Wages

Arizona – The state supreme court ruled that the industry-backed Proposition 138, also known as the Tipped Workers Protection Act, will remain on the Nov. ballot.  In June, the measure was challenged in court by Raise the Wage Arizona, a political action committee that has been advocating for increasing the minimum wage. In its lawsuit, the group claimed that the ballot proposition sent to voters by Republican state lawmakers was deceptive and “creates a significant danger of electorate confusion and unfairness.” The court unanimously agreed with a Maricopa County Superior Court Judge that there’s nothing inherently misleading about the title. The measure, supported by the Arizona Restaurant Association, would freeze the tipped wage in the state and was originally pushed in response to a potential Raise the Wage Arizona ballot initiative which has since been withdrawn due to a lack of valid signatures. More details.

Minnesota – The state labor department announced that the state’s minimum wage will increase to $11.13/hr Jan. 1, 2025 and for the first time, it will be applied to all employers, not just large businesses. The state law is tied to the CPI and adjusted annually. During the 2024 legislative session, Minnesota’s minimum wage law was revised to eliminate the reduced minimum wages applicable for small employers, youth under 18, and J-1 visa workers. Currently, youth workers and those working for Minnesota businesses that generate less than $500,000 revenue can be paid a minimum wage of $8.85/hr,  but from Jan. 1 these workers will have to be paid the same $11.13/hr  minimum rate as those working for large employers. More details.

Missouri – A St. Louis University/YouGov poll showed 57 percent of respondents supported the proposed ballot initiative to increase the minimum wage to $15/hr by 2026. For context, another proposed measure to protect abortion rights polled at 52 percent. The same poll also shows majorities supporting every Republican running statewide, who each held at least a 10-percentage point lead over Democratic opponents. Former President Donald Trump was selected by 54 percent of respondents, with 41 percent backing Vice President Kamala Harris. The poll gives Lieutenant Governor Mike Kehoe a 51 percent to 41 percent advantage over House Minority Leader Crystal Quade in the governor’s race. More details.

Baltimore, MD – One Fair Wage presented the city council with a 400-signature petition supporting the Fair Wages for Tipped Employees bill this week. The bill was introduced in June and would eliminate the tip credit by July 2029. The current server wage in Maryland is $3.63/hr and if passed, the legislation calls for an immediate jump to $6/hr by July 1, 2025 and then by $2/hr each year thereafter until a final larger jump in 2029. Similar legislation was introduced and defeated in both Montgomery County and Prince George’s County in late 2023. A statewide bill was also defeated this year in Annapolis. The sponsor is pushing for an initial hearing in the next few weeks. More details.

Boulder, CO – The city council discussed raising the minimum wage. No votes were taken but city staff was directed to develop potential measures for future consideration by the council. For context, Colorado’s statewide minimum wage currently sits at $14.42/hr. Unincorporated Boulder County’s minimum wage, however, is $15.69/hr, and is scheduled to increase to $25/hr by 2030. More details.

Paid Leave

Maine – After a deluge of feedback, the state labor department has updated its proposed rules for the new paid family and medical leave program. Among more than a dozen other changes, the latest draft clarifies the definition of a family member and outlines how a business could opt out of the state plan, which was a key concern raised by the business community in the initial round of public comment. The department reviewed more than 1,000 comments submitted by almost 300 people earlier this summer, according to a news release. The new rule could affect more than 600,000 Maine workers. Slated to begin in May 2026, paid family and medical leave will allow eligible public and private sector workers to take up to 12 weeks of paid leave to care for reasons such as illness, to care for a loved one, or the birth of a new child. More details.\

Labor Policy

Labor Department – The U.S. Court of Appeals for the Fifth Circuit struck down the agency regulation setting strict limits on the amount of time that tipped employees can spend performing work that does not directly generate tips, the so-called 80/20 rule. The Restaurant Law Center sued claiming that the rule is arbitrary and capricious because it draws a line for application of the tip credit based on impermissible considerations and contrary to the statutory scheme enacted by Congress. The court agreed and the rule is now vacated. The agency may seek en banc review before the Fifth Circuit or seek the right to appeal to the U.S. Supreme Court. Given the Supreme Court’s recent decisions on deference to agencies, DOL may find the Supreme Court an even more inhospitable forum. More details.

NLRB –  National Labor Relations Board (NLRB) General Counsel Jennifer Abruzzo signed a Memorandum of Understanding (MOU) with the Department of Justice Antitrust Division (ATR), the Department of Labor (DOL), and the Federal Trade Commission (FTC) to strengthen worker protections and fair competition by collaborating on labor issues in antitrust merger investigations.  The MOU sets out a variety of methods for the antitrust agencies to obtain relevant information on labor issues in merger investigations, including soliciting information from worker stakeholders and organizations, seeking production of employer information and data related to labor markets, utilizing NLRB and DOL public data sets, and contacting the NLRB and DOL for additional information under bilateral pre-existing interagency MOUs. Further, the NLRB and DOL also commit to providing technical assistance during merger review, including in the resolution of labor market merger investigations, and to training appropriate personnel from the ATR and FTC on their respective statutes. The NLRB will provide training on the duty to bargain in good faith, successor bargaining obligations, and unfair labor practices, among other topics. The four agencies will meet bi-annually to discuss implementation and coordination of their partnership. More details.

California – Senate-passed captive audience legislation was advanced by an assembly committee and is on to its third reading. The bill, SB-399 or the California Worker Freedom from Employer Intimidation Act, would prohibit employers from taking adverse actions against or threatening such actions against employees who refuse to attend or participate in meetings where an employer would communicate its opinion about religious or political matters, including meetings about unionization. The ban would be enforced by the Division of Labor Standards Enforcement, would allow an employee to seek injunctive relief for violations of the bill, and provides for a private right of action to recover damages caused by the alleged adverse action. The bill is sponsored by the California Labor Federation and the California State Council of Teamsters. More details.

Labor Activism 

One Fair Wage – Next week, actress Chrissy Teigen, Meena Harris (niece of Vice President Kamala Harris), and One Fair Wage (OFW) will host a celebrity event in West Hollywood, CA. Celebrities will wait tables for an hour to “celebrate their big win in Michigan and uplift their 2024 voter work in Michigan, Arizona, Ohio, and California.” There has been a recent uptick in OFW “events” lately, most notably a well-attended event at last week’s Democratic National Convention in Chicago. More details.

UNITE HERE – Thousands of hotel workers in nine cities have now authorized strikes at Hilton, Hyatt, Marriott, and Omni hotels. Workers voted overwhelmingly in favor of authorizing strikes at hotels where workers are locked in unresolved contract negotiations in Baltimore, Boston, Honolulu, Greenwich, New Haven, Providence, San Francisco, San Jose, and Seattle. Strike votes are upcoming in Oakland and San Diego. Strikes could begin any time after contracts expire. And contracts in some cities have already expired while the rest expire by the end of the month. Hotel workers are calling for higher wages, fair staffing, and workloads, and the reversal of COVID-era cuts. The union says that too many hotels took advantage of the pandemic to cut staffing and guest services like automatic daily housekeeping and room service, causing workers to lose income and creating painful working conditions for those who carry the increased workload. The union launched the travel guide ahead of Labor Day weekend advising travelers to understand how a strike could affect their stay – including protests and the potential for reduced hotel services – and to be proactive about staying updated on the status of labor disputes. The union has created a website called FairHotel.org where travelers can search hotels by name or city to learn whether a hotel is at risk of a strike, on strike, or under boycott, and find alternative hotels that are not subject to a labor dispute. The guide recommends that in the event of a strike, guests should cancel their stay immediately and demand a refund without a cancellation fee. More details.

Waffle House – Workers at three units in Georgia delivered demand letters to store managers calling for a $25/hr minimum wage, around the clock security, and an end to the company’s meals deduction policy. Earlier this year, the company announced pay raises for servers after more than a year of a public pressure campaign led by the Union of Southern Service Workers, an affiliate of the SEIU. The same union coordinated this week’s action. In June, Waffle House’s CEO, in a video sent to employees, called the new pay scale the “single largest additional investment” in the company’s workforce in its 68-year history. He said base pay will rise to at least $5.25 an hour for all locations by June 2026, with additional increases based on seniority and shift. He added that menu prices will increase to pay for the changes. More details.

Key Takeaway

• This week, Lowe’s became the first large, entry-level employer to announce significant changes to their DEI policies in response to pressure from conservative activists. Given renewed interest from conservative groups and their elected allies – during an election year and ahead of 2025 state legislative sessions – it may be a good time to review your policies and ensure they align with your corporate culture and business needs. Companies should be prepared to defend those programs under renewed scrutiny. 

Podcast

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