Wages
Florida – The political committee Florida For A Fair Wage has submitted 763,330 valid petition signatures to the state as of this week, just under the 766,200 signature threshold needed to reach the ballot. Organizers have until April to meet the threshold.
Michigan – The governor announced her intention to direct the state labor department to significantly adjust the overtime threshold from its current level of $23,660. While not specifically citing what the new threshold should be, she said the Obama Administration’s proposal of $51,000 annually was a “good place to start.” The rulemaking process will take many months.
Pennsylvania – The state labor department released its new overtime salary threshold proposal of $45,500 by 2021, higher than the Trump Administration’s new federal level that will take effect in Jan. The proposal also amends the duties test, bringing it closer to alignment with the federal standard. It is unlikely that Republicans in the legislature will have the votes to successfully amend the rule.
Chicago, IL – Citing a significant outcry from tipped employees, the mayor appears to have moderated her previously hard-line position, favoring the elimination of the tip credit in the city. While a positive development, a majority of the city council has co-sponsored legislation to eliminate the tip credit so a final outcome remains unclear.
Denver, CO – On Oct. 29, the city will hold its next to last public hearing on the mayor’s proposal to raise the city’s minimum wage to $15.87/hr by Jan. 1, 2021 with an initial increase to $13.80/hr taking effect this coming Jan. 1. The ordinance will keep a $3.02/hr tip credit as mandated under state law.
Houston, TX – The mayor signed an executive order increasing the minimum wage for workers at the city’s two airports to $12.00/hr by 2021. The action, affecting nearly 8,000 workers, was a direct result of an SEIU-led campaign to force an increase in wage rates.
Paid Leave
Federal – “Dadvocates” hit the U.S. Capitol this week lobbying members of Congress and Ivanka Trump making the case that parental leave is not just a “women’s issue.” Many companies, jurisdictions and in some cases the courts have expanded parental leave to individuals beyond the birth mother.
New Hampshire – In advance of next year’s legislative session, the governor has announced a new paid family leave proposal. Earlier in the year, he and the governor of Vermont announced a bi-state solution. The new proposal does not include Vermont and would be a voluntary program. In 2018, the governor vetoed a program funded by a payroll tax and in the 2019 legislative session, the upper and lower chambers disagreed on the right approach.
Labor Policy
Federal – U.S. Senator Mark Warner wants the Securities and Exchange Commission (SEC) to collect employment data from companies, such as disclosures on turnover rates, number of workers (full-time or contractors) and spending on employee training. He voiced his wishes in a letter to the agency, which is currently drafting a new rule related to human capital resource disclosures.
U.S. Congress – House subcommittees have held a series of discussions around the future of work. Democrats largely advocated for bolstering wages and benefits, worker protections and union bargaining power. Interestingly, some Republicans argued for new work arrangements including multiple-employer plans that allowed for portable benefits.
ACA – Industry groups are circulating a sign-on letter calling upon the U.S. Senate to eliminate the “Cadillac Tax” by year’s end.
Philadelphia, PA – Included in a “Domestic Workers Bill of Rights” that passed a city council committee this week was a provision that would allow a city agency to establish a system of portable benefits for domestic workers. Under the proposal, workers would be allowed to accrue and use benefits across multiple employers. After passage of the ordinance, the city would assemble a task force to hash out the technical aspects of the portable benefit system and other issues. The bill now heads to the full council.
Democratic Presidential Primary – Noted labor reporter and author Steve Greenhouse released a report card of the Democratic presidential candidates labor platforms this week. Most candidates received a B grade. Sens. Sanders and Warren were the only candidates to receive A grades.
Chipotle – A lawsuit filed this week in New York alleges ongoing instances of sexual harassment and sexual assault, as well as rape, perpetrated by a Manhattan manager against an employee. The allegation is emerging against the backdrop of an ongoing SEIU organizing effort at the chain’s New York City locations.
Key Takeaways
- Steve Greenhouse’s report card on the Democratic presidential candidate’s labor platforms is worth a read. It outlines how 2020 candidates have done much more than play lip service to the labor community and in many cases (and opposed to past cycles), flushed out detailed platforms on a variety of different issues. This process is moving otherwise fringe, academic concepts quickly toward the political mainstream. Greenhouse provides a great summary of a number of these key policy items.
- Expect more states to promulgate new overtime regulations and rates. The issue will continue to be a hot topic as the Trump Administration rules are finalized and likely challenged in the courts.
- The advancement of the concept of portable benefits by the Philadelphia city council this week is an important stepping stone in the progression of the issue. The passage of AB-5 in California earlier this year, the Republican paid leave plan being forwarded by Sen. Marco Rubio and the actions in Philadelphia this week, signal an escalation – by both the political left and right – in the growing acceptance of the concept. The industry needs to engage in this conversation to favorably shape the trajectory of this issue.