The Board of Trustees of the Village of Glenview last week opted in to the Cook County Earned Sick Leave Ordinance, effective July 1, 2019. The Glenview Board had opted out of the County PSL ordinance in June 2017, just weeks before its effective date. Glenview joins the villages of Northbrook, Wilmette and Western Springs as municipalities that had initially opted out before opting in.
The political change of heart in Glenview comes three months 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. Approximately 80% of the County’s municipalities have opted out of its Earned Sick Leave Ordinance. My “nix list” is here.
The agenda packet relating to last week’s meeting of Glenview’s Board of Trustees included an interesting bit of information about the enforcement of the County PSL ordinance. A comment in that packet notes that the County Human Rights Commission, which enforces the County’s PSL law, has stated that “to date there have been no claims filed by employees against Cook County employers regarding violations” of the Earned Sick Leave Ordinance.”
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.
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.
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.
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.
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.
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.
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 on Friday. A state district court judge earlier this year said that the challenge to the Austin PSL ordinance had “the aroma of a good political blood fight,”
The court’s ruling focused largely on whether the sick days required by the Austin ordinance were a “wage,” a term not defined in the TMWA. Relying on dictionary definitions to discern the “plain meaning” of that word, the court noted that the Austin Ordinance establishes a wage because it “increases the pay of those employees who use paid sick leave.”
The court explained that employees who use sick leave are paid a higher rate of pay for hours actually worked. For example, the court noted, an hourly employee earning $10 per hour who works 15 hours per week for 50 weeks (750 hours total) will have earned $7500 for that work. If that same employee uses the 25 hours of sick leave earned during that period under the Austin ordinance, the employee’s hourly wage for hours worked would increase to $10.33.
The court concluded that since “the Ordinance increases the pay of those employees who use paid sick leave,” it is a “wage” under the TMWA and, for that reason, is preempted by that state law.
The court’s decision comes just a few days after a Texas legislator pre-filed a bill to preempt local paid sick leave laws. My post on that pre-filing is here.
San Antonio is the only other Texas city to have enacted a PSL law. It is scheduled to be effective on August 1, 2019.