This Week in Augusta – May 22, 2017 edition

Date: May 22, 2017

SESSION

Tuesday – Senate & House, 10 a.m.

Wednesday – Senate & House, 10 a.m.

Thursday – Senate & House, 10 a.m.

http://legislature.maine.gov/

 

LEGISLATION

LD 1591 – LD 1619 printed

New titles of interest include:

  • Support Maine employers and encourage employers to hire young workers (LD 1609)
  • Create a Universal Family Care program (LD 1612)
  • Create a Universal Child Care program (LD 1618)

 

OVERTIME & MINIMUM WAGE CHANGES PROPOSED

Governor LePage has proposed several changes to Maine’s minimum wage and overtime law that are sure to be controversial (LD 1609):

  • Sets overtime annualized salary threshold to the federal level (currently $23,600) instead of 3,000 times Maine’s minimum wage (currently $27,000)
  • Institutes a training wage of 80% of the minimum wage for the first 90 consecutive days of employment of workers under the age of 20
  • Institutes a youth wage of 80% for workers under the age of 18 and who are not covered under the federal minimum wage law
  • Eliminates minimum wage indexing for inflation
  • Sets future minimum wage increases to 50-cents a year instead of $1 so that the wage in 2021 will be $11
  • Reinstates the tip credit and amends the law concerning service charges in restaurants

A public hearing and work session is scheduled for May 23 (see below). Opposition is expected to be strong among labor advocates and their legislative allies except for changes concerning restaurants and tipped workers. A legislative committee voted 11-2 earlier this month in favor of amended legislation (LD 673) that restores the tip credit.

 

NEW TAX PROPOSED ON UPPER-INCOME JOBS

Emboldened by the vote last November on the 3% income surtax issue for increased state funding of K-12 education (Question 2), progressive activists are now proposing two costly new ideas that would hit upper income workers and business owners even harder:

  • Universal Family Care and in-home and community support services for all individuals and families who are eligible – income is not an eligibility factor (LD 1612)
  • Universal Child Care for all individuals and families who are eligible are eligible based on age of the child – family income is not an eligibility factor (LD 1618)

Both proposals plan to use a funding mechanism that could raise $440 million in new revenues, according to a Maine People’s Alliance description published earlier this year:

  • 12.4% tax on wages over $118,500 (6.2% employee & employer)
  • 12.4% tax on self-employment net earnings over $118,500
  • 3.8% tax on unearned income over $127,000

The bills were referred to committee and may be carried over until the 2018 legislative session. NFIB strongly opposes both proposals.

 

NOTABLE HEARINGS SCHEDULED

Here is a schedule of hearings on selected issues that may interest small business owners:

May 23, 1 P.m. – Labor, Commerce, Research & Economic Development

  • Support Maine employers and encourage employers to hire young workers (LD 1609)

 

NOTABLE WORK SESSIONS SCHEDULED

Here is a schedule of work sessions on selected issues that may interest small business owners:

May 23, 1 p.m. – Insurance & Financial Services

  • Encourage Maine consumers to comparison shop for certain health care procedures (LD 445)

 

May 23, 2 p.m. – Labor, Commerce, Research & Economic Development

  • Support Maine employers and encourage employers to hire young workers (LD 1609)

 

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