Wages

Colorado – A house committee delayed a vote on legislation that would mandate that every municipality in the state with a minimum wage greater than the state rate offset the difference with a tip credit. That cash wage amount would be in addition to the existing state rate of $3.02/hr. Municipalities would, in effect, add the difference between the state and higher local minimum wage to the existing tip credit, making the tipped minimum the same statewide, currently at $11.79/hr. For example, if passed, Denver, where the minimum wage is $4/hr higher than the state’s, the total tip credit for restaurants could rise to $7.02/hr for each employee. Opponents have waged a vigorous effort to delay the bill and prospects for passage in its current form are unclear. More details. 

Missouri – The state supreme court will hear arguments March 12 asking the courts to nullify the voter-approved, new minimum wage and paid leave mandate in the state. The lawsuit, filed by the state Chamber of Commerce and other business groups including the Missouri Restaurant Association, argue the election results in support of the recent ballot measure to increase the minimum wage must be set aside because its fiscal note summary is “insufficient and unfair.” The suit goes on to say that “Proposition A will impose two new and separate requirements on Missouri employers: a minimum wage increase and an entirely new paid sick leave requirement with extensive governmental oversight and enforcement.” More details.

Maryland – Hearings were held in both house and senate committees on legislation that would exempt tipped income from income tax but also eliminate the tip credit by 2028. No votes were taken and the legislation remains alive. The legislature is scheduled to adjourn Apr. 7. More details.

North Dakota – A hearing was held in a house committee on a proposed ballot measure to raise the minimum wage from its current $7.25/hr to $9.25/hr. No votes were taken. If passed, the resolution would be put before the voters in the 2026 election. More details.

Rhode Island – Multiple wage bills were heard in contentious house and senate committee hearings this week – two to raise the minimum wage and another two to increase server wages. One wage bill would push the state level to $20/hr by 2031 and the other to $22/hr by 2026. As for the server wage bills, one would mandate a one-time increase to $6.75/hr next year and the other would raise the server wage to $15/hr by 2031. No votes were taken and all four bills remain alive. More details.

Paid Leave

New Mexico – The house advanced amended legislation to mandate paid family and medical leave for businesses with five or more employees. If passed, the bill would provide benefits for workers to take paid leave in the event of the birth of a new child, families preparing for a spouse in the military, medical reasons, and protecting employees experiencing domestic violence. The bill would further require all workers and employers to pay into a state fund, with employees contributing 0.2 percent of their wages and employers paying .15 percent of  each employee’s wages. The bill now moves to the senate which passed a similar bill last year. More details.

Labor Policy

Labor Department – Former Rep. Lori Chavez-DeRemer (R-Ore.) is a step closer to winning confirmation to lead the agency after the Senate voted on a bipartisan basis to end debate and advance her nomination. Senators voted 66-30 to limit debate on the nomination, paving the way for Chavez-DeRemer to be confirmed when the chamber reconvenes next week. Fifteen Democrats voted with almost every Republican member present. Sen. Rand Paul (R-Ky.) was the lone Republican to vote down her nomination. More details.

Labor Department – The Trump Administration moved to revive a Biden-era agency regulation that would have extended mandatory overtime pay to 4 million salaried workers but has been struck down by two judges. The Labor Department filed a notice of appeal of the decision by U.S. District Judge Sam Cummings’ December which said the rule improperly based eligibility for overtime pay on workers’ salaries rather than their job duties. The Trump administration is expected to revisit and possibly scrap the 2024 rule, which was opposed by business groups and many Republicans. But appealing the decision allows the Labor Department to defend its ability to set a salary threshold for overtime eligibility, which it has done since the 1930s through Republican and Democratic administrations. More details.

NLRB  – A federal judge blocked President Trump from firing Gywnne Wilcox, a Democratic member of the National Labor Relations Board, calling the dismissal “flat wrong” in a ruling that could set up a Supreme Court showdown over the parameters of presidential power. In a 36-page order, U.S. District Judge Beryl A. Howell of the District of Columbia said Trump’s dismissal of Wilcox from the agency in January violated the National Labor Relations Act. He ordered that she continue to serve as an NLRB member. The administration immediately appealed this decision to the D.C. Circuit, which will almost certainly affirm the district court decision. At that point, the Trump administration will appeal the D.C. Circuit’ affirmation to the Supreme Court, giving it a chance to overrule or clarify existing precedent in a way that invalidates the removal protections in Section 3(a) of the NLRA and also, by extension, the removal protections of many other appointed officials in independent agencies. More details.

Los Angeles, CA –  A city council committee advanced an amended motion calling for additional study  to examine the impacts of extending the existing “Fair Workweek” law to fast food employees. The proposal will eventually go before the full city council once those studies have been completed. The current law mandates that employers provide schedules to workers two weeks (14 calendar days) in advance with the understanding that employees have a right to decline any hours not included in that schedule. It also forces employers to offer additional hours to current employees at least 3 days before hiring a new employee or contractor and space out employee shifts by at least 10 hours, unless the employer is prepared to obtain written consent from the employee and pay time and a half for each hour of the subsequent shift. More details.

Labor Activism

Maryland – Proponents of eliminating the tip credit held a rally at the capitol pressuring lawmakers to act on pending legislation to raise the minimum wage and eliminate the tip credit.  Legislation has been introduced in both the house and senate to put a constitutional amendment before the voters in 2026 that would eliminate the tip credit. To be approved, the measure must be approved by at least three-fifths of the members of both chambers before it is eligible to go before the voters. The state’s minimum wage hit $15/hr on Jan. 1 but the cash wage for tipped employees remains at $3.63/hr. More details.

Barnes & Noble – Employees at three New York City locations have officially ratified their first-ever union contracts, setting a new industry standard for wages, workplace safety, and job security. The agreements, negotiated with the Retail, Wholesale and Department Store Union, mark the first union contracts in Barnes & Noble’s history, covering over 200 workers at the Union Square Flagship, Park Slope, and West 82nd Street stores. The Bloomington, Illinois Barnes & Noble store also reached a tentative agreement, with a ratification vote scheduled for Saturday, March 8, 2025. Among the provisions agreed upon are minimum wage increases by $4.00/hr before the contract even takes effect, annual general wage increases of $1.00/yr and new hire minimum wages rising to between $23.00-$25.00/hr by the end of the contract. Employees also have access to the RWDSU’s comprehensive union healthcare plan. More details.

Food Policy

Steak ‘n Shake – U.S. Health and Human Services Secretary Robert F. Kennedy Jr. praised the company highlighting the restaurant’s French fries as part of his “Make America Healthy Again” agenda. “Congratulations @SteaknShake for being the first national fast-food chain to begin the transition away from seed oils,” Kennedy — who was recently sworn in to lead the Department of Health and Human Services — wrote in a post to X. “Thanks for leadership in the crusade to Make America Healthy Again.” The company announced this week that the chain’s Ohio, Colorado, Florida, Texas and Oklahoma locations started making fries with 100 percent beef tallow, and the change will be implemented at all locations by March 1. More details.

Key Takeaway

• While boycotts of companies and products are far from novel, the ever-heightening levels of political polarization are giving new life to this form of consumer activism. Both Target and Costco have shown significant short-term sales impact due to their actions and reactions around the national DEI conversation. Target felt a nearly 10% drop in online sales the first day of the current boycott against them for rolling back their DEI commitments yet Costco (which has not altered their DEI policies) enjoyed a 22% gain that same day. Whether those trends have any longevity is anyone’s guess, however in the case of Bud Light, it still hasn’t fully recovered more than two years later. Partisan vitriol and the power of social media have colluded to make boycotts increasingly effective. Brands should take this into account during their decision-making processes.