Wages
Illinois – The governor signed legislation that eliminates the subminimum wage in the state for workers with disabilities. Beginning in 2030, businesses and other residential facilities will no longer be able to claim an exemption allowing them to pay workers with disabilities less than minimum wage. Illinois is the 19th state to eliminate the subminimum wage for workers with disabilities. Organizations must phase in the full minimum wage by the end of 2029. The bill received bipartisan support in the assembly in 2024 following lengthy negotiations that began more than five years ago. It creates a transition grant program designed to provide financial support for organizations to continue employing people with disabilities while paying them at least the state minimum wage. It also establishes a task force to oversee the transition. More details.
Maryland – Some Democratic lawmakers announced this week that they will soon be introducing legislation to put a 2026 constitutional amendment before the voters that would mandate a $20/hr minimum wage, eliminate the tip credit, and remove taxes on tips. No bill has been introduced to date but hearings are expected as early as Feb. The state’s minimum wage hit $15/hr on Jan. 1 and the cash wage for tipped employees remains at $3.63/hr. More details.
Michigan – The house passed a legislative proposal to increase the minimum wage to $15/hr by 2029 and keep the tipped wage at 38 percent of Michigan’s minimum wage. Despite a slim 6-seat Republican majority, the bill passed with nearly a dozen Democratic votes. There is a competing minimum wage bill pending in the Democratic-controlled senate that would increase the wage to $15/hr by 2027, while keeping the tipped wage at 38 percent of the standard rate in 2025. After that, the proposed measure would gradually increase the tipped minimum wage to 60 percent of the traditional minimum wage over a 10-year period. Both bills are intended to replace pending mandated wage increases effective Feb. 21. More details.
Paid Leave
Michigan – The house also passed a revised paid sick leave bill meant to water down the measure passed by the voters in 2018 that also becomes effective Feb. 21. That measure would require all Michigan companies to provide workers with at least 40 hours of earned paid sick time each year, or up to 72 hours for businesses with 10 or more employees. The revised house bill would exempt any company with fewer than 50 employees from the new rules, which includes roughly 96 percent of Michigan workers. Similar to the minimum wage bill, there is a revised bill also pending in the Democratic-controlled senate that would exempt employers with fewer than 25 workers. It’s unclear if a final compromise will be met before Feb. 21. More details.
Labor Policy
EEOC – President Trump tapped Andrea Lucas to lead the Equal Employment Opportunity Commission (EEOC). Lucas was appointed acting chair of the agency hours after Trump took office, amid a flurry of appointments throughout the federal government. She has served on the panel since 2020, appointed during the waning months of Trump’s first term. She is the only Republican on the five-member panel, which has one vacancy. Lucas’s term ends in July and will have to be reconfirmed to continue in her leadership position. Lucas announced that her priorities will include “rooting out unlawful DEI-motivated race and sex discrimination,” “defending the biological and binary reality of sex” and “protecting American workers from anti-American national origin discrimination.” She also said she will work to protect workers from religious bias and harassment, including antisemitism. More details.
NLRB – On his first day in office, President Trump named Marvin Kaplan as the new chairman of the National Labor Relations Board (NLRB). Kaplan was initially appointed to the NLRB by Trump during his first term in Aug. 2017, and starting the following Dec., he served as chairman until April 2018. He was reconfirmed by the Senate for another term of 5 years, which is set to expire this Aug. The new chairman is, for now, the lone Republican on the NLRB. The five-person board has two vacancies, with the remaining two seats filled by Gwynne Wilcox and David Prouty, both Biden appointees. Once the Senate confirms two as-yet-unnamed new members, the NLRB will have a 3-2 majority Republican majority. The four-year term of NLRB General Counsel Jennifer Abruzzo is due to end in July. When President Biden took office in 2020, he took the unusual step of dismissing Trump’s NLRB General Counsel on his first day in office. As of yet, Trump has yet to do the same by dismissing Abruzzo. More details.
Virginia – A senate committee defeated legislation to enshrine Virginia’s right-to-work laws in the state constitution. If the measure had passed, it would have required approval in two consecutive sessions and ratification by Virginia voters in a statewide referendum. A similar measure was rejected by voters in 2016. More details.
Labor Activism
Las Vegas, NV – The longest strike in decades by Las Vegas hotel workers ended this week with a new contract between the union and a casino where hundreds of employees had walked off the job in Nov. The Culinary Workers Union announced that it secured a five-year deal for about 700 employees at Virgin Hotels near the Las Vegas Strip. In a joint statement, the union and casino said they were ready to move past their disagreements “for the benefit of all team members at the property” after the 69-day strike that began Nov. 15. For months the union maintained around-the-clock picket lines outside the hotel-casino that’s within walking distance of the main strip and along a common route between the main tourist corridor and the city’s international airport. Workers also blocked traffic at one point during the strike in what they said was an effort to bring attention to the labor issues at the casino, resulting in arrests. Throughout the strike, the union publicly criticized Virgin Hotels for hiring temporary workers who crossed the picket line, a comedian canceled his show in support of the union and the NFL Players Association pledged to boycott the casino while workers were on strike. More details.
Washington, DC – Employees across five restaurants owned by two of D.C.’s biggest restaurateurs announced plans to unionize this week. The restaurants include Le Diplomate, St. Anselm, and Pastis from Stephen Starr, and Rasika Penn Quarter and Modena from Ashok Bajaj. Among the issues workers say they are fighting for: better pay, more predictable hours, and respect they say is lacking from management at both companies. The executive secretary-treasurer of UNITE HERE Local 25 says workers from both restaurant groups approached the union around the same time last year, and interest in unionizing spread as they talked to others in their sister restaurants. If they’re successful, the unions would represent 500 front- and back-of-house workers across the five restaurants. In related news, the same union submitted a complaint to the James Beard Foundation Awards’ ethics committee that calls for an investigation into Knightsbridge, a respected D.C. hospitality group. The complaint alleges the company violated various code of ethics policies as “inhumane, exploitative, or unlawful workplace practices”; “retaliation against workers who raise legitimate concerns”; “stealing of wages or tips”; and “bullying through conduct,” as well as starting an “aggressive anti-union campaign” at one of its most popular D.C. restaurants. More details.
Costco – 18,000 Teamsters members have threatened to go on strike before Jan. 31 if their contract demands are not met. The union claims in a statement that the wholesaler and membership store has failed to present a fair contract offer, despite “record-breaking profits.” Prior to the vote, which 85% of members supported, workers organized practice pickets across the country, including actions last week in Hayward, California; Sumner, Washington; and Long Island, New York. Workers said they want a package that includes increases in pay and retirement benefits but have not publicly said exactly how much more they want or what they are currently receiving. More details.
Misc.
Trump Administration – President Trump nominated Andrew Puzder, a former CEO of CKE Restaurants, as his choice for U.S. ambassador to the European Union. Puzder was nominated to be Labor Secretary during Trump’s first administration but withdrew amid concerns he could not garner enough votes to be confirmed. He had admitted in 2017 that he and his wife had employed an undocumented person as a housekeeper. He also faced a flurry of complaints and legal cases brought by workers against his business and its franchises. More details.
Corporate Transparency Act – The Beneficial Ownership Information (BOI) reporting rule that requires businesses to file certain information with the the Financial Crimes Enforcement Network (FinCEN) is back on the table. The U.S. Supreme Court issued a ruling which lifts a Dec. 3rd nationwide injunction and reinstates the Corporate Transparency Act (CTA). Small businesses will now look toward FinCEN for guidance now that businesses are once again required to submit beneficial ownership information (BOI) reports with the agency. Since the Jan. 1st deadline has passed, it is anticipated FinCEN will offer an administrative delay to allow businesses to prepare their BOI reports. While there is still another similar case pending in the Fifth Circuit Court of Appeals, the SCOTUS ruling means that reporting requirements will not be halted as the litigation continues in the lower court. More details.
Virginia – The senate unanimously passed legislation introduced by a former property care franchisee that would ensure franchise agreements are governed by state law, and ban franchise agreements that restrict former franchisees after the termination of their agreements. The bill now moves to the house where similar legislation died last year. More details.
Key Takeaway
- While the rhetoric coming from the new administration regarding imminent immigration raids has been focused on urban blue metros – particularly “sanctuary cities” – brands need to be aware that other areas of the country will see significant action as well. Many red state governors are preparing to aid President Trump’s efforts to crack down on illegal immigration and conduct deportations. Missouri Gov. Mike Kehoe and Iowa Gov. Kim Reynolds have both issued executive orders requiring law enforcement to cooperate with and assist federal agencies carrying out deportation orders. Other governors including Ron DeSantis in Florida are pressing their legislatures to empower immediate action. Significant political points can be won in both blue cities and red states and brands should prepare accordingly.