Regulatory Wrap-Up: Labor policy takes center stage
Wages
Delaware: The senate postponed action last week but is still considering legislation to increase the state minimum wage to $8.75 per hour in 2018 escalating to $10.25 per hour in 2020.
Louisiana: Gov. John Bel Edwards announced his support for a pay equity law as well as “a modest but meaningful increase” in the state’s minimum wage from the current federal minimum of $7.25 per hour to $8.50 per hour over two years. Although the bills passed their first senate committee last week, the likelihood of the Democratic governor advancing even modest priorities through the Republican-led legislature during an election year is low.
Rhode Island: Multiple proposals to increase the state’s minimum wage continue to move through the legislative process. Last week a spokesperson for the labor advocacy group Jobs with Justice indicated a willingness to accept a more modest increase to $12 per hour by 2020.
Vermont: Following senate approval of a $15 per hour minimum wage bill last month, business advocates are focused on addressing the most negative aspects of the bill in the house. The state chamber is advocating for a potential rate distinction between rural and urban markets and a freeze on the tipped wage at its current level of $5.25 per hour. The governor has indicated his opposition to $15 per hour in the past, but the fact that the senate passed the bill with enough votes to override a potential veto coupled with increasing momentum in the house may weaken his opposition.
Wage Theft
New Mexico: In a major win for worker advocates, the court directed the state to enhance its enforcement of a 2009 wage theft law. A judge approved a settlement between the New Mexico Center on Law and Poverty and the state’s labor agency (Department of Workforce Solutions), which according to the center’s lawsuit failed to properly enforce minimum wage requirements. The settlement lifts a $10,000 cap on unpaid wage claims and bolsters requirements that negligent employers pay treble damages among other stipulations.
Paid Leave
Arizona: The house-passed resolution that would eliminate an anti-retaliation provision in the 2016 voter-approved paid leave law passed its first committee in the senate. Current law states that if an employer takes disciplinary action against an employee within 90 days of a worker’s complaint, the action is presumed to constitute illegal retaliation. If the full senate approves the measure, it would appear on the November ballot.
New Hampshire: The paid leave proposal that has been moving through the House was significantly amended to mirror the recently enacted New York law which is funded by employee payroll contributions. The amended version passed a committee but could face more resistance in the full house as the debate continues.
New Jersey: Sponsors of the paid leave proposal under consideration in the house have worked with the business community to amend the bill which has now passed a house committee. The house legislation now preempts local leave ordinances, allows for black-out dates as set by employers, has an exemption for seasonal workers, reduces the maximum hours of leave from 72 to 40 hours and contains a 180-day implementation delay once the bill is signed into law. The bill still needs to move through both the house and the senate. The general expectation is that some version of paid leave legislation will pass. The senate majority leader indicated she may prefer stronger provisions, but the business community is working to ensure that the amendments are maintained throughout the process.
Scheduling
Hawaii: A bill to mandate scheduling practices will not advance this session.
Austin, Texas: Reports indicate that the city council, fresh off passing a paid leave law, is considering a restrictive scheduling mandate. The council may choose to act prior to an expected push for a statewide preemption law when the state legislature convenes in 2019.
Labor Policy
Labor Department: The Labor Department’s Office of Labor-Management Standards (OLMS) is investigating whether or not the non-profit worker center CTUL, which has conducted corporate campaigns against major retail brands, fits the agency’s definition of a union. If OLMS rules that CTUL is in fact a union then the worker center would be subject to a number of new registration and disclosure requirements. Such a determination could capture other worker centers as well.
NLRB: A U.S. Senate committee approved the nomination of John Ring to fill the remaining vacancy on the National Labor Relations Board. Ring’s nomination will now advance to the full U.S. Senate and once confirmed will restore the Board to Republican control.
NLRB: The Board has extended the deadline for public comments on its previously-announced plan to roll back the Obama-era rule that shortened the time frame for union elections, otherwise known as the “ambush” election rule. The Board extended the deadline to April 18.
Joint Employer: The D.C. Circuit Court may be the next venue to watch for an outcome on the joint employer issue. With the Obama-era Browning-Ferris standard now back in effect, the NLRB is petitioning the court to revisit the issue.
Idaho: The house and the senate passed a bill codifying that neither a franchisee nor a franchisee’s employees shall be considered employees of the franchisor. The bill now moves to the governor’s desk for his expected signature.
Michigan: A bill that would prevent localities from regulating the practice of asking employees questions related to their salary history passed both chambers and heads to the governor’s desk for his expected signature.
Privacy
TCPA: The U.S. Court of Appeals ruled on the Federal Communication Commission’s (FCC) 2015 order which interpreted various aspects of the Telephone Consumer Protection Act (TCPA). Retailers welcomed the ruling which vacates the one-call liability for texts/calls to reassigned numbers. At issue was an FCC order which placed liability on retailers for contacting consumers via phone numbers that had been reassigned to new people who of course had not provided consent for the retailer to contact them. The original FCC interpretation resulted in lawsuits brought against retailers and other businesses who were attempting to communicate with consumers via text and calls.
Trade
European Union: The EU released a list of products imported from the United States that are potential targets for tariff increases. Publication of the list follows the announcement of U.S. tariffs on imported steel and aluminum. Trade representatives from the EU claim that the list is not intended to be an “escalatory” effort, but rather a procedural step that, under WTO rules, allows trading partners to respond to import limitations known as “safeguard measures.”
Taxes
Alabama: Legislation that would require online marketplaces to facilitate the collection of sales taxes for third party sellers passed the house as well as its first committee hearing in the senate.
Idaho: A bill that expands the definition of a retailer in the state for sales tax collection purposes passed both the house and senate and now goes to the governor’s desk. The bill models the affiliate language first passed by New York in 2009 and applies to sellers who generate more than $10,000 in sales into the state through an “affiliated” Idaho-based agent.
Oklahoma: Legislation that forces out-of-state sellers to either collect sales taxes or disclose the name and dollar amount sold to a state resident to the state’s tax commission passed the full senate. The bill is modeled after a Colorado law that was ruled constitutional by the 10th Circuit Court. The bill now moves to the house for further debate.
Key Takeaways
Legislature Status for Week of 3/19/18
Podcast
Check out our Working Lunch podcast each week that includes further analysis into these legislative issues, policy, politics and much more. You can find Working Lunch on the Nation's Restaurant News website, or by clicking here, and when you download the podcast and subscribe on iTunes here.
Delaware: The senate postponed action last week but is still considering legislation to increase the state minimum wage to $8.75 per hour in 2018 escalating to $10.25 per hour in 2020.
Louisiana: Gov. John Bel Edwards announced his support for a pay equity law as well as “a modest but meaningful increase” in the state’s minimum wage from the current federal minimum of $7.25 per hour to $8.50 per hour over two years. Although the bills passed their first senate committee last week, the likelihood of the Democratic governor advancing even modest priorities through the Republican-led legislature during an election year is low.
Rhode Island: Multiple proposals to increase the state’s minimum wage continue to move through the legislative process. Last week a spokesperson for the labor advocacy group Jobs with Justice indicated a willingness to accept a more modest increase to $12 per hour by 2020.
Vermont: Following senate approval of a $15 per hour minimum wage bill last month, business advocates are focused on addressing the most negative aspects of the bill in the house. The state chamber is advocating for a potential rate distinction between rural and urban markets and a freeze on the tipped wage at its current level of $5.25 per hour. The governor has indicated his opposition to $15 per hour in the past, but the fact that the senate passed the bill with enough votes to override a potential veto coupled with increasing momentum in the house may weaken his opposition.
Wage Theft
New Mexico: In a major win for worker advocates, the court directed the state to enhance its enforcement of a 2009 wage theft law. A judge approved a settlement between the New Mexico Center on Law and Poverty and the state’s labor agency (Department of Workforce Solutions), which according to the center’s lawsuit failed to properly enforce minimum wage requirements. The settlement lifts a $10,000 cap on unpaid wage claims and bolsters requirements that negligent employers pay treble damages among other stipulations.
Paid Leave
Arizona: The house-passed resolution that would eliminate an anti-retaliation provision in the 2016 voter-approved paid leave law passed its first committee in the senate. Current law states that if an employer takes disciplinary action against an employee within 90 days of a worker’s complaint, the action is presumed to constitute illegal retaliation. If the full senate approves the measure, it would appear on the November ballot.
New Hampshire: The paid leave proposal that has been moving through the House was significantly amended to mirror the recently enacted New York law which is funded by employee payroll contributions. The amended version passed a committee but could face more resistance in the full house as the debate continues.
New Jersey: Sponsors of the paid leave proposal under consideration in the house have worked with the business community to amend the bill which has now passed a house committee. The house legislation now preempts local leave ordinances, allows for black-out dates as set by employers, has an exemption for seasonal workers, reduces the maximum hours of leave from 72 to 40 hours and contains a 180-day implementation delay once the bill is signed into law. The bill still needs to move through both the house and the senate. The general expectation is that some version of paid leave legislation will pass. The senate majority leader indicated she may prefer stronger provisions, but the business community is working to ensure that the amendments are maintained throughout the process.
Scheduling
Hawaii: A bill to mandate scheduling practices will not advance this session.
Austin, Texas: Reports indicate that the city council, fresh off passing a paid leave law, is considering a restrictive scheduling mandate. The council may choose to act prior to an expected push for a statewide preemption law when the state legislature convenes in 2019.
Labor Policy
Labor Department: The Labor Department’s Office of Labor-Management Standards (OLMS) is investigating whether or not the non-profit worker center CTUL, which has conducted corporate campaigns against major retail brands, fits the agency’s definition of a union. If OLMS rules that CTUL is in fact a union then the worker center would be subject to a number of new registration and disclosure requirements. Such a determination could capture other worker centers as well.
NLRB: A U.S. Senate committee approved the nomination of John Ring to fill the remaining vacancy on the National Labor Relations Board. Ring’s nomination will now advance to the full U.S. Senate and once confirmed will restore the Board to Republican control.
NLRB: The Board has extended the deadline for public comments on its previously-announced plan to roll back the Obama-era rule that shortened the time frame for union elections, otherwise known as the “ambush” election rule. The Board extended the deadline to April 18.
Joint Employer: The D.C. Circuit Court may be the next venue to watch for an outcome on the joint employer issue. With the Obama-era Browning-Ferris standard now back in effect, the NLRB is petitioning the court to revisit the issue.
Idaho: The house and the senate passed a bill codifying that neither a franchisee nor a franchisee’s employees shall be considered employees of the franchisor. The bill now moves to the governor’s desk for his expected signature.
Michigan: A bill that would prevent localities from regulating the practice of asking employees questions related to their salary history passed both chambers and heads to the governor’s desk for his expected signature.
Privacy
TCPA: The U.S. Court of Appeals ruled on the Federal Communication Commission’s (FCC) 2015 order which interpreted various aspects of the Telephone Consumer Protection Act (TCPA). Retailers welcomed the ruling which vacates the one-call liability for texts/calls to reassigned numbers. At issue was an FCC order which placed liability on retailers for contacting consumers via phone numbers that had been reassigned to new people who of course had not provided consent for the retailer to contact them. The original FCC interpretation resulted in lawsuits brought against retailers and other businesses who were attempting to communicate with consumers via text and calls.
Trade
European Union: The EU released a list of products imported from the United States that are potential targets for tariff increases. Publication of the list follows the announcement of U.S. tariffs on imported steel and aluminum. Trade representatives from the EU claim that the list is not intended to be an “escalatory” effort, but rather a procedural step that, under WTO rules, allows trading partners to respond to import limitations known as “safeguard measures.”
Taxes
Alabama: Legislation that would require online marketplaces to facilitate the collection of sales taxes for third party sellers passed the house as well as its first committee hearing in the senate.
Idaho: A bill that expands the definition of a retailer in the state for sales tax collection purposes passed both the house and senate and now goes to the governor’s desk. The bill models the affiliate language first passed by New York in 2009 and applies to sellers who generate more than $10,000 in sales into the state through an “affiliated” Idaho-based agent.
Oklahoma: Legislation that forces out-of-state sellers to either collect sales taxes or disclose the name and dollar amount sold to a state resident to the state’s tax commission passed the full senate. The bill is modeled after a Colorado law that was ruled constitutional by the 10th Circuit Court. The bill now moves to the house for further debate.
Key Takeaways
- The long list of individual products that could see increased tariffs published by EU trade representatives showcases the potential danger of the Trump Administration's recently- enacted steel tariffs. While the EU effort may be intended to force a discussion with the U.S. on potential steel import exemptions (similar to those granted to Mexico and Canada) the listing of specific products should give importers pause.
- The Labor Department is reportedly investigating the status of a non-profit worker center to determine whether or not it fits the agency’s definition of a union. This is significant because such groups have become an important tool in corporate campaigns. Unions outsource some of their organizing activities to these non-profit groups because they can operate free of certain restrictions as well as registration and disclosure requirements. Classifying these groups as unions may rob them of their efficacy in union organizing or corporate campaigns.
- The results of the special congressional election in Pennsylvania this week give additional momentum to Democrats in their efforts to take back the U.S. House. What is particularly problematic for Republicans going forward is that the recently-passed tax bill didn’t resonate with voters, even in this conservative-leaning district, and ads touting its benefits were pulled three weeks out from the election. Since this legislation is widely viewed as the Republican’s most significant legislative achievement so far and the best issue for them to campaign on, they need to rethink how they communicate it to voters.
Legislature Status for Week of 3/19/18
- The United States Senate is in session this week
- The United States House is in session this week
- Thirty-three state legislatures are meeting actively this week: Alabama, Alaska, Arizona, California, Colorado, Connecticut, Delaware, Georgia, Hawaii, Iowa, Idaho, Kansas, Kentucky, Louisiana, Massachusetts, Maryland, Maine, Michigan, Minnesota, Missouri, Mississippi, Nebraska, New Hampshire, New Jersey, New York, Ohio, Oklahoma, Pennsylvania, Rhode Island, South Carolina, Tennessee, Vermont and Wisconsin.
Podcast
Check out our Working Lunch podcast each week that includes further analysis into these legislative issues, policy, politics and much more. You can find Working Lunch on the Nation's Restaurant News website, or by clicking here, and when you download the podcast and subscribe on iTunes here.
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