Wages
Michigan – The governor’s office as well as the state treasurer’s office appear to be seeking clarification and guidance from the attorney general’s office on how to calculate the inflation-adjusted minimum wage. The governor said this week that her team is still reviewing the July 31 ruling that found a 2018 legislative maneuver used to curb initiatives that increased the minimum wage and broadened paid sick leave laws was unconstitutional. The court set a schedule for those measures to be implemented as intended over the next four years but the state has yet to release information on what the new minimum wage and tipped wage will be when they take effect in Feb. Early estimates indicated the high court’s decision would increase the minimum wage initially by an estimated $2/hr. The Democratic governor said it is premature to say whether she supported possible legislative intervention this fall that would blunt some of the wage and paid sick leave expansions. The attorney general’s office said in a statement this week that it had not received a formal request for an opinion and declined to comment further on what other requests, if any, had been made. More details.
Missouri – The secretary of state certified a pending ballot measure that would raise the state minimum wage $15/hr by 2027. After 2027, the wage would be adjusted annually based on inflation. The current state minimum is $12.30/hr. The measure also requires employers with 15 or more workers to provide one hour of paid sick leave for every 30 hours worked. According to the proposal, the earned sick leave provision would not apply to retail or service employees who work for a business that makes less than $500,000/yr. Missouri voters last approved a minimum wage increase in 2018 upping the wage to $12/hr. More details.
Oklahoma – The secretary of state verified a ballot measure that would increase the minimum wage to $15/hr by 2029. Future increases would be tied to the cost-of-living index. The secretary of state submitted the official signature count to the state supreme court. Oklahoma law sets a 10-business day protest period once the official notification is posted to a statewide newspaper. Should the petition clear the protest period, it would then go to the state election board and the governor’s office. The governor’s office would, at that point, set the date for the election. More details.
Albuquerque, NM – Next week, the city council will hear a proposed ordinance to align the city’s minimum wage rate, which is $11.10/hr, with the state minimum wage rate of $12/hr. Because the state rate is higher, it is already the prevailing minimum wage in Albuquerque. An amendment was previously offered to also align the server wage with the state’s as well, but that would mean a significant reduction in the server wage from the city’s mandated $7.20/hr to the state’s current server wage level of $3/hr. The sponsors of that amendment have since decided to withdraw it in the face of intense opposition. The hearing is scheduled for Aug. 19. More details.
Paid Leave
Nebraska – A proposed initiative for the Nov. ballot was certified by the secretary of state. If passed, it would require employers to offer paid sick leave to their employees with a minimum requirement of employees earning at least one hour of paid sick leave for every 30 hours worked. Employers with 20 employees or more would have to provide seven days per year of paid sick leave while those with fewer than 20 offering 5 days per year. More details.
Labor Activism
Maricopa County, AZ – A judge ordered the city of Glendale to process a ballot initiative that it had rejected on constitutional grounds. The initiative, dubbed the Hotel and Event Center Minimum Wage and Wage Protection Act, was backed by the Worker Power political action committee and turned into the city with 8,900 petition signatures – almost 50 percent more than the required number. The proposed law establishes a $20/hr minimum wage baseline for hotel and event center employees and outlines details for yearly pay increases and overtime earnings, among other provisions. It would cover employees of any hotel within city boundaries as well as workers at event centers larger than 20,000 square feet including concert halls, stadiums and convention centers. This decision does not guarantee that the initiative will make the Nov. ballot but requires the clerk to verify signatures while the case’s larger questions regarding potential violation of the state’s single subject rule are resolved. More details.
DHL – The shipping company chose to voluntarily recognize their workers right to collectively bargain and as a result, 1,300 workers at the Cincinnati airport shipping hub (the company’s largest) are now members of the Teamsters. Nationwide, the Teamsters now represent over 7,300 workers at DHL Express. The victory is significant because the facility is adjacent to Amazon’s distribution hub (also that company’s largest airport facility) where the Teamsters have been working to organize workers for many years. More details.
Misc.
Study – A new survey released this week from Gallup and Bentley University revealed that only 38 percent of U.S. adults say businesses should take public stances, a drop of 10 percentage points since 2022. In addition, groups who were previously the most receptive to hearing from businesses – Democrats, Asian adults, and Black adults – are now considerably less likely to say so. Adults 60 and older saw a three-percentage-point increase in their support for businesses speaking publicly on current events in the past year, from 35 percent to 38 percent, though both percentages are lower than this group’s 43 percent who favored businesses speaking out in 2022. While most adults generally think businesses should not speak publicly on current events, not all events are considered equal. Narrow majorities of U.S. adults want to hear from businesses on climate change (54 percent), mental health (53 percent) and diversity, equity and inclusion (53 percent). Free speech (48 percent) and healthcare issues (48 percent) garner near-majority support, but far fewer U.S. adults want businesses to speak publicly on what may be several of the most salient issues during the Nov. election, including gun laws (32 percent), immigration policy (31 percent), international conflicts (24 percent), abortion (20 percent) and the candidates themselves (17 percent). The survey also found that consumers are less likely to purchase products from companies that endorse political candidates. More details.
Key Takeaways
- With her first major ad buy, Vice President Kamala Harris introduced herself to America as someone who worked her way through school with an entry-level job at McDonald’s. Both Harris and Walz have continued to reference her McDonald’s job on the campaign trail, distinguishing Harris’ upbringing from that of Donald Trump. While Harris has parroted SEIU talking points in the past, there may not be a better example of the industry’s (and the brand’s) value as a first job where skills gathered in the workplace set her (and many others) up for long-term success. The industry should be celebrating this example of the opportunity it provides to millions of Americans.
- Vice President Kamala Harris declared her support this week for exempting tips from federal income taxes, cribbing one of former President Donald Trump’s key priorities. Harris and Trump’s proposals differ, reflecting their differing approaches to labor policy. After the Harris announcement, the Trump campaign still chose to make it central to their economic program rollout later in the week, indicating that the issue is still likely to serve as a talking point, and potential differentiator, for the two campaigns on the trail.
Podcast
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