Regulatory Wrap-Up: Online sales tax collection back in spotlight
Wages
Montgomery County, MD: The county council will hold a hearing on the $15/hr. minimum wage proposal Sept. 26. Several council members have registered their support for the wage increase. The county executive has indicated that he still has objections following his veto of identical legislation last year but this week stated he would support an increase with a longer phase-in period and an expanded small business exemption from 25 to 50 employees.
Seattle, WA: Ball State University professors released a study this week analyzing the effects of the local minimum wage increase on restaurant health and hygiene. They found that as the minimum wage increased, violations also increased which researchers stated suggests that restaurants may be operating with less staff, in effect cutting corners to absorb the increase.
Calumet City, IL: The mayor wants the city council to reconsider its decision to opt out of Cook County’s $13/hr. minimum wage ordinance at its next meeting Sept. 28. The mayor cited an April non-binding, ballot measure to opt-in to the increase that earned over 80% support from local voters. None of the other city alderman have come out in favor of the increase and the legislation is likely to fail.
Paid Leave
Federal: Democratic lawmakers announced the introduction of a national child care bill that would mandate federal funding for lower and middle class families. The proposal could draw progressive support away from the Trump proposal, championed by advisor Ivanka Trump, that calls for national paid leave and child care tax credits.
California: A bill reached the governor’s desk that would guarantee job security for employees who take time off to care for a new child. The bill applies to companies with between 20 and 49 workers and contains a pilot mediation program before employees could sue employers for violations. Governor Brown is likely to sign the bill into law.
Oregon: The Senate Workforce Committee held an informational hearing on paid family leave Sept. 18 to inform bill drafting for the next legislative session. After becoming the first state in the nation to pass a statewide scheduling mandate this year, many expect the state to follow Washington and California and implement some sort of paid leave law.
Scheduling
Gallup Poll: A recently-released poll finds that many hourly workers are satisfied with flexible schedules associated with service industry jobs such as restaurants, retailers and hotels. The study found that 69% of those surveyed are satisfied with their weekly schedules and 67% say their hours do not cause financial hardship. This study of hourly workers contradicts anecdotal media reports highlighting the need for scheduling mandates that have passed in localities such as San Francisco and Seattle.
Wage Theft
Massachusetts: The Fair Labor Division of the Attorney General’s office released an annual report documenting wage theft and labor enforcement actions across the state. The report notes a total of $8.6 million in restitution and penalties which more than doubles the total from the 2016 fiscal year. The report also indicates that construction and restaurant industries continue to have the highest rate of violations. The state legislature is currently considering a wage theft bill that would increase penalties and enforcement infrastructure.
Soda Tax
Cook County, IL: Retailers, beverage distributors and other stakeholders are working to repeal the recently enacted sugary beverage tax. However, the industry’s effort to force a repeal vote experienced a setback this week. Action was delayed until the next meeting of the council Oct. 10 because the council chair requested a financial assessment of a possible repeal.
Taxes
Connecticut: Policymakers are continuing to discuss a budget deal following months of negotiations. In a positive move for operators, key lawmakers announced the abandonment of an additional 1% “dining tax” on top of the sales tax as part of the funding package. The dining tax would have been optional for cities and townships throughout the state, creating confusion for customers. Legislators are considering increased taxes on hospitals, taxes on cellphones and a cigarette tax increase to close the revenue gap.
South Dakota: The state Supreme Court ruled against the state and in favor of the plaintiffs - Wayfair, Overstock, and NewEgg -- finding that the state cannot force out-of-state sellers to collect sales taxes. The ruling negates a recently-passed state law that called for collection from companies that sell over $100,000 per year into the state which was designed to level the playing field for traditional and online retailers. The ruling sets up an appeal to the United States Supreme Court which could potentially overturn the arcane 1992 physical nexus precedent.
Joint Employer
U.S. House: Two House Subcommittees held a joint hearing this week on the Save Small Business Act, the industry-supported legislation designed to bring clarity to joint employer liability, in effect limiting labor and employment law liability across affiliated, independent businesses. Democratic members objected to the bill citing the weakening of worker protections, while Republicans highlighted that the bill provides clarity on which entity is responsible for worker protections. The business community supports the standalone bill as it moves through the legislative process and is also pursuing an appropriations strategy to prevent agencies from expanding the joint employer standard. The House also passed the joint employer appropriations rider as part of the overall funding bill earlier this week.
Health Care
U.S. Senate: Senators Susan Collins (R) and Joe Donnelly (D) introduced the For