Ballot initiatives are direct democracy in action. A dozen states had initiatives affecting employment this year. If you’re in one of these states, then you’ll need to keep track of the changes, as they could impact your business. With that in mind, let’s jump in and see what measures passed.
Colorado
Prop. 121 lowers the income tax rate from 4.55% to 4.40%, retroactive to the beginning of this year.
While voters passed the initiative, it won’t affect income tax withholding. Employees will just get a larger tax refund next winter.
District of Columbia
Initiative 82 gradually eliminates the tip credit. By July 1, 2027, tipped employees will be entitled to at least the full minimum wage.
Idaho
H.B. 1, which passed the legislature in a special session this summer and an accompanying advisory question, lowers the income tax rate to a flat 5.8%, beginning Jan. 1, 2023.
Illinois
An amendment to the state’s constitution enshrines the right to collective bargaining and prohibits laws restricting or interfering with employees’ ability to collectively bargain over wages, hours and terms and conditions of employment.
Maryland
A constitutional amendment legalizes recreational marijuana, effective July 1, 2023.
Massachusetts
Bucking the trend, Question 1 amends the state constitution to establish an additional 4% state income tax on the portion of annual taxable income in excess of $1 million, effective Jan. 1, 2023.
Missouri
An amendment to the state’s constitution legalizes...
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