Jackson Lewis LLP
10/16/2024 | News release | Distributed by Public on 10/16/2024 08:04
2024 Election Ballot Initiatives for Employers to Watch
While employers may not think about election days vis-à-vis labor and employment law obligations, this year, there are several states with ballot measures where voters will decide employment mandates. Issues for voters include potential minimum wage increases and paid sick leave mandates. Below we summarize the most prominent measures on the ballot on November 5th.
Minimum Wage Increases
Voters in five states will decide whether the state minimum wage will increase.
Alaska's voters will decide whether the state's hourly minimum wage should be increased to $13.00 effective July 1, 2025, with phased increases until 2027, when the minimum wage would be $15.00, and thereafter adjusted annually for inflation. The ballot measure also asks voters to decide whether the state should mandate paid sick leave, as well as prohibit employers from compelling employees to attend meetings regarding religious or political matters.
Arizona's voters will decide whether to amend the state constitution to allow an employer for any employee who customarily and regularly receives tips or gratuities to pay up to 25 percent less than the minimum wage per hour. The employer would need to establish the employee receives wages and tips that total at least minimum wage plus $2.00 per hour for all hours worked.
California's voters will decide whether to further increase the state's hourly minimum wage. If passed, in 2025, California would have different minimum wages for employers based on the number of employees. Employers with at least 26 employees would have a minimum wage of $18.00 per hour. Employers with up to 25 employees would have a minimum wage of $17.00 per hour. Thereafter, the minimum wage would increase annually based on inflation. Without Proposition 32, the minimum wage for all employees would be about $16.50 per hour.
Massachusetts voters will decide whether a phased minimum wage increase for tipped workers should be implemented until workers are paid the full state minimum wage effective Jan. 1, 2029. In essence, voters will decide whether the "tip credit" would be eliminated under state law.
Missouri voters will decide whether the state minimum wage should increase to $13.75 effective Jan. 1, 2025, with an increase to $15.00 in January 2026 and annual adjustments thereafter based on the Consumer Price Index. The proposition also seeks to implement a state paid sick leave law.
Paid Sick Leave Mandates
Three states may join the national trend of requiring employers to provide paid sick leave to employees.
This measure also seeks to require employers with at least 15 employees to allow employees to accrue up to 56 hours of paid sick leave per year, and employers with up to15 employees to allow employees to accrue up to 40 hours of paid sick leave per year.
The proposition also seeks to implement a state paid sick leave law requiring employers to provide one hour of paid sick leave for every 30 hours worked.
Nebraska voters will decide whether the state should enact a paid sick leave law requiring employers with at least 20 employees to allow employees to accrue 56 hours of paid sick leave annually, and employers with up to 20 employees to allow employees to accrue 40 hours of paid sick leave annually.
Other Employment Mandates
The ballot measure also seeks to prohibit employers from compelling employees to attend meetings regarding religious or political matters, similar to legislation passed in California and other states.
Question 3, if passed, would authorize the formation of a union and collective bargaining for ride-share drivers. The new framework would be overseen by state regulators, who would approve agreements between the parties.
Employer must monitor the outcome of these initiatives to ensure compliance. Jackson Lewis will provide an update following the election. If you have questions about these measures or related issues, including legislative developments, contact a Jackson Lewis attorney to discuss.