Outten & Golden: Empowering Employees in the Workplace

Posts Tagged ‘Minimum Wage’

2020 hopefuls are joining striking fast food workers Thursday — but who’s helping whom?

Thursday, May 23rd, 2019

McDonald’s workers are striking Thursday in a dozen cities across the country.

The latest walkouts in the nearly six-year-old campaign for union rights and sustainable wages, timed to overlap with the fast food giant’s annual shareholder meeting in Dallas, will also feature a number of 2020 White House hopefuls.

Former congressman and Housing and Urban Development head Julián Castro (D-TX) will join striking workers in Durham, North Carolina, alongside Moral Mondays leader Rev. William Barber II. Sen. Bernie Sanders (I-VT) will video conference in to the Dallas worker rally and take questions from the crowd.

Washington Gov. Jay Inslee (D) and New York Mayor Bill de Blasio (D) will attend walkouts in Chicago and Des Moines, Iowa, respectively. Sen. Cory Booker (D-NJ) had previously planned to attend the Des Moines rally but had to switch things up after a Senate vote on federal disaster relief was scheduled for Thursday at the last minute.

The presidential contenders will likely create an additional media draw in those four cities. But the workers themselves will be their own headliner in nine others, including Miami, Orlando, and Tampa, as well as Milwaukee.

These White House hopefuls are arguably more in need of being seen with these workers than the low-wage toilers require these politicos’ imprimatur. Since 2013, when the first impromptu walkout in New York broke open an organizing terrain that traditional labor organizers had long regarded as impossible, the Fight for $15 has been a persistent and mounting force in U.S. politics.

And as those strikes spread nationwide, to dozens and eventually hundreds of cities and towns across the United States, the energy present among the fast food and retail workers also broke through longstanding roadblocks on minimum wage laws.

Prior to Fight For $15 bringing new electricity to the scene, statutory pay floors had stagnated and fallen far behind inflation for decades around the country. In the spring of 2014, minimum wage advocates in Seattle, aided by the combined pressure of workers in the streets working from the outside and newly elected socialist firebrand Kshama Sawant making the case from her city council perch, finally reached a breakthrough. Seattle became the first municipality to set its pay floor at $15 an hour in the United States.

Numerous cities and states have followed suit since. And the $15 minimum wage question haunted the 2016 presidential election. During that season’s Democratic primary, former Secretary of State Hillary Clinton’s initial insistence that $12-per-hour was better policy eventually gave way to her embrace of the $15 demand.

If anyone still wanted to dispute the worker-led movement’s political gravity after that dramatic moment in the 2016 primary season, a little-noticed development this spring should have put such skepticism to bed for good. McDonald’s itself dropped its opposition to the campaign’s demands and withdrew its support for the National Restaurant Association’s long-running lobbying campaign against wage hikes and workers’ rights for the fast food industry.

The acquiescence of the industry’s leading burger chain has by no means ended the firm’s manifold conflicts with workers. McDonald’s workers have continued to file sexual harassment suits against the corporation, aided in recent months by the TIME’S UP Legal Defense Fund and the American Civil Liberties Union — as well as by 2020 hopeful Sen. Elizabeth Warren (D-MA), who blasted out a profile of their efforts to her massive social media following Tuesday.

The chain’s workers have also brought attention to the violence employees routinely face from customers along with, they contend, the dismissive, not-my-problem response they frequently get from management when they attempt to raise their concerns internally.

It is telling that White House hopefuls from all tiers of the primary — heavy hitters and long shots alike — are looking to associate themselves directly with the workers who are bearing the risks and costs of a union drive their employers oppose. The continued success of this largely grassroots movement will likely continue to command influence over the Democratic primary long after Thursday’s rallies and walkouts.

Labor energy has traditionally fueled the retail politicking of Democrats, of course. When former Vice President Joe Biden (D) joined a Stop & Shop workers’ rally during their recent and ultimately successful 11-day strike, the political media barely batted an eye. This is just what’s expected of those who would bear the party’s banner.

But there are signs that the relationship between elected Democrats and rank-and-file labor is shifting. Sanders’ campaign recently harnessed its digital subscriber list in the service of encouraging supporters to show up for workers at picket lines and rallies. As ThinkProgress previously detailed, his presidential campaign will be the first run by a unionized staff.

Lower-profile unionization drives in other industries have drawn mass attention from the energetic online left and, in turn, from Democratic politicians working to figure out how to wed that vocal cohort to the party’s traditionally moderate wing. And the AFL-CIO, long one of the most significant power brokers outside the party’s official infrastructure, is embroiled in internal disputes about how it apportions resources between organizing workers and influencing elections. It remains to be seen how that turmoil will affect the party’s own ability to rely on the AFL to turn out members at campaign events and on polling days, and broker connections between office-seekers and working stiffs.

The Fight for $15 folks, meanwhile, have remained a mainstay in the broad panoply of labor activists since their first-ever national convention in Richmond, Virginia, three years ago. The emotion and excitement that has long attended the campaign’s activism — coupled with the moral and rhetorical leadership of Rev. Barber and his fellow clergymen — make the movement an attractive force with which to form an allegiance. With several Democratic primary hopefuls beating an early path to their picket lines, it seems likely many more will show up in the months to come.

This article was originally published at Think Progress on May 15, 2019. Reprinted with permission. 

About the Author: Alan Pyke  covers poverty and the social safety net. Alan is also a film and music critic for fun. Send him tips at: apyke@thinkprogress.org or

Bernie Sanders will present proposal on behalf of Walmart workers at annual shareholders meeting

Wednesday, May 22nd, 2019

Every year, Walmart stages a massive, multi-day meeting in Arkansas for the company’s shareholders, not far from the corporate headquarters of the world’s largest retail store. The company’s top executives deliver speeches, its board of directors hears various proposals regarding corporate behavior and governance, and special guests make surprise appearances to keep the masses entertained.

The shareholders’ meeting is also when the company’s 1.5 million U.S. workers — many of whom work for poverty-level wages with few benefits and employment safeguards — are given a chance to directly confront the billionaires whose fortunes they helped build.

This year, they’re bringing a megaphone with them to amplify their message: Democratic presidential candidate and Vermont Sen. Bernie Sanders (I).

For years, workers have appeared at the shareholders’ meeting to propose new corporate policies designed to help lift the retailer’s army of hourly workers out of poverty and provide them with greater protections on the job. Every single proposal they have put forward has been voted down and ignored by the Walton family, which controls the majority of votes on the board.

Sanders will appear on the workers’ behalf this year to present their latest proposal: give hourly workers one seat on the company’s board.

For years, Sanders has fought on behalf of the country’s 80 million hourly workers, pushing for increases to the minimum wage, strengthening unions, and capping executive salaries which have skyrocketed in the last 25 years. Walmart, by virtue of employing more of these hourly workers than any other company in the country by a wide margin, has been a specific target for Sanders.

Last year, he introduced the subtly-named “Stop Walmart Act” designed to pressure the company to raise its minimum wage to $15 an hour. The bill would prohibit large corporations from buying back their own stock — a popular mechanism for boosting share prices — unless they introduce a series of benefits for hourly workers first, in addition to the wage hike.

For their part, Walmart executives appear less than thrilled that Sanders will be in attendance to directly criticize their corporate practices on the biggest day of the year.

“If Senator Sanders attends, we hope he will approach his visit not as a campaign stop, but as a constructive opportunity to learn about the many ways we’re working to provide increased economic opportunity, mobility and benefits to our associates — as well as our widely recognized leadership on environmental sustainability,” the company said in a statement.

The proposal Sanders will be introducing isn’t the only one shareholders are expected to vote on next month. Another one calls for the company to strengthen protections against workplace sexual harassment.

The company is advising shareholders to vote no.

This blog was originally published at ThinkProgress on May 21, 2019. Reprinted with permission.

About the Author: Adam Peck is a deputy editor at ThinkProgress who works with politics reporters.

Power Connection: Connecticut AFL-CIO Empowers Fight for $15

Wednesday, May 22nd, 2019

In a monumental leap of economic justice last week, the Connecticut Legislature passed a law that increases the state minimum wage to $15 per hour by 2023. The increase brings Connecticut into parity with its neighboring states of New York, Massachusetts and New Jersey, which have passed similar increases. The victory comes as a result of unprecedented coordination among labor unions and allied advocates in the state that have been fighting for an increase for years.

“After years of grassroots organizing, Connecticut will finally catch up to our neighbors,” said Connecticut AFL-CIO President Sal Luciano. “We applaud the legislature for doing the right thing and raising wages for over 330,000 workers in our state.”

The victory was aided by a number of union members who have been elected to the state’s General Assembly. Of critical importance to the bill’s passage were the co-chairs of the assembly’s Labor and Public Employees Committee, state Sen. Julie Kushner, former director of UAW Region 9A, and state Rep. Robyn Porter, who was once a single mother who worked three jobs to make ends meet.

The state legislature also has a paid family and medical leave bill that is tentatively scheduled for a vote the week of May 20. “All these combined are going to make a huge difference in people’s lives,” Kushner said.

The significance of the measure is not lost on those who will immediately benefit from the increase. “When fast-food workers walked off the job nearly seven years ago demanding $15 and a union, nobody thought we had a chance,” said Joseph Franklin, a leader in the Fight for $15 coalition and a McDonald’s worker in Hartford. “Our movement is gaining momentum.”

The Connecticut AFL-CIO has been diligently working to elect union members and allies to office, and this victory shows that the path to power flows directly through the labor movement.

This blog was originally published at AFL-CIO on May 21, 2019. Reprinted with permission.

About the Author: Michael Gillis is a writer at AFL-CIO.

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

Thursday, April 11th, 2019

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Maryland workers to get a $15 minimum wage by 2025

Friday, March 29th, 2019

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

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

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

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

Fast food workers declare victory after McDonald’s withdraws opposition to minimum wage hikes

Tuesday, March 26th, 2019

After six years of strikes, lawsuits, and damning public scrutiny of how the fast food business model relies on taxpayer-subsidized poverty wages, McDonald’s formally withdrew from efforts to block a federal minimum wage hike on Tuesday.

The chain will also stop working against minimum wage increases at state and local levels, its executives told lobbying partners at the National Restaurant Association in a letter.

Workers and organizers involved in the six-year campaign of walk-outs, demonstrations, and litigation, dubbed the “Fight for $15,” immediately celebrated the about-face and pressed their advantage.

“It’s also time the company respect our right to a union. Since day one, we’ve called for $15 and union rights and we’re not going to stop marching, speaking out, and striking until we win both,” Kansas City McDonald’s worker and prominent Fight for $15 leader Terrence Wise said in a statement. “McDonald’s decision to no longer use its power, influence and deep pockets to block minimum wage increases shows the power workers have when we join together, speak out, and go on strike.”

Wise’s mix of praise and warning reflects some murkiness attending the company’s decision. McDonald’s hasn’t renounced its membership in the “other NRA,” just forsworn corporate support for an ongoing lobbying effort funded in part through its own dues payments to the group. And it’s unclear if the company now welcomes the $15 wage floor workers have consistently sought since 2012, or if it merely accepts some smaller increase is inevitable.

The details of how minimum wage hike policies come together are always tricky, as business organizations fight to carve out certain sizes of business and to slow the phase-in period of a wage hike beyond what workers and progressive economists say is reasonable. The nation’s first $15 hourly wage floor deal was the product of months of vigorous negotiations where “everybody left… a little bit of blood on the floor,” as Seattle Hospitality Group leader Howard Wright told ThinkProgress after that city brokered the first low-wage labor peace of the conflict-oriented era workers like Wise created.

Despite Tuesday’s letter, McDonald’s is also continuing to fight a federal labor board’s finding that its franchise business model does not protect the corporate parent from liability for how its franchisees operate their stores. That dispute over whether or not “joint employer” legal doctrines apply to the franchise models common to the fast food industry likely presents a more fundamental threat to McDonald’s ability to funnel money to its shareholders and CEOs than do wage floors.

But if the war between McDonald’s and workers like Wise isn’t exactly over, it’s radically reshaped by Tuesday’s letter, which was first reported by Politico.

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Retail and service workers paid at or near the legal minimum have become a staple of the stock price-obsessed modern U.S. business world. Congress’ multi-generation failure to hike the federal minimum pay has meant that corporate reliance on low-wage work steadily eroded the traditional social contract in which having a job meant being able to afford a decent standard of living. Instead, as people who work substantial hours found themselves impoverished anyhow, government programs funded by taxpayers stepped into the gap — effectively subsidizing the profits McDonald’s and its peers reaped from their low-wage business models.

Stark partisanship within federal government coincided with the rapid, coast-to-coast spread of Fight for $15 strikes and protests, preventing legislative action in response to the mounting labor strife for years. A bill to gradually raise the federal minimum wage from $7.25 to $15 was among the first legislative proposals Democrats introduced after taking the House in last year’s midterm elections.

The same month, Chamber of Commerce officials announced they’d entertain some pay hike provided Democrats were willing to negotiate some flavor of concessions. Like the chamber’s announcement, Tuesday’s high-profile maneuver from McDonald’s carries major symbolic weight but leaves lingering unanswered questions about just how far major corporate interests that have taken publicly-subsidized wage serfdom for granted for decades are now willing to move in the name of economic justice.

This article was originally published at ThinkProgress on March 26, 2019. Reprinted with permission. 

About the Author: Alan Pyke is a reporter for ThinkProgress covering poverty and the social safety net.

Raising the minimum wage works

Monday, March 11th, 2019

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

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

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

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

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

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

Tuesday, February 19th, 2019

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Wednesday, February 13th, 2019

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

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

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

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

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

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

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

Monday, November 5th, 2018

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

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

Local control is not what Kudlow is advocating, though:

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

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

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

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

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