Regulatory Wrap-Up: Insider’s weekly recap of retail-related legislative developments

Wages

U.S. House: Democrats introduced a bill that would prohibit employers from retaining any tips regardless of internal pooling policies and mandate that all tips would be considered the property of the employee and not the employer. The bill has the verbal support of Labor Secretary Acosta and other key Republicans but still likely faces a long road to passage.

Connecticut: The governor announced his support for a slate of “fair workplace” bills that include an increase in the state’s minimum wage to $15/hr, an expansion of the state’s paid leave program, an anti-harassment training mandate and a ban on asking salary history questions.

New York: Two of the regional public hearings on Governor Cuomo’s proposal to increase the statewide tipped wage level has been rescheduled. The Syracuse hearing was delayed from March 12 to April 30 and the Buffalo hearing was delayed from March 21 to May 8. The proposal calls for an increase in the tipped wage for upstate workers from its current $7.50/hr to $10.30/hr.

Washington D.C.: The Board of Elections certified a ballot initiative that would increase the tipped wage from the current $3.33/hr to $15/hr by 2026, ultimately eliminating the tip credit altogether. The minimum wage would continue to rise with inflation. The initiative will appear on the June 19 primary ballot.

Target: The retailer announced an increase in their minimum hourly pay to $12/hr nationwide. The announcement follows an increase to $11/hr last fall and a promise to increase further to $15/hr by 2020.

Wage Theft

California: The Labor Commissioner's office issued an $8.3 million fine to the Chino-based fitness chain, Camp Bootcamp Inc. for failure to pay their employees for their travel time between chain locations, overtime and other alleged wage violations.

Worcester, MA: The council is considering an ordinance that would empower the city to review and revoke property tax incentive deals for companies found to be in violation of wage laws. The proposal is under legal review and has unanimous support on the council.

Paid Leave

Hawaii: A paid leave bill requiring employers with fewer than fifty workers to provide paid sick leave accruing at a rate of one hour per every 40 hours worked passed the house and heads to the senate. The bill includes an exemption for employers who already offer a more generous paid leave policy or pay workers at a rate of $1.65/hr in excess in the minimum wage in 2019, escalating thereafter. Another bill which requires the state labor department to establish a paid leave program for all workers by 2023 and appropriates $1.5 million to a family leave fund passed the senate.

Utah: A bill that allows companies that offer paid family and medical leave to take tax credits passed the house and heads to the senate.

Dallas, TX: A city councilmember has expressed interest in passing paid leave legislation similar to the recently-passed ordinance in Austin, TX. It is unclear at this stage how much support such a measure would have in the council and state legislators have announced their intent to pass statewide preemption legislation when the legislature convenes in 2019.

Dollar General: The discount retailer announced a significant expansion to its paid leave program that will go into effect April 1. All eligible full and part-time employees will be granted two weeks of paid time off and four weeks will be provided to birth mothers. The company will also offer up to $4,000 in adoption assistance.

Scheduling

Connecticut: A senate committee held a hearing on a bill to prohibit the use of “on-call” scheduling by mandating that all employers provide no less than 24 hrs notice of shift schedules.

South Carolina: A bill to prohibit localities from mandating scheduling laws was introduced in the senate. The state already preempts local mandates on wage and paid leave.

Philadelphia, PA: The Committee on Youth and Children heard testimony from retail and restaurant workers as well as healthcare professionals and union leaders regarding the need for legislation to mandate citywide scheduling practices. Legislation has yet to be introduced, although it is expected soon and will likely mirror other proposals from San Francisco and Seattle. Representatives from the restaurant, retail and hotel industries continue to meet with council members and the mayor’s office to discuss industry scheduling policies.

Equal Pay

Massachusetts: An updated equal pay law will go into effect July 1 providing more clarity as to what constitutes unlawful wage discrimination and adding protections to ensure greater fairness and equity in the workplace. The attorney general's office recently issued guidance and online resources to assist employers in complying with the law.

Labor Policy

NLRB: In a letter to NLRB General Counsel Peter Robb, five Democratic senators requested that the board abandon settlement talks with McDonald’s in the long-running case regarding worker claims that they were retaliated against for going on strike. The case is at the center of the ongoing debate around joint employer liability. The letter follows the board’s decision to vacate the recent Hy-Brand case. That decision re-established the joint employer standard promulgated during the Obama Administration. Meanwhile, lawyers for Hy-Brand will ask the NLRB to reconsider that case. The company intends to argue that Board