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Archive for the ‘MinimumWage’ Category

McDonald’s Retreat on Fighting Wage Increases Shows the Tide Is Turning

Thursday, April 11th, 2019

In March, the McDonald’s Corporation announced that it would no longer actively lobby against local, state and federal efforts to raise the minimum wage to $15 an hour. The move comes as Democrats in the U.S. House have thrown their weight behind a bill to raise the federal minimum wage from $7.25 to $15 per hour by 2024.

The decision by McDonald’s was made public in a recent letter sent from Genna Gent, vice president of U.S. government relations for McDonald’s, to the National Restaurant Association,  an industry group that represents more than 500,000 restaurant businesses across the country.

According to the corporate watchdog group, SourceWatch, the National Restaurant Association is a key lobbying group that has fought hard in recent years to block worker-friendly issues such as paid sick days and increases in the minimum wage. As Politico reporter Rebecca Rainey explained, losing McDonald’s as an ally in the fight against wage hikes serves as a “serious blow to the trade group.”

Despite the decision, however, the National Restaurant Association has stood by McDonald’s and recently called the company a “valued member” of its organization.

While initially seen as an upstart movement funded by labor union activists, the fight for a higher minimum wage appears to have moved squarely into the mainstream political landscape and is likely to remain a key campaign issue throughout the 2020 election.

Writing in the trade publication Restaurant Business in January, Peter Romeo declared that the “$15 minimum wage is already a presidential campaign issue.” Romeo noted that Vermont Sen. Bernie Sanders, a current contender for the nation’s highest office, has “already set the so-called living wage as an issue he’ll keep front and center.” In so doing, Sanders’ support, which he has expressed since at least 2015, could “prove a test for fellow senators who hope to land the Democratic nomination by winning the support of unions and blue-collar voters.”

Most of the major Democratic presidential candidates, from Kamala Harris to Elizabeth Warren, already support raising the minimum wage to $15. Recent polls also show a majority of American voters support increasing the minimum wage.

One of the groups that has been calling attention to labor and wage issues in the restaurant industry is the nonprofit Restaurant Opportunities Centers United (ROCU). Anthony Advincula, the public affairs officer for ROCU, tells In These Timesthat he feels hopeful after McDonald’s decision to stop lobbying against a minimum wage increase.

“We applaud McDonald’s efforts to not block the move to raise wages,” Advincula says, before expressing a note of caution. McDonald’s decision is a “good sign,” he insists, but not cause for celebration just yet. “We are not going to stop. The workers as well as the unions will never step backwards,” Advincula added, indicating that the fight now for groups such as his is to help ensure that the federal minimum wage bill becomes more than just a campaign talking point.

The Democrats in the House are largely in support of such a wage raise, but many in the Republican-controlled Senate have voiced their opposition to the proposed increase, meaning the Raise the Wage bill—the current legislation lifting the minimum wage to $15—could soon hit a dead end.

Regardless of these roadblocks, many observers see undeniable momentum on this issue. Companies such as Amazon, Target, Bank of America and Costco have independently committed to raising workers’ wages, perhaps in part to avoid the increasingly negative attention some have received over their employees’ inability to make ends meet while company profits soar.

Yet while the McDonald’s Corporation has stated that it actively fight wage increases, it still has not agreed to raise its own minimum wage. In her letter to the National Restaurant Association, Gent argued that the “average starting wage at its corporate-owned stores already exceeds $10 per hour,” according to a Politico report. That figure is higher than the federal minimum of $7.25 per hour. Gent also noted that individual franchise owners set the pay rate for their own locations.

The lack of commitment to an overall minimum wage increase from McDonald’s has led some to dismiss the company’s recent announcement as little more than a publicity stunt. Still, in an op-ed published in the Chicago Sun-Times, Christine Owens, Executive Director of the National Employment Law Project, stated that McDonald’s decision to stop participating in the campaign against minimum wage increases is a sign that such opposition is “untenable in today’s America.”

“There’s no doubt the company’s decision is a direct response to the thousands and thousands of McDonald’s workers who’ve taken to the streets, gone on strike and even gotten arrested to further their fight for $15 an hour and a union,” Owens wrote. She then tapped into the growing political and popular support for wage increases, noting that the company’s “move comes at a time when McDonald’s opposition to minimum wage increases has clearly become out of step with both the politics around wages and the actions of companies across the country.”

This article was originally published at In These Times on April 11, 2019. Reprinted with permission.

About the Author: Sarah Lahm is a Minneapolis-based writer and former English Instructor. She is a 2015 Progressive magazine Education Fellow and blogs about education at brightlightsmallcity.com.

Maryland workers to get a $15 minimum wage by 2025

Friday, March 29th, 2019

The Maryland legislature overrode Republican Gov. Larry Hogan’s veto Thursday to pass a $15 minimum wage law. The state is, the Washington Post reports, the first state below the Mason-Dixon line to pass such a law, and the sixth overall. It’s also the third state this year, which looks a little something like momentum—or the aftereffects of a blue wave.

Hogan’s veto was easily overridden, despite his attempt at a compromise of an ultimate minimum wage of $12.10 by 2022. The new law isn’t without its compromises, though: Tipped workers will still get a drastically lower minimum wage, and businesses with fewer than 15 employees will have until July 2026 to reach $15.

Around 573,000 Maryland workers will get a raise, according to the National Employment Law Project. Maryland follows California, Illinois, Massachusetts, New Jersey, and New York. And none of those states would have taken this step if fast-food workers hadn’t gotten out in front and organized and demanded something more than was considered politically realistic.

This blog was originally published at Daily Kos on March 28, 2019. Reprinted with permission. 

Raising the minimum wage works

Monday, March 11th, 2019

Hey, what do you know! It turns out that raising the minimum wage … raises pay for low-wage workers. Somehow, in the United States of America, this needs to be said.

The Economic Policy Institute looked at wage growth for the lowest-paid 10 percent of workers across the states, and it turns out that, for states that raised their minimum wage at least once between 2013 and 2018, it “was more than 50 percent faster than in states without any minimum wage increases (13.0 percent vs. 8.4 percent).” The effect was bigger for women than for men, which makes sense, since women are likely to be paid less.

Bar graph showing wage growth at the bottom 10% comparing states with minimm wage increases between 2013 and 2018 and those without.

This blog was originally published at DailyKos on March 9, 2019. Reprinted with permission.

About the Author: Laura Clawson is labor editor at Daily Kos.

We’ve Been Fighting for $15 For 7 Years. Today I’m Celebrating a Historic Victory.

Tuesday, February 19th, 2019

On Tuesday, Illinois became the first state in the Midwest to enact legislation phasing in a $15-per-hour minimum wage, giving 1.4 million workers a raise every year between 2020 and 2025.

Upon hearing the news last week that both houses of the Illinois General Assembly had passed the $15 minimum wage bill and would be sending it to Gov. J.B. Pritzker’s desk, I immediately thought back to just over seven years ago, when I was present at the creation of the Fight for $15 campaign.

It was late 2011. Centrist Democrats in Washington—more worried about closing the national deficit than addressing rising poverty—searched for a so-called “grand bargain” to slash the social safety net in exchange for raising taxes. But starting that September, a multitude of fed-up activists united under the banner of Occupy Wall Street to call out extreme economic inequality through direct action.

After spending several weeks camped out in New York’s Zuccotti Park as a participant in Occupy Wall Street, I returned home to Chicago and followed Newt Gingrich’s sage advice to “take a bath and get a job,” getting hired in December as an organizer with the community organization Action Now. A handful of other newly hired organizers and I were assigned to a campaign with the seemingly ambitious goal of raising Illinois’ minimum wage from $8.25 to $10 an hour.

From the start, the philosophy of the campaign, known only internally as “LWWO”
(“low-wage worker organizing”) was that lawmakers in Springfield would not prioritize raising the minimum wage unless workers collectively demanded it through mass action. A group of other newly hired organizers and I would roam the stores and restaurants of Chicago’s Loop and Magnificent Mile at all hours of the day, trying to get as many workers as possible to sign petition cards calling for a $10 minimum wage. A common response early on was that $10 would be nice, but was unrealistic.

As the campaign proceeded in early 2012, my fellow organizers and I realized we were part of something bigger than we had first assumed. The campaign, we learned, was being funded by the Service Employees International Union (SEIU). In the wake of Occupy—which had greatly contributed to the reinvigoration of class politics with the popular 99% vs. 1% slogan—SEIU’s top officials were exploring the possibility of a nationwide effort to unionize the food-service and retail sectors, site of the largest post-recession job growth.

The only problem was that union leaders, often averse to taking risks, have traditionally viewed low-wage, service sector workers as “unorganizable” due to the precarious nature of their employment and the intense anti-union animus of companies like McDonald’s. Our job was to gather enough contacts among downtown Chicago’s low-wage workforce to prove to SEIU officials that these workers could indeed be organized and that they should greenlight the proposed unionization effort.

Of course, managers at downtown stores and restaurants did not like us entering their place of business and talking with their employees about how wages were stagnating while the cost of living kept rising. My fellow organizers and I did not ask for permission, but would talk with workers any way we could—behind the manager’s back, on shift changes or smoke breaks, or walking into the kitchens of restaurants uninvited. We got kicked out of virtually everywhere, but we kept coming back. Most effective of all, we recruited some of the workers themselves to begin circulating our petition among their coworkers.

By the spring of 2012, we had gathered over 20,000 contacts. This, along with the simultaneous success of a similar effort in New York City, was enough to convince SEIU leadership to move forward with the organizing drive in both cities. Over the summer and into the fall, after months of one-on-one conversations and small group meetings, hundreds of fast-food and retail workers came together to found the Workers Organizing Committee of Chicago, while a similar organization was formed in New York.

In late November and early December2012—deliberately coinciding with the holiday shopping season—workers in both New York and Chicago held 1-day strikes to demand a $15-per-hour minimum wage and the right to form a union. The Fight for $15 was officially on.

I had left the campaign in late summer to go to graduate school, and was surprised to see that the wage demand had jumped from $10 to $15. But it made sense from a strategic standpoint. Ten, even twelve dollars would seem a lot more reasonable if workers were demanding fifteen. More importantly, it made sense from a moral standpoint. Workers needed and deserved at least a $15-an-hour wage.

In talking with so many retail and fast-food workers, I had come to know in vivid detail how exploited they truly were—not only in terms of being paid poverty wages by multibillion-dollar corporations and having to work multiple jobs or receive public assistance just to scrape by, but also in terms of being subjected to daily harassment, abuse and disrespect by managers and customers.

The Fight for $15 has never been solely about boosting workers’ wages, but also boosting their dignity. The demand for “15 and a union” in the early 21st century has become as iconic to the labor movement as the demand for the 8-hour workday was in the late 19th century. In the years since the campaign went public, there have been countless short-term strikes by low-wage workers across the country, and the globe.

While the Fight for $15 has faced justified criticisms for being too top-down and too focused on media attention, it has also scored numerous victories. Dozens of cities and states have raised their minimum wages, hundreds of thousands of Amazon employees now have a $15-per-hour minimum wage, and millions of workers in five states and the District of Columbia are now on the path to a $15-per-hour minimum wage. As progressives in Congress push for a federal $15 minimum wage, workers in low-wage sectors will have to keep organizing to win unions so they can bargain for increased pay raises, benefits and other workplace rights—the next horizon of the movement.

To me, the passage of Illinois’ $15 minimum wage bill this week is proof that no matter how “impossible” they may seem, bold initiatives aimed at dramatically improving the lives of working people are, in fact, achievable.

This article was originally published at In These Times on February 19, 2019. Reprinted with permission. 

About the Author: Jeff Schuhrke is a Working In These Times contributor based in Chicago. He has a Master’s in Labor Studies from UMass Amherst and is currently pursuing a Ph.D. in labor history at the University of Illinois at Chicago. He was a summer 2013 editorial intern at In These Times. Follow him on Twitter: @JeffSchuhrke.

Illinois poised to be next state to pass $15 minimum wage

Wednesday, February 13th, 2019

After New Jersey made its move toward a $15 minimum wage official, the question was where next—and it hasn’t been a long wait to find out. The Illinois state Senate has passed a bill raising the state’s minimum wage from its current $8.25 an hour to $15 in 2025. The state House, which has a Democratic majority, needs to vote next. Assuming the bill passes the House, Gov. J.B. Pritzker is on board, telling reporters that “If you live in this state and put in a hard day’s work, you should be able to afford to put a roof over your head and food on the table.”

The bill raises the minimum wage to $9.25 an hour on Jan. 1, 2020, then to $10 on July 1, 2020. After that, it rises $1 every January until it reaches $15 in 2025. Unfortunately, it does not bring the tipped minimum wage up to $15 with everyone else, keeping that at 60 percent of the full minimum wage. The bill offers a tax credit for small businesses that will be gradually phased out.

Illinois’ minimum wage hasn’t increased since 2010, but Chicago and Cook County have increased theirs, which are currently at $12 and $11, respectively. The federal minimum wage remains stuck at $7.25, where it’s been for a decade. Congressional Democrats have introduced a $15 minimum wage bill, but Republicans are blocking it and will continue to do so as long as they can.

Speaking of New Jersey, the last state to head to $15, its legislature has sent a bill strengthening its paid family leave program to Gov. Phil Murphy’s desk.

This blog was originally published at Daily Kos on February 9, 2019. Reprinted with permission. 

About the Author: Laura Clawson is labor editor at Daily Kos.

Trump economic adviser calls federal minimum wage a 'terrible idea'

Monday, November 5th, 2018

Larry Kudlow, one of Donald Trump’s top economic advisers, took some time the week before Election Day to call the federal minimum wage a “terrible idea.” Y’see, when it comes to the cost of living, “Idaho is different than New York. Alabama is different than Nebraska.” No! You don’t say! And in none of those places does working full-time at the current federal minimum wage of $7.25 an hour allow a person to afford rent.

In fact, lots of states and cities have increased their minimum wages. Nebraska voters raised their state’s minimum wage in 2014—it’s now $9. New York’s minimum wage is now $10.40 an hour and slated to go up to $11.10 at the New Year. Idaho and Alabama are at that federal poverty wage of $7.25 an hour, but Republicans in Alabama stepped in to stop Birmingham from raising its minimum wage to $10.10. 

Local control is not what Kudlow is advocating, though:

“I would argue against state and local [increases],” Kudlow said. “But that’s up to the states and localities.”

Big of him, I guess, but if it’s something he’d grudgingly allow rather than something he’s arguing for, then the position that the federal minimum wage is a “terrible idea” boils down to “I don’t like the minimum wage at all and think companies should be able to pay as little as they can get away with.”

This blog was originally published at Daily Kos on November 3, 2018. Reprinted with permission. 

About the Author: Laura Clawson is labor editor at Daily Kos.

Thousands of Amazon Delivery Drivers Won’t Be Eligible for the $15 Wage

Monday, October 15th, 2018

Amazon’s announcement raising its entry-level wage to $15 an hour for all employees has been lauded as an inspiring example of corporate responsibility. In response to sharp criticism and threatened legislation from Sen. Bernie Sanders (I-Vt.) over low pay and horrid conditions at Amazon warehouses, CEO Jeff Bezos said: “We listened to our critics, thought hard about what we wanted to do, and decided we want to lead.”

But thousands of workers delivering your Amazon packages won’t be eligible for that $15 entry-level wage. Across the country, thousands of workers wear Amazon uniforms, use Amazon equipment, and work out of Amazon facilities, but are not classified as Amazon employees. They work for third parties known as delivery service partners (DSPs). It’s just one way Amazon manages the burden of getting billions of packages each year into the hands of its customers.

Amazon has confirmed that these third-party DSPs are not covered by its new wage standard.

Not only will drivers delivering for Amazon be deprived the pay levels of other Amazon employees, but in one notable instance, they were cheated out of wages by a DSP that violated state and federal labor laws.

A federal judge ruled in August that as many as 757 hundred delivery drivers with one DSP on the East Coast were robbed of overtime pay through falsifying time sheet records. The workers have thus far been unable to collect the back pay—potentially millions of dollars— from the DSP or Amazon.

And workers at other Amazon DSPs describe similar practices. So while Amazon basks infavorable PR, it is simultaneously deeply implicated in routine wage theft.

“The face of Amazon.com

Tyhee Hickman of Pennsylvania and Shanay Bolden of Maryland, lead plaintiffs in the U.S. District Court lawsuit, worked for TL Transportation, a Mid-Atlantic regional delivery service. According to the lawsuit, TL literally calls its delivery drivers “the face of Amazon.com,” but those workers are not considered Amazon employees.

Hickman and Bolden’s stories make clear, however, that TL Transportation is merely a pass-through for Amazon. Hickman writes in a sworn statement that he was hired by TL in November 2016, only to report to Amazon’s warehouse in King of Prussia, Penn. for training. The trainer was an Amazon employee. All training materials included Amazon logos. Workers had to purchase and wear Amazon hats, shirts and jackets. Delivery vans had “Amazon” emblazoned on the side, and workers also used an Amazon proprietary device called a “Rabbit” to track routes and scan packages. The Rabbit can also call Amazon customers if they are absent during delivery.

According to Bolden, who worked out of Baltimore, Amazon assigned the routes, and drivers were supposed to call Amazon if they ran into difficulties with deliveries. But despite all this involvement, pay stubs reviewed by In These Times listed the employer as TL Transportation.

“People assume they’re interacting with an employee of a company if they’re wearing the company’s uniform,” says Celine McNicholas, director of labor law and policy at the Economic Policy Institute. “But the web of contracting makes it difficult to discern.”

“Running, running, rushing, rushing”

That TL Transportation subjected employees to wage theft isn’t really in doubt. In a sloppy, misspelled flyer (“WELCOM ABOARD, WE LOOK FORWARD TO WORKING WITH YOU”), employees were told that they would be paid “$160.00 per day based on 8 hrs regular and 2 hours overtime… if you finish early you will be paid of entire day.”
In other words, the time sheet would build in two hours of daily overtime, regardless of hours worked. Pay stubs reflected that. Falsifying time sheets in this manner is definitively illegal, as U.S. District Court Judge Gerald McHugh confirmed in his ruling against TL in August. “Overtime compensation must be specifically linked to the hours an employee actually worked,” McHugh writes.

TL kept to this day rate, with the built-in overtime, regardless of how many days an employee worked. One of Bolden’s pay stubs showed a week where she worked all seven days, with 56 hours at the regular rate and 14 hours of overtime. She should have received 30 overtime hours that week.

In theory, workers could hope to finish deliveries early, earning the $160 day rate for less than 10 hours of work. But that was a pipe dream. Three workers who made sworn declarations and another interviewed by In These Times stated that they always worked more than 10 hours in a day, but were not paid additional overtime.

Hickman stated he would arrive to the Pennsylvania warehouse at 6 a.m. on workdays, attend required meetings with self-identified Amazon personnel, and not leave the warehouse until 9:30. That left him six and half hours to complete his delivery runs of 165 to 200 packages, sometimes as far away as Delaware. If Hickman brought back packages as undeliverable, he was sent back out to re-deliver them, adding more time to the day. Workers also had to inspect delivery vans on exit and re-entry and refuel them at the end of the day. Hickman testified he would usually return to the warehouse at 7:00 p.m., 13 hours after he arrived for work.

A former employee interviewed by In These Times on condition of anonymity, because he has not yet been deposed in the case, described how difficult it was to complete the runs: “It was like running, running, rushing, rushing,” he said. “If you don’t keep going you can’t finish in time.”

To keep up with the demanding schedules, workers were unable to fit in lunch or rest breaks; Hickman testified to having to urinate into bottles or on the side of the road to keep things moving. If workers did miraculously complete routes early, managers sent them back out to “rescue” other delivery drivers, by taking some of their packages. Regardless of the total hours worked in a week, the flat rate never changed.

The job was described as difficult, with rampant turnover. Hickman lasted five months; Bolden lasted seven. The former employee only lasted three. “I lost weight dramatically,” he says. “My wife told me, ‘You look so skinny.’”

The buck stops nowhere

These workers’ stories are broadly consistent with an investigation by Business Insider, which interviewed over 30 drivers with Amazon DSPs. But unlike other DSPs, TL Transportation never had workers sign contracts with a mandatory arbitration agreement, blocking their right to sue. Because it failed to do so, the plaintiffs sought lost and stolen wages in federal court.

Employers steal roughly $8 billion from worker paychecks per year, according to a 2017 studyfrom the Economic Policy Institute. But winning a wage theft ruling through summary judgment without trial, as the TL delivery workers did in August, is exceedingly rare.

Despite the court victory, no worker has yet been paid. TL, which continues to operate, says it lacks the funds to pay above the day rate. Amazon claims it has nothing to do with TL’s labor practices. Plaintiffs continue to battle it outin federal court.

TL’s co-owners Scott Foreman and Herschel Lowe, both named as defendants in the complaint, did not return phone messages asking for comment.

A second lawsuit, against a DSP named NEA Delivery, was filed in August in California, joining prior suits in IllinoisWashington stateand Arizona. But because every DSP is different, plaintiffs’ attorneys must go individually, company by company, to seek restitution for wronged workers. This has the added benefit of preventing Amazon delivery personnel from unionizing across the sector. Amazon has a longstanding policy of not commenting on pending litigation.

“This is nothing unique” among large corporations, said EPI’s McNicholas. “The reason companies do it is that it complicates the worker’s ability to hold their employer accountable.” In Amazon’s case, instead of offering a base wage of $15 an hour and a suite of benefits, it simply hires couriers like TL Transportation at a set rate per delivery and pleads ignorance about violations of labor law. The workers end up stuck, unable to win money owed them from fly-by-night third parties, and unable to challenge the corporate giant whose packages they actually deliver.

EPI’s McNicholas lays blame for the wage theft at the feet of Amazon, for setting up a system of free, rapid shipping. “It’s very difficult for these subcontracting firms to do business if they’re not cutting corners,” she says. “Amazon may say they set loose terms, but they’re instituting the framework that the subcontracting firms have to honor.”

Amazon outsources to hundreds of DSPs and encourages new delivery start-ups, promising that they can get to work within weeks and make up to $300,000 per year. “Logistics experience not required,” the company states on its website. Amazon has also tested several other systems for package delivery, from using the U.S. Postal Service, private competitors like UPS and FedEx, or an Uber-like system called Amazon Flex, where individuals sign up to deliver packages with their own cars.

None of these involve employees of Amazon, and all have come under scrutiny. Postal workers have complained about onerous package loads and weekend deliveries. Labor attorney Shannon Liss-Riordan sued Amazon in 2016 for failing to ensure that Amazon Flex workers earn the minimum wage after accounting for vehicle and maintenance costs, as well as not paying overtime. The case remains pending.

The third-party hustle

Since the $15 wage announcement, Amazon has been criticized for offsetting the pay increase by removing stock awards and bonuses. Others have characterized the wage hike as a way to avoid unionization at Whole Foods, or an impetus to eliminate workers through automation. But the third-party hustle is a far more efficient way to avoid raising wages, while pushing off liability for labor practices to other companies.

The plaintiffs in the TL Transportation case have named Amazon as a defendant, arguing that the company “control[s] the work activities, condition, and management” of the DSPs and their employees. But this bumps up against the “joint employer” standard set by the National Labor Relations Board (NLRB) under Obama, whereby companies are jointly liable for labor law violations by their franchisees, suppliers or contractors if they have indirect influence over the terms of employment.

Trump’s National Labor Relations Board has proposed narrowing the joint employer definition to companies that exercise “substantial, direct and immediate control” over hiring, firing, discipline and supervision. That would still seem to apply to Amazon, but it’s a close call. And courts typically follow the NLRB, which under Trump isn’t exactly worker-friendly.

If the courts agree that Amazon is not a joint employer, it would have a path to keep tens of thousands of delivery workers outsourced and removed from its new wage standards, without sacrificing the significant publicity benefits of the announcement. It’s good work if you can get it.

This article was originally published at In These Times on October 12, 2018. Reprinted with permission. 

About the Author: David Dayen is an investigative fellow with In These Times‘ Leonard C. Goodman Institute for Investigative Reporting. His book Chain of Title: How Three Ordinary Americans Uncovered Wall Street’s Great Foreclosure Fraudwon the 2015 Studs and Ida Terkel Prize. He lives in Los Angeles, where prior to writing about politics he had a 19-year career as a television producer and editor.

Arkansas’ minimum wage fight will be on the ballot in November

Monday, August 20th, 2018

A proposal to raise Arkansas’ minimum wage to $11 an hour by 2021 gained enough signatures to qualify for the ballot in November. The group gathered over 16,000 more signatures than necessary to make the ballot.

The current minimum wage is $8.50, and the last time Arkansas voters approved of a minimum wage raise was in 2014. The Arkansas minimum wage is not among the lowest state minimum wages in the country and is higher than many of the states that surround it. Kansas and Oklahoma, for example, have a $7.25 minimum wage, the same as the federal minimum wage. Missouri’s minimum wage is $7.85. Still, supporters of the measure — which will be Issue Five on the ballot this year, according to the Associated Press — say that it’s unacceptable for Arkansas to live on only about $18,000 a year.

Stephen Copley, executive director of Faith Voices Arkansas, said in a release to the Arkansas Times, “Today’s minimum wage is about $18,000 a year for someone working full time. With prices going up all the time, you can’t raise a family on that.”

Some economic policy experts say that the federal minimum wage is far too low. According to the Economic Policy Institute, despite productivity roughly doubling since 1968, workers who are paid the federal minimum wage now make 25 percent less than workers making the federal minimum wage that year. As Rajan Menon recently explained in The Nation, over the past decade, the $7.25 federal minimum wage lost almost 10 percent of its purchasing power, thanks to inflation, which means that for someone to make the same as the 2009 minimum wage, they’d have to work 41 additional days.

A 2016 analysis from the White House Council of Economic Advisors that looked at 18 states that raised the minimum wage above $7.25 found that these raises “contributed to substantial increases in average wages for workers in low-wage jobs, helping to reverse a pattern of stagnant or falling real wages” and that “this has occurred without any sign of an impact on employment or hours worked.”

Arkansans for a Fair Wage is leading the effort behind the initiative. David Couch, a lawyer in Little Rock who leads the ballot committee, told the Arkansas Times that the group raised $155,300 and spent $101,000 to pay canvassers to gather signatures. The Fairness Project, a nonprofit founded for the purpose of getting minimum wage increases on the ballot, gave $100,000 in funding to the group and the National Employment Law Project, a nonprofit workers rights group that conducts policy research, gave $500,000. The Fairness Project is also working on a minimum wage initiative in Missouri, and has worked on campaigns for raising the minimum wage in Arizona, Colorado, California, Maine, Washington state and Washington, D.C.

There is also an initiative to get a minimum wage raise on the ballot in Michigan, gradually raising it from $9.25 to $12 in 2022 that is supported by Restaurant Opportunities Centers United (ROC). ROC also supported Initiative 77 in Washington, D.C. to raise the minimum wage for tipped workers. Lily Tomlin and Jane Fonda have come out in support of the wage increase. In July, the board of state canvassers were deadlocked on approval for the ballot proposal. In Missouri, Proposition B is on the ballot, which would raise the state minimum wage from $7.85 to $12 in 2023. Some of the same organizations support this ballot initiative as the one in Arkansas. The National Employment Law Project and the Fairness Project and local officials and mayors, such as St. Louis Mayor Lyda Krewson, have supported it.

This article was originally published at ThinkProgress on August 17, 2018. Reprinted with permission.

About the Author: Casey Quinlan is a policy reporter at ThinkProgress covering economic policy and civil rights issues. Her work has been published in The Establishment, The Atlantic, The Crime Report, and City Limits.

D.C. Council moves to overrule voters, reinstall tipped wage system

Friday, July 13th, 2018

This week, the majority of the D.C. Council supported a repeal of Initiative 77. Initiative 77 is the ballot measure voters approved in June that eliminates the tipped minimum wage and would gradually phase out the tipped workers’ minimum wage, so that by 2026, all workers are paid the same minimum wage.

Fifty-six percent of District voters approved of it. States such as California, Alaska, Washington, and Oregon, have gotten rid of the subminimum wage, and Economic Policy Institute’s analysis shows that poverty rates for servers and bartenders are lower in the states that have.

The campaign against Initiative 77 was well-funded and backed by the Restaurant Association of Metropolitan Washington (RAMW), which created a committee, “Save Our Tip System Initiative 77” to spread anti-Initiative 77 messages. According to The Intercept, the committee is managed partly by Lincoln Strategy Group, which did canvassing work for the Trump campaign. The National Restaurant Association, which has been lobbying against the tipped minimum wage for decades, gave the campaign $25,000.

The council members who have supported a repeal include Jack Evans (D), Anita Bonds (D), Trayon White (D), Kenyan McDuffie (D), Brandon Todd (D), Vincent Gray (D), and D.C. Council Chairman Phil Mendelson (D). Brianne Nadeau (D) tweeted that although she did not support the ballot measure, voters did, which is why she didn’t back the repeal.

Council member Todd tweeted that “This bill is just the beginning of a legislative process where nuanced deliberation & constructive dialogue can take place.” When asked by Washington Post reporter Fenit Nirappil how a bill flatly repealing it would lead to nuanced deliberations, Todd responded that “it initiates public hearings. Who knows how the bill will change as testimony and more information become available.”

The Council won’t take up the bill until after summer recess. Council members chose not to announce the bill to repeal during a committee meeting and instead filed it with the Council’s Office of the Secretary.

Diana Ramirez of the Restaurant Opportunities Center DC told WAMU, “These are the same constituents who just voted them into office and re-elected them. I think they deserve to tell us why they introduced this.”

Although Ramirez has voiced a willingness to work with council members on some kind of compromise legislation, according to the Washington Post, Council member Mendelson said, “There are not a lot of compromise ideas that come to mind.”

The council has only overridden ballot initiatives four times since the 1980s, according to the Washington Post.

There have been many recent incidents of local lawmakers trying to override ballot measures. In Nebraska, Republican lawmakers filed a lawsuit to prevent voters from putting Medicaid expansion on the ballot this November. In other states, such as Maine and South Dakota, lawmakers have blocked or repealed ballot measures.

Josh Altic, project director for the Ballot Measures Project for the website Ballotpedia, told Stateline, a nonpartisan news service, “We have definitely seen some notable cases of legislative tampering this year, especially with regard to the boldness with which legislatures are willing to change or repeal initiatives.”

This article was originally published at ThinkProgress on July 11, 2018. Reprinted with permission.

About the Author: Casey Quinlan is a policy reporter at ThinkProgress covering economic policy and civil rights issues. Her work has been published in The Establishment, The Atlantic, The Crime Report, and City Limits.

Minimum wage workers just got a raise in two states, D.C., and 15 cities or counties

Thursday, July 5th, 2018

Minimum wage workers in two states, Washington, DC, and 15 cities and counties got a raise on Sunday. These state and local governments had passed laws to increase the minimum wage on a schedule, with July 1 and January 1 being the most common dates for raises.

  • Oregon doesn’t have a single statewide minimum wage, but it went up! The minimum is now $10.75 as a standard, $10.50 in “nonurban” counties, and $12 in the Portland metro area.
  • Maryland’s minimum wage went up to $10.10. In Maryland, Montgomery County boosted its minimum wage from $11.50 to $12.25
  • Washington, D.C., rose from $12.50 to $13.25.
  • Eleven California cities saw minimum wage increases, with Emeryville the high point at $15.69 an hour for larger businesses. Los Angeles, Los Angeles County, Malibu, Milpitas, Pasadena, and Santa Monica all went from $12 to $13.25. San Francisco rose from $14 to $15.
  • Workers in Portland, Maine, are seeing a modest bump from $10.68 to $10.90.
  • In Illinois, Chicago went from $11 to $12 and Cook County went from $10 to $11.

The federal minimum wage remains stuck at $7.25 an hour, with Republicans continuing to refuse to consider an increase. Perhaps most depressingly—and showing most clearly where Republican priorities are—Birmingham, Alabama, and Johnson County, Iowa, were both supposed to have minimum wage increases on July 1, but didn’t. Their state legislatures stepped in to pre-empt local governments from improving life for workers.

About the Author: Laura Clawson is labor editor at DailyKos.

This blog was originally published at DailyKos on July 4, 2018. Reprinted with permission.

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