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Posts Tagged ‘minimum wage increase’

Washington state gets paid family leave

Tuesday, July 18th, 2017

 Paid family leave is becoming law in Washington state. The state legislature passed and Gov. Jay Inslee has signed a law giving workers up to 12 weeks of paid family leave for birth, adoption, or the worker’s own or a family member’s medical condition, and up to 16 weeks in a year:

The Washington state program would benefit low-wage workers because those earning less than half of the state’s weekly average would receive 90 percent of their income—to a maximum of $1,000 per week. The benefits are based on a percentage of the worker’s average weekly wage and the state’s weekly average wage, which was $1,133 in 2016.

The program is largely funded by workers, who will pay a premium of 0.4 percent of their wages each paycheck into a state-run insurance fund. This would cost a minimum-wage worker about 3 cents an hour, according to the bill’s sponsor. Employers are responsible for picking up at least 55 percent of the medical leave premium—or more if they choose to do so.

“This new law is an affordable and predictable solution to providing an important benefit for life’s emergencies,” Sara Reilly, co-owner of Darby’s Café and Three Magnets Brewing Co. in Olympia, Washington, said in a statement.

How’s that for a much-needed piece of good news? But of course every time a state or city passes a minimum wage increase, paid sick leave, or paid family leave, it’s a reminder of how far short our federal laws fall, and how much of a fight we have to elect Democrats to Congress and the presidency before we can change this.

 This blog was originally published at DailyKos on July 8, 2017. Reprinted with permission. 
About the Author: Laura Clawson is labor editor for DailyKos. 

Voters Want Higher Minimum Wages. Why? They Grow Jobs

Thursday, April 6th, 2017

Last year Maine voters approved an increase in the minimum wage. After this jobs and wages surged. So business groups are trying to do something about it.

And not just in Maine.

 

Maine’s Job “Surge”

Last year voters approved a Maine ballot initiative raising the state’s minimum wage to $12 by 2020. The ballot initiative received 56 percent support. In January the first phase-in increase to $9 took effect. The Maine Beacon explained what happened:

Average hourly earnings for private-sector Maine workers increased to $22.70 an hour and total employment increased to an all-time high, with a gain of more than 4,000 seasonally-adjusted jobs from December.

Significant employment gains were seen among Maine’s restaurants and hotels, with the accommodation and food service sector gaining 700 jobs.

So instead of the predicted disaster, with employers laying off workers and some going out of business, it turns out that raising the minimum wage was a good thing for the employees – and the employers – who saw a surge in customers coming through the door so they had to hire people to handle the new business.

Go figure.

Legislature Dials Back

In response to this terrible violation of corporate/conservative ideology, which says you can’t raise the minimum wage because higher pay hurts employees and employers, business groups in Maine “are actively working to undermine the results of the last election.”

Captured legislators have introduced 16 bills that would roll back the wage increases, especially on “tipped workers.” This is happening even though it was Maine’s voters who decided to raise the wage. The Maine Beacon covers this, too:

16 bills seek to roll back various aspects of the increase, and eight Democrats have signed on to attempts to cut the subminimum wage for tipped workers, which went from $3.75 to $5 an hour in January and is slated to gradually increase over the next decade under the current law until it reaches the full minimum wage.

The restaurant industry lobby has fought hard against the minimum wage law, including spreading misinformation and fear about the effects of tipped wage increases on rates of tipping. In other states that have higher tipped wages, restaurant servers make the same or higher tips as Maine, but can also depend on a more steady base wage from their employer.

Some business owners believe that paying employees takes money out of their own pockets. Our country fought and won a civil war over this mentality, but the ideology persists.

Not Just Maine

Attacks on voters and the idea of a minimum wage are not just happening in Maine, but across the country.

In a number of cities, counties and states, voters have approved a higher minimum wage, and these decisions are also now under attack. Amber Phillips reports in the Washington Post that many of these gains, which were won by ballot initiatives, are in danger.

“Just because the voters have an opinion doesn’t make it constitutional,” said Patrick Connor, director of the Washington branch of the National Federation of Independent Business.

Several states are also passing “preemption” laws keeping cities from raising their minimum wages. Christine Owens of the National Employment Law Project writes about this:

As public support for raising pay for low-wage workers reaches a fever pitch, and as the momentum of worker movements like the Fight for $15 becomes harder and harder to stop, corporate lobbyists have begun resorting to increasingly underhanded maneuvers to keep wages down.

Their go-to move in recent years: pushing bills through state legislatures that “preempt” – essentially prohibit – city and county governments from passing minimum wage laws higher than the state levels – which in many states remain low due to political gridlock.

According to Bryce Covert and Evan Popp at Think Progress,  19 states have passed laws to keep local governments from raising the minimum wage above the state level.

The wage-increase opponents are making it clear they don’t care what the voters want.

Higher Wages Mean More Jobs

There are two competing narratives about minimum wages:

1) Raising the minimum wage forces businesses to lay people off because they are “too expensive.”

2) Raising the minimum wage means more people have more money to spend, which means businesses have more customers with more money, forcing employers to hire more people to meet the demand.

Fortunately there are ways to test both theories. If you look at what has happened when the minimum wage is increased, what you find is that raising the minimum wage does not cause job loss. It does, of course, cause a raise in the minimum wage, which “raises the bar” causing those above the minimum wage to also get raises.

The “too expensive” theory assumes that employers have people sitting around reading newspapers, and can just lay them off. But the point of hiring people is to have them do things that need to be done, and which make money for the employer.

So when wages go up, businesses have more customers with more money to spend. As in Maine, the actual results of minimum wage increases show that this is what happens.

The Economic Policy Institute provides a graphic showing these wage gains:

Opposing minimum wage increases is more than just an attack on democracy and working people, it is an attack on common sense. It cuts off the employer’s nose to spite the employer’s workers.

This post originally appeared on ourfuture.org on March 30, 2017. Reprinted with Permission.

Dave Johnson has more than 20 years of technology industry experience. His earlier career included technical positions, including video game design at Atari and Imagic. He was a pioneer in design and development of productivity and educational applications of personal computers. More recently he helped co-found a company developing desktop systems to validate carbon trading in the US.

Inequality Is Still the Defining Issue of Our Time

Monday, October 17th, 2016
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In 2011, President Obama, speaking in the wake of Occupy Wall Street, called inequality the “defining issue of our time.” Now Jason Furman, chair of the Council on Economic Advisors, argues that Obama “narrowed the inequality gap” more than any president in 50 years. The nonpartisan Congressional Budget Office echoes the observation that income inequality after taxes is no higher than it was in 2000, and that Obama’s policies have done more to reduce inequality than any other policies on record.

Don’t take down the barricades. Inequality remains extreme and continues to widen. And the populist uprisings that have roiled American politics have clear opportunities to tackle the core problem after the election.

As James Kwak at Baseline Scenario notes, the council’s report measures Obama’s reductions against what inequality would have been if George Bush’s policies had been sustained through the Great Recession. The progress comes largely from progressive tax changes. Obama raised taxes marginally on the very wealthy (allowing the Bush tax cuts to expire for very rich, particularly the 15 percent tax on capital gains, and taxing investment income under Medicare to help pay for health care reform) and increased tax subsidies to low-wage workers (expanded child tax and expanded earned-income tax credits.) These advances, while praiseworthy, don’t come close to reversing the regressive tax polices of the past decades.

As Emmanuel Saez has shown, the richest 1 percent continue to pocket the bulk of the rewards of growth. The income share of the top 1 percent before taxes fluctuates with the business cycle, but it has been rising over time. Despite recent increases, household income for the vast majority of the population has still not recovered from the Great Recession. These rewards largely reflect the underlying economic structures that determine what Jacob Hacker has dubbed predistribution (the pretax distribution of income): globalization, bargaining power of labor, executive pay structures, demand for skills, etc. As Kwak concludes, “It’s hard to point to anything [Obama] did that affected the underlying economic factors producing the increase in inequality.”

This elevates the importance of fierce political battles that will occur after the November elections. First, President Obama plans to join with the business lobby to push the Trans-Pacific Partnership Treaty through the lame-duck session of Congress. The TPP is another in the corporate trade and investment deals that have proved so devastating to American workers. Even trade-accord advocates now admit that our globalization strategy has contributed directly to growing inequality, putting American workers in competition with low-wage and repressed labor abroad, with no sensible industrial or comprehensive strategy for impacted communities and workers.

The mobilization against the TPP will engage the populist energies in both parties. Sanders’s new organization Our Revolution will join with labor and the bulk of the activist Democratic base to drive an intense opposition that will make the Tea Party look like, well, a tea party. If the TPP is defeated, the next administration will be forced to rethink America’s globalization strategies, moving toward more balanced trade, ending the special privatized investor arbitration system, and focusing attention on the tax traps and dodges that allow global corporations to evade hundreds of billions in taxes. Even if the TPP passes, the fury of the opposition could force an understanding that the old game is over.

Similarly, efforts to lift the floor under workers already in motion should gain new energy. The Republican House leadership won’t even allow a vote on hiking the minimum wage, but Fight for $15 and other movements are winning wage hikes in cities and states across the country. Measures to guarantee paid sick and vacation days and to crack down on wage theft and demand equal pay for women are beginning to move. These efforts—particularly at a time of relatively low unemployment—can help workers gain a greater share of the profits they help to produce.

Obama recently admitted that stronger unions are vital to redressing inequality. Yet he abandoned campaign promises to make labor-law reform a priority early in his administration and has refused to issue an executive order giving union employers priority in government contracting. Union support was central to Clinton’s victory in the primaries. When she takes office in January, activists should join with federal contract employees to demand issuance of a Good Jobs executive order that would encourage firms with federal contracts to respect labor rights. And Democrats at every level of executive office should be pushed to put government on the side of workers.

Finally, populist energy should be directed at curbing obscene CEO pay packages. Academics have exposed the fraudulence of “performance pay” bonuses. Investors bemoan the perverse corporate policies generated by executive efforts to drive up the value of their bonuses. Yet boardrooms haven’t got the message. It is time to turn up the heat. For example, executive compensation rules to discourage Wall Street risk-taking were supposed to have been written nearly five years ago. They haven’t been, and progressives in Congress led by Elizabeth Warren and Bernie Sanders should expose this outrage. Unions, public pension funds, and university endowments should use their votes to challenge excessive CEO compensation packages. Sanders’s Our Revolution might join with other progressive groups in challenging the worst abusers at their annual shareholders meetings.

Inequality remains a defining issue of our time. The advances made under Obama deserve applause, but the real work remains to be done. This presidential season has exposed the growing revolt against business as usual. Now activists must seize the opportunity to build on the energy after November.

This blog originally appeared in ourfuture.org on October 13, 2016. Reprinted with permission.

Robert L. Borosage is the founder and president of the Institute for America’s Future and co-director of its sister organization, the Campaign for America’s Future. The organizations were launched by 100 prominent Americans to develop the policies, message and issue campaigns to help forge an enduring majority for progressive change in America. Mr. Borosage writes widely on political, economic and national security issues. He is a Contributing Editor at The Nation magazine, and a regular blogger at The Huffington Post. His articles have appeared in The American Prospect, The Washington Post, The New York Times, and the Philadelphia Inquirer. He edits the Campaign’s Making Sense issues guides, and is co-editor of Taking Back America (with Katrina Vanden Heuvel) and The Next Agenda (with Roger Hickey).

Minimum Wage Increases On the Ballot In Four States

Friday, September 16th, 2016

Terrance HeathThere’s a lot more going on in this election than the presidential race between Democratic nominee Hillary Clinton and Republican nominee Donald Trump. Borne out of the dedication and hard work of activists, ballot initiatives give citizens the opportunity to vote directly on legislation and constitutional amendments at the state and local level, sometimes even bypassing the legislature.

This year, People’s Action affiliates in four states have seen their hard work pay off by successfully getting initiatives to increase the minimum wage on the ballot.

 

Arizona

In Arizona, voters will decide whether to pass The Fair Wages and Healthy Families Initiative. The ballot initiative, if passed, will raise Arizona’s minimum wage to $10 per hour in 2017, and gradually raise it to $12 by 2020. It also provides “earned paid sick time,” which workers can use if they or a family member gets sick, and prohibits retaliation against employees who use the benefit. The measure does, however, retain the state’s law on tipping, which allows employers to pay workers who receive tips up to $3.00 less than minimum wage.

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According to Arizonans for Fair Wages and Healthy Families:

– A minimum wage worker in Arizona only earns $17,000 per year.
– More than half of minimum wage workers in Arizona are women.
– More than 27 percent of Arizona’s low-wage earners are parents.
– 45 percent of Arizonans don’t have access to earned sick days.

Those numbers tell the stories of people like Riann Norton, a single mother two, who often has to miss work in order to care for her chronically ill young daughter, or Iraq War veteran Luis Cardenas, who came home only to join the ranks of veterans struggling to meet their basic needs with low wages.

The measure is supported by a number of coalition partners, including Living United for Change in Arizona (LUCHA), which is part of the Fight for $15 movement, and organized community members to petition fast-food chains like McDonald’s and grocery stores like El Super to pay their workers living wages.

Colorado

Colorado’s State Minimum Wage Amendment will raise the state’s minimum wage to $9.30 per hour effective January 1, 2017, and increase it by $0.90 every January, until it reaches $12 per hour in 2020. After 2020, the wage will be adjusted for increases in the cost of living. The law allows employers to pay employees who also make tips up to $3.02 less than minimum wage.

The Colorado People’s Alliance, which worked to get the initiative on the ballot, says that nearly half a million Coloradans will see their wages increase if the measure passes — including 263,000 women, or 22 percent of female workers in the state. One in five Coloradans would get a raise, and 86 percent of them will be adult workers over 20 years old. Currently in Colorado, full-time minimum-wage workers earn about $300 per week, or $17,000 a year.

According to a recent University of Denver study, increasing Colorado’s minimum wage would pump up to $400 million into the state’s economy and raise the standard of living for one in five households.

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About 400,000 Colorado households, half of those families with children, will see higher incomes if the amendment passes.

Colorado’s minimum wage amendment currently holds a 13-point lead in the first publicly released poll on the proposal. Of likely 2016 general-election voters, 55 percent support the amendment, while 42 percent oppose it, and 3 percent remain undecided. That’s good news for workers like Marilyn Sorenson, a home health care worker who finds after more than 20 years, her paycheck hasn’t kept up with her basic expenses; and business owners like Vine Street pub owner Kevin Daily, who says that increasing the wage will boost productivity by lowering workers’ financial stress, and increase the number of people “with more money in their pockets so they can afford a beer and a meal.”

Maine

The Minimum Wage Increase Initiative, Question 4 on Maine’s state ballot this year, will increase the general minimum wage to $12 an hour by 2020. The initiative also increases the wage for tipped workers from half of minimum wage to $5 an hour in 2017, then increases it by $1 every year, until it is equal to the general minimum wage by 2024.

Republican Governor Paul LePage joined business groups in an attempt to push a smaller wage increase through the state legislature. Republicans on the legislative budget committee took the budget hostage, saying they would only negotiate new spending if Democrats supported a smaller wage increase. However, none of the competing proposals passed the House, so there is no competing measure on the ballot.

According to a study by the nonprofit poverty relief group Oxfam, Maine has the highest percentage of low-wage workers in the Northeast. “So 32 percent of Maine workers are currently paid less than $12 an hour,” says Mike Tipping of the Maine People’s Alliance. Neighboring states Vermont and New Hampshire came in at 26 and 24 percent, respectively.

Washington

Washington state’s Initiative Measure No. 1433 will increase the state’s minimum wage to $11 per hour in 2017, $11.50 in 2018, $12 in 2019, and $13.50 in 2020. The initiative will also require employers to provide paid sick leave and follow related laws. Washington’s Democratic governor Jay Inslee volunteered to help Raise Up Washington collect signatures for the initiative, and spoke out in favor of it:

“No one who works 40 or more hours a week should struggle to make ends meet,” Inslee said. “And no parent should have to choose between staying home to take care of a sick child or losing a paycheck. Initiative 1433 will lift up workers and families across this state and boost our local economies.”

Washington’s initiative will help women in two important ways. Women are the primary breadwinners in almost half of all households with children. But women make up 60 percent of minimum wage workers in Washington state. Women are also 10 times more likely to stay home with a sick child than their male partners.

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If the initiative passes, women will earn more, and will no longer have to choose between their jobs and their families.

Other Initiatives

Increasing minimum wage isn’t the only progressive issue on the ballot this year:

– In Maine, Question 2 will create an additional 3 percent tax surcharge on incomes exceeding $200,000 per year. The revenue from the increase will be earmarked to help fund K–12 public education.

– In Howard County, Maryland, voters will decide if they want a citizen-funded campaign system, to boost the power of small, individual donations, and encourage more candidates to run without the burden of raising major funds. The initiative, Question A, is supported by Fair Elections Howard, Progressive Maryland, and other progressive organizations.

State and local progressive activists are leading the way and not waiting for Congress to act on important issues that impact America’s working families. As a result, this year’s election could yield a number of progressive victories.

This post originally appeared on ourfuture.org on September 15, 2016. Reprinted with Permission.

Terrance Heath is the Online Producer at Campaign for America’s Future. He has consulted on blogging and social media consultant for a number of organizations and agencies. He is a prominent activist on LGBT and HIV/AIDS issues.

Obama is a step closer to expanding overtime, but for how many American workers?

Tuesday, May 5th, 2015

Laura ClawsonThe Labor Department is moving ahead with President Obama’s eagerly awaited overtime pay expansion. That’s good news, but we don’t know yet how good. Currently, workers who make as little as $24,000 a year can be denied time-and-a-half if they’re considered managers—even if most of the work they do isn’t managerial. Obama has promised to raise that threshold to cover more salaried workers, but hasn’t said how high it will go, and the fact that the Labor Department has finalized a plan doesn’t change that. Yet:

The full proposal is now under review by OMB officials and won’t be made public for at least several weeks. After it is published, there will be a review period during which interested parties can comment on the proposed rule. The details of the rule are eagerly awaited by employers and worker advocates — not to mention overworked Americans — since they will ultimately determine who receives time-and-a-half pay when they work more than 40 hours in a week.

Just 11 percent of salaried workers qualify for overtime under the current rules. To cover the same proportion of workers who were eligible for overtime in 1975, the threshold would have to be raised from $23,660 to $69,004 ($58,344 if you adjust for increased education). To adjust for inflation since 1975, the number would be $51,168. Any increase will be an improvement that means overtime eligibility for millions more workers—meaning employers can’t save on wages by hiring salaried “managers” and expecting them to stock shelves 10 hours a day—but here’s hoping the Obama administration has chosen a number that will get us back to 1975 by one measure or another.

This blog originally appeared in Daily Kos Labor on May 5, 2015. Reprinted with permission.

About the Author: Author’s name is Laura Clawson. Laura Clawson has been a Daily Kos contributing editor since December 2006. Labor editor since 2011.

Minimum Wage Victory Celebrated on the New Jersey Senate Floor

Monday, March 31st, 2014

Jackie TortoraThe New Jersey State AFL-CIO this week celebrated a milestone in its campaign to raise the state minimum wage by joining partners and advocates from across the Garden State in a recognition ceremony held in the Senate.

At the opening of the Senate session, Senate President Stephen Sweeney presented the New Jersey State AFL-CIO coalition partners of Working Families United for New Jersey Inc. (WFUNJ) with a resolution in recognition of the work that went into passing the state constitutional amendment by a landslide margin.

Charles Wowkanech, New Jersey federation president, and state federation Secretary-Treasurer Laurel Brennan said in a message to campaign supporters:

The minimum wage campaign proved that when all our communities come together on the right side of an issue, we win.

Despite being outspent by our opponents, we showed that grassroots strength and community engagement and involvement will achieve tremendous success at the ballot box. WFUNJ turned people who thought raising the minimum wage was the right thing to do into voters who said it loud and clear in the voting booth.

All of us who are proud to be part of this coalition are deeply honored by this recognition today.

Read more about the New Jersey State AFL-CIO’s minimum wage victory.

This article was originally printed on AFL-CIO on March 28, 2014.  Reprinted with permission.

About the Author: Jackie Tortora is the blog editor and social media manager at the AFL-CIO.

The Senator from Walmart Thinks a $10.10 Minimum Wage is 'Too Much, Too Fast'

Monday, February 10th, 2014

Laura ClawsonWill conservative Democrats never learn? Sen. Mark Pryor (D-AR) is facing a tough re-election battle in Arkansas, which is both a low-income state and the home of Walmart. So what position is he taking when it comes to raising the minimum wage, which would pull many of his constituents out of poverty but require Walmart to pay higher wages? If you guessed “he’d find a way to be mealymouthed and spineless,” give yourself a gold star.

On the one hand, Pryor kinda sorta supports a state ballot initiative that would raise the Arkansas minimum wage to a whopping $8.50 an hour over three years. (The state currently has a $6.25 minimum wage on the books, below the federal level, so that’s the initiative’s starting point.) On the other hand, Pryor opposes raising the federal minimum wage to $10.10:

“I know $10.10 still isn’t a whole lot of money, but I think it’s too much, too fast,” Pryor, who is seeking a third Senate term, said in an interview at the Capitol. “I’m not supportive of that.”

Seriously. It’s not much, but it’s too much for the poors, apparently. That’s $21,000 a year for a full-time worker, enough to get a family of three out of poverty, but leaving them well within food stamp eligibility.

Meanwhile, 52 percent of Arkansas voters support raising the minimum wage to $10 while just 38 percent are opposed, according to a Public Policy Polling poll, with 47 percent saying they’d be more likely to vote for a candidate who supported raising the minimum wage. Maybe that’s why Pryor went way out on a limb to say raising the state minimum wage all the way to $8.50 over three years is “a pretty reasonable approach.” But he should look at another question in that poll: 73 percent agreed with the statement that “Someone who works full-time should be paid enough to keep them out of poverty.” That’s your winning argument, and it points to a wage well above $8.50. Except that apparently Walmart’s money (they’re Pryor’s sixth-largest campaign donor) speaks more loudly—and Pryor doesn’t seem to get that being Walmart’s lapdog won’t make them go to bat for him over a Republican.

This article was originally printed on Daily Kos on February 7, 2014.  Reprinted with permission.

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

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