Milwaukee Sick Leave Ordinance May Be Headed to State Supreme Court

Milwaukee Hat tip to CCH Technical Answer group for an update on the status of the Milwaukee Sick Pay Ordinance that was passed by referendum in November 2008, only to be invalidated by a state trial court judge.  According to the posting, the Milwaukee paid sick leave case has now been referred to the state supreme court:

On February 18, 2010, the Wisconsin Court of Appeals asked the Wisconsin Supreme Court to take up the constitutionality of Milwaukee’s paid sick leave mandate.

In June 2009, Milwaukee County Circuit Court Judge Thomas Cooper ruled that the city’s paid sick leave ordinance, which provided up to nine paid sick days per year based on the number of hours worked and the size of the business, was “invalidly enacted and unconstitutional.” (Metropolitan Milwaukee Assoc. of Comm. v. City of Milwaukee, Milwaukee County Circuit Court, No. 08cv018220, June 12, 2009). 9to5, the National Association of Working Women, appealed Cooper’s ruling. The supreme court has been asked to decide whether the ballot question put before the voters of the City of Milwaukee complied with the statutory requirement that it contain “a concise statement of [the ordinance’s] nature” — whether voters were informed of the contents of the ordinance . . . .

Nearly 70 percent of . . . voters approved the referendum for paid sick leave in the November 2008 election.

Marcia McCormick (St. Louis) has written before on the ordinance. I personally think the law was properly enacted and constitutional.  It will be interesting to see whether the Wisconsin Supreme Court takes the case.

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A Broadening of Diversity Jurisdiction

Students of civil procedure—which should mean just about everybody interested in using the formal processes of the law to vindicate rights—will be interested in a decision today by the United States Supreme Court. The opinion concerned the provision in the statutory grant of diversity jurisdiction that deems a corporation “to be a citizen of any State by which it has been incorporated and of the State where it has its principal place of business.” 28 U. S. C. §1332(c)(1) (emphasis added). There has been a longstanding imprecision—a lack of unanimity—within the lower federal courts as to whether a corporation’s “principal place of business” is its “nerve center,” “locus of operations,” “center of corporate activities,” “muscle center” (none of these latter four terms being statutory), or some otherwise determined place. In Hertz Corp. v. Friend, the Court resolved the matter.

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The Second Law of Thermodynamics and “Say on Pay”

sharris-deptofentropyIn one of his characteristically thoughtful blog postings (available here), Ed Fallone argues that market regulation follows the Second Law of Thermodynamics, which states (to paraphrase) that in any closed system, disorder will reign over time.  Ed argues that this principle holds true for federal securities regulation, where technological and market changes have made the comprehensive statutory scheme of market regulation obsolete.  With respect to non-financial institutions, he proposes (consistent with the Obama administration’s proposal) replacing our current scheme of detailed disclosure rules with regulation that focuses on the consumer (the investor), and the consumer’s need for multiple products to choose from as well as information to make product comparisons.

It does seem to make sense to consider the needs of investors in creating legislation aimed at protecting investors.  But in my view, any new regulatory scheme aimed at protecting investors should leave to the states the regulation over business organizations’ internal affairs.

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