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Posts Tagged ‘federal minimum wage’

House to vote on $15 minimum wage, but Republicans are determined to slip in a poison pill

Thursday, July 18th, 2019

With the federal minimum wage stuck at $7.25 for the longest time it’s gone without an increase since 1938, the Democratic House is preparing to vote on the Raise the Wage Act on Thursday. The bill would raise the minimum wage to $15 an hour by 2024—not exactly blazing speed, but a major improvement over more years of $7.25.

Donald Trump has pledged to veto the bill, which was a recreational promise anyway, since Senate Majority Leader Mitch McConnell and his fellow Republicans won’t let it through. Because Republicans hate working people and think the minimum wage should be a poverty wage, if they even think a minimum wage should exist at all. Republicans have been emboldened in their opposition by a Congressional Budget Office analysis that treats outdated studies the same as the best research on the issue, using those outdated and often garbage studies to weigh against the reams of research showing that raising the minimum wage does not cost jobs. Other research shows widespread and often unexpected benefits from increasing the minimum wage, including lower suicide rates and lower recidivism among people released from prison.

Nonetheless, despite the best research—which draws on many, many cases where the minimum wage has gone up, allowing for real-world studies of what happens—Republicans will not only oppose the raise but will try to lay traps for squishy Democrats, using a motion to recommit to undermine the entire bill. Congressional Progressive Caucus Co-chairs Reps. Pramila Jayapal and Mark Pocan have warned that if wobbly Democrats fall into the motion to recommit trap, the CPC will vote against the bill itself, saying in a statement, “We have no doubt that Congressional Republicans will try to divide the Democratic Caucus with a disingenuous Motion to Recommit. It’s up to all of us to stand unified and reject their bad faith effort to undermine this bill,” and, “After consulting with our Members this week, we are confident that any bill that includes a poison pill Republican Motion to Recommit will lack the votes to pass on the House Floor.”

It’s time for this bill to pass, without poison pills. A vote for a $15 minimum wage is a vote for gender and racial equity, since it would disproportionately benefit women and people of color. A vote for a $15 minimum wage is a vote to give 1.3 million veterans a raise. And it’s a vote for the general proposition that work should pay a wage that someone, somewhere in this country can actually live on.

This blog was originally published at Daily Kos on July 17, 2019. Reprinted with permission.

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

 

The cost of a $15 federal minimum wage

Tuesday, July 9th, 2019

Rebecca Rainey

Raising the federal minimum wage to $15 an hour by 2025 would increase the pay of at least 17 million people, but also put 1.3 million Americans out of work, according to a study by the Congressional Budget Office released on Monday.

The increased federal minimum could also raise the wages of another 10 million workers and lift 1.3 million Americans out of poverty, according to the nonpartisan CBO. The current federal minimum wage is $7.25 and last increased a decade ago.

The budget watchdog’s report comes ahead of next week’s vote in the House of Representatives on a bill to gradually raise the federal minimum to $15 an hour by 2024.

The CBO predicted much bigger job losses than House Democrats, who have pushed for the $15 minimum wage, expected. The study cited “considerable uncertainty” about the impact, because it’s hard to know exactly how employers would respond and to predict future wage growth.

The CBO wrote that in an average week in 2025, 1.3 million otherwise-employed workers would be jobless if the federal minimum wage went up to $15. That’s a median estimate. Overall, CBO economists wrote that resulting job losses would likely range between “about zero and 3.7 million.”

At the same time, the study says the $15 minimum wage would boost pay for 17 million people would otherwise be earning less than $15 an hour, and possibly for another 10 million Americans who would otherwise be earning slightly more than $15 per hour.

Considering a smaller increase to $12 an hour by 2025, the CBO estimated a boost for 5 million workers and a loss of 300,000 jobs. An increase to $10 an hour would give a raise to 1.5 million workers and would have “little effect on employment.”

The House, controlled by the Democrats, is expected next week to pass the Raise the Wage Act, which would lift the federal minimum wage to $15 gradually by 2024. Its author, Rep. Bobby Scott, D-Va., on Monday argued that the benefits in CBO’s forecasts far outweighed the costs.

The measure faces a high hurdle in the Republican-controlled Senate. Even so, raising the federal minimum has been picking up steam over the years.

Already, 29 states, the District of Columbia, the Virgin Islands and Guam have set wage standards higher than the federal minimum. Seven states and the District of Columbia are on track to increase their wage minimums to $15 in coming years.

Many economists have agreed that modest increases to wage minimums don’t cause huge job losses. That theory was shown in a high-profile paper by David Card and Alan Krueger. The CBO wrote: “Many studies have found little or no effect of minimum wages on employment, but many others have found substantial reductions in employment.”

This article was first published at NPR.

This article was originally published at Politico on July 9, 2019. Reprinted with permission.

About the Author: Rebecca Rainey is an employment and immigration reporter with POLITICO Pro and the author of the Morning Shift newsletter.

Prior to joining POLITICO in August 2018, Rainey covered the Occupational Safety and Health administration and regulatory reform on Capitol Hill. Her work has been published by The Washington Post and the Associated Press, among other outlets.

Rainey holds a bachelor’s degree from the Philip Merrill College of Journalism at the University of Maryland.

She was born and raised on the eastern shore of Maryland and grew up 30 minutes from the beach. She loves to camp, hike and be by the water whenever she can.

House Dems on brink of minimum wage victory

Thursday, June 20th, 2019

Sarah FerrisHouse Democratic leaders are on the cusp of a long-awaited victory on the party’s signature $15-an-hour minimum wage bill, overcoming months of sharp resistance from many of the caucus’ moderates.

Top Democrats are saying privately they’re confident that they are close enough to the 218 votes needed to pass it to bring the bill to the floor within weeks, according to multiple sources. It would mark a major political victory at the six-month mark of the Democrats’ majority.

Several one-time holdouts — including Rep. Terri Sewell (D-Ala.), who has championed a competing approach that would create a “regional” minimum wage — now say they will vote for the bill on the floor, though they are still looking for additional assistance for small businesses that may be hurt by the minimum wage.

The vote, which is expected shortly after the House returns from its Fourth of July recess, will put an end to a frenzied lobbying blitz by top Democrats to win over the caucus’s remaining skeptics, which had become a glaring example of the tensions between moderates and progressives.

House Majority Whip Jim Clyburn (D-S.C.) said in a closed-door leadership meeting Tuesday night that he secured roughly 213 votes, according to aides. Democrats believe the pressure of the roll call vote will be enough to squeeze the few remaining holdouts.

“I don’t have any doubt that we’re going to have the votes,” House Majority Leader Steny Hoyer (D-Md.) told reporters Wednesday, though he stopped short of committing to a timeframe. “There are some folks who would like to see us do something to make sure the small business fears are allayed.”

The one lingering concern, according to people familiar with the discussions, is how to deflect potentially disastrous GOP attacks on the bill when it comes up for a vote.

Republicans are expected to use their procedural powers on the floor to force Democrats to vote on tricky issues related to the minimum wage — like protections for small businesses — that could further expose the caucus’s ideological divide.

It could also tank the entire bill. If Republicans successfully force any changes into the bill, scores of Democrats would likely flee, because progressive leaders have refused to support anything less than their hallmark $15-an-hour proposal.

The lead author of the bill, House Education and Labor Chairman Bobby Scott (D-Va.), had struggled for months to rally enough moderate Democrats behind the bill, with some members privately complaining of a “tone-deaf” approach.

But momentum began to shift in recent weeks, with leaders of the Blue Dog Coalition, Rep. Tom O’Halleran (D-Ariz.) and Stephanie Murphy (D-Fla.), helped to deliver votes from red-state Democrats in exchange for their own provision in the bill.

That compromise amendment, from O’Halleran, Murphy and TJ Cox (D-Calif.), will be included in the final bill, according to multiple aides. It would require the Government Accountability Office to conduct a study on the policy’s economic effects after roughly two years — which moderates see as a potential way to revisit the issue if economic conditions deteriorate.

Scott and his team also helped win over individual members with district-by-district data that showed the number of people who would get a raise, offering a counterpoint to the objections from some local businesses.

Top Democrats, including Hoyer, have vowed to hold a vote on the minimum wage bill before the August recess, under intense pressure from outside groups to deliver on a key plank of the progressive platform.

Scott and other Education and Labor members have argued behind the scenes for weeks that they have enough votes to bring the bill to the floor. They’ve said that some holdouts would only come out in favor of the bill if they were facing a roll call — a process that one Democratic aide described as a “game of chicken.”

Heather Caygle contributed to this story.

This article was originally published by the Politico on June 20, 2019. Reprinted with permission. 

About the Author: Sarah Ferris covers budget and appropriations for POLITICO Pro. She was previously the lead healthcare and budget reporter for The Hill newspaper.

A graduate of the George Washington University, Ferris spent most of her time writing for The GW Hatchet. Her bylines have also appeared at The Washington Post, the Houston Chronicle and the Center for Investigative Reporting.

Raised on a dairy farm in Newtown, Conn., Ferris boasts a strong affinity for homemade ice cream, Dunkin Donuts coffee and the Boston Red Sox.

Congress makes minimum wage history, going the longest without an increase since 1938

Tuesday, June 18th, 2019

The federal minimum wage has been $7.25 an hour since July 24, 2009. That’s coming up on a decade, but it’s already hit an infuriating milestone: June 16 marked the longest the minimum wage had gone without an increase since 1938, when the U.S. passed its first minimum wage. Because Republicans are happy to have the minimum wage be a poverty wage—and it is a wage so low that a full-time job is not enough to pull a family of two above the poverty threshold.

The Economic Policy Institute’s David Cooper lays out what workers have lost in the near-decade since the last increase: $7.25 in July 2009 was equivalent to $8.70 now. That means a minimum wage worker has seen their purchasing power drop by 17%, or the equivalent of more than $3,000 a year. And still Republicans stand in the way of a raise.

The good news is that many states—31 of them, plus the District of Columbia—have raised their minimum wages above the federal level, and in some cases well above it. Already in 2019 alone, Illinois, New Jersey, Maryland, and Connecticut have passed laws gradually raising the wage to $15 an hour, while Nevada and New Mexico are on their way to $12. But that doesn’t excuse congressional inaction, let alone congressional inaction on a historic, record-shattering level. Democrats have proposed raising the federal minimum wage to $15 an hour, but it won’t happen as long as Republicans are in a position to block it.

This blog was originally published at Daily Kos on June 17, 2019. Reprinted with permission.

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

Democrats have the House. They should use it to show how they'll fight back in the war on workers

Friday, November 9th, 2018

Winning the House doesn’t just let Democrats block some of the worst things Donald Trump wants from Congress. It also offers a chance to show what Democrats would do if they had the chance. For years Democrats have been introducing great legislation that Republicans would never allow to even come to a vote. Now is the chance to pass some of that in the House and let Senate Republicans explain why they’re not taking action.

Let’s start with the minimum wage. The federal minimum wage has been stuck at $7.25 an hour since 2009, while red states like Missouri and Arkansas (most recently) have voted to increase it, showing how deep and broad voter support is. Democrats should be able to pass a substantial minimum wage increase in the House quickly.

Democrats should pass a Pregnant Workers Fairness Act to strengthen protections for pregnant women and prevent abuses like these.

Paid family leave. Sick leave. Protections for Dreamers. These are all obvious, necessary things with widespread support.

But you can go deeper: “Workers should not be forced to sign away their rights as a condition of employment,” Celine McNicholas and Heidi Shierholz write. Democrats should undo one of the worst recent Supreme Court decisions with the Restoring Justice for Workers Act, which allows workers to have their cases against employers heard in a real court, not a rigged arbitration process.

No, this stuff isn’t going to get through the Senate or Donald Trump. But Democrats, show us what you would do if you could. Let the country know that while Republicans use Congress and the presidency to dismantle health care and give big tax breaks to corporations, Democrats would use it to raise the minimum wage and protect pregnant workers and let workers have their day in court.

This blog was originally published at Daily Kos on November 10, 2018. 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.

Democrats unveil plan for a $15 minimum wage

Thursday, April 27th, 2017

Congressional Democrats have unveiled their strongest minimum wage plan yet. And while Republicans will block this, it’s important to get the word out: this is what we’d be moving toward if Democrats were making the laws.

Their legislation, dubbed the Raise the Wage Act, would gradually raise the federal minimum wage to $15 an hour, increasing it from its current level of $7.25 an hour to $9.20 an hour once it’s passed and then adding about a dollar a year for seven years until it gets to $15. It would rise automatically after that as the country’s median wages rose.

The bill would eventually do away with the separate tipped minimum wage, which currently allows those who earn tips as part of their compensation to be paid as little as $2.13 an hour by their employers. It would increase that rate to $3.15 and then gradually raise it so it would eventually reach $15 an hour.

Seven years is slow, but otherwise, this plan checks some important boxes—in particular, raising the tipped minimum wage and setting it so that the minimum wage rises automatically rather than requiring a fight each and every time it’s raised. If Democrats had done that the last time they raised the minimum wage, it wouldn’t still be stuck at $7.25 an hour nearly eight years after its last increase, years during which it’s lost nearly 10 percent of its purchasing power. The Raise the Wage Act would also ensure that people with disabilities are paid the full minimum wage.

Every single time you talk about lawmakers backing a $15 minimum wage, you have to remember that it’s low-wage workers who pushed $15 into the realm of possibility, organizing around a number nearly $5 higher than the high end of Democratic proposals at the time. Their organizing has changed the discussion—and in two states and several large cities, it’s helped change the law.

We need to change the Congress, though, before we’ll see nationwide progress.

This article originally appeared at DailyKOS.com on April 26, 2017. Reprinted with permission.

Laura Clawson is a Daily Kos contributing editor since December 2006. Labor editor since 2011.

GAP Does Right By Its Workers: Other Corporations Should Take Notice

Monday, February 24th, 2014

seiu-org-logoExecutives at GAP heard President Obama’s State of the Union call for businesses to raise wages loud and clear. The retailer announced today that by next year, all of its workers will be making at least $10 an hour.

While GAP is making the right move and doing right by its 90,000 workers around the country, Congress must follow suit to lift millions out of poverty. There are bills in both the House and the Senate that would raise the federal minimum wage for 16 million workers and lift 900,000 Americans out of poverty. Yet, hardline Republicans in Congress continue using the same tired excuses against giving Americans a raise.

When even Wal-Mart is considering raising wages, when the President increases the minimum wage for federal contracted workers and makes raising wages a cornerstone of his national agenda and when an overwhelming majority of Americans support an increase in the minimum,it is definitely time for Congress to take action.

But government action isn’t the only answer to raising wages. That’s why today’s move by GAP is an example that corporations should follow.

This article was originally printed on SEIU on February 20, 2014.  Reprinted with permission.

Author: Jumoke Balogun

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