Regulatory Wrap-Up: Weekly recap of retail-related legislative developments-Feb. 4
Wages
Arkansas - A bill to roll back the minimum wage increase recently approved by the voters has stalled. It’s unclear if there’s an appetite among legislative leadership to consider the legislation.
Illinois - A bill to raise the minimum wage from $8.25 to $15/hr is facing little direct opposition given the new partisan makeup in the state capitol. Business groups that have opposed an increase in the past are instead arguing for extended phase-in periods, regional wage rates based on cost-of-living and protection of the tipped wage. Stronger wage theft protections are also likely to be included in the bill.
Maine - A bill was introduced in the house that incrementally increases the state’s overtime threshold, which determines which employees are exempt for overtime pay, to $55,224 by 2022.
New Jersey - The negotiated legislation to raise the state’s minimum wage to $15/hr by 2024 passed both chambers and advanced to the governor’s desk for his approval. The bill currently calls for the first increase to occur on July 1, 2019. It also incrementally increases the state’s tipped wage to $5.13/hr by 2024 and establishes a training wage of 90% of the minimum wage for the first 120 days of employment.
Pennsylvania - Governor Wolf unveiled his proposal to raise the minimum wage to $12/hr on July 1, 2019 with annual increases to $15/hr by 2025. His proposal would also eliminate the tipped wage which is currently $2.83/hr. As in past years, the concept will face stiff opposition in the Republican-controlled legislature.
Paid Leave
Maine - A bill was introduced to establish a paid sick leave program for businesses with more than five employees. Previous versions of the bill, as introduced by the sponsor, established a much higher threshold of 50 employees. This legislation is separate from a bill introduced by the Speaker of the House that would establish a paid family leave program.
Massachusetts - The newly-established Department of Family and Medical Leave issued draft regulations related to the recently-passed paid leave legislation. The proposed rules are open for public comment through March 31.
Minnesota - A paid family leave bill that would provide twelve weeks of partial wage replacement for medical leave (including pregnancy) and an additional twelve weeks to care for a newborn or family member passed out of the House Labor Committee 10-5. The state-run insurance program would be funded by a 0.31 percent payroll tax on both employers and employees. The bill faces a steeper climb in the Republican-controlled Senate.
New Hampshire - Senate Democrats offered their counter proposal to the governor’s plan for implementing a statewide paid leave program. A senate committee debated a bill that would establish a paid family leave program paid for by a 0.5 percent income tax on employees.
North Dakota - A bipartisan bill was debated in committee that would impose a paid leave mandate on businesses in the state. The bill would apply to companies with more than 50 employees and be funded by both employer and employee contributions.
Los Angeles, CA - City council members introduced legislation that would offer up to 18 weeks of paid family leave for employees in the city. Further details have yet to be developed but the original bill would guarantee full salary to employees while on leave. A specific funding mechanism has yet to be determined.
Gates Foundation - The philanthropic non-profit announced a reduction to their paid family leave benefit for new parents from a full year to six months. New parents are still eligible for a $20,000 stipend to defray childcare costs. While the plan remains one of most generous benefit plans in the country, it demonstrates the steep costs associated with robust paid leave plans.
Joint Employer
NLRB - The comment period for the National Labor Relations Board’s joint employer rulemaking finally closed on Jan. 28. The proposed rule would roll back the standard established by the Obama-era Board. The International Franchise Association, the leading trade group on the issue, submitted comments and released a report which detailed that confusion around the existing standard has cost franchise operators an average of $142,000 a year in legal fees (or $33.3 billion industry-wide). The rule received more than 26,000 comments in total and will now be considered by the full board.
Labor Policy
NLRB - The National Labor Relations Board overturned a 2014 Obama-era decision in Supershuttle DFW, reverting back to the traditional independent contractor standard. It revised its employment classification test with the aim of clarifying “the role entrepreneurial opportunity plays” in deciding whether workers are employees who can unionize or independent contractors who can’t.
OSHA - This week watchdog groups sued the Labor Department in an attempt to block the rolling back of an Obama administration rule that requires large employers to file detailed injury data over the internet. OSHA has cited concerns over worker privacy.
New Jersey - Lawmakers are considering legislation that would increase penalties on wage and hour violations. Existing law calls for a $100 fine for the first nonpayment of wages but proposed legislation would increase the penalties up to $1,000 and three months in jail. Business groups are pushing back arguing for a distinction to be made between unintentional accounting errors versus intentional acts of denying payment.
No-Poach Agreements - To date, 50 franchised brands have settled with the Washington Attorney General and removed no
Arkansas - A bill to roll back the minimum wage increase recently approved by the voters has stalled. It’s unclear if there’s an appetite among legislative leadership to consider the legislation.
Illinois - A bill to raise the minimum wage from $8.25 to $15/hr is facing little direct opposition given the new partisan makeup in the state capitol. Business groups that have opposed an increase in the past are instead arguing for extended phase-in periods, regional wage rates based on cost-of-living and protection of the tipped wage. Stronger wage theft protections are also likely to be included in the bill.
Maine - A bill was introduced in the house that incrementally increases the state’s overtime threshold, which determines which employees are exempt for overtime pay, to $55,224 by 2022.
New Jersey - The negotiated legislation to raise the state’s minimum wage to $15/hr by 2024 passed both chambers and advanced to the governor’s desk for his approval. The bill currently calls for the first increase to occur on July 1, 2019. It also incrementally increases the state’s tipped wage to $5.13/hr by 2024 and establishes a training wage of 90% of the minimum wage for the first 120 days of employment.
Pennsylvania - Governor Wolf unveiled his proposal to raise the minimum wage to $12/hr on July 1, 2019 with annual increases to $15/hr by 2025. His proposal would also eliminate the tipped wage which is currently $2.83/hr. As in past years, the concept will face stiff opposition in the Republican-controlled legislature.
Paid Leave
Maine - A bill was introduced to establish a paid sick leave program for businesses with more than five employees. Previous versions of the bill, as introduced by the sponsor, established a much higher threshold of 50 employees. This legislation is separate from a bill introduced by the Speaker of the House that would establish a paid family leave program.
Massachusetts - The newly-established Department of Family and Medical Leave issued draft regulations related to the recently-passed paid leave legislation. The proposed rules are open for public comment through March 31.
Minnesota - A paid family leave bill that would provide twelve weeks of partial wage replacement for medical leave (including pregnancy) and an additional twelve weeks to care for a newborn or family member passed out of the House Labor Committee 10-5. The state-run insurance program would be funded by a 0.31 percent payroll tax on both employers and employees. The bill faces a steeper climb in the Republican-controlled Senate.
New Hampshire - Senate Democrats offered their counter proposal to the governor’s plan for implementing a statewide paid leave program. A senate committee debated a bill that would establish a paid family leave program paid for by a 0.5 percent income tax on employees.
North Dakota - A bipartisan bill was debated in committee that would impose a paid leave mandate on businesses in the state. The bill would apply to companies with more than 50 employees and be funded by both employer and employee contributions.
Los Angeles, CA - City council members introduced legislation that would offer up to 18 weeks of paid family leave for employees in the city. Further details have yet to be developed but the original bill would guarantee full salary to employees while on leave. A specific funding mechanism has yet to be determined.
Gates Foundation - The philanthropic non-profit announced a reduction to their paid family leave benefit for new parents from a full year to six months. New parents are still eligible for a $20,000 stipend to defray childcare costs. While the plan remains one of most generous benefit plans in the country, it demonstrates the steep costs associated with robust paid leave plans.
Joint Employer
NLRB - The comment period for the National Labor Relations Board’s joint employer rulemaking finally closed on Jan. 28. The proposed rule would roll back the standard established by the Obama-era Board. The International Franchise Association, the leading trade group on the issue, submitted comments and released a report which detailed that confusion around the existing standard has cost franchise operators an average of $142,000 a year in legal fees (or $33.3 billion industry-wide). The rule received more than 26,000 comments in total and will now be considered by the full board.
Labor Policy
NLRB - The National Labor Relations Board overturned a 2014 Obama-era decision in Supershuttle DFW, reverting back to the traditional independent contractor standard. It revised its employment classification test with the aim of clarifying “the role entrepreneurial opportunity plays” in deciding whether workers are employees who can unionize or independent contractors who can’t.
OSHA - This week watchdog groups sued the Labor Department in an attempt to block the rolling back of an Obama administration rule that requires large employers to file detailed injury data over the internet. OSHA has cited concerns over worker privacy.
New Jersey - Lawmakers are considering legislation that would increase penalties on wage and hour violations. Existing law calls for a $100 fine for the first nonpayment of wages but proposed legislation would increase the penalties up to $1,000 and three months in jail. Business groups are pushing back arguing for a distinction to be made between unintentional accounting errors versus intentional acts of denying payment.
No-Poach Agreements - To date, 50 franchised brands have settled with the Washington Attorney General and removed no