Posts Tagged ‘Department of Labor’
Monday, July 27th, 2015
Are you an employee?
It seems like a simple question that must have a simple answer for most people. But definitions in different laws and rulings enforcing the laws vary. And that variation provides an opening for a growing number of employers to cheat governments of taxes and workers of income, benefits and protections by misclassifying their employees, especially as “independent contractors.”
Last week, the administrator of the Department of Labor’s Wage and Hour Division, David Weil, released a “letter of guidance” that clarifies who is an employee and who is an “independent contractor”—that is, essentially an individual running his or her own business. He argues that the most definitive statement from Congress comes from the Fair Labor Standards Act, which says that “to employ” means “to suffer or permit to work.” And, he concludes, “under the Act, most workers are employees.”
The decision is “incredibly important,” says Catherine Ruckelshaus, general counsel and program director of the National Employment Law Project (NELP), a pro-worker nonprofit organization, and may help to clear up confusion in the courts and encourage more enforcement of the law.
In recent years, many companies—from 10 percent to 30 percent or more of employers—employ at least several million people who are misclassified as independent contractors, according to a recent NELP report. They even go so far as to require workers to form a limited liability corporation or franchise (with themselves as the one and only participant) or to sign contracts declaring that they are independent contractors. According to another study from economist Jeffrey Eisenach of George Mason University, the number of independent contractors rose by one million from 2005 to 2010, including both fake and real contractors (often unemployed workers who re-label themselves as “consultants”).
One high-profile example is the Federal Express delivery driver—who wears a FedEx uniform, drives a company truck, follows a route set by the company and still is treated as a contractor. Weil’s ruling may also tip the judgment against companies like the Uber taxi service, increasingly targeted in lawsuits as improperly treating its drivers as independent contractors.
When employers misclassify workers, they often pay less for contractors, but most important, the workers lose a wide range of protections and benefits under the law such as unemployment compensation, workers’ compensation, minimum wage and overtime regulations, and governments lose billions of dollars a year in taxes that support those programs.
In his recent book The Fissured Workplace, Weil argues that workplace phenomena like subcontracting, using independent contractors, franchising and other ways to make employers less responsible for their employees is not just a result of competition driving down costs, whether as a result of globalization, weakening of unions, new technologies or new work processes, but also “pressure from public and private capital markets to improve returns.”
Unlike the “common law” test for who is an employer, which emphasizes the degree of control over one’s work, the FLSA standard usually relies on an “economic realities” test, which examines many different dimensions of work without favoring one above all others. But in his guidance letter, Weil writes, “the ultimate inquiry under the FLSA is whether the worker is economically dependent on the employer or truly in business for him or herself.” But the varied economic realities tested include such questions as how integral the worker is to the business, how much does managerial skill affect possible profit or loss, how big is the worker’s relative investment, does the worker’s success rely on special business skills in addition to any technical skills, what kind of control does the employer exercise, or how permanent is the relation of the worker to the employer.
The impact of this guidance letter may first be felt in courtrooms and in various federal or state agencies, but Ruckelshaus hopes that employers will voluntarily take it seriously. More likely, it will only be quite meaningful if there are systematic state and federal efforts to audit employer behavior, especially in industries where abuses are common, such as lower-skill construction, home care and janitorial work. Unions are also in a position to push for more vigorous enforcement, as Ruckelshaus said the Carpenters have been.
And when it is clear that the workers are not contractors but employees, the unions can do the workers a favor and invite them to join the union.
This blog was originally posted on In These Times on July 22, 2015. Reprinted with permission.
About the Author: The author’s name is David Moberg. David Moberg, a senior editor of In These Times, has been on the staff of the magazine since it began publishing in 1976. Before joining In These Times, he completed his work for a Ph.D. in anthropology at the University of Chicago and worked for Newsweek. He has received fellowships from the John D. and Catherine T. MacArthur Foundation and the Nation Institute for research on the new global economy. He can be reached at [email protected]
Sunday, November 2nd, 2014
“This is worse than anything I ever saw in any of those Los Angeles sweatshops,” said Michael Eastwood, a Los Angeles Department of Labor assistant district director, reflecting on a Silicon Valley firm’s failure to pay minimum wage to eight Indian employees.
The workers, who were flown in from the company’s Bangalore offices, worked up to 122 hours a week helping Electronics for Imaging, Inc. (EFI) move its headquarters from Foster City to Fremont, CA. They were granted no overtime for their work, and were paid the equivalent of $1.21 an hour—well below California’s $8 per hour minimum wage. While working in the U.S., they continued to be paid in rupees.
An anonymous tip led the Department of Labor to investigate. The result: EFI will pay more than $40,000 in back pay to the workers, as well as a $3,500 fine.
While not one of Silicon Valley’s high-profile giants, Electronics for Imaging certainly has the cash to pay everyone a fair wage. They brought in $728 million in revenue last year and offered their CEO, Guy Gecht, a pay package valued at around $6 million.
Beverly Rubin, EFI’s vice president of HR shared services, provided the following statement to CNBC:
“To help our local IT team with a complex move of our Bay Area facility and data center, we brought a few of our IT employees from India for a short assignment in the US. … During this assignment they continued to be paid their regular pay in India, as well as a special bonus for their efforts on this project. During this process we unintentionally overlooked laws that require even foreign employees to be paid based on local US standards. When this was brought to our attention, we cooperated fully with the Department of Labor, and did not hesitate to correct our mistake and to make our Indian colleagues whole based on US laws, including for all overtime worked. We have also taken steps to ensure that this type of administrative error does not reoccur.”
In other words, they didn’t realize that foreign employees had to be paid the minimum wage of the country in which they were temporarily working — a poor excuse that neither qualifies as an apology nor indicates that EFI has any intention to stop exploiting its outsourced labor.
Given the incredibly under-resourced government agencies tasked with monitoring employers who violate labor law, the likelihood that companies will be caught is fairly low. And even if they are caught, companies like EFI are only risking miniscule fines—in the case of these Indian workers, less than $500 per worker.
So why wouldn’t companies take a gamble on paying workers so far below the minimum wage?
The EFI story seems to be representative rather than exceptional. While profits for domestic tech workers continue to skyrocket (with the exception, of course, of those workers involved in the tech-service industry), the laborers that tech hires abroad are seeing neither the pay nor the cushy work environments that distinguish their U.S. counterparts.
Adrian Chen reported for WIRED last week on the content moderation industry, an invisible workforce of up to 100,000 that operates primarily in Southeast Asia. These workers are responsible for sifting through the Internet’s ugliest corners to ensure social media users don’t come across graphic content. They spend their days examining videos and images of everything from beheadings to bestiality.
“It’s like PTSD,” one of the workers told Chen. “How would you feel watching pornography for eight hours a day, every day? How long can you take that?”
This blog originally appeared on Inthesetimes.com on October 30, 2014. Reprinted with permission. http://inthesetimes.com/working/entry/17302/silicon_valley_wage_theft_worse_than_sweatshops.
About the author: Alex Lubben is the Deputy published of InTheseTimes.
Monday, February 17th, 2014
Each year, tens of thousands of immigrant “guestworkers” come to the United States on special employer-sponsored visas to work temporary jobs in landscaping, hotel housekeeping and other low-wage sectors. But for decades, these workers have beendemonized and scapegoated, accused of hurting “native” U.S. workers by driving down wages. At the same time, the immigrants themselves have spoken out about their poor wages and working conditions, and have even gone on strike and organized independent labor movements to demand the same rights and wages as that of their American counterparts. It seems the only people who like this system, in fact, are the bosses who rely on a surplus army of imported temporary labor, denied the labor protections and legal rights of citizens.
In 2011, the Department of Labor (DOL) issued major reforms to a flagship guestworker program known as H-2B, which funnels tens of thousands of migrants annually into low-wage jobs in workplaces from Florida hotel chains to crabmeat canneries. Business groups, predictably, sued to block the regulations—but last week, an appeals court finally put their arguments to rest.
The reforms, which the DOL based upon an assessment of wage rates and labor market conditions for U.S. workers, mandate pay high enough to maintain prevailing wages in sectors that recruit guestworkers, and thus sustain current working conditions. The wage rules are part of a package of guestworker program reforms proposed by the DOL, that has long been stalled by Congress and court challenges but, with this court victory, can finally be implemented.
In Louisiana Forestry Association v. Secretary, U.S. Department of Labor, business associations representing the forestry, seafood processing and hotel industries, among others, argued that the Labor Department lacked the legal authority to imposethe reforms and was impinging upon employers’ control over wages.
However, Meredith Stewart, an attorney with the Southern Poverty Law Center (SPLC), which represented the workers’ groups that joined the Labor Department in fighting the suit in court, points out that employers supported the previous, laxer regulations that made it easy to pay substandard wages. “It really wasn’t until the Department of Labor issued a wage rule that would lead to substantial increases for workers that employers decided to challenge their authority to issue any regulations for the program,” she tells Working In These Times. The new rules, she says, simply mandate that “to the extent that employers are going to employ foreign workers, those foreign workers and U.S. workers need to be treated equally and fairly.”
In court, the Labor Department and workers’ advocates cited the agency’s legal mandate, which explicitly directs regulators to protect workers from wage suppression and displacement by unscrupulous bosses. On February 4, the Third Circuit Appeals Court unanimously agreed that the Labor Department had the authority to make the reforms, rejecting the employers’ arguments.
While the pending regulations would hardly be a comprehensive overhaul, they strengthen the meager existing H-2Bprotections by barring employers from paying H-2B workers so little as to undercut existing wage levels for non-visa workers who do “substantially the same work.” Essentially, the prevailing wage standard, set according to the Labor Department’s economic assessments, aims to preserve working conditions in a given sector by preventing employers from manipulating immigrants to cheapen labor costs. It also would block employers from unfairly cutting hours and from deducting transportation or equipment costs from workers’ pay. Employers would be required to disclose more information up front in the recruitment and hiring process, about job requirements and workers’ legal rights. The regulations also help shield workers from discrimination if they complain about mistreatment—a critical protection because they depend on their employer’s sponsorship for their U.S. visa authorization and are thus easily coerced into silence.
Most controversy over guestworkers stems from the popular misconception that immigrants are to blame for supposedly “stealing” jobs. In fact, migrants often work jobs that complement, rather than displace, the employment of U.S. workers. But even in the labor markets where the importation of guestworkers has resulted in declining labor conditions, the process isdriven primarily by the labor abuses and rampant exploitation of employers—thus all workers, native and immigrant, documented and undocumented, have an interest in equalizing labor rights across the board, to resist attempts by corporations to divide and exploit the workforce with impunity. To that end, the grassroots labor organizing among guestworkers highlights a shared labor struggle in a system that robs U.S. and immigrant workers alike of dignity. Several labor scandals, such as the recent case of seafood processing workers in the massive supply chain of Wal-Mart, have shed light on the common practice of underpaying H-2B immigrants. In a 2012 report by the National Guestworker Alliance (NGA) on abuses in guestworker programs, NGA co-founder Daniel Castellanos-Contreras recalled his experience of exploitation as an H-2B worker in the aftermath of Hurricane Katrina, lured to the U.S. from his native Peru on the promise of a decent hotel-industry job.
Instead of hiring [local] workers from the displaced and jobless African American community, he sent recruiters to hire us. At around $6.00 an hour, we were cheaper. As temporary workers, we were more exploitable. We were hostage to the debt in our home countries; we were terrified of deportation…
The report details various forms of mistreatment that guestworkers like Castellanos-Contreras have suffered, such as wage theft and labor trafficking. In an email to Working In These Times, Castellanos-Contreras says of the Third Circuit Court ruling, “The court has caught up with what thousands of guestworkers have been saying since Hurricane Katrina: to stop exploitation in guestworker programs, we need higher prevailing wages, and we need protections from employer retaliation to make sure that the rules of the program are enforced.”
The H-2B reforms still face legal roadblocks, however. Another, related set of H-2B rule changes has been held up by a preliminary injunction issued by a Florida court in a separate suit, brought by Bayou Lawn & Landscape Services, which might potentially lead to a conflicting ruling by the 11th Circuit Court of Appeals—one more hurdle that has so far impeded full implementation. Outside the courts, conservative lawmakers stalled the implementation of the wage rules in 2012 by voting to block the required funding for the Labor Department to carry out the regulations. (The block was lifted in the 2014 budget legislation, which should clear the way for the new standards, according to the SPLC.) Meanwhile, tepid attempts in Congress to pass more comprehensive overhauls of both guestworker programs and the entire immigration system have foundered amid political gridlock.
Stewart says that, despite the incremental legal victories, “There’s still a long way to go to making these programs even remotely functional, from a worker advocates’ standpoint.”
On top of their demand for stronger wage standards, the fight will continue for more safeguards against abuses like fraud in the labor recruitment process, as well as protections for their right to organize. And progressive advocates for immigrant laborers ultimately want to move away from the precarious temporary labor of the current visa system–and toward an equitable immigration policy that provides genuinely equal employment opportunities and the ability to gain full citizenship. For now, though, the court’s affirmation of their basic right to fair pay marks a modest milestone in the migrants’ long journey.
This article was originally printed on Working In These Times on February 13, 2014. Reprinted with permission.
About the Author: Michelle Chen is a contributing editor at In These Times, a contributor to Working In These Times, and an editor at CultureStrike. She is also a co-producer of Asia Pacific Forum on Pacifica’s WBAI. Her work has appeared on Alternet, Colorlines.com, Ms., and The Nation, Newsday, and her old zine, cain.
Tuesday, December 10th, 2013
To commemorate its 100th anniversary, the U.S. Department of Labor has launched “Books that Shaped Work in America (www.dol.gov/books), an online project which explores work, workers and workplaces through literature, and aims to educates the public about the history, mission and resources of their Labor Department.
People from all walks of life are being asked to recommend books that informed them about occupations and careers, and molded their views about work.
What book would you list that shaped work in the nation? What title from which iconic author to choose? Fiction or nonfiction: which plays a bigger role? Whose life—in biography or autobiography—exemplifies the axiom that hard work is the best path to achieving the American Dream? Plays and poetry count, too.
Already on the list: Death of a Salesman, What Color is Your Parachute?, Working, Economics in One Lesson, To Kill a Mockingbird, The Grapes of Wrath, The Feminine Mystique, Anthem, and On the Waterfront, among others. U.S. Labor Secretary Thomas E. Perez, contributed suggestions for the list, as did George P. Shultz and seven other former labor secretaries from both sides of the aisle. Other notables that contributed to the list include authors Daniel H. Pink and Joan Acocella, Solicitor of Labor M. Patricia Smith, Liz Claman of Fox Business News, President of the National Urban League Marc Morial and Scott McGee of Turner Classic Movies. Their recommendations are included on the initiative’s website, along with brief summaries of each book and links to related U.S. Department of Labor resources.
To learn more, or to suggest a book to add to the list, visit: www.dol.gov/books.
About the Author: Carl Fillichio serves as senior advisor for public affairs and communications at the U.S. Department of Labor. He oversees the department’s media and public relations efforts, internal communications, social and digital media, audio visual production, graphic design, editorial services, web development and the DOL National Contact Center. He also serves as the chair of the department’s centennial and the U.S. Labor Hall of Honor.
Prior to coming to the Labor Department Fillichio was a senior vice president at Lehman Brothers, the global investment bank, where he promoted the firm’s thought leadership in talent management, diversity recruitment, and philanthropic initiatives.
Previously, he served for seven years as the Vice President for Public Engagement at the Council for Excellence in Government, a national non-partisan think tank that worked to improve government performance and citizen participation, understanding and trust in government. In this role Fillichio convened thought leaders, Members of Congress, journalists, and community members to examine a wide range of public policy issues. Working alongside the newly formed Department of Homeland Security, he led a national initiative to capture public perceptions of safety and emergency preparedness. He also directed the Council’s efforts on attracting the best and brightest to public service and served as program committee chair of the annual Excellence in Government Conference. For his work, he was named in 2004 to Utne Magazine’s list of the “Radical Middle: 10 Americans Reshaping the Future of American Politics.”
In 2013 he was named “Communicator of the Year” by the National Association of Government Communicators.
This is not Fillichio’s first “tour of service” at the US Department of Labor: He was Deputy Assistant Secretary for Public Affairs during the Clinton Administration. He grew up in Chicago, Illinois and Boca Raton, Florida and is a graduate of the John Carroll University in Cleveland, Ohio.
Tuesday, October 1st, 2013
In case you haven’t heard, as of 12:01 a.m. this morning, the federal government is closed. Your business will feel this shutdown in many ways, including in your interactions with the federal agencies that enforce the various labor and employment laws. Each has posted on its website a contingency plan for operations during the shutdown.
For example, the Equal Employment Opportunity Commission:
- Will accept and docket new charges, and examine if immediate injunctive relief is necessary.
- Will not conduct any investigations.
- Will not mediate any charges.
- Will not have staff available to answer questions or respond to correspondence.
- Will not litigate, unless a court denies a request for extension of time.
- Will not process any FOIA requests.
The Department of Labor and the National Labor Relations Board have each posted their own detailed shutdown plans. The bottom line, however, is that except for services that are absolutely essential, federal agencies will be closed until Congress works out its financial issues.
Federal courts, meanwhile, will remain open for business as usual for at least 10 business days, after which the Judiciary will reassess the situation.
Other federal services impacting employers that will be temporarily shuttered include e-Verify and the IRS.
While it difficult to predict how long this shutdown will last.The last shutdown of the federal government, spanning the end of 1995 to the beginning of 1996, lasted 28 days.
For now, if you have active matters with any federal agencies, expect for them to be on hold. Please remember is that while the EEOC and other agencies might be temporarily out of business, the laws that they enforce are not.
This article was originally printed on Ohio Employer’s Law Blog on October 1, 2013. Reprinted with permission.
About the Author: Jonathan Hyman is a partner in the Labor & Employment group of Kohrman Jackson & Krantz.
Monday, January 28th, 2013
If you asked me about the most significant issue in workplace fairness today, I wouldn’t cite any of the common answers. Although there are widespread issues such as corporate bullying, the wage gap between men and women, and a general lack of freedom among employees, there is one problem that is more widespread and more egregious than anything else. There is no aspect of the modern American workforce which is as unfair as the unpaid internship.
The Ethics of Payment
Work for pay is part of the social contract of modern life in a capitalist society. We all adhere to the same agreement: if you offer people a chance to contribute in a way that is valuable and if you define requirements around that work, they deserve to receive fair compensation for their efforts.
Our organizations really are that simple: if there’s defined work to be done, you get paid for that work. If you’re not receiving some kind of payment—such as volunteering—then there is no expectation that you will work at a particular time or place, or that the work will be completed according to certain parameters. Work equals wages. That’s the only way to make things fair.
The Apprenticeship and the Internship
Compensation doesn’t always mean cash. Sometimes, we pay people in-kind. We feed them. We provide housing stipends. We offer them credit or teach them something of value. In Europe, these programs are called apprenticeships. Individuals spend years working with a master craftsman to learn the trade. They often sign agreements to work for the employer full-time after their training is complete. And overseas, apprentices are paid for their efforts.
But the internship has become something different. For many, this is not a job training program. Instead of working on actual projects of value to the company, interns fetch lunches and clean closets. They make coffee and photocopy documents. They perform concierge work such as picking up dry-cleaning or delivering packages. Many interns aren’t doing much work related to the business. These internships are not apprenticeships.
Furthermore, perhaps one-half of all internships are unpaid. That means all of that grunt work is done simply for the chance to be near the people in the industry.
Requiring individuals to perform work—but refusing to pay them for their work—is wrong.
Unpaid Internships: Often Illegal
In the United States, unpaid internships are often (if not usually) illegal. The Department of Labor defines six criteria for interns that do not receive cash compensation:
- The internship, even though it includes actual operation of the facilities of the employer, is similar to training which would be given in an educational environment;
- The internship experience is for the benefit of the intern;
- The intern does not displace regular employees, but works under close supervision of existing staff;
- The employer that provides the training derives no immediate advantage from the activities of the intern; and on occasion its operations may actually be impeded;
- The intern is not necessarily entitled to a job at the conclusion of the internship; and
- The employer and the intern understand that the intern is not entitled to wages for the time spent in the internship.
It’s extremely difficult to design an internship experience that meets all six of these requirements. Consider the first item. Most workplaces are nothing like schools. Do interns attend classroom-style instructional sessions? Do they have assignments which are graded? Do they receive individualized feedback? Do they study academic curriculum and report on their newfound knowledge and perspective?
Furthermore, the fourth point is nearly impossible to meet. For an internship to comply with this statement, the intern cannot conduct effort that the employer can consider valuable. That means an intern cannot produce a work product that will be purchased by a customer. They cannot write articles for the company newsletter or the blog. They are prohibited from substantial contributions in sales presentations or marketing efforts.
Ultimately: any work that an unpaid intern completes must be graded and then discarded. If you put an intern’s efforts to use in promoting your company, creating your products, or delivering your services—then that intern must be paid.
Hampering the Economy
The unpaid intern is not only an issue of workplace fairness, but also has a tremendous impact on our economy. When people perform work for free, they limit the growth of business by devaluing productivity. The more interns complete unpaid work—and the more that employers recruit unpaid interns—the less true economic activity is possible.
In simple terms: if people are working for free, why invest money in paying for work?
Therefore, the right thing to do for the country as well as for the people in your lives is to pay your interns. And if you can’t afford to pay them, that probably means you don’t have the resources to treat them like students and invest in their education.
Do the right thing. Pay your interns. Or, send them somewhere that they can earn a living wage.
About the Author: Robby Slaughter is with a business consulting firm based in the Midwest. He is the author of several books and hundreds of published articles.
Monday, March 14th, 2011
Advocates estimate that tens of billions dollars are stolen from workers every year through wage theft. A national survey of workers in the United States’ three largest cities – New York, Chicago, and Los Angeles – showed the startling finding that 26 percent of those surveyed in low-wage industries were paid less than the minimum wage in the last year and 75 percent were not paid overtime. The survey showed that 15 percent of the earnings of low-wage workers were stolen each year.
Part of the problem is that often workers don’t have the ability to prove that their wages were stolen. Pay stubs do not have uniform standards that clearly indicate overtime, wage per hour, exact days, and hours worked. Ten states do not even require employers to provide pay stubs for workers. The uneven standards and lack of uniformity and clarity in standards makes it very difficult for workers to prove that wages are stolen.
It would cost employers almost nothing to provide workers with such information. Already, employers are required to keep this information and give it to the IRS, state tax authorities, and the U.S. Department of Labor (DOL), just not to the workers. So it’s not as if companies do not already collect this information—they simply don’t want to give it to workers. Earlier this year, the Department of Labor (DOL) issued a statement indicating it intended to make a rule making greater standards and transparency. The Department announced that
Wage and Hour Division [of the Department] intends to publish a proposed rule updating the recordkeeping regulation issued under the Fair Labor Standards Act (FLSA) to assist employers in planning to protect workers’ entitlement to wages that they have earned and bring greater transparency and openness to the workplace.
The proposed rule would address notification of workers’ status as employees or some other status such as independent contractors, and whether that worker is entitled to the protections of the FLSA. The proposed rulemaking would also explore requiring employers to provide a wage statement each pay period to their employees.
But anti-wage theft activists are saying the rule is not taking effect quickly enough.
“We are encouraged that the DOL is proposing a regulation that would mandate pay stubs. But the devil is in the details,” says Ted Smukler, policy director at Interfaith Worker’s Justice Center, which has helped make the country’s wage theft crisis visible nationally. “The regulatory language has not been released, even while this has been on the DOL’s agenda since the fall of 2009. Meanwhile, tens of millions of workers are ripped off every week. Whether it’s through regulatory reform or passing national legislation mandating that businesses provide workers detailed pay records, something must be done.”
It goes without saying that struggling American workers need every dollar they earn in order to survive. But as the U.S. economy sputters back to life after the worst recession in 70 years, it’s worth pointing out that eliminating wage theft would not only be the just thing to do—it could prove an economic stimulus.
This blog originally appeared in www.inthesetimes.com on March 10, 2011. Reprinted with Permission.
About the Author: Mike Elk is a third-generation union organizer who has worked for the United Electrical, Radio, and Machine Workers, the Campaign for America’s Future, and the Obama-Biden campaign. Based in Washington D.C., he has appeared as a commentator on CNN, Fox News, and NPR, and writes frequently for In These Times, Alternet, The Atlantic and The American Prospect. Mike Elk is a labor journalist and third-generation union organizer based in Washington, D.C. He has written for Harper’s Magazine, the American Prospect and In These Times.
Tuesday, January 11th, 2011
The new year started with better but not great news on the jobs front. The latest figures from the U.S. Department of Labor released this morning show that unemployment dropped from 9.8 percent in November to 9.4 percent in December.
Even with the expected holiday season hires, only 103,000 net new jobs were created last month. Economists had predicted 150,000 to 175,000 new jobs for December. The number of jobs created is a drop from November, when 151,000 jobs were added.
The jobless rate has been at 9 percent or more for the past 20 months—the longest it has been this high since World War II, according to the Economic Policy Institute (EPI).
Economic Policy Institute (EPI) economist Heidi Shierholz says the drop in the unemployment rate is somewhat misleading.
Around half of the improvement was due to 260,000 people dropping out of the labor force, leaving the labor force participation rate at 64.3 percent, a stunning new low for the recession. Incredibly, the U.S. labor force is now smaller than it was before the recession started, though it should have grown by over 4 million workers to keep up with working-age population growth over this period.
According to the report, 14.5 million are officially jobless, down by 556,000 from last month. Long-term joblessness did not change from last month, with 6.5 million workers jobless for six months or more. That represents 44.3 percent of all unemployed workers.
The economy needs to add about 150,000 new jobs each month to keep up with the growth in the labor force. But to lower the nation’s unemployment rate to 6 percent by 2013 and make up for the more than 8 million jobs lost due to the Bush recession, the economy needs to add 350,000 jobs a month.
The nation is in dire need of a battle plan to create jobs and revive the economy. But instead of tackling job creation out of the gate, the new Republican majority in the House is playing cheap partisan politics by devoting its first week of action to repealing health care reform.
AFL-CIO President Richard Trumka says that while the drop in December’s unemployment rate is welcome news, “net job growth is still not enough to accommodate our growing population, let alone close the 11-million job gap left by the Bush recession.”
The cuts being proposed by Republicans in Washington and around the country, including undermining Social Security and Medicare and cutting transportation spending, are the wrong remedies at the wrong time and threaten our economic future. We need dramatic action to invest in America and give states and cities breathing room to prevent further layoffs and create jobs.
Manufacturing gained 10,000 jobs in December, contributing to a gain of more than 100,000 jobs since December 2009. Construction jobs fell by 13,000, while retail jobs increased slightly by 12,000. But that follows November’s loss of 28,000 retail jobs. State and local public employee jobs fell by 20,000 last month.
The health care and leisure/hospitality sectors continue to be the strongest areas of job growth, with leisure/hospitality jobs increasing by 47,000 and health care employment expanding by 36,000 in December.
Earlier this week, Michael Snyder took a dispiriting look at how working families have been battered in recent years, especially with vanishing middle-class jobs and blue-collar jobs that pay decent wages. These jobs vanished in large part because of Bush-era trade and economic policies that encouraged U.S. firms to export jobs and gave Wall Street and Big Banks free rein to recklessly ride the economy off a cliff. Snyder writes:
More than half of the U.S. labor force (55 percent) has “suffered a spell of unemployment, a cut in pay, a reduction in hours or have become involuntary part-time workers” since the recession began in December 2007.
Since the year 2000, we have lost 10 percent of our middle-class jobs. In the year 2000, there were about 72 million middle-class jobs in the United States but today there are only about 65 million middle-class jobs. Meanwhile, our population is getting larger.
One out of every six Americans is now enrolled in at least one anti-poverty program run by the federal government.
Income inequality continued to grow with the richest 20 percent of working families taking home 47 percent of all income and earning 10 times that of low-income working families.
This article was originally published on AFL-CIO Now Blog.
About The Author: Mike Hall is a former West Virginia newspaper reporter, staff writer for the United Mine Workers Journal and managing editor of the Seafarers Log. He came to the AFL- CIO in 1989 and have written for several federation publications, focusing on legislation and politics, especially grassroots mobilization and workplace safety.
Friday, January 7th, 2011
It is still very grim out there for those people who want decent paying work. Not just a job–but a job that pays a fair wage. Today’s numbers make even more clear–we need a Job Party.
I’ll talk about the Job Party a bit more. But, first, let’s look at the numbers:
While the overall picture showed improving job growth, the additions in the private sector in December were not enough to significantly reduce the ranks of the unemployed or keep pace with people entering the work force. The outlook remains bleak for many workers. More than 14.5 million people were out of work in December.
The Department of Labor says the “official unemployment rate” is now at 9.4 percent. Even The Wall Street Journal points out:
The U.S. unemployment rate has now been above 9% since May 2009, or 20 months. That is the longest stretch at such an elevated level since the Second World War. In the recession of the early 1980s, the jobless rate crept to 9% in March 1982 and remained above that mark until September 1983.[emphasis added]
But, the depth of the crisis is better seen here by looking at the U-6 level, which measures “Total unemployed, plus all persons marginally attached to the labor force, plus total employed part time for economic reasons, as a percent of the civilian labor force plus all persons marginally attached to the labor force”.
That number is at 16.7 percent.
And that doesn’t even reflect how bad things are. I have pointed out that the minimum wage–which millions of people work for–is a poverty-level wage and a national scandal that covers up the depth of the economic crisis. It should be more than $19 an hour if we took in account the productivity rises over the last 30 years–that is, how hard people have worked compared to the rise in wages.
So, it isn’t just the number of jobs but the QUALITY OF JOBS.
I’m guessing that at least one in five Americans–20 percent–in the U-6 and minimum wage categories does not have decent full-time paying work. And I think the crisis is far bigger if you really look at what it takes to get by in today’s world of higher prices.
Which brings me to the Job Party. Several of us concluded recently that we needed a movement that is focused entirely on the job crisis:
The Job Party is a nationwide grassroots movement to demand an Emergency Jobs Bill for 15 million jobs so every unemployed American can go to work, feed their families, and put a roof over their head.
In December, Congress passed a $900 billion tax bill for 2 years that will produce only 1 million jobs through “trickle-down” economics for the rich. For that same $900 billion, Congress could create 15 million jobs paying $30,000 per year for 2 years!
Not only is that morally right, but it’s economically right too – because those 15 million paid workers would massively increase consumer spending, fuel growth for the whole economy, and greatly reduce the national debt.
It’s a revolutionary change from the failed “trickle-down” policies of the past 30 years that created the Great Recession that’s killing us. We call it “gusher-up” and we demand the politicians in Washington DC embrace it before we all starve and the nation goes broke.
And if this current Congress doesn’t act, we’ll elect a new Congress in 2012 that will.
Move over, Tea Party – the Job Party has arrived. Join us today!
We would like to have people help build this. This is the economic crisis of our times. We can’t wait for the current political system to act.
We are gathering together the best ideas for creating jobs–and we want your ideas. Please contribute YOUR IDEAS.
We are collecting YOUR storiesabout your experience trying to get a decent job.
We are gathering the people who will take to the streets to demand that we start creating real jobs in this country. Sign up!.
This article was originally posted on Working Life.
About the Author Jonathan Tasini: is the executive director of Labor Research Association. Tasini ran for the Democratic nomination for the U.S. Senate in New York. For the past 25 years, Jonathan has been a union leader and organizer, a social activist, and a commentator and writer on work, labor and the economy. From 1990 to April 2003, he served as president of the National Writers Union (United Auto Workers Local 1981).He was the lead plaintiff in Tasini vs. The New York Times, the landmark electronic rights case that took on the corporate media’s assault on the rights of thousands of freelance authors.
Thursday, October 14th, 2010
Most people are aware that, since 1970, the Occupational Health and Safety Administration (OSHA) has been responsible for issuing and enforcing standards for workplace health and safety. But if I were a betting person, I would wager that far fewer are aware of OSHA’s responsibilities in relation to the Sarbanes Oxley Act. OSHA is charged with protecting workers ” …from retaliation for reporting alleged violations of mail, wire, bank, or securities fraud; violations of rules or regulations of the SEC; or federal laws relating to fraud against shareholders.”
This responsibility is part of the Office of Whistleblower Protection Program (OWPP),for which OSHA has oversight. OWPP was originally intended to protect workers from being retaliated against for such things as reporting safety violations to OSHA, requesting or participating in an OSHA inspection, or testifying in any proceeding related to an OSHA inspection.
Over the years, this responsibility has expanded to encompass oversight of the whistle-blowing provisions for eighteen other statutes, including violations of various airline, commercial motor carrier, consumer product, environmental, financial reform, health care reform, nuclear energy, pipeline, public transportation agency, railroad and securities laws.
And according to a recent report by the Government Accountability Office (GAO), OSHA gets failing grades for discharging its whistleblower protection responsibilities. The GAO cited lack of training, chronic inattention from OSHA leaders, and long delays in resolving cases, among other problems.
Some say the problems are no surprise: too few staff spread too thin, resulting in long case delays and staff demoralization. You can see charts depicting the growth of responsibilities while staff remained flat on pages 16-17 of the GAO Whistleblower Report. (PDF)
Some relief is in the offing – 25 new investigators are scheduled for appointment to OWPP. In addition, the Department of Labor (DOL) is conducting a “top to bottom” review and there is some discussion about whether the program should be moved to another part of DOL.
Whistleblowers are fundamental to workplace safety, but even with protections built into the laws, the reality is that protection for whistle-blowing employees can be a long time in coming, when and if it does. Read about truck driver John Simon’s whistle-blowing ordeal as a case in point. There are unfortunately many other similar stories. OSHA offers employees a a bill of rights to ensure safety, but fundamental to those rights are protections when and if they speak up in the cause of safety.
This article was originally posted on Workers Comp Insider.
About the Author: Julie Ferguson is an insurance industry consultant with more than 20 years experience developing and implementing communications programs for workers compensation, workplace health & safety, employee communications, and general insurance programs. She founded and serves as editor for the nation’s first insurance weblog, Lynch Ryan’s Workers Comp Insider. She also founded and manages HR Web Café, a weblog for ESI Employee Assistance Group; Consumer Insurance Blog for the Renaissance Insurance Group; and is one of the administrators of Health Wonk Review, a bi-weekly health policy carnival. If you have a question for Julie, you can reach her at [email protected]