Wages
Colorado – The senate passed legislation that would allow cities and counties that increase their local minimum wages to increase their tip credits above the fixed $3.02/hr set in current state law. The heavily-amended bill had already passed the house and is on its way to the governor. As passed, local governments could still raise the minimum wage for non-tipped employees as high as it wishes, while maintaining a tipped minimum wage of $11.79/hr, the statewide minimum. The original bill mandated that every municipality in the state with a minimum wage greater than the state rate offset the difference with a tip credit. The changes came as opponents waged a vigorous effort to delay the bill and prospects for final passage remain unclear.
Florida – The state officially confirmed the new minimum wage rate that will become effective Sept. 30. The changes follow the terms of Amendment 2, a ballot initiative passed in 2020 which mandates a $1/hr increase each year until the minimum wage hits $15/hr by 2026. Beginning in Sept., the minimum wage will increase to $14/hr up from the current $13/hr and the tipped wage will increase to $10.98/hr up from its current $9.98/hr. More details.
Portland, ME – A city council committee decided to defer a vote on a proposal to put a $20/hr wage provision in front of the voters. The proposal would raise the city’s minimum wage to $20/hr over a period of three years and if passed, the measure would go to the Nov. ballot. The committee is still reviewing budget implications of the measure on the city itself and will likely revisit the issue in May. More details.
Paid Leave
Missouri – Senate Democrats are filibustering house-passed legislation repealing the new paid sick leave law passed by the voters last Nov. Proposition A, which is scheduled to take effect May 1, requires employers with business receipts greater than $500,000 a year to provide at least one hour of paid leave for every 30 hours worked. Employers with fewer than 15 workers must allow workers to earn at least 40 hours per year, with larger employers mandated to allow at least 56 hours. The law also gradually increases the minimum wage to $15/hr by 2026. The pending legislation eliminates the cost-of-living index in the original measure. The senate is expected to ultimately approve the bill, and the governor has announced his support of it. On a separate track, the state supreme court is still deliberating on a lawsuit, filed by the state chamber of commerce and other business groups including the Missouri Restaurant Association, arguing 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.” More details.
Nevada – Legislation advanced out of a house committee to enact a paid leave program for both public and private entities. As introduced, the bill calls for business and local government agencies (state executive branch employees already are covered) with 50 employees or more to provide 12 weeks of paid family leave which would apply to birth, fostering, or adoption of a child, military service, receiving treatment for or recovering from a serious illness, taking care of a family member with a critical illness, and for recovery from domestic violence or sexual assault. No votes were taken and the chances for final passage are unclear. More details.
Labor Policy
Delaware – A house committee heard legislation that would prohibit captive audience meetings. The bill prohibits employers from requiring employees to participate in mandatory meetings or communications that are religious or political in nature. This bill also prohibits employers from punishing employees for refusing to participate but meetings or communications necessary for their job duties or that are voluntary are exempted. Violators of the bill are subject to civil penalties between $1,000 – $5,000 per violation. No votes were taken. More details.
Labor Activism
Newark, NJ – The mayor, who has called for the elimination of the tip credit in the city, will participate in an event next week sponsored by One Fair Wage. The “Server for an Hour” event advertises that the mayor will “don an apron to serve tables and spotlight the urgent need to eliminate the subminimum wage — a racist legacy of slavery that traps tipped workers in poverty.” The mayor of Jersey City, NJ participated in a similar event last month. More details.
Misc.
Arkansas – Legislation is on its way to the governor that would eliminate potassium bromate, propylparaben, and red number three dye from food products sold in the state. When enacted, the new law will fine anyone who sells food with these chemicals $5,000 for the first violation and $10,000 for each subsequent violation. Potassium bromate is used in bread to strengthen the dough and enhance its elasticity and is already banned in Europe and Canada as well as in California. Propylparaben is a food preservative used to prevent mold, yeast, and bacteria growth. Red number three, erythrosine, is a pink dye used as a food coloring. The governor is expected to sign. More details.
Colorado – A senate committee heard house-passed legislation that would prohibit interchange fees on sales taxes and tips. The sponsor intended to have a vote on the bill but pulled it temporarily so a committee member could have more information. A follow-up hearing has yet to be scheduled. More details.
Key Takeaways
- For the second time in a month, One Fair Wage has co-opted a big city mayor – Jersey City and Newark, NJ – and turned them into champions for eliminating the tip credit. Coupled with the recent re-introduction of legislation in the Baltimore City Council, it appears that OFW hasn’t gotten the national message and is doubling down on their strategy of identifying diverse urban centers and leaning into their “legacy of racism” narrative. While their political power has waned significantly over the last couple of years, they have become increasingly more strident in their messaging and their willingness to leverage the race issue. While their footprint continues to shrink, their ability to tarnish brands and business models remains strong.