There are a lot of Democratic Candidates for president. As of today, there are 25 active Democratic candidates vying for the party’s nomination. Many of these candidates have not released specific proposals about their beliefs on employment and labor law issues. However, before tonight’s debate I wanted to outline some of the most interesting proposals of the candidates on labor and employment law and the workplace.
$15 Minimum Wage
Joe Biden announced his support in his first campaign speech. Bernie Sanders has drafted legislation to increase the minimum wage to $15 an hour. As reported by Vox, only 4 candidates (Andrew Yang, Bill de Blasio, Jay Inslee, and Wayne Messam) have not taken a position on the minimum wage. Sen. Michael Bennet favors a 12 dollar minimum wage. Klobuchar, Hickenlooper, Warren, O’Rourke, Castro, Harris, Kirsten Gillibrand, Pete Buttigieg, Marianne Williamson, Tulsi Gabbard, Eric Swalwell, Cory Booker, Seth Moulton, Tim Ryan, Mike Gravel, John Delaney, and Steve Bullock all support a $15 minimum wage.
Increasing the minimum wage is likely to have a number of effects on labor and employment. Namely, the minimum wage increase will cause wages to rise for the lowest paid workers. This in turn may cause increased salary compression where higher paid workers do not receive the same increase in their wages that minimum wage workers receive. Many other workers that are not currently minimum wage workers, will need to have wage increases to reward their skills and ensure that they believe that they are adequately compensated. Individuals that have wages close to the minimum wage will expect an increase if they are not making that much more than the minimum wage after a minimum wage hike.
Of course, the minimum wage increase will also have a bigger impact on employers and industries that tend to be located outside of major metropolitan areas or in states where the cost of living is cheaper. For example, in 2015 there were 8 states had a median wage that was less than $15 an hour. Increasing the minimum wage in these states would have a dramatic impact on employee salaries as more than half of workers would need wage increases just to reach the minimum wage. Again, workers with wages that are currently under $15 an hour but above the minimum wage would need wage raises beyond $15 an hour to ensure that their talents are rewarded (i.e. they are getting fairly paid and making more than $15 or the minimum wage). For example, an EMT in Alabama currently averages $14.06 an hour. They would expect a new wage that would be significantly higher than any minimum wage worker making $15 per hour.
Card Check and Union Organizing
Joe Biden, Kamala Harris, Bernie Sanders, Elizabeth Warren, and many others support a law that will enable labor unions to organize by card check. This means that the individuals only need to get a majority of the employees in a workplace to sign union authorization cards. Union authorization cards authorize a specific union to represent the employee, which goes into effect if the union wins an election or the employer voluntarily recognizes the union if a majority of employees sign union authorization. If enacted, card check would mean that there would not be any election to decide whether to form a union in a workplace. Rather, if a majority of employees signed union authorization cards, then the employer would be forced to recognize the union without an election.
This would be a radical change in labor law and would remove, what in my opinion, is a critical piece of labor relations. Namely, that employees are able to vote on whether they would like to have a union in a way that enables their ballots to be secret and free from undue influence.
Eliminating the Gender Pay Gap through EEO-1 Data
Kamala Harris has proposed a requirement that she believes would end the gender pay gap. She is pushing to punish companies with a 1 percent fine for every 1 percent wage gap that exists in their ranks.
Companies will be required to certify that they are paying women the same as men for equal work. To the extent that pay disparities exist a company will need to show that the gap is based on merit, performance, or seniority. Companies will be required to obtain an equal pay certification to avoid paying these fines.
This would be a radical change and would require companies to devote significant resources to demonstrating that their pay practices are not discriminatory.
Sexual Orientation Discrimination
Democratic candidates generally support prohibiting sexual discrimination. This, however, is one issue that will likely be resolved when the Supreme Court decides two cases next year. Bostock v. Clayton County, Georgia and Altitude Express Inc. v. Zarda.
The Supreme Court will decide “Whether the prohibition in Title VII of the Civil Rights Act of 1964, 42 U.S.C. § 2000e-2(a)(1), against employment discrimination “because of . . . sex” encompasses discrimination based on an individual’s sexual orientation.” The decision in these cases will likely determine the final proposals of any Democratic candidate on the issue.
Enacting Paid Family Leave
Kirsten Gillibrand reintroduced her legislation to create a federal paid family and medical leave program. Her plan is co-sponsored by Bernie Sanders, Cory Booker, Amy Klobuchar, Kamala Harris, and Elizabeth Warren.
The bill would essential replace unpaid FMLA leave with 12 weeks of paid family leave.
I’ve said it before (see my earlier post). Paid family leave is coming to the US. President Trump and the Democrats both agree on paid family leave but differ in how they wish to implement it.
Eliminating No Poach Agreements
Cory Booker and Elizabeth Warren have proposed legislation that would outlaw no poach agreements within franchise agreements. No poach agreements prohibit employers from hiring the employees of another employer that is part of the agreement. In fact, 11 state Attorney Generals launched an investigation into these no-poaching clauses and seven chains that represented more than 25,000 stores nationwide have dropped these clauses. With these investigations underway, it is unlikely that the bill or any proposal from a presidential candidate will dramatically impact the law because the court cases will likely decide whether these agreements are enforceable under Antitrust law.
Banning Noncompetition Agreements
Senators Warren and Klobuchar support limiting non-competition agreements. Noncompetition agreements permit employers and employees to enter into agreements to prohibit employees from competing against an employer after they leave that employer’s employment. Both of these Senators have called on the Federal Trade Commission to use their rulemaking authority to limit noncompetition agreements.
Elizabeth Warren has sponsored legislation to ban non-competes. Yes, all non-competes. It would not affect the ability of companies to protect their trade secrets.
The legislation fails to consider some of the important factors that matter for noncompetition agreements and why they are important. Granted, not all employees need nor should they be required to sign noncompetition agreements. For example, employees at Jimmy John’s do not need noncompetition agreements. Forcing the employees that make sandwiches to sign noncompetition agreements does not help the company. It destroys employee morale and makes it harder for the company to find employees once this policy becomes known because (surprise) employees want to be treated well.
Salespeople, executives, owners of companies that sell their company but agree to stay with the company during a transition period, and many other high-level employees are individuals that should sign noncompetition agreements. It makes sense that a former owner should not be allowed to open a competing business after he or she sells their business.
We can expect that if either are elected as President that they would seek to limit or do away with noncompetition agreements.
Ending the Tipped Wage
The Raise the Wage Act would phase out the tipped wage. Bernie Sanders, Cory Booker, Klobuchar, Gillibrand, Harris, and Warren have sponsored the legislation and thus support ending the tipped wage. As I said previously in this post (quoted below), the tipped wage has been a controversial subject for many states and cities.
The recent debate in DC to eliminate the tipped wage demonstrates that many groups have a wide variety of opinions on the issue of tips. The proposal was a voter initiative that would have eliminated the tipped wage and it passed, but it was ultimately undone by a DC council vote. Many restaurant workers expressed concern that the elimination of the tipped wage would cost them money as less people would tip.
Ending Arbitration as a Condition of Employment
Cory Booker, Kirsten Gillibrand, Kamala Harris, Amy Klobuchar, Bernie Sanders, and Elizabeth Warren are all cosponsors of the Restoring Justice for Workers Act. The bill would essentially end employment agreements where arbitration is a condition of employment (it is in an initial employment agreement) and would prohibit arbitration in many other circumstances unless the employee agreed to be subject to arbitration and the arbitration agreement met certain conditions.
Elizabeth Warren, in a letter to the Department of Labor’s Solicitor of Labor, requested information about the DOL’s approach in bringing enforcement actions against companies with employees that signed arbitration agreements as a condition of employment. It is clear that she would like to end arbitration agreements as a condition of employment.
Arbitration has some advantages and disadvantages. Robin Shea, at the Employment & Labor Insider, does a great job of outlining them. For many employers and employees, it is the best way to handle workplace disputes. Removing arbitration as a possibility for handling workplace disputes would radically change employment and labor law by requiring all disputes to be resolved through an already backlogged court system.
Conclusion
One thing is certain no matter which Democratic candidate wins the nomination there are a lot of proposed changes to labor and employment law and the workplace in general among the various proposals of the candidates. It will be incredibly interesting to see who the Democratic candidate will be, what policies they will propose, and how the election influences labor and employment law.
Disclaimer: This is not a full list of all the candidates’ political positions on the workplace nor labor and employment law, but merely some highlights of issues you will see in play. If you know of or would like to highlight other aspects of any Democratic candidate that I did not mention or left out, then please feel free to comment below.
The information provided in this blog is for educational purposes only and is not legal advice. If you need legal advice, then you should speak with a lawyer about your specific issues. Every legal issue is unique. A lawyer can help you with your situation. Reading the blog, contacting me through the site, emailing me or commenting on a post does not create an attorney-client relationship between any reader and me.
The information provided is my own and does not reflect the opinion of my firm or anyone else.