Outten & Golden: Empowering Employees in the Workplace

Posts Tagged ‘Minimum Wage’

Not Lovin’ It: Thousands Storm McDonald’s HQ To Protest Low Wages

Thursday, May 21st, 2015

Terrance HeathIn the largest protest of its kind, thousands of McDonald’s employees stormed the company’s headquarters today to demand that it stop spending millions manipulating stock prices, and start paying workers a living wage. McDonald’s cashiers and cooks came to the company’s shareholders meeting, at its corporate headquarters in Oak Brook, Illinois. More than 100 were arrested for refusing to leave the property.

Marching with them were Service Employees International Union president Mary Kay Henry; Moral Mondays movement leader Rev. William Barber; Rev. Marilyn Pagán Banks of North Side Power/A Just Harvest in Chicago, Illinois; and Rev. Rodney E. Williams of the Swope Parkway United Christian Church in Kansas City, Missouri

The company, which banned media from its shareholders meeting on Tuesday, responded by shutting down its corporate headquarters.

McDonald’s is already under fire worldwide for dodging €1 billion in corporate taxes in Europe, and violating labor laws in Brazil. Now its in hot water back home for a share buyback scheme designed to inflate the company’s stock price, which means more money in the already well-lined pockets of shareholders and company executives. The company recently announced plans to return $18 to $20 billion to shareholders by 2016, through dividends and share buybacks.

Thousands of workers swarmed the company’s headquarters to protest McDonald’s spending nearly $30 billion manipulating stock prices instead of paying its workers a livable wage. Some carried blown-up copies of their paychecks to illustrate how little McDonald’s invests in its workers vs. how much is spends repurchasing shares.

Christine Owens, executive director of the National Employment Law Project released a statement in support of the protest:

“McDonald’s workers are rightly bringing the fight for $15 an hour and the right to form a union to their employer’s doorstep. For too long, the McDonald’s business model has served to enrich executives and short-term shareholders at the expense of workers and taxpayers. It’s time McDonald’s face the people who fry its fries and serve its customers but who are forced to pay for groceries with food stamps because McDonald’s does not pay them enough to feed their families.

“In the last decade, McDonald’s spent $30 billion on share buy backs—a widely discredited and short-sighted strategy to pump up the value of its stock. Spending billions on buybacks may provide short-term payoffs for a handful of rich investors, but it does nothing to benefit the company’s hundreds of thousands of employees, who are barely making ends meet. In fact, it misplaces resources that would be better used investing in growing the company or raising worker pay.

“More than half of fast-food workers are forced to rely on public assistance to support themselves and their families. McDonald’s costs taxpayers $1.2 billion every year in public assistance. McDonald’s is a $5 billion global corporation; its employees should not need to rely on food stamps, and taxpayers should not be subsidizing its profits.

“Today, as the workers protested, New York Gov. Andrew Cuomo’s Wage Board held its first hearing to significantly raise pay for fast-food workers across the state. And just yesterday, Los Angeles became the biggest city yet to vote for a $15 minimum wage, which is fast becoming a new baseline for workers across the country. The McDonald’s workers who are standing up and fighting for $15 and union rights are winning. This fight is not theirs alone—all of us have a stake in it. And when they finally get $15, all of us will be better off.”

The protest comes on the heels of the largest-ever strike against the fast food industry last month, when workers joined walkouts in 236 cities, as well as strikes and protests in 40 countries.

This blog was originally posted on Our Future on May 20, 2015. Reprinted with permission.

About the Author: The author’s name is Terrance Heath. 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.

Facebook Just Made Sure Even Their Janitors Are Making At Least $15 An Hour

Friday, May 15th, 2015

Facebook issued new employee benefit guidelines that raise minimum pay to $15 and extends leave for third-party contract employees who work behind the scenes on the social network’s campuses. In a blog post Tuesday, Facebook’s chief operations executive Sheryl Sandberg wrote that contractors and vendors in U.S. will have to adhere to new standards, including a $15 minimum wage, at least 15 days paid leave for vacation, sick days and holidays, and a $4,000 new child benefit for parents who don’t get paid parental leave.

Effective May 1, the new benefits will cover contract employees who work as cooks, janitors, security guards and other support staff at Facebook’s headquarters in Menlo Park, California. The company plans to extend the benefits to third-party vendors with more than 25 employees at its other 16 campuses in the U.S. over the next year.

Facebook will also absorb extra costs from the new program until contract companies can meet the new standards, a Facebook representative told the Wall Street Journal. The new program, which Sandberg said will primarily benefit women who make up two-thirds of the minimum wage workforce, aims to bring temporary or contract workers closer to the perks Facebook employees get, such as three weeks vacation, parental leave and new baby bonuses.

The move also follows a strong backlash from Silicon Valley’s invisible workforce. The employees tech companies lean on to provide the benefits full employees get such as free transportation, meals, security and personal grooming services, often face untenable work schedules with skimpy compensation by contracting companies. Earlier this year, shuttle bus drivers for Facebook employees unionized to fight grueling shifts and better pay. Amazon, which has frequent labor disputes, recently removed a controversial clause in its employment contract that banned seasonal and contract workers from getting jobs at companies that may only remotely compete with the online retailer.

Google hired more than 200 security guards last year instead of contracting the services out, giving them the same benefits — retirement, health insurance and paternity leave — as the company’s other employees. In a less traditional move, Apple and Facebook also expanded their health benefits, allowing female employees to freeze their eggs under the company’s insurance plans.  

This blog was originally posted on Think Progress on May 13, 2015. Reprinted with permission.

About the author: The author’s name is Lauren C. Williams. Lauren C. Williams is the tech reporter for ThinkProgress with an affinity for consumer privacy, cybersecurity, tech culture and the intersection of civil liberties and tech policy. Before joining the ThinkProgress team, she wrote about health care policy and regulation for B2B publications, and had a brief stint at The Seattle Times. Lauren is a native Washingtonian and holds a master’s in journalism from the University of Maryland and a bachelor’s of science in dietetics from the University of Delaware.

States Where Minimum Wages Are Supposed To Be Living Wages

Thursday, May 14th, 2015

Bryce CovertLast week, New York Gov. Andrew Cuomo (D) announced that he is taking advantage of a state law to raise minimum wages without the involvement of the legislature. He’s not the only governor with that power; others could also follow suit.

New York State law gives the labor commissioner the authority to convene a wage board to investigate whether the minimum wage in a specific job — or even all of the jobs in the state — are adequate, and to issue a “wage order” to increase it without the involvement of state lawmakers. On Wednesday, Cuomo announced that he would direct the commissioner to investigate wages in the fast food industry. New York was the home to the first strike in the fast food industry demanding a $15 minimum wage and has been home to them as they continued to spread across the country.

But Cuomo isn’t the only governor with the power to set a higher minimum wage without approval from a state legislature. According to an analysis from the National Employment Law Project (NELP), state laws in California, Massachusetts, New Jersey, and Wisconsin all empower their governors in similar ways. “There was a time when the minimum wage was less politicized and there was a sense that it should be at a level adequate to deliver decent incomes for workers,” explained Paul Sonn, general counsel at NELP. “These laws are still on the books in a number of places.”

States have already been raising their own minimum wages, to the point that the majority have a higher wage than the federal level of $7.25. But some state lawmakers haven’t been taking action. “Where the legislative process won’t deal adequately with the minimum wage, governors should dust [these laws] off and use them aggressively to deliver the wages that workers need,” Sonn argued. “Governors in states with this authority should be using them more frequently and more creatively to address the problem of low wages.”

One example could be California, which has a Democratic governor, Jerry Brown, who already signed a minimum wage increase to $10 by 2016 back in 2013. “Cuomo is saying, ‘I’m going to make New York a progressive leader with the strongest minimum wage in the nation,’” Sonn said. “Jerry Brown could do the same thing.” A spokesman for the governor’s office told ThinkProgress he wasn’t aware of similar options to what Cuomo did in California, but noted that there are other new bills and proposals to raise the wage.

The authority can also be used against governors who aren’t supportive of higher minimum wages. That’s already happened in Wisconsin. There, a state statute says that all wages in the state have to amount to no less than a living wage and that any member of the public can file a complaint saying the minimum wage fails that standard. Last year, low-wage workers and worker organizing groups submitted 100 complaints to Gov. Scott Walker (R) alleging that the state’s $7.25 minimum wage violates the statute, although his administration rejected the complaints.

A similar fight could start brewing in New Jersey, where Gov. Chris Christie (R) has voiced his opposition to increasing the minimum wage. “The Governor of New Jersey has the power to raise wages for hundreds of thousands of workers,” Analilia Mejia, executive director of New Jersey Working Families, told ThinkProgress. “We will absolutely be calling on Gov. Christie to follow in the footsteps of Gov. Cuomo, who Christie has called his ‘separated at birth twin brother.’” She also said the issue would be brought up beyond Christie’s administration. “Over the coming year Working Families activists [will] be asking every potential gubernatorial contender in New Jersey’s 2017 election where they stand on using the state’s wage board to end poverty wages,” she said.

This blog was originally posted on Think Progress on May 11, 2015. Reprinted with permission.

About the author: The author’s name is Bryce Covert. Bryce Covert is the Economic Policy Editor for ThinkProgress. She was previously editor of the Roosevelt Institute’s Next New Deal blog and a senior communications officer. She is also a contributor for The Nation and was previously a contributor for ForbesWoman. Her writing has appeared on The New York Times, The New York Daily News, The Nation, The Atlantic, The American Prospect, and others. She is also a board member of WAM!NYC, the New York Chapter of Women, Action & the Media.

 

New York wage announcement is a bold step forward, will strengthen economy for all of us

Friday, May 8th, 2015

Mary Kay HenryGovernor Cuomo announced yesterday that he’ll use state law to impanel a Wage Board to examine the minimum wage in the fast-food industry.

The fast-food cooks and cashiers who started the Fight for $15 movement are showing how ordinary people make change happen when they stick together.

Governor Cuomo’s move to set a dramatically higher standard for how people who work in fast food are paid is a bold step forward. It shows that a $15 wage floor can be a reality. It’s an inspiring change not just for working New Yorkers, but for working people across the country.

More and more Americans and our elected representatives are standing up to say that it’s time to stop profitable corporations from paying wages so low that they trap people in poverty.

By using our strength in numbers, the workers and families of the Fight for $15 movement are sending a message that raising wages to $15 will boost the economy, create more opportunity, and build a more balanced economy.

This blog was originally posted on seiu.org on May 7, 2015. Reprinted with permission.

About the Author: The author’s name is Mary Kay Henry. Mary Kay Henry serves as International President of the Service Employees International Union (SEIU), which unites 2 million workers in healthcare, public and property services. Henry has devoted her life to helping North America’s workers form unions and strengthen their voice at work about the quality of the goods and services they provide, and the quality of care they are able to deliver.

Inside the Case That Could Hold McDonald’s Responsible for Union-busting

Tuesday, May 5th, 2015

Andrew ElrodThe National Labor Relations Board’s (NLRB) complaint for unfair labor practices against the McDonald’s corporation inched forward in a Manhattan courtroom last month.

Lawyers representing the company, its franchisees, the Service Employees International Union (SEIU) and the government met to discuss the future of a case that could lay the groundwork for union representation and collective bargaining at the country’s largest fast food brand.

McDonald’s “entire business model is put at risk” by the litigation, Jones Day’s Willis Goldsmith told Administrative Law Judge Lauren Esposito during the three-hour hearing. If Esposito finds that the company’s oversight and workforce management policies make it a “joint employer,” as the charging parties contend, it could be held responsible for the working conditions in its franchised stores. Nation-wide, 90 percent of McDonald’s stores are owned by franchises.

During the hearing Esposito required McDonald’s to deliver over 700 documents relating to the structure of the corporation to the government and the union.

“The evidence will show that McDonald’s directed or helped direct how to deal with employees at the franchised facilities in response to protected activities,” said Jamie Rucker, General Counsel for the NLRB.

If the judge found coordination that established joint-employer status, the Board would be able to hold McDonald’s liable for illegally retaliating against workers who engaged in activity protected by the National Labor Relations Act in the Fight for 15 protests and organizing campaign, and eventually to be named as a party in collective bargaining for those stores.

But before that can happen, the board must prove that both McDonald’s and the owners of its franchised stores “share or codetermine those matters governing the essential terms and conditions of employment” or “meaningfully affect” employment issues such as hiring, firing, discipline, supervision and direction of work. The Board believes it can prove joint employer status with information from the shift scheduling software the company provides to its stores, as well as communications between company and individual locations. Evidence and testimonials are to be presented beginning May 26.

“McDonald’s is a complicated company”

While forcing McDonald’s to produce information about the management of its franchised stores, Judge Esposito did revoke subpoenas for information about a corporate-owned restaurant in Illinois. The Board and SEIU had sought the information to compare with management practices at franchised stores, where the company says corporate directives are considered “optional.” If management at both the franchised and non-franchised stores were sufficiently similar, Rucker argued, the “optional” suggestions from McDonald’s could be shown to establish joint-employer status.

Asked about the exact relationship between McDonalds Illinois, the subpoenaed store, and McDonalds USA, the national company, Goldsmith explained that “McDonald’s is a complicated company.”

The Board and the unions also requested details about McDonald’s USA’s corporate structure. But Jonathan Linas, also of Jones Day, explained that finding that information would not be so easy. “There’s no one organizational chart,” Linas said.

“The entire organizational structure of McDonald’s USA will not be produced,” he said. “I don’t know [if] it exists. We’ve been looking a long time and we don’t have one.”

Credible Allegation

The stakes of the proceedings are high and McDonald’s has hired the law firm Jones Day, which oversaw the bankruptcy and restructuring General Motors and the City of Detroit, to lead its defense.

McDonald’s business model in part rests on its exemptions from liability for the working conditions at its franchised stores. But even if these exemptions were to change, it is unclear what the implications for the rest of the fast food industry would be.

First, a finding of joint-employer status would have to survive in federal court, an institution notoriously unfriendly to workers’ collective action. And then it would only apply to the specific locations and conditions named in the complaint.

“As soon as there is some kind of a determination that an employer is a joint employer, the company just restructures the relationship,” says Michael Duff, a law professor at the University of Wyoming who worked at the NLRB for nine years. “And then you get another round of litigation.”

Because the joint-employer status would only apply to franchises named in the consolidated case, Duff explained, organizing campaigns through the NLRB could only occur at those stores. However, he added, an expanded joint employment standard could facilitate organizing at other similar franchises in the future.

“Once you have a broader way of thinking about the employment relationship, it opens up more kinds of workplaces to the credible allegation that this is a joint-employer relationship,” said Duff.

The charging parties are skeptical that McDonald’s workforce management systems can be restructured. Citing an April 2014 statement by then-CEO Dan Thompson, they allege the company has responded to falling profits with a “reset” plan that requires the company to take greater control of staffing and scheduling to maximize in-store revenues.

Guarded Campaigns

In its defense, the McDonald’s is arguing that any coordinated response at its franchised stores against protected activity was lawful-employer free speech, protected under the NLRA.

Under the 1947 Taft-Hartley amendments to the Act, Goldsmith explained, McDonald’s has “the absolute unfettered right to engage in non-coercive free speech in response to attacks on the brand.” Coordination on these grounds, he argued, does not constitute joint-employer status.

To establish its case, McDonald’s subpoenaed information on the internal workings of SEIU’s campaign, including internal documents from the union, the public relations firm Berlin Rosen and two investigative firms.

“We are entitled to find out who they talked to and what they spoke about,” Goldsmith said, referring to one of the investigative firms hired by the SEIU which may have spoken to workers. The union countered that revealing the insides of its campaign would have a “chilling effect” on organizing, as the fast food corporation could threaten those revealed with retaliation.  On Thursday, April 10, Esposito revoked the subpoenas against SEIU and the third parties.

Open-ended future

The pace of the proceedings since workers began protesting in 2012 also gives some sense of the scope of the campaign drive being led by SEIU.

Since November 2012, at least 310 charges of illegal retaliation against workers engaging in protected activity have been filed by workers and their representatives. Over 100 of these charges have been found to have merit, and as of February 13, the Board had filed 19 complaints across 14 administrative regions across the country—offices in Los Angeles, San Francisco, Phoenix, Minneapolis, Kansas City, St. Louis, New Orleans, Chicago, Detroit, Indianapolis, Pittsburgh, Atlanta, Philadelphia and Manhattan. As the protests have continued, so have the unfair labor practice charges filed by the union.

If McDonald’s is found to have coordinated a national response to protesting workers, as the Board is arguing, that could prove that the company exercises more control over the workers in its stores than it claims.

Such a finding would be initially limited and establish a legal basis for collective bargaining at just a handful of stores. However, the finding could facilitate traditional NLRB organizing across the heavily franchised service sector, forcing the company to bargain with workers who opt for union representation.

SEIU has made a considerable investment (“over $18 million at least,” said Goldsmith) in an open-ended campaign with little promise of immediate returns. The current case in front of the NLRB shows that the union is far from guaranteed from obtaining new dues-paying members any time soon, making the union’s investment an incredibly risky gamble—something most unions would be loathe to even consider.

The campaign has sparked a nation-wide movement that has already won minimum wage increases and raised entry-level pay for workers across the retail and fast food industries. Whether that momentum will translate into joint-employer status or fast food worker union membership may depend on the ruling handed down in Judge Esposito’s courtroom.

This blog originally appeared in In These Times on April 29, 2015. Reprinted with permission.

About the Author: The Author’s name is Andrew Elrod. Andrew Elrod is a writer living in New York. He is a contributor and former intern at Dissent, and his work has also appeared in Labor Notes. He is from Texas. Follow him on Twitter at @andrewelrod or reach him at [email protected]

Democrats Propose Most Ambitious Minimum Wage Bill Yet

Monday, May 4th, 2015

Bryce CovertSen. Patty Murray (D-WA) and Rep. Robert Scott (D-VA) are introducing a minimum wage bill on Thursday that would raise the federal floor from its current level of $7.25 an hour to $12 an hour by 2020, eliminate the lower tipped minimum wage that currently stands at $2.13 an hour, and automatically increase it as median wages rise.

Much of that plan is brand new. Previously, Democrats had set their sights on a minimum wage increase to $10.10 an hour, indexed to inflation thereafter, and only raised the tipped minimum wage to 70 percent of the regular minimum wage.

Sen. Murray said she took inspiration from the state she represents in deciding to get rid of the lower tipped wage. “Tipped workers are most exposed to the ups and downs of the economy. The unpredictability of wages makes it even more difficult to make ends meet, on top of trying to scrape by on low wages. So eliminating the tipped wage is long overdue,” she told ThinkProgress in emailed statements. “Washington state has led the way in this, and we’ve seen that it works for restaurants, businesses, and workers.”

Murray also told ThinkProgress that Washington inspired her to target a higher wage level. “There has been great work done in Washington state and across the country to increase wages even further to help the families and businesses in those communities, and I support those efforts,” she said. Washington has long had the highest wage in the country, which is currently $9.47.

A $10.10 wage would have brought it in line with about where it would have been if it had kept up with inflation since its peak in 1968. But this was, according to economist David Cooper with the Economic Policy Institute who has worked with lawmakers on crafting the $12 wage bill, “the lowest possible threshold for where you could be aiming.” He added, “What you’re saying is that low-wage workers should have seen no material improvement in their standard of living over the last 50 years.” That’s despite the fact that there has been significant economic growth, driven in part by rapidly increasing worker productivity.

Even though the Republican-led Congress is unlikely to take such a bill up, Democrats have recently decided they need to take the debate around the minimum wage further. The new benchmark, Cooper said, is to “return the minimum wage to where the distance between the lower paid worker and typical worker is no greater than it was back then.” If lawmakers use a ratio of the minimum wage to the median wage for all workers, which was 52 percent back in 1968, then a $12 wage by 2020 makes a lot of sense, as it would bring the minimum up to 54 percent of the median wage, which today stands at just over $17 an hour. “It’s essentially returning the minimum wage to the same value it had in 1968 in relative terms,” he said.

Real-life experiments beyond Washington state also help give a higher wage level credibility. The majority of states have now raised their minimum wages above $7.25, and evidence shows that critics of a higher wage who worry about job losses may not have a reason to fear an increase. Last year, job growth wasactually stronger in states that raised their wages than in those that didn’t, and economics have generally found that minimum wage increases have little impact on job growth. Even fears that Seattle’s increase to $15 an hour were making businesses close were overblown. “Places are pushing minimum wages into territory that we haven’t done before, and the sky hasn’t fallen,” Cooper noted.

Democrats may also have been pushed into a higher wage by low-wage workers who organized and staged repeated strikes demanding a $15 minimum wage in the fast food, retail, home care, and adjunct professor industries. “I think the Fight for 15 [movement] started to recalibrate people’s thinking in terms of what the minimum wage could be,” Cooper said. “From a political standpoint and also from a national awareness standpoint, the Fight for 15 just did a fantastic job highlighting how low pay is in a lot of these industries.”

That kind of national movement has paved the way for lawmakers to reach higher. “I think the Fight for 15 has created space for Democrats, for any politician, to come out in favor of a minimum wage in the $12 range and look reasonable,” he noted. While Congress isn’t looking at a federal $15 minimum wage at this point, some cities and states have taken up the call. Seattle and San Francisco have passed wage hikes to that level, and many other cities and even some states are considering doing the same.

This article originally appeared in thinkprogress.org on April 30, 2015. Reprinted with permission.

About the Author: Bryce Covert is the Economic Policy Editor for ThinkProgress. She was previously editor of the Roosevelt Institute’s Next New Deal blog and a senior communications officer. She is also a contributor for The Nation and was previously a contributor for ForbesWoman. Her writing has appeared on The New York Times, The New York Daily News, The Nation, The Atlantic, The American Prospect, and others. She is also a board member of WAM!NYC, the New York Chapter of Women, Action & the Media.

$357 Billion: The Clock Ticks

Wednesday, April 29th, 2015

ericJust a moment to pause and update everyone: going back to 1968, workers have lost more than $357 billion because of the robbery due to the stagnant minimum wage.

Did you ever wonder what the minimum wage would be worth if it kept its value going back to 1968? Well, it would over $20-an-hour. And thanks to our friends at the Center for Economic and Policy Research, we can watch the loss tick by literally every second, counting the dollars lost by workers since 1968 because of the sinking value of the minimum wage.

This clock shows how “many dollars America’s minimum wage workers have lost since July 24, 2009 if the minimum wage had instead been raised to its 1968 level and then kept pace with inflation since then,” CEPR says (and if you’re reading this after it was posted, the clock will keep ticking and likely be above $358 billion…and more):

And every minutes, hour, day that goes by, the robbery continues.

This article originally appeared in workinglife.org on April  22, 2015. Reprinted with permission.

About the author:  Jonathan Tasini on any given day, I think like a political-union organizer or a writer — or both. I’ve done the traditional press routine including The Wall Street Journal, CNBC, Business Week, Playboy Magazine, The Washington Post, The New York Times and The Los Angeles Times. One day, back when blogs were just starting out, I created Working Life. I used to write every day but sometimes there just isn’t something new to say so I cut back to weekdays, with an occasional weekend post when it moves me. I’ve also written four books: It’s Not Raining, We’re Being Peed On: The Scam of the Deficit Crisis (2010 and, then, the updated 2nd edition in 2013); The Audacity of Greed: Free Markets, Corporate Thieves and The Looting of America (2009); They Get Cake, We Eat Crumbs: The Real Story Behind Today’s Unfair Economy, an average reader’s guide to the economy (1997); and The Edifice Complex: Rebuilding the American Labor Movement to Face the Global Economy, a critique and prescriptive analysis of the labor movement (1995).

Kicking them while they’re down: Bill to treat former substance abusers as independent contractors is wrong

Monday, March 30th, 2015

sami-khadderA new effort is underway to deprive a certain class of workers of the most basic benefits and protections of employment.

Last month, Assembly member Marie Waldron (R-San Diego) introduced AB 500, which would allow employers to hire workers who have successfully completed a drug rehabilitation program following conviction of a non-violent felony as independent contractors rather than employees for a period of two years.

The targets of this bill are workers for whom steady and fair employment is a means to rebuild a life and to prevent a relapse of the ravages of addiction. AB 500 is a cynical bill that would codify discrimination and perpetuate mistreatment of this already vulnerable group.

For starters, the language of the bill violates existing federal anti-discrimination law. The Americans with Disabilities Act  considers those who have received treatment for drug or alcohol abuse as qualified individuals with a disability who are entitled to reasonable accommodation. Contrary to the express purpose of the ADA, AB 500 stigmatizes individuals who have completed a substance abuse rehabilitation program by denying them, for a period of two years, the legal protections normally offered to employees in California. Stigmatizing people with disabilities is what gave rise to the disability rights movement to begin with.

Codifying second class status for workers with a substance abuse history is bad enough, but the effect of the bill is even more insidious. Under California law, a person who provides services for another person or entity is presumed to be an employee of that person or entity – as opposed to an independent contractor. The distinction is meaningful.Independent contractors are not entitled to the protections of the California Labor Code, which means they have no minimum wage or overtime protections and no entitlement to meal and rest breaks. Independent contractors are also exempted from the laws prohibiting discrimination or retaliation in the workplace, and they are not entitled to unemployment insurance or Social Security contributions. The bill would also allow employers to avoid the cost of carrying workers’ compensation insurance, leaving independent contractors unprotected in the event of a workplace injury.

Employers often complain that the cost of providing these benefits to their workers has grown too high and some may look with favor at the proposed economic windfall — being able to hire rehabilitated drug offenders for two years for less than the minimum wage, without having to provide overtime pay, workers’ compensation insurance or protections from unlawful discrimination.  But these benefits are essential to providing a fair and safe work environment for California workers. Without these protections, the State would invariably end up shouldering much of the costs, while the employers would reap all the benefits.

Some advocates of the bill may believe that the bill encourages employers to give people with a history of substance abuse an opportunity to work their way into full employment status.  But AB 500 would require applicants to disclose to potential employers that they have been convicted of a crime. Such disclosure is currently prohibited under certain circumstances.  More importantly, there is ample evidence that qualified applicants who disclose their criminal history are just as likely to be denied employment altogether, a result directly contrary to the intended result.

Others may take a harder line toward former substance abusers, believing that second class status in the workplace is appropriate because substance abusers should suffer the consequences of their poor decisions. But how does stripping anti-discrimination protections, overtime, and workers’ compensation achieve any policy goal related to rehabilitation or substance abuse prevention?

What is undeniable is that AB 500 targets a vulnerable constituency. And if the move to strip their rights is successful, it could embolden employers to seek further erosions of the benefits and protections of employees. Who would be next?  The long-term unemployed, veterans, the homeless? For those already struggling to become productive members of society, our goal should be to eliminate obstacles, not create them.

This article originally appeared in Celavoice.org on March 30, 2015. Reprinted with permission. 

About the Author: Sami N. Khadder is the founder of the Khadder Law Firm. He has a decade of litigation experience, with the majority of his career dedicated to fighting for the rights of employees and individuals. Mr. Khadder began his career as an intellectual property defense attorney, but soon realized that the pursuit of justice on behalf of those who need it most was a far more gratifying use of his legal education and experience. Mr. Khadder looks forward to continuing the fight for justice.

Florida County Makes It Easier For Workers To Get Unpaid Wages From Bosses

Friday, March 20th, 2015

AlanPyke_108x108Workers who get cheated out of their due pay in central Florida will have a much easier time recovering what they’re owed after Osceola County approved a tough new wage theft law, making it the latest in a string of local governments to take on increased responsibility for enforcing federal wage and hour laws.

Under the new rules, workers will be able to file cases with the county and employers who are accused of wage theft could end up having to repay triple the amount they stole from employees if they fight a case and lose. Workers in Miami-Dade County have so far recovered about $1.8 million since that wage theft law came online in late 2010.

Osceola’s law adds an important, tougher element to the basic model laid out in Miami-Dade. Companies that fight a wage theft claim and lose can have their business license revoked by the county.

Efforts to combat wage theft at the local level appear to be spreading, according to Tesedeye Gebreselassie of the National Employment Law Project (NELP). “It’s clear that existing laws and resources on fed state level are insufficient, and we’re starting to see more cities and counties take action in any way that they can,” she said. “There’s a growing trend to figure out what can be done on the local level now that everybody’s acknowledged that wage theft is a huge problem.” Propagating enforcement systems that work will be especially important if low-wage workers are to actually realize the economic benefits that should come from a rash of state and local minimum wage increases around the country, as the NELP argues in a new report.

There is no perfect deterrent, since a business owner willing to ignore wage laws in the first place is often going to choose to go out of business rather than dole out back pay. And the prevalence of low-wage, low-skill jobs in the American economy has helped create a sort of race to the ethical bottom among employers who are more interested in cutting corners than giving honest pay for honest work. As David Weil, the top federal official in charge of enforcing wage and hour laws for the Department of Labor, told the New York Times in 2014, “We have a change in the structure of work that is then compounded by a falling level of what is viewed as acceptable in the workplace in terms of how you treat people and how you regard the law.”

“I have a very close relative that had this happen to him,” Osceola County Commissioner Michael Harford (D) told ThinkProgress. “It was very difficult for him to understand how he was getting paid.” Harford gradually realized that wage theft was relatively common among his constituents, and helped push the law through this spring after voters elected four Democrats and one Republican to the commission last fall.

Harford’s reforms not only increase the consequences of wage theft for employers who get caught, but also make it easier for workers to find legal help. If the new adjudication process finds a company liable for wage theft, it must pay treble damages for the withheld pay and also cover the legal fees incurred by the workers who brought the allegation. “If we had more of an incentive for representation in these cases, we’d see hopefully the same effort to vindicate workers’ rights that we see to vindicate the rights of the injured in personal injury cases,” Rep. Alan Grayson (D) told ThinkProgress.

There’s no reason other localities can’t follow Osceola and Miami’s lead. Jeanette Smith, executive director of South Florida Interfaith Worker Justice and a key member of the coalition that researched the wage theft question for two years before bringing a legislative proposal in Miami-Dade, told ThinkProgress she thinks the model ought to be easily transferred even beyond the state line.

“I tell people not to just change the name on it, make sure it works,” Smith said. “But in general I think this kind of process is portable, as long as you’ve got a division of your government that can pick it up and administer it, and you have the political will, and frankly that you have responsible businesses that speak up.” Partly that’s because the laws don’t require business owners to comply with any new regulations and they don’t require local governments to hire new enforcement officers. “These ordinances do not put new regulations in place. Nothing at all. It’s simply offering a venue where the workers can go,” Smith said.

The real cutting edge of a law like Osceola’s comes well before a lawyer would ever get involved, in a pre-hearing process called conciliation. After a worker notifies the county of a wage theft allegation and provides evidence for the claim, the county contacts the employer and invites him to address the complaint voluntarily. Conciliation has produced a little over half of the $1.8 in recovered wages and damages under Miami-Dade County’s law and 53 percent of cases brought under the law were resolved at that early stage, according to Smith.

“There’s a big emphasis on conciliation, because the idea is that these are predominantly low-wage workers and they need to get their money right away. These are people who can’t go to court and wait all that time,” Smith said. By creating a two-stage process and giving employers immunity from the damages provision of the law as long as they resolve a legitimate wage violation in the conciliation stage, these laws give employers an incentive to be responsive to complaints. “There is gonna be that smaller group of completely unscrupulous employers that just completely disappear, often people who never even had a business license to start with,” Smith said. But even if workers for such employers never get made whole under this new process, the law still discourages willful violators from setting up shop in the area.

Wage theft steals more money from American workers each year than the combined haul from every robbery and heist nationwide. The term refers to violations of federal wage and hour protections, and that federal jurisdiction is part of the reason that local protections like the ones just passed in Osceola County are rare. Workers who think they’re being cheated by the boss can file a suit anywhere, regardless of local ordinances, and they have done so at a rapidly increasing clip in recent years. Workers have won court settlements from retail logistics firms, trucking companies, strip clubs, and fast food companies. They’ve also lost one significant case before the Supreme Court, though it only narrowly curtailed the types of employer policies that can be considered wage theft.

But going to court is expensive, in both dollars and time, and Osceola is the most recent place to erect a more worker-friendly system for addressing the complaints. Wage theft laws intended to help workers recoup wages without getting tied up in court have come into effect in Chicago, Houston, andColorado in recent years.

Lowering the local barriers to recovering stolen wages is a good start, Grayson said, but it does not address the various other ways in which workers have been pitted against one another by recent attacks on union solidarity on the job. “The right to organize has been frustrated and in many cases defeated by business groups. That’s left a disorganized low-wage labor base that can be exploited at will by unscrupulous employers, so the problem increases over time,” Grayson said. Right now, “crime does pay if you’re cheating your employees. And we have to stop that.”

This blog originally appeared in Thinkprogress.org on December 10, 2014. Reprinted with permission.

About the Author: Alan Pyke is the Deputy Economic Policy Editor for ThinkProgress.org. Before coming to ThinkProgress, he was a blogger and researcher with a focus on economic policy and political advertising at Media Matters for America, American Bridge 21st Century Foundation, and PoliticalCorrection.org. He previously worked as an organizer on various political campaigns from New Hampshire to Georgia to Missouri. His writing on music and film has appeared on TinyMixTapes, IndieWire’s Press Play, and TheGrio, among other sites.

Tipped Workers Score A Victory In New York In Fight For Better Pay

Tuesday, February 24th, 2015

Isaiah J. PooleTipped workers in New York state have won a major victory, as Gov. Andrew Cuomo and the state’s Hospitality Wage Board announce that their minimum wage, which had been frozen at $5 an hour, will be increased to $7.50 an hour starting December 31.

This order follows years of protest and campaigning by low-wage workers throughout the state, who have not seen an increase in the tipped wage since 2011.

“Today’s announcement is a victory for the thousands of New York women who have been demanding a more just and hospitable work environment in one of the fastest growing and largest economic sectors in the country – the restaurant industry,” said Saru Jayaraman, co-founder and co-director of Restaurant Opportunities Centers (ROC) United, one of the organizations at the forefront of the mobilization effort. (Jayaraman received the 2014 Paul Wellstone Citizen Leadership Award from the Campaign for America’s Future.)

This increase will affect workers in restaurants, hotels and in occupations where workers are dependent on tips for a portion of their income.

The new tipped wage will still be below the $9 minimum wage for untipped workers that is scheduled to go into effect on December 31. (The state’s minimum wage today is $8.75.) And Jayaraman says she is going to keep pressing toward the workers’ ultimate goal, which is to eliminate the tipped minimum wage entirely and move toward “one fair wage.”

Cuomo has endorsed the wage board’s recommendation that the tipped wage be eliminated entirely. Seven states plus Guam have done away with the tipped minimum wage for most, if not all, workers. The biggest of these is California. (Montana has an exception for some small businesses.)

Ondre Johnson, a ROC-NY restaurant-worker member and attendee at today’s announcement, issued a statement that put today’s announcement in perspective. “Relying largely on tips not only affects my dignity but also interferes with my service to customers,” she wrote. “I have to fight for tips and to get tables. Tips vary from day to day and there are months in a year, especially during the winter-time, where there is no work available at all. And I’ve seen my female co-workers tolerate customers grabbing their legs, withholding tips till they get a server’s phone number, and worse in order to not ruin a tip.”

At least for now, the coming raise “will help me to have a decent life by giving me fair compensation for my hard work,” she wrote. But for her and millions of other workers, the struggle for fair pay and dignity is by no means over.

This article originally appeared in ourfuture.org on February 24, 2015. Reprinted with permission.

About the Author: Isaiah J. Poole has been the editor of OurFuture.org since 2007. Previously he worked for 25 years in mainstream media, most recently at Congressional Quarterly, where he covered congressional leadership and tracked major bills through Congress. Most of his journalism experience has been in Washington as both a reporter and an editor on topics ranging from presidential politics to pop culture. His work has put him at the front lines of ideological battles between progressives and conservatives. He also served as a founding member of the Washington Association of Black Journalists and the National Lesbian and Gay Journalists Association.

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