As companies prepare for the first required Dodd-Frank pay ratio disclosures in 2018, state and local legislatures may attempt to cash in on the deal. This week in Portland, Oregon, the City Council held a hearing to address a new proposed tax on companies with a pay ratio greater than 100:1 that would apply to any company required to pay business taxes in Portland (the city estimated this would affect about 540 companies, bringing in $2.5 to $3.5 million in additional tax revenue every year). Modeled along the lines of a similar, failed proposal in California in 2014, the Portland proposal would take a stepped approach, charging companies with higher pay ratios a higher surtax on their existing business license tax. City Commissioners will be voting on the proposal on December 7, and if approved, would be able to charge the higher surtax beginning in 2018 after the first disclosures are made public.
Non-Compete Clauses (New York): Next year, New York Attorney General Eric Schneiderman will introduce a bill to the state legislature that would impose limitations on non-compete agreements and prohibit use of the agreements entirely for workers making less than $900 per week. “Workers should be able to get a new job and improve their lives without being afraid of being sued by their current or former employer,” said Schneiderman. “My proposed bill will protect workers’ rights to seek new and better opportunities, particularly low-wage workers who have been locked into minimum wage jobs due to non-competes. It will also ensure that businesses can hire the best worker for the job.” The Attorney General's promise to introduce the legislation comes as 12 states have considered non-compete reforms in the past year.
Gig Economy (New York): Governor Andrew Cuomo signed legislation that severely restricts the use of online home sharing services such as AirBnB with fines of up to $7,500 for advertising short-term rentals of less than 30 days when the app user is not present with guests. Proponents of the bill argue that it will deter users from starting "illegal hotels" with multiple properties, though substantial proof of widespread abuse is lacking. Meanwhile, the New York State Department of Labor ruled that two Uber drivers are eligible for unemployment payments, considering them to be employees of the ride-sharing app company. This comes as unions continue to sue Uber over "wage theft" allegations, the most recent lawsuit being filed this week.
Paid Leave (Washington, D.C.): Washington, D.C. Mayor Muriel Bowser expressed concern over a proposal to create one of the most generous paid leave proposals in the country, telling the Washington Post "she would support paid family leave if it's affordable," but that analyses of earlier versions suggest it would be "economically devastating." At a meeting this week, the mayor sparred with Council Chairman Phil Mendelson over the secretive process that has come to characterize his handling of the bill, charging, "You are not giving us the information that we need to be helpful. So it puts all of us, I think, in a very bad position come time to vote on a $400 million (piece of legislation).”
Sick Leave (Minneapolis): According to a lawsuit filed by the Minnesota Chamber of Commerce, a sick leave mandate recently enacted by Minneapolis runs afoul of state law. Businesses represented by the Chamber maintain they are not opposed to sick leave, but are concerned the city’s law will lay the groundwork for numerous and sundry sick leave regulations throughout the state.
Minimum Wage (Cook County, IL, and Polk County, IA): The Board of Commissioners in Cook County, IL, the state's largest county, voted to raise the minimum wage to $13 per hour over the next four years, placing it a year behind Chicago's minimum wage schedule. Three hundred miles west, the Board of Supervisors in Polk County, IA, voted to raise the minimum wage to $10.75 by January 2019, making it the fourth Iowa county and the most populated in the state to raise the minimum wage above the federal level.
Scheduling (Emeryville, CA): Following Seattle and nearby San Francisco, the Emeryville City Council unanimously passed a law requiring employers with over 54 employees to provide employees with schedules at least two weeks in advance and provide extra pay to employees who take on shifts on short notice. A similar measure will appear on the ballot in San Jose next month.
