Wages

Wisconsin – An assembly committee heard legislation that would mirror the federal no taxes on tips legislation that was included in the recently enacted federal tax bill. The Wisconsin bill, and a recent amendment to it, seeks to implement the same policy when it comes to the state income tax and would allow workers to deduct up to $25,000 in tips annually from their taxable income. The deduction would apply to tips whether paid by cash or credit. Similar to the federal law, the provision will go into effect starting tax year 2025 and sunset after tax year 2028 (around the end of President Trump’s second term in office). Chances for passage are unclear. More details.

Portland, ME – The city council voted 5-4 on an amended proposal to place a $19/hr minimum wage by 2028 provision on the Nov. 2025 ballot. In 2022, Portland voters rejected a measure that would have raised the minimum wage to $18/hr by 2025 and would have eliminated the tip credit. More details.

Sante Fe, NM – The mayor unveiled a proposal to raise the city’s minimum wage to $17.50/hr in 2027, following a yearlong assessment. The current minimum wage is $15/hr. The proposal would continue to include tips counting toward the wage requirement for workers who usually earn $100 or more per month in tips or commission as well as adjust how the annual CPI adjustment is calculated. The council will hold a public forum in the next few weeks to seek public input. More details.

Uber Eats – The company has agreed to pay $15 million to more than 16,000 delivery workers in Seattle after reaching a settlement with the city’s labor standards office over allegations that they violated laws regulating how workers are paid. The alleged violations covered work between Sept. 2022 and May 2025. A majority of the settlement was related to the city’s Independent Contractor Protections (ICP) Ordinance, which passed in 2021 and aims to ensure pay transparency. The city alleged that Uber Eats misled workers by not disclosing that its “boost” multiplier feature only applied to a portion of a fare and that the upfront payment amount already included the “boost” promotion’s contribution. Uber denied wrongdoing but agreed to the settlement. More details.

Paid Leave

Maine – The state supreme court unanimously decided that the rules adopted by the state labor department related to its paid family and medical leave program are constitutional, as is the legal interpretation of the legislation that created the program. This comes after the state chamber of commerce and Bath Iron Works filed a lawsuit in Jan. to challenge the department’s rules. The plaintiffs argued that the department’s rules constituted what’s known as a “taking” of private property for public use by requiring people to make payments into the program during the first quarter of 2025 before they could apply for a private substitute plan. However, the court found that would not qualify for a taking claim because there was no identifiable property to form its basis. More details.

Sustainability

Colorado – The public comment period is open until Sept. 14 for input on the Circular Action Alliance’s amended plan to execute the state’s Extended Producer Responsibility (EPR) program. The public comment period kicked off once the Producer Responsibility Advisory Board submitted its recommendation for the plan’s approval. Brands are encouraged to weigh in. More details.

Food Policy

HHS – The U.S. Department of Health and Human Services (HHS) launched the “MAHA in Action” platform to advance the Make America Healthy Again (MAHA) agenda, marking a shift toward comprehensive federal and state reforms in food safety, public health, and chronic disease prevention. This platform provides real-time updates on initiatives aimed at removing harmful additives from food and enhancing vaccine safety, while also addressing the underlying causes of chronic diseases. The platform highlights many state-level initiatives including the states with USDA-approved SNAP waivers, those that have banned synthetic dyes or certain additives from school meals, those requiring warning labels on products with unsafe ingredients and even the 22 states restricting cell phone use in schools. More details.

Key Takeaways

• In advance of Labor Day, the Gallup organization released its annual survey of Americans’ attitudes toward labor unions. This is the fifth consecutive year that approval of organized labor has been in the 67 – 71 percent range, a level last reached in the late 1950s and early 1960s. The latest data show a continued wide divergence in partisans’ views of unions, as 90 percent of Democrats, 69 percent of independents, and 41 percent of Republicans express approval. All party groups show increased support for unions compared with 2016, though Republican support has declined since peaking at 56 percent in 2022. More importantly for our workforce, the data remains consistent that more than 70 percent of those under 35 years of age approve of labor unions. 
• In addition to normal Labor Day festivities, this year’s version may take on a much more political tone. Over 900 “Workers over Billionaires” protests are scheduled in all 50 states and most large cities.  Organized in large part by the AFL-CIO and supported by their member unions – namely the SEIU – the events may feel less like celebrations and more like political protests. Additionally, with heightened tension between the White House and many city governments, there is a potential for significant escalation and even violence. Brands with operations in large urban metros should prepare accordingly.