Regulatory Wrap-Up: Taxes in the spotlight

Wages

Vermont: A legislative study committee voted along party lines to recommend an increase in the state minimum wage to $15/hr. The committee failed to specify a timeline but those details will be debated during the 2018 session.

Las Cruces, NM: Both businesses and city council members were surprised by an automatic increase in the city’s minimum wage due to a cost of living escalator effective Jan. 2018. The 2014 ordinance called for set, annual increases through 2019 but the language also allows for annual cost of living adjustments beginning in 2018. The city’s elected officials have stated they will revisit the issue prior to the 2018 increase.

Minneapolis, MN: The Minnesota Chamber of Commerce is suing the city in an effort to stop the $15/hr minimum wage increase that became law in June. The law called for an increase to $15/hr by 2022 with the first increase to $10/hr beginning Jan. 2018 for businesses with 100 or more employees. The suit is similar to the unsuccessful litigation the chamber brought against the city’s paid leave ordinance.

St. Paul, MN: Newly-elected Mayor Melvin Carter re-committed to pursuing a $15/hr minimum wage when the council convenes next cycle. Mayor-elect Carter championed the issue when he served as a councilmember.

Montgomery County, MD: The county council voted unanimously to increase the minimum wage to $15/hr and the county executive indicated that he intended to sign the legislation into law. Unlike previous versions that failed to pass, this bill lengthens the timeline for large and small businesses. Employers with over 50 workers must comply by 2021, those with 11 to 50 employees must comply in 2023 and employers with fewer than 10 employees have until 2024. The wage level will be adjusted annually for inflation, starting in 2022.

Paid Leave

New York City, NY: The mayor signed legislation to expand paid sick leave eligibility to victims of human trafficking, domestic violence or sexual assault, allowing them to attend health appointments, legal proceedings or other necessary services.

Pay Equity

Illinois: The Senate failed to override the governor’s veto of a bill that would have prohibited employers from asking job applicants questions regarding their salary history.

Scheduling

New York: Governor Cuomo announced the release of long-awaited regulations establishing scheduling rules for employers. The rules call for 14 days advanced notice of schedules and four hours of penalty pay for changes made less than 72 hours in advance. The new statewide rules are expected to preempt similar local ordinances passed earlier this year in New York City.

Labor Policy

NLRB: The U.S. Senate confirmed Peter Robb as General Counsel for the National Labor Relations Board. The NLRB General Counsel is independent from the board and is responsible for the investigation and prosecution of unfair labor practice cases and for the general supervision of the NLRB field offices in the processing of cases. Many expect Robb’s management-side legal experience to inform his approach.

Illinois: For the second time in as many weeks, the legislature failed to override the governor’s veto of legislation that prohibits local governments from enacting right-to-work zones.

Seattle, WA: The Federal Trade Commission and the Justice Department filed amicus briefs in support of Uber and Lyft in their ongoing litigation against the city ordinance that allows ride-share drivers to unionize. The federal government cites potential antitrust and price fixing concerns in the brief.

Seattle, WA: The SEIU-backed Seattle Domestic Workers Alliance secured commitments from the incoming mayor to support a “Domestic Workers Bill of Rights” within her first year of office. The commitment includes establishing a city commission to focus on issues like portable benefits and protecting worker’s rights to organize into unions.

Joint Employer

U.S. House: The U.S. House passed the Save Local Business Act by a vote of 242-181. The industry-supported legislation is designed to bring clarity to joint employer liability, in effect limiting labor and employment law liability across affiliated, independent businesses. The bill now moves to the U.S. Senate where it needs the support of at least eight Democrats to have a chance at becoming law.

Swipe Fees

Visa:  In court filings, Visa and Walmart made public the settlement of their respective claims following the $7.25 billion class action settlement announced in 2012. That settlement was ultimately rejected by the majority of the plaintiffs, including Walmart, at the time and details of the agreement between the two entities were not included in the court filings.

Taxes

Tax Reform: On a party line vote, the House Ways and Means Committee passed tax reform legislation with nominal changes setting up a floor vote as early as next week. The Senate Finance Committee unveiled their version of tax reform legislation which differs slightly from the current U.S. House version. Most notably, the U.S. Senate version delays the corporate tax rate cut until 2019 and does not eliminate the estate tax but doubles the exemption for federal inheritance taxes.

Massachusetts: In a win for retailers, the Department of Revenue issued a ru