Paid Sick Leave Quarterly: 4Q 2018

The vast and complex patchwork of PSL laws expanded in Q4 with Michigan becoming the 11th PSL state. This summary includes:

  • Paid Sick Leave Laws Effective in Q4

    Paid Sick Leave Laws Effective After Q4

    Louvre Sculpture

    Paid Sick Leave Bills Introduced During Q4

    • None, though some introduced previously are still pending.

    Paid Sick Leave Preemption Developments

    Alabama: Marnika Lewis v.  State of Alabama et al. (11th Cir) (Case No.17-11009)(11th Cir. July 25, 2018). The Alabama Uniform Minimum Wage and Right-to-Work Act bars municipalities from requiring employers to provide employees wages or “employment benefits,” including leave, unless required by federal or state law. It was passed the day after Birmingham increased the minimum wage within the city. The plaintiffs brought various race-based challenges to the Act, all of which were rejected by a federal district court last year. In July, the Eleventh Circuit affirmed the dismissal of all claims except the “equal protection” constitutional claim, holding that the plaintiffs have plausibly alleged both that the Act “burdens black citizens more than white ones” and that  it was enacted with a discriminatory purpose. The court remanded that claim to the district court.

    Texas: On opening day of the pre-filing season in the Texas Legislature, one of the pre-filed bills would preempt municipalities from adopting or enforcing any ordinance requiring an employer to provide paid sick leave to an employee. House Bill 222 also voids any ordinance that requires an employer to provide paid sick leave, such as the Austin and San Antonio PSL ordinances. The legislative session opened on January 8, 2019. If enacted, the bill would be effective September 1, 2019.:

    Proposed federal bill: The Workflex in the 21st Century Act, introduced in the House of Representatives in November, 2017, would expand ERISA preemption to override the patchwork of paid sick leave laws for an employer which voluntarily adopts a written qualified flexible workplace arrangement” (QWFA) that provides the required minimum amount of “compensable leave” and offers employees at least one of the listed “workflex options.” The bill died with the end of the 115th Congress.

    Paid Sick Leave Litigation

     Challenges to state PSL laws

    Massachusetts: The Railroad Unemployment Insurance Act (RUIA) preempts the Massachusetts Earned Sick Time Law (MESTL) in its entirety as it applies to interstate rail carriers, according to a decision in August by a Massachusetts federal district court on remand from the First Circuit. The First Circuit had held previously that the MESTL provision dealing with benefits for an employee’s own medical condition was preempted by the RUIA but remanded the case to have the district court decide whether any other sections of MESTL were preempted by the RUIA or the Railway Labor Act or ERISA and whether any sections of the MESTL can survive as applied to interstate rail carriers. CSX Transp. v. Healey, 861 F.3d 276 (1st Cir. 2017).

    Massachusetts and Washington: The Massachusetts Earned Sick Time Law (MESTL) and Washington State Paid Sick Leave Act (WPSL) as applied to flight crew are unconstitutional and preempted by the federal Airline Deregulation Act (ADA), according to complaints filed by the Air Transport Association of America, an association of airline carriers.  The plaintiff claims these state laws violate the dormant Commerce Clause–the implicit restriction on a state or local government’s ability to unreasonably burden interstate commerce–and the Fourteenth Amendment of the Constitution.  The plaintiff also alleges that the Airline Deregulation Act (ADA) preempts the state PSL laws with regard to both flight crew and ground crew because they relate to a “price, route or service of an air carrier.”  Air Transport Association of America, d/b/a Airlines For America v. Maura Healey in her capacity as Attorney General of the Commonwealth of Massachusetts (D.MA)(complaint filed 04/04/18)Air Transport Association of America, d/b/a Airlines For America v. The Washington Dep’t of Labor and Industries et al (W.D. WA)(complaint filed 02/06/18).

    Challenges to local PSL laws

    Pittsburgh, PA: The Supreme Court of Pennsylvania will decide whether Pittsburgh had authority to enact the Sick Days Act which it adopted three years ago. Last year, an appellate court affirmed a lower court decision that the city did not have the authority to enact it and invalidated the law. The appeal will focus on an interpretation of the Home Rule Charter Law, which limits the City’s authority to regulate business “except as expressly provided by statutes….”  Oral argument in the Supreme Court occurred on October 23, 2018.  Pennsylvania Restaurant and Lodging Ass’n v. City of Pittsburgh and Service Employees Int’l Union, Local 32 BJ. (Pa. Supreme Court, 57 WAP 2017).

    Austin, TX: The Austin Earned Sick Time Ordinance is unconstitutional because it is preempted by the Texas Minimum Wage Act (TMWA), the Texas Court of Appeals, Third District, ruled in November.  The court’s ruling focused largely on whether the sick days under ordinance were a “wage.” Relying on dictionary definitions, the court held that the Ordinance establishes a wage and is thus preempted by the TMWA. The Austin PSL ordinance had been scheduled to go into effect on October 1, 2018 but its implementation had been enjoined pending the outcome of the litigation. The City of Austin, reportedly, intends to appeal to the Texas Supreme Court. Texas Ass’n of Business et al v City of Austin, Texas et al (TX Ct of Appeals, Third District, November  16, 2018). 

    Other Paid Sick Leave Developments To Watch

    Albany County, NY: The County’s Paid Sick Leave Act was introduced in March and referred to the Legislature’s Law Committee. There have been two public hearings. The Law Committee will revisit the proposal in 2019.

    Cook County Earned Sick Leave Ordinance:  More than 80% of the municipalities within Cook County had opted out of the County PSL ordinance. The Village of Wilmette, after opting out of the County PSL ordinance twice, opted back into it.  The villages of Northbrook and Western Springs revoked their “opt out” of the County PSL ordinance earlier this year. More municipalities within Cook County are expected to reconsider their opt out decisions this year.

    Albuquerque and Portland, ME. Either city could be the next to enact a PSL ordinance. After a multi-front, prolonged legal battle, Albuquerque voters in 2017 narrowly rejected a PSL bill. A more narrow bill is being debated in the legislature. In Portland, a PSL bill was introduced in 2017 and is wending its way through the legislative process.

    All part of life’s rich paid sick leave pageant!

 

Mandatory Paid Vacation Proposed in NYC

Note January 9, 2019 on your timeline of leave management history. Saying at a press conference yesterday that “New Yorkers need a break,” NYC Mayor Bill de Blasio proposed legislation to make NYC the first city in the nation to require employers to provide paid vacation to employees.

mar-90737_1280

With a Democratically-controlled City Council, and the trend of requiring employers to provide paid time off for a variety of reasons, one has to handicap the likelihood of this bill passing as better than even.

For those concerned that this might open yet another patchwork in the paid leave mosaic, you are spot-on. One need not look too deeply into one’s crystal ball to develop a list of municipalities, and perhaps even a few states, that will be eager to follow NYC’s lead.  Watch for guaranteed vacation bills to be introduced in other jurisdictions shortly.

The proposed law would require employers to provide 10 days of paid vacation annually to full time workers. When the text of the bill is available, I will provide further analysis.

While this would be the first law in the nation to guarantee paid vacation, it would not be the first time such a bill was proposed. Two years ago, Maryland Governor Hogan, faced with pressure to enact a PSL bill, proposed the Commonsense Paid Leave Act, which would have allowed employees to accrue paid time off that could be used for any reason.  The legislature rejected the Commonsense approach and passed a PSL bill instead..

Michigan Lame Duck Governor Inks Sick Leave Amendment 

Michigan lame duck GOP Governor Rick Snyder on Friday signed into law the bill amending the recently enacted PSL law,  putting the finishing touch on a two-step political ploy to have the legislature craft a PSL bill rather than have voters consider a bill crafted by PSL advocates. For the ploy to succeed, Governor Snyder needed to sign the bill before  December 31, his last day in office.  Governor-elect Gretchen Whitmer, a Democrat, takes office on January 1.

The legislature took the first step of the stratagem on September 5, 2018, when it passed the Earned Sick Time Act, which was slated to be presented to voters in November.  The second step was to amend that law, which it did within the past few weeks. The amendment renames the PSL bill the Paid Medical Leave Act.

The stratagem represents a classic illustration of Miles’ Law which, in brief, states that ‘where you stand depends on where you sit.’ (see further discussion of Miles’ Law here). PSL proponents have accused the legislature of gutting the Earned Sick Leave Law and undermining democracy, or worse. They have threatened to challenge in court the legislature’s authority to amend the initial law.  Proponents of the ploy argue that the Earned Sick Leave Law did not adequately consider or balance the interests of all constituencies, small business in particular and that the Paid Medical Leave Act does so.

The Paid Medical Leave Act makes many changes to the Earned Sick Time Act. Generally, by narrowing the definitions of employer, employee and family member, it reduces the number of employee eligible for the PSL benefit, which it also reduced.

Michigan is the eleventh state to enact a paid sick leave law.

 

Michigan Sick Leave Amendment Awaits Governor’s Signature

With just a few weeks to go before the demise of Michigan’s GOP-trifecta on December 31, Governor Rick Snyder’s signature is the last step needed to amend the recently passed Earned Sick Time Act. Both legislative chambers passed amendment bills this week and sent an enrolled bill to Governor Snyder yesterday morning.pen-33077_1280

Governor Snyder’s signature on the renamed Paid Medical Leave Act would be the culmination of a two-step legislative gambit during the last three months. The first step was to pass the Earned Sick Time Act, which was slated to be presented to the voters on November 6.  The legislature passed that bill on September 5, 2018.  The second step was to amend that law to make it more to the GOP’s liking. Passing the Earned Sick Time Act  facilitated amending it because a majority in each chamber is needed to amend a law enacted by the legislature while three-quarters vote in each chamber is needed to amend a law enacted through a ballot initiative.

Proponents of the Earned Sick Time Act claim the amended law guts it, or worse.  Proponents of the amendment argue that the amendment softens an expensive mandate to reduce its detrimental impact on businesses, especially small businesses.

The amendment bill makes many changes to the Earned Sick Time Act. Among them is a change to its scope, both of employers to whom the law would apply and of employees who would be eligible to accrue PSL. Under the amendment, only employers with at least fifty employees would need to provide paid sick leave. Employees exempt under the FLSA and employees who worked an average of less than 25 hours during the previous calendar year are not eligible to accrue PSL under the amended bill.

 

President George H.W. Bush and His Sledgehammer

As we mourn today the death of President George H.W. Bush, my thoughts turn to his sledgehammer.

President Bush signed the Americans with Disabilities Act on July 26, 1990.  The ADA was a major piece of civil rights legislation not only in this country but internationally. President Bush noted this in his statement when he signed the bill into law:

This historic act is the world’s first comprehensive declaration of equality for people with disabilities — the first. Its passage has made the United States the international leader on this human rights issue.

He emphasized the ADA’s significance by referencing the very founding of our country:

Three weeks ago, we celebrated our nation’s Independence Day. Today we’re here to rejoice in and celebrate another “independence day,” one that is long overdue. With today’s signing of the landmark Americans for Disabilities Act, every man, woman, and child with a disability can now pass through once-closed doors into a bright new era of equality, independence, and freedom.

He could have stopped with the American Revolution, but he pulled the rope on the freedom bell one more time:

Last year, we celebrated a victory of international freedom. Even the strongest person couldn’t scale the Berlin Wall to gain the elusive promise of independence that lay just beyond. And so, together we rejoiced when that barrier fell.

With the gravitas of the bill on the desk before him established, President Bush picked up his pen:

And now I sign legislation which takes a sledgehammer to another wall, one which has for too many generations separated Americans with disabilities from the freedom they could glimpse, but not grasp. Once again, we rejoice as this barrier falls for claiming together, we will not accept, we will not excuse, we will not tolerate discrimination in America.

Since the 90’s, I have given many speeches to clients and business organizations about their compliance obligations under the ADA. In my PowerPoint presentation, the first slide was often the sledgehammer quote from President Bush’s  signing statement.

President Bush and his sledgehammer. The sledgehammer lives on. President Bush, rest in peace.

 

 

Wilmette Opts In After Twice Opting Out of Cook County Sick Leave Ordinance

They were against it twice before they were for it. The Wilmette Village Board on Wednesday opted in to the Cook County Earned Sick Leave Ordinance. The Wilmette Board had opted out of it in June 2017 and again in June 2018.

The political change of heart comes three weeks after the November 6 advisory ballot initiative in which  nearly 90% of voters in municipalities that had opted out of the County law urged their municipality to enact a paid sick leave ordinance.

Earlier this year, before the November referendum, the villages of Northbrook and Western Springs opted in to the County PSL law after having initially opted out. Other municipalities are expected to revisit their opt out decision as well.

Approximately 80% of the County’s municipalities have opted out of the its Earned Sick Leave Ordinance.  My “nix list” is here.

Senate Amends Michigan Sick Leave as Political Clock Ticks

The Michigan Senate yesterday amended—PSL proponents would likely say gutted– the PSL law the state had passed less than three months ago. The Senate’s action was the second step of the “pass it, then amend it” PSL strategy the GOP-controlled legislature was pursuing when it passed the PSL law in September rather than let voters adopt it in November through a ballot initiative.  Had the voters adopted the initiative, the legislature would have needed a three-quarters vote in each chamber to amend it. Amending a legislative enactment requires a majority vote in each chamber.

The clock is ticking because if the  PSL law does not get amended by the end of 2018, the law will likely remain as it was enacted in September.  Here is why: for a few more weeks, through the end of 2018, Michigan has a GOP trifecta–a Republican Governor and GOP control of both houses of the legislature. Come January 1, 2019, Gretchen Whitmer, a Democrat, will become the governor. While the GOP maintained control of both chambers in the recent election, neither chamber will have the two-thirds majority that would be required to override the governor’s veto.

As for the substance of the Senate amendment passed yesterday, the changes are many. Among them are reducing the scope of employees eligible to accrue PSL. Under the amendment, exempt employees and those covered by a labor contract, among other categories of employees, would not be eligible to accrue PSL.

Stay tuned.