununu’s announcement of his opposition to the bill. Due to concerns over cost and long-term viability, the senate voted to study the bill further, effectively killing the legislation.
New Jersey - Governor Murphy has stated he plans to sign the paid leave bill into law on May 2. The bill’s effective date is 180 days after the governor acts, which is now projected to be Oct. 29.
Austin, TX - City business groups have initiated litigation challenging the validity of the recently-passed paid leave law.
Dallas, TX - Several councilmembers are supporting local activists’ efforts to advance a paid leave ballot initiative identical to the recently-passed law in Austin. Labor-backed groups, such as the Workers Defense Project, are currently collecting signatures. They will need to submit roughly 65,000 valid signatures by June 11 to qualify for the November ballot.
San Antonio, TX - As in Dallas, labor activists are pushing a paid leave ballot initiative modelled off the recently-passed Austin law. Signature gatherers would need to collect roughly 75,000 signatures to place the measure on the ballot.
Equal Pay
New Jersey - Governor Murphy signed into law one of the strongest equal pay measures in the country, which could become a model for other states. The law expands the current standard of “equal pay for equal work” to equal pay for “substantially similar” work. It will go into effect on July 1 and allows employees to sue for up to six years of back pay and treble damages among other provisions.
Wage Theft
Primanti Bros. - The Pittsburgh-based restaurant company settled a wage-violation class action case for $2.1 million. The lawsuit involved 922 tipped workers over a three-year period.
Papa Johns - Several Boston-area franchisees are being sued in a class action claim for alleged violations. The lawsuit claims that the companies failed to properly inform customers that delivery fees would not be paid to delivery drivers.
Taxes
Seattle, WA - A bill was introduced in the city council to establish an “employee hour tax” to fund an expansion of homeless services in the city. The language calls for a levy of $0.26 per hour worked for all employees in the city and would apply to businesses with more than $20 million in taxable gross income in the most recent calendar year. The per hour tax would transition into a 0.7% payroll tax beginning in 2021. In 2009, when current mayor Tim Burgess was a councilmember, the city repealed a per employee tax. It is safe to assume the council will support a measure that taxes large businesses to pay for city services, but it is unclear at this time whether the mayor supports the effort.
Multistate Tax Commission - An association of state tax commissioners has approved model legislation that mirrors the 2010 Colorado reporting law for out-of-state online sellers. The model bill, which other states may look to pass, mandates that retailers with no physical presence in a given state notify buyers that a tax may be due. It also requires the retailers provide relevant purchasing information to the state on sales where no tax was collected. Most experts believe that should the economic nexus case currently pending before the Supreme Court (South Dakota v. Wayfair) be decided for Wayfair, states will begin passing the MTC model reporting bills in an effort to collect the missing revenue.
Labor Policy
Worker Centers - Ahead of a congressional hearing this week, the U.S. Chamber released a report outlining the evolving role of worker centers in the labor movement. It argued that these groups (non-profits) should be subject to the same rules that govern unions. The U.S. Chamber report and testimony provided in the Committee on Education and the Workforce specifically called on the Labor Department to investigate the role and appropriate level of regulation for groups such as the Restaurant Opportunities Centers U