Wages
Georgia – The governor signed legislation ending subminimum wages for workers who have intellectual and/or developmental disabilities. Eight organizations in the state hold federal waivers to pay workers less than the minimum wage but that will end as of July 1, 2027. The legislation had been defeated eight previous years in a row. More details.
Missouri – The state supreme court upheld a voter-approved ballot measure gradually raising the state’s minimum wage to $15/hr and requiring employers to provide paid sick leave to workers. The court rejected claims from business groups – including the Missouri Restaurant Association – that the initiative’s ballot summary and cost estimate were misleading and thus amounted to an election irregularity that should invalidate the results. Missouri voters approved Proposition A by nearly 58 percent last Nov. The first step in the minimum wage increase – to $13.75/hr took effect in Jan. The minimum wage is to rise to $15/hr in 2026, with annual inflationary adjustments in subsequent years. The paid sick leave requirement took effect May 1, though Republican state lawmakers are pushing legislation that would exempt smaller businesses and revise other details of the law. The legislative session ends May 16. More details.
Nebraska – Legislators advanced a bill that would adjust the minimum wage law approved by the voters in 2022. Three years ago, Nebraska voters approved increasing the minimum wage in stages. The current wage is $13.50/hr and is scheduled to go up to $15/hr next Jan., increasing with inflation after that. But the advancing bill would change that. Employers would be allowed to pay 14- and 15-year-olds a $13.50/hr youth wage. And 16 though 19-year-olds could be paid the same $13.50/hr as a training wage for their first 90 days on the job. Originally, the bill would have also capped the annual inflation adjustment for the minimum wage at 1.5 percent but was amended to 1.75 percent. Senators voted 33-16 to give the bill second round approval. It would still require one more approval before being sent to the governor for his signature. More details.
Paid Leave
U.S. House – A bipartisan group of lawmakers introduced a bill aimed at expanding paid family leave, the result of more than two years of work by the House Paid Family Leave Working Group. The More Paid Leave for More Americans Act would establish a three-year pilot grant program within the Labor Department aimed at encouraging states to establish paid family leave programs using public-private partnerships. To qualify for the grants, states must have enacted laws establishing such public-private programs – such as one in which the government funds the benefit but has a private partner administer it – that cover at least the category of birth or adoption under the Family Medical Leave Act. The programs must provide at least six weeks of paid leave to be eligible for the federal grant. And it also requires the paid benefit being a level that is at least 67 percent wage replacement rate for individuals at or below the poverty line for a family of four ($31,200), or 50 percent wage replacement for individuals earning more than double the poverty line for a family of four ($62,400). More details.
Labor Activism
May Day Rallies – Thousands of people attended May Day protests across the country Thursday in response to the Trump administration’s controversial moves against immigrants and federal workers over its first 100 days. Protestors filled streets in numerous cities including Los Angeles, New York City, Denver, Chicago, and Washington, DC to protest what they call an assault on immigrants, workers, and students exercising their right to free speech. The protests are organized under the banner of the “50501” movement – short for 50 protests, 50 states, 1 movement – which states it supports “the fight to uphold the Constitution and end executive overreach.” More details.
Starbucks – Starbucks union delegates involved in contract bargaining voted to reject the coffee chain’s latest proposal that guaranteed annual raises of at least 2 percent. Out of the 490 baristas representing the company’s more than 550 unionized U.S. stores, 81 percent rejected the proposal, which did not offer any changes to economic benefits such as healthcare or any immediate pay hike. Starbucks said in a statement that the union presented an incomplete framework for single-store contracts to their delegates to vote on, adding that its actions were causing a delay in reaching a mutual agreement. The parties had been advancing contract negotiations in recent weeks after agreeing to bring in a mediator to help resume stalled negotiations in Feb. Since then, they have reached tentative agreements on many key contract issues, such as health and safety measures, but the latest offer was “not good enough”, according to the memo shared by Workers United. More details.
Food Policy
Louisiana – A senate committee advanced amended legislation that would require products containing artificial dyes, chemical additives, and other ingredients to include a warning label on the product where the substances are banned or not authorized in other countries. The bill lists 51 different ingredients that would require the warning, including several synthetic dyes, synthetic or artificial vanillin, propylparaben, potassium bromate, melatonin, bleached flour, and others. Additionally, SB 14 would prohibit public schools and non-public schools receiving state funds from serving ultra-processed foods. The bill defines ultra-processed food as any food or beverage that contains the following: Blue dye 1, Blue dye 2, Green dye 3, Red dye 3, Red dye 40, Yellow dye 5, Yellow dye 6, azodicarbonamide, Butylated hydroxyanisole (BHA), Butylated hydroxytoluene (BHT), Potassium bromate, propylparaben, and titanium dioxide. More details.
Pepsi – The company announced it will speed up its move away from artificial dyes in its US food business and that brands like Lay’s and Tostitos will be free of artificial colors by the end of the year. The company said that 60 percent of their snack business is already free of artificial colors. The announcement came days after the Department of Health and Human Services and Food and Drug Administration announced plans to phase out “all petroleum-based synthetic dyes” from the U.S. food supply. More details.
Key Takeaway
- As consumer-facing brands grapple with the financial impact of tariffs, they are also struggling with how, or if, to talk about tariffs outside the four walls of the business. This week, the industry got a lesson from Jeff Bezos on what not to do – directly tell consumers that their prices were increasing because of President Trump’s policies. Amazon quickly backtracked and pulled that language from their website after a quick rebuke from the White House. The next four years are going to be a trying time for brands as their communications to their employees, shareholders, and customers are under intense political scrutiny.