GOVERNOR SIGNED “GRAND BARGAIN” TO AVOID BALLOT QUESTIONS
June 28, 2018 the Governor signed into law Chapter 121 of the Acts of
2018 labeled the “grand bargain” that eliminated three
ballot initiatives which would have otherwise been decided – and most likely
approved - by voters of the Commonwealth during the November elections. The Governor did not veto or change the
proposal he was presented. Specifics of
the new law that passed compared to each ballot question that could have been
posed to voters in November include:
the states minimum wage (presently $11/hour):
$1 in 1/1/2019, 75¢/year Increase
- $1 annual increase 1/1/2019
annually beginning 1/1/2020 – 1/1/2023. Over 4 years ending at $15/hour 2022.
Premium pay -
phased out at: Premium pay - remained.
at 1.4 x minimum wage;
at 1.3 x minimum wage;
at 1.2 x minimum wage;
at 1.1 x minimum wage;
1/1/2023 no premium pay.
NO increases. CPI - Annual indexing
Holiday pay – Summer
holidays decreased Holiday
pay – premium pay remained.
premium pay rates, all premium holidays
to be included by 1/1/19.
Paid Family & Medical Leave Insurance Program:
Requirements Proposed Ballot Requirements
26 weeks combined leave/benefit year. Maximum
Opt-out option -
if benefits are equal or Opt-out option – None,
greater than state requirements for
duration of leave.
Medical leave contribution –
Initial rate 63%, then Medical
leave contribution – .63%
60% of employee’s wages from employer. of
employee’s wages, of which 50% come
employee wages, adjusted annually.
Family leave contribution – 0%
from employer Family
leave contribution – from
leave contribution funding.
Medical leave duration – 20 weeks. Medical
leave duration – 26 weeks.
Family leave duration - 12 weeks (26 for serious). Family
leave duration - 16 weeks.
Wage replacement –
If earns up to 50% state average Wage
replacement - 90% of wages,
wage ($670), then 80% benefits. If
over 50% $1,000 cap/week,
then 50% on wage
weekly wage, then 50% benefits. Cap on benefits.
Benefits at $850/week 1st
year, 64% after that.
Effective dates: Effective
2019 contributions begin, July
2019 contributions and coverage
1, 2021 personal medical benefits begin, begin.
July 1, 2021 family
benefits begin. July
1, 2021 family benefits begin.