Regulatory Wrap-Up: Weekly recap of retail-related legislative/judicial developments - Aug. 6
Wages
Arkansas - The secretary of state’s office granted a 30-day extension to petition gatherers for the $11/hr minimum wage ballot initiative. They met the threshold of valid submitted signatures in order to qualify for the extended time and must now gather and submit an additional 15,000 valid signatures in the coming weeks to qualify for the Nov. ballot.
California - The state supreme court ruled that Starbucks Corp. must pay workers for off-the-clock work at closing. At issue is a Starbucks policy that requires an employee to clock out before uploading data about employees’ hours, sales, and other information. The ruling establishes a new precedent on the issue. Also of note, the 9th Circuit Court of Appeals is reviewing the policy to determine whether it violates federal law. Employers will need to watch both cases and adjust practices accordingly.
Michigan - In a deadlocked 2-2 vote, the state board of canvassers failed to certify the proposed $12/hr minimum wage initiative for the Nov. ballot. Two members of the board cited a pending court case brought by the business community that alleges that the proposed language fails to identify and amend the proper sections of existing state wage law which is a technical violation of the initiative process. A three-judge panel will rule on that case in the coming weeks, following which the state board could revisit the issue depending on the panel’s decision.
Missouri - The secretary of state’s office approved language for the Nov. ballot that would increase the state’s minimum wage to $12/hr by 2023.
Cook County, IL - Advocates were successful in getting a minimum wage increase on the Nov. ballot as a non-binding advisory referendum question. The current countywide law calls for a $13/hr rate by 2020 with future increases tied to inflation, but 109 of 125 localities chose to opt out of the mandate last year. The question is now being put to the voters directly.
Washington D.C. - The city council scheduled a hearing for Sept. 17 to consider legislation that would overturn the voter-passed initiative which rescinded the city’s tip credit. The initiative passed in June by a 56 percent - 44 percent margin. At least half the city council has voiced opposition to the initiative, citing the potential negative impact on the restaurant industry.
Disney - In an agreement with some of the larger unions representing Disneyland Resort workers, the California theme park has agreed to raise the minimum wage for its workers to $15/hr by 2019 and to $15.45/hr by 2020.
Report - The job-review website Glassdoor released a study that found that median base pay for U.S. workers grew 1.6 percent in July compared with the same time a year earlier.
Paid Leave
U.S. Senate - Sen. Marco Rubio (R-FL) unveiled his long-awaited paid leave legislation that allows parents of newborns at least two months of paid parental leave, compensated by the early withdrawal of Social Security benefits roughly equivalent to 70% of their wages. Participants would then delay the date on which they would begin receiving retirement benefits to make up for the amount withdrawn. While receiving significant media attention, passage before Congress adjourns for the year is unlikely.
Michigan - The state board of canvassers certified the proposed paid leave ballot initiative for the Nov. ballot. The mandate would require that employers with more than 10 workers provide at least 72 hours of earned sick time per year and 40 hours for smaller employers. The state legislature could still act and prevent the initiative from appearing on the ballot.
Cook County, IL - Advocates were successful in getting paid sick leave on the Nov. ballot as a non-binding advisory referendum question. Paid leave is currently on the books countywide but 109 of the 125 localities chose to opt out of the county law last year. The question is now being put to the voters directly.
Labor Policy
NLRB - The National Labor Relations Board announced this week that it is accepting public comment on whether or not to overturn the Obama-era Purple Communications decision. That ruling determined that employees could utilize employer email systems to conduct union organizing campaigns. It found that such activities were protected under the National Labor Relations Act. The Board is also inviting comment on other employer-owned computer resources other than email, signaling that it may address the issue in a much more comprehensive fashion.
Taxes
Nebraska - The Department of Revenue notified out-of-state retailers that sell above a certain threshold into the state that they must register and begin collecting and remitting sales taxes on Jan. 1, 2019. The announcement noted the possibility of further authorizing legislation, which is unlikely to occur until the legislature convenes early next year.
Cupertino, CA - The city council pulled back from a plan to institute a per employee “head tax” through a ballot initiative in the fall. Similar to the Seattle tax that failed earlier this year, the council backed off after pressure from the local business community, including Apple, Inc., which is headquartered in the city and is the largest employer with nearly 20,000 workers.
Trade
Federal - A bipartisan group of senators introduced legislation that would give U.S. Congress and the Defense Department investigative powers under the Section 232 process. Section 232 of the Trade Expansion Act of 1962 gives the president varying levels of authority to determine if specific imports pose a threat to national security. President Trump has used this authority to impose steep tariffs on steel and aluminum imports from U.S. allies. Republicans and Democrats in Congress want to limit the President’s power as rhetoric around trade continues to escalate. The bill would likely need a veto-proof majority to become law but does not yet have th
Arkansas - The secretary of state’s office granted a 30-day extension to petition gatherers for the $11/hr minimum wage ballot initiative. They met the threshold of valid submitted signatures in order to qualify for the extended time and must now gather and submit an additional 15,000 valid signatures in the coming weeks to qualify for the Nov. ballot.
California - The state supreme court ruled that Starbucks Corp. must pay workers for off-the-clock work at closing. At issue is a Starbucks policy that requires an employee to clock out before uploading data about employees’ hours, sales, and other information. The ruling establishes a new precedent on the issue. Also of note, the 9th Circuit Court of Appeals is reviewing the policy to determine whether it violates federal law. Employers will need to watch both cases and adjust practices accordingly.
Michigan - In a deadlocked 2-2 vote, the state board of canvassers failed to certify the proposed $12/hr minimum wage initiative for the Nov. ballot. Two members of the board cited a pending court case brought by the business community that alleges that the proposed language fails to identify and amend the proper sections of existing state wage law which is a technical violation of the initiative process. A three-judge panel will rule on that case in the coming weeks, following which the state board could revisit the issue depending on the panel’s decision.
Missouri - The secretary of state’s office approved language for the Nov. ballot that would increase the state’s minimum wage to $12/hr by 2023.
Cook County, IL - Advocates were successful in getting a minimum wage increase on the Nov. ballot as a non-binding advisory referendum question. The current countywide law calls for a $13/hr rate by 2020 with future increases tied to inflation, but 109 of 125 localities chose to opt out of the mandate last year. The question is now being put to the voters directly.
Washington D.C. - The city council scheduled a hearing for Sept. 17 to consider legislation that would overturn the voter-passed initiative which rescinded the city’s tip credit. The initiative passed in June by a 56 percent - 44 percent margin. At least half the city council has voiced opposition to the initiative, citing the potential negative impact on the restaurant industry.
Disney - In an agreement with some of the larger unions representing Disneyland Resort workers, the California theme park has agreed to raise the minimum wage for its workers to $15/hr by 2019 and to $15.45/hr by 2020.
Report - The job-review website Glassdoor released a study that found that median base pay for U.S. workers grew 1.6 percent in July compared with the same time a year earlier.
Paid Leave
U.S. Senate - Sen. Marco Rubio (R-FL) unveiled his long-awaited paid leave legislation that allows parents of newborns at least two months of paid parental leave, compensated by the early withdrawal of Social Security benefits roughly equivalent to 70% of their wages. Participants would then delay the date on which they would begin receiving retirement benefits to make up for the amount withdrawn. While receiving significant media attention, passage before Congress adjourns for the year is unlikely.
Michigan - The state board of canvassers certified the proposed paid leave ballot initiative for the Nov. ballot. The mandate would require that employers with more than 10 workers provide at least 72 hours of earned sick time per year and 40 hours for smaller employers. The state legislature could still act and prevent the initiative from appearing on the ballot.
Cook County, IL - Advocates were successful in getting paid sick leave on the Nov. ballot as a non-binding advisory referendum question. Paid leave is currently on the books countywide but 109 of the 125 localities chose to opt out of the county law last year. The question is now being put to the voters directly.
Labor Policy
NLRB - The National Labor Relations Board announced this week that it is accepting public comment on whether or not to overturn the Obama-era Purple Communications decision. That ruling determined that employees could utilize employer email systems to conduct union organizing campaigns. It found that such activities were protected under the National Labor Relations Act. The Board is also inviting comment on other employer-owned computer resources other than email, signaling that it may address the issue in a much more comprehensive fashion.
Taxes
Nebraska - The Department of Revenue notified out-of-state retailers that sell above a certain threshold into the state that they must register and begin collecting and remitting sales taxes on Jan. 1, 2019. The announcement noted the possibility of further authorizing legislation, which is unlikely to occur until the legislature convenes early next year.
Cupertino, CA - The city council pulled back from a plan to institute a per employee “head tax” through a ballot initiative in the fall. Similar to the Seattle tax that failed earlier this year, the council backed off after pressure from the local business community, including Apple, Inc., which is headquartered in the city and is the largest employer with nearly 20,000 workers.
Trade
Federal - A bipartisan group of senators introduced legislation that would give U.S. Congress and the Defense Department investigative powers under the Section 232 process. Section 232 of the Trade Expansion Act of 1962 gives the president varying levels of authority to determine if specific imports pose a threat to national security. President Trump has used this authority to impose steep tariffs on steel and aluminum imports from U.S. allies. Republicans and Democrats in Congress want to limit the President’s power as rhetoric around trade continues to escalate. The bill would likely need a veto-proof majority to become law but does not yet have th