United States: Still "Open For Business" – New Wisconsin Legislation To Preempt Most Local Employment Ordinances

Last Updated: March 28 2018
Article by Adam-Paul J. Tuzzo and Joshua D. Levine

In recent years, cities, counties, and other local government bodies across the country have enacted ordinances increasing the minimum wage, granting paid and unpaid sick leave, placing restrictions on how employees are scheduled, and requiring employers to enter into "labor peace agreements" with unions. As this activity has intensified, employers with operations in multiple jurisdictions within a state or across multiple states have been confronted with the onerous task of complying with a patchwork of conflicting employment rules. Wisconsin is about to join the list of over a dozen states that have taken action to preempt local governments from passing such ordinances.

ASSEMBLY BILL ("AB") 748

Wisconsin's state legislature recently passed AB 748, which generally prohibits "local government units" (including cities, villages, towns, counties, and other political subdivisions) from enacting or enforcing ordinances addressing key labor and employment matters. Governor Scott Walker is expected to sign it into law. Key provisions of this bill are briefly summarized below.

Hours, Overtime, Scheduling

AB 748 provides that no local ordinance may regulate "employee hours or overtime, including scheduling employee work hours or shifts." This does not include certain ordinances regulating the hours a business may operate or hours or overtime of certain traveling sales crew workers.

Employment Benefits

Another provision stipulates that no local ordinance may require an employer to "provide certain employment benefits," "provide a minimum level of employment benefits," or "prescribe the terms or conditions of employment benefits provided to its employees." The term "employment benefits" includes "anything of value, other than wages and salary, that an employer makes available to an employee, including a retirement, pension, profit-sharing, insurance, or leave benefit."

Salary Information

Notably, AB 748 references the recent trend of limiting an employer's use of salary history information. The bill instructs that no local ordinance may prohibit "an employer from soliciting information regarding the salary history of prospective employees."

Wage Payments, Claims, and Collections

Under AB 748, no local ordinance may regulate "wage claims or collections." The Wisconsin Department of Workforce Development will continue to investigate and attempt to resolve such disputes under applicable state laws such as Wis. Stat. 109.09.

Professions Requiring Licensing and Certification

AB 748 provides that no "political subdivision" may impose any occupational licensing requirements on an individual who works in a state-regulated profession "that are more stringent than the requirements imposed by the department that regulates that profession." It is unclear why this prohibition does not apply to all "local government units" and what that means for city, town, village, and county regulations that impose more stringent licensing requirements than the state.

Labor Law Preemption

Finally, AB 748 includes two provisions ostensibly aimed at outlawing government-imposed "labor peace" or collective bargaining agreement terms. A "labor peace agreement" is an agreement between a union and an employer waiving certain rights available under state or federal law such as the right of an employer to oppose unionization through lawful education activities and the right to insist on a secret-ballot election to determine whether an uncoerced majority of employees really want a union.

Under AB 748, neither the state, any local government unit, nor any of their employees may "require," "compel," or "attempt to compel" any person to waive or agree to waive their rights under "state or federal labor laws" as a condition of obtaining any regulatory or other approval. Anyone who knowingly violates this provision is guilty of a Class A misdemeanor. AB 748 also prohibits the state and local government units from using other means – e.g., statutes; ordinances; regulations; policies; contract zoning, permitting, or licensing requirements; or any other condition including a "condition of regulatory approval" – that would "require any person to accept any provision that is a mandatory or nonmandatory subject of collective bargaining under state or federal laws." Existing labor peace agreements previously mandated by state or local law remain enforceable until they are renewed, modified, or extended; at that point, such agreement may be voluntarily entered into but are no longer required.

Notable Exceptions

A late change to AB 748 removed a prohibition on local governments regulating employment discrimination. Therefore, local employment discrimination ordinances remain enforceable.

Additionally, businesses operating in an "electronics and information technology manufacturing (EITM) zone" and certain job-training and apprenticeship programs connected with jobs in EITM zones are exempted from AB 748's "labor peace agreement" provisions.

OPEN FOR BUSINESS

AB 748 is a major step toward ensuring that employers and employees have uniform and consistent employment regulations wherever they do business across the state. We will continue to monitor AB 748 and report on any significant developments.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

Authors
Adam-Paul J. Tuzzo
 
In association with
Related Topics
 
Related Articles
 
Related Video
Up-coming Events Search
Tools
Print
Font Size:
Translation
Channels
Mondaq on Twitter
 
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
 
Email Address
Company Name
Password
Confirm Password
Position
Mondaq Topics -- Select your Interests
 Accounting
 Anti-trust
 Commercial
 Compliance
 Consumer
 Criminal
 Employment
 Energy
 Environment
 Family
 Finance
 Government
 Healthcare
 Immigration
 Insolvency
 Insurance
 International
 IP
 Law Performance
 Law Practice
 Litigation
 Media & IT
 Privacy
 Real Estate
 Strategy
 Tax
 Technology
 Transport
 Wealth Mgt
Regions
Africa
Asia
Asia Pacific
Australasia
Canada
Caribbean
Europe
European Union
Latin America
Middle East
U.K.
United States
Worldwide Updates
Registration (you must scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions

Mondaq.com (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of www.mondaq.com

To Use Mondaq.com you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.

Disclaimer

The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.

General

Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions