As states across the U.S. consider changes to everything from minimum wage changes to legalizing recreational cannabis use, employers could need to make significant adjustments to their business operations. These proposals could require businesses to adapt to budget changes, adjust their worker classification procedures, make updates to their compliance policies, and more.
Top 15 Current Workplace Law Issues
Alaska, California, Missouri, and Nebraska: Minimum Wage Increases and/or Sick Leave
Alaska’s Ballot Measure 1 includes a minimum wage increase (to $15/hour by 2027) and paid sick leave requirements.
California’s Proposition 32 is putting the state’s minimum wage on the ballot. If it passes, the minimum wage will be $18/hour – the highest in the nation.
Missouri voters will be considering a minimum wage increase (to $15/hour by 2026) as well as paid sick leave requirements.
Nebraskan voters will decide whether to include paid sick leave as state law.
Arizona and Massachusetts: Changes to Tipped Wages
Arizona’s Proposition 138 is generating national attention. It proposes to allow hospitality employers to pay a lower minimum wage for tipped employees. The proposed minimum wage for such workers is 25% less than the standard minimum wage as long as workers earn at least $2 an hour more than the standard minimum wage when tips are included in the calculations.
Like Arizona, Massachusetts is considering changing the way it handles tipped wages. The measure will determine whether to end the tip wage altogether and require hospitality employers to pay the standard minimum wage (currently $15/hour) regardless of how much workers earn in tips.
Florida, North Dakota, South Dakota, and Oregon: Cannabis
Measures in each state could put Florida and both Dakotas among the growing list of states that legally allow recreational sales and use. If voters approve the initiatives, employers will be dusting off their handbooks and considering how/if to update workplace policies.
Oregon has cannabis on the docket as well, but rather than deciding whether to legalize recreational use (which it did in 2014), Oregon voters will be deciding whether cannabis businesses will need to enter into a signed labor peace agreement with a labor organization to obtain or renew the state-required license from the Oregon Liquor and Cannabis Commission.
Massachusetts: Changes to Gig Workers
Massachusetts is busy on the workplace law front and each measure is a big one. In addition to the previously-mentioned measures to change minimum wages for tipped workers, voters will also decide on two competing measures about gig workers. One initiative would classify app-based drivers as independent contractors, while the other would allow them to unionize and engage in collective bargaining.
Finally, Massachusetts voters will also have the chance to determine whether the state will begin to provide regulated access to certain psychedelic substances like psilocybin and other psychedelics. Like the cannabis measures above, this isn’t directly related to the workplace, but may impact employers’ drug policies.
For examples of how this might look in practice, employers can look at states like Colorado (Proposition 122) and Oregon (Measure 109), which have both decriminalized these substances in recent years.
New York: Equal Protection Expansions
Voters in New York will be deciding whether …
If passed, the Equal Protection Amendment would expand existing protections (which prohibit discrimination based on race, color, creed, and religion) to include ethnicity, national origin, age, and disability, as well as sex, sexual orientation, gender identity, gender expression, pregnancy, pregnancy outcomes, and reproductive healthcare and autonomy. While board protections already exist, this measure would add them to the state constitution.
The Bottom Line
Businesses should be ready to modify pay structures, update leave policies, and revise employee handbooks quickly to stay ahead of these developments to ensure compliance. Whether these decisions directly affect your business or not, they could have a ripple effect across the country and every employer should monitor the outcomes closely and be prepared to adjust. Need an assist on the compliance front? Schedule a free consultation now.
