Outten & Golden: Empowering Employees in the Workplace

Posts Tagged ‘Minimum Wage’

Thousands of Amazon Delivery Drivers Won’t Be Eligible for the $15 Wage

Monday, October 15th, 2018

Amazon’s announcement raising its entry-level wage to $15 an hour for all employees has been lauded as an inspiring example of corporate responsibility. In response to sharp criticism and threatened legislation from Sen. Bernie Sanders (I-Vt.) over low pay and horrid conditions at Amazon warehouses, CEO Jeff Bezos said: “We listened to our critics, thought hard about what we wanted to do, and decided we want to lead.”

But thousands of workers delivering your Amazon packages won’t be eligible for that $15 entry-level wage. Across the country, thousands of workers wear Amazon uniforms, use Amazon equipment, and work out of Amazon facilities, but are not classified as Amazon employees. They work for third parties known as delivery service partners (DSPs). It’s just one way Amazon manages the burden of getting billions of packages each year into the hands of its customers.

Amazon has confirmed that these third-party DSPs are not covered by its new wage standard.

Not only will drivers delivering for Amazon be deprived the pay levels of other Amazon employees, but in one notable instance, they were cheated out of wages by a DSP that violated state and federal labor laws.

A federal judge ruled in August that as many as 757 hundred delivery drivers with one DSP on the East Coast were robbed of overtime pay through falsifying time sheet records. The workers have thus far been unable to collect the back pay—potentially millions of dollars— from the DSP or Amazon.

And workers at other Amazon DSPs describe similar practices. So while Amazon basks infavorable PR, it is simultaneously deeply implicated in routine wage theft.

“The face of Amazon.com

Tyhee Hickman of Pennsylvania and Shanay Bolden of Maryland, lead plaintiffs in the U.S. District Court lawsuit, worked for TL Transportation, a Mid-Atlantic regional delivery service. According to the lawsuit, TL literally calls its delivery drivers “the face of Amazon.com,” but those workers are not considered Amazon employees.

Hickman and Bolden’s stories make clear, however, that TL Transportation is merely a pass-through for Amazon. Hickman writes in a sworn statement that he was hired by TL in November 2016, only to report to Amazon’s warehouse in King of Prussia, Penn. for training. The trainer was an Amazon employee. All training materials included Amazon logos. Workers had to purchase and wear Amazon hats, shirts and jackets. Delivery vans had “Amazon” emblazoned on the side, and workers also used an Amazon proprietary device called a “Rabbit” to track routes and scan packages. The Rabbit can also call Amazon customers if they are absent during delivery.

According to Bolden, who worked out of Baltimore, Amazon assigned the routes, and drivers were supposed to call Amazon if they ran into difficulties with deliveries. But despite all this involvement, pay stubs reviewed by In These Times listed the employer as TL Transportation.

“People assume they’re interacting with an employee of a company if they’re wearing the company’s uniform,” says Celine McNicholas, director of labor law and policy at the Economic Policy Institute. “But the web of contracting makes it difficult to discern.”

“Running, running, rushing, rushing”

That TL Transportation subjected employees to wage theft isn’t really in doubt. In a sloppy, misspelled flyer (“WELCOM ABOARD, WE LOOK FORWARD TO WORKING WITH YOU”), employees were told that they would be paid “$160.00 per day based on 8 hrs regular and 2 hours overtime… if you finish early you will be paid of entire day.”
In other words, the time sheet would build in two hours of daily overtime, regardless of hours worked. Pay stubs reflected that. Falsifying time sheets in this manner is definitively illegal, as U.S. District Court Judge Gerald McHugh confirmed in his ruling against TL in August. “Overtime compensation must be specifically linked to the hours an employee actually worked,” McHugh writes.

TL kept to this day rate, with the built-in overtime, regardless of how many days an employee worked. One of Bolden’s pay stubs showed a week where she worked all seven days, with 56 hours at the regular rate and 14 hours of overtime. She should have received 30 overtime hours that week.

In theory, workers could hope to finish deliveries early, earning the $160 day rate for less than 10 hours of work. But that was a pipe dream. Three workers who made sworn declarations and another interviewed by In These Times stated that they always worked more than 10 hours in a day, but were not paid additional overtime.

Hickman stated he would arrive to the Pennsylvania warehouse at 6 a.m. on workdays, attend required meetings with self-identified Amazon personnel, and not leave the warehouse until 9:30. That left him six and half hours to complete his delivery runs of 165 to 200 packages, sometimes as far away as Delaware. If Hickman brought back packages as undeliverable, he was sent back out to re-deliver them, adding more time to the day. Workers also had to inspect delivery vans on exit and re-entry and refuel them at the end of the day. Hickman testified he would usually return to the warehouse at 7:00 p.m., 13 hours after he arrived for work.

A former employee interviewed by In These Times on condition of anonymity, because he has not yet been deposed in the case, described how difficult it was to complete the runs: “It was like running, running, rushing, rushing,” he said. “If you don’t keep going you can’t finish in time.”

To keep up with the demanding schedules, workers were unable to fit in lunch or rest breaks; Hickman testified to having to urinate into bottles or on the side of the road to keep things moving. If workers did miraculously complete routes early, managers sent them back out to “rescue” other delivery drivers, by taking some of their packages. Regardless of the total hours worked in a week, the flat rate never changed.

The job was described as difficult, with rampant turnover. Hickman lasted five months; Bolden lasted seven. The former employee only lasted three. “I lost weight dramatically,” he says. “My wife told me, ‘You look so skinny.’”

The buck stops nowhere

These workers’ stories are broadly consistent with an investigation by Business Insider, which interviewed over 30 drivers with Amazon DSPs. But unlike other DSPs, TL Transportation never had workers sign contracts with a mandatory arbitration agreement, blocking their right to sue. Because it failed to do so, the plaintiffs sought lost and stolen wages in federal court.

Employers steal roughly $8 billion from worker paychecks per year, according to a 2017 studyfrom the Economic Policy Institute. But winning a wage theft ruling through summary judgment without trial, as the TL delivery workers did in August, is exceedingly rare.

Despite the court victory, no worker has yet been paid. TL, which continues to operate, says it lacks the funds to pay above the day rate. Amazon claims it has nothing to do with TL’s labor practices. Plaintiffs continue to battle it outin federal court.

TL’s co-owners Scott Foreman and Herschel Lowe, both named as defendants in the complaint, did not return phone messages asking for comment.

A second lawsuit, against a DSP named NEA Delivery, was filed in August in California, joining prior suits in IllinoisWashington stateand Arizona. But because every DSP is different, plaintiffs’ attorneys must go individually, company by company, to seek restitution for wronged workers. This has the added benefit of preventing Amazon delivery personnel from unionizing across the sector. Amazon has a longstanding policy of not commenting on pending litigation.

“This is nothing unique” among large corporations, said EPI’s McNicholas. “The reason companies do it is that it complicates the worker’s ability to hold their employer accountable.” In Amazon’s case, instead of offering a base wage of $15 an hour and a suite of benefits, it simply hires couriers like TL Transportation at a set rate per delivery and pleads ignorance about violations of labor law. The workers end up stuck, unable to win money owed them from fly-by-night third parties, and unable to challenge the corporate giant whose packages they actually deliver.

EPI’s McNicholas lays blame for the wage theft at the feet of Amazon, for setting up a system of free, rapid shipping. “It’s very difficult for these subcontracting firms to do business if they’re not cutting corners,” she says. “Amazon may say they set loose terms, but they’re instituting the framework that the subcontracting firms have to honor.”

Amazon outsources to hundreds of DSPs and encourages new delivery start-ups, promising that they can get to work within weeks and make up to $300,000 per year. “Logistics experience not required,” the company states on its website. Amazon has also tested several other systems for package delivery, from using the U.S. Postal Service, private competitors like UPS and FedEx, or an Uber-like system called Amazon Flex, where individuals sign up to deliver packages with their own cars.

None of these involve employees of Amazon, and all have come under scrutiny. Postal workers have complained about onerous package loads and weekend deliveries. Labor attorney Shannon Liss-Riordan sued Amazon in 2016 for failing to ensure that Amazon Flex workers earn the minimum wage after accounting for vehicle and maintenance costs, as well as not paying overtime. The case remains pending.

The third-party hustle

Since the $15 wage announcement, Amazon has been criticized for offsetting the pay increase by removing stock awards and bonuses. Others have characterized the wage hike as a way to avoid unionization at Whole Foods, or an impetus to eliminate workers through automation. But the third-party hustle is a far more efficient way to avoid raising wages, while pushing off liability for labor practices to other companies.

The plaintiffs in the TL Transportation case have named Amazon as a defendant, arguing that the company “control[s] the work activities, condition, and management” of the DSPs and their employees. But this bumps up against the “joint employer” standard set by the National Labor Relations Board (NLRB) under Obama, whereby companies are jointly liable for labor law violations by their franchisees, suppliers or contractors if they have indirect influence over the terms of employment.

Trump’s National Labor Relations Board has proposed narrowing the joint employer definition to companies that exercise “substantial, direct and immediate control” over hiring, firing, discipline and supervision. That would still seem to apply to Amazon, but it’s a close call. And courts typically follow the NLRB, which under Trump isn’t exactly worker-friendly.

If the courts agree that Amazon is not a joint employer, it would have a path to keep tens of thousands of delivery workers outsourced and removed from its new wage standards, without sacrificing the significant publicity benefits of the announcement. It’s good work if you can get it.

This article was originally published at In These Times on October 12, 2018. Reprinted with permission. 

About the Author: David Dayen is an investigative fellow with In These Times‘ Leonard C. Goodman Institute for Investigative Reporting. His book Chain of Title: How Three Ordinary Americans Uncovered Wall Street’s Great Foreclosure Fraudwon the 2015 Studs and Ida Terkel Prize. He lives in Los Angeles, where prior to writing about politics he had a 19-year career as a television producer and editor.

DC Council overrules constituents, votes to reinstall tipped wage system

Tuesday, October 2nd, 2018

The District of Columbia’s city council took the first step Tuesday to overturn Initiative 77, a measure passed by a 55 percent to 45 percent majority by the Washington voters. If its efforts succeed, as expected, the council will undo the minimum wage protections for tipped workers.

A 2016 living wage law, enacted by the city council, established a series of gradual steps up to a $15 minimum wage for workers — but included a lower $5-an-hour minimum for service workers, so long as their tips brought that total to no less than $15 per hour. Restaurant-workers-rights groups launched a voter initiative to phase out that exemption and, on June 19, 2018, more than 55 percent of those voting on primary day backed the effort. The restaurant industry — and the city council members they have bankrolled — immediately launched an effort to overturn the voters’ will by city council legislation.

On Tuesday afternoon, the city council rejected a proposed compromise and endorsed a full repeal, on an 8 to 5 vote. Mayor Muriel Bowser (D) has said she will sign the legislation, authored by Council Chair Phil Mendelson (D). Six council Democrats and one independent voted yes on the initial vote; four Democrats and one independent voted no.  District voters have not elected a Republican to the council since 2004.

The council reaffirmed this on an 8 to 5 vote later in the afternoon.  Final final passage is expected later in the October.

Bowser’s official website highlights the District of Columbia’s demand for statehood — it currently has limited “home rule” but the U.S. Congress can overrule any local action. “DC residents seek full democracy for DC since 1982 and today,” it proclaims. “Mayor Muriel Bowser continues the fight to secure full democracy for DC because it is the most appropriate mechanism to grant U.S. citizens, who reside in the District of Columbia, the full rights and privileges of American citizenship.”

But for Bowser and the majority of council members, that full democracy can be overridden when the restaurant industry does not like what the majority decides.

This article was originally published at ThinkProgress on October 2, 2018. Reprinted with permission. 

About the Author: Josh Israel has been senior investigative reporter for ThinkProgress since 2012. Previously, he was a reporter and oversaw money-in-politics reporting at the Center for Public Integrity, was chief researcher for Nick Kotz’s acclaimed 2005 book Judgment Days: Lyndon Baines Johnson, Martin Luther King Jr., and the Laws that Changed America, and was president of the Virginia Partisans Gay & Lesbian Democratic Club.

Arkansas’ minimum wage fight will be on the ballot in November

Monday, August 20th, 2018

A proposal to raise Arkansas’ minimum wage to $11 an hour by 2021 gained enough signatures to qualify for the ballot in November. The group gathered over 16,000 more signatures than necessary to make the ballot.

The current minimum wage is $8.50, and the last time Arkansas voters approved of a minimum wage raise was in 2014. The Arkansas minimum wage is not among the lowest state minimum wages in the country and is higher than many of the states that surround it. Kansas and Oklahoma, for example, have a $7.25 minimum wage, the same as the federal minimum wage. Missouri’s minimum wage is $7.85. Still, supporters of the measure — which will be Issue Five on the ballot this year, according to the Associated Press — say that it’s unacceptable for Arkansas to live on only about $18,000 a year.

Stephen Copley, executive director of Faith Voices Arkansas, said in a release to the Arkansas Times, “Today’s minimum wage is about $18,000 a year for someone working full time. With prices going up all the time, you can’t raise a family on that.”

Some economic policy experts say that the federal minimum wage is far too low. According to the Economic Policy Institute, despite productivity roughly doubling since 1968, workers who are paid the federal minimum wage now make 25 percent less than workers making the federal minimum wage that year. As Rajan Menon recently explained in The Nation, over the past decade, the $7.25 federal minimum wage lost almost 10 percent of its purchasing power, thanks to inflation, which means that for someone to make the same as the 2009 minimum wage, they’d have to work 41 additional days.

A 2016 analysis from the White House Council of Economic Advisors that looked at 18 states that raised the minimum wage above $7.25 found that these raises “contributed to substantial increases in average wages for workers in low-wage jobs, helping to reverse a pattern of stagnant or falling real wages” and that “this has occurred without any sign of an impact on employment or hours worked.”

Arkansans for a Fair Wage is leading the effort behind the initiative. David Couch, a lawyer in Little Rock who leads the ballot committee, told the Arkansas Times that the group raised $155,300 and spent $101,000 to pay canvassers to gather signatures. The Fairness Project, a nonprofit founded for the purpose of getting minimum wage increases on the ballot, gave $100,000 in funding to the group and the National Employment Law Project, a nonprofit workers rights group that conducts policy research, gave $500,000. The Fairness Project is also working on a minimum wage initiative in Missouri, and has worked on campaigns for raising the minimum wage in Arizona, Colorado, California, Maine, Washington state and Washington, D.C.

There is also an initiative to get a minimum wage raise on the ballot in Michigan, gradually raising it from $9.25 to $12 in 2022 that is supported by Restaurant Opportunities Centers United (ROC). ROC also supported Initiative 77 in Washington, D.C. to raise the minimum wage for tipped workers. Lily Tomlin and Jane Fonda have come out in support of the wage increase. In July, the board of state canvassers were deadlocked on approval for the ballot proposal. In Missouri, Proposition B is on the ballot, which would raise the state minimum wage from $7.85 to $12 in 2023. Some of the same organizations support this ballot initiative as the one in Arkansas. The National Employment Law Project and the Fairness Project and local officials and mayors, such as St. Louis Mayor Lyda Krewson, have supported it.

This article was originally published at ThinkProgress on August 17, 2018. Reprinted with permission.

About the Author: Casey Quinlan is a policy reporter at ThinkProgress covering economic policy and civil rights issues. Her work has been published in The Establishment, The Atlantic, The Crime Report, and City Limits.

Minimum wage workers just got a raise in two states, D.C., and 15 cities or counties

Thursday, July 5th, 2018

Minimum wage workers in two states, Washington, DC, and 15 cities and counties got a raise on Sunday. These state and local governments had passed laws to increase the minimum wage on a schedule, with July 1 and January 1 being the most common dates for raises.

  • Oregon doesn’t have a single statewide minimum wage, but it went up! The minimum is now $10.75 as a standard, $10.50 in “nonurban” counties, and $12 in the Portland metro area.
  • Maryland’s minimum wage went up to $10.10. In Maryland, Montgomery County boosted its minimum wage from $11.50 to $12.25
  • Washington, D.C., rose from $12.50 to $13.25.
  • Eleven California cities saw minimum wage increases, with Emeryville the high point at $15.69 an hour for larger businesses. Los Angeles, Los Angeles County, Malibu, Milpitas, Pasadena, and Santa Monica all went from $12 to $13.25. San Francisco rose from $14 to $15.
  • Workers in Portland, Maine, are seeing a modest bump from $10.68 to $10.90.
  • In Illinois, Chicago went from $11 to $12 and Cook County went from $10 to $11.

The federal minimum wage remains stuck at $7.25 an hour, with Republicans continuing to refuse to consider an increase. Perhaps most depressingly—and showing most clearly where Republican priorities are—Birmingham, Alabama, and Johnson County, Iowa, were both supposed to have minimum wage increases on July 1, but didn’t. Their state legislatures stepped in to pre-empt local governments from improving life for workers.

About the Author: Laura Clawson is labor editor at DailyKos.

This blog was originally published at DailyKos on July 4, 2018. Reprinted with permission.

D.C. servers and bartenders say the tipped wage system isn’t working for them

Thursday, June 14th, 2018

A ballot measure in Washington, D.C. that would raise the minimum wage for tipped workers has been at the center of a heated debate in the restaurant industry.

Tipped workers in the city currently receive a base wage of just $3.33 an hour. On June 19, D.C. voters will vote on whether to change that. Initiative 77 would raise those workers’ minimum wage gradually, so that it matches the city’s minimum wage by 2026.

Bartenders and servers who spoke to ThinkProgress said they support the ballot measure because they want to have a more consistent income and feel less susceptible to putting up with harassment. But there’s a lot of misinformation out there.

The heated debate over Initiative 77

Over the last few months, “Save Our Tips” signs have been spotted inside restaurants and in windows throughout the city due to the opposition from many employers in the restaurant industry.

Last year, the Restaurant Association of Metropolitan Washington (RAMW) created a committee called “Save Our Tip System Initiative 77” to campaign against and spend money on legal challenges against the initiative. The committee is managed in part by the Lincoln Strategy Group, which was responsible for canvassing work for Trump’s presidential campaign, according to The Intercept. The campaign has also received donations from many restaurant groups, including the National Restaurant Association, which successfully lobbied against increasing the minimum wage for tipped workers in the 1990s. The group gave the campaign $25,000 of the $58,550 it has raised so far, The Intercept reported.

“Servers are compensated very well,” Kathy Hollinger, the president of the Restaurant Association of Metropolitan Washington, told WAMU last year. “They make far more than minimum wage because of the total compensation structure that works for a server.”

Most of the servers and bartenders ThinkProgress spoke to said employers oppose Initiative 77 and made their views known. Some employers have even gone so far as to advocate against the ballot measure in discussions with servers and to ask them to tell customers about the measure.

On the other side of the debate are the D.C. branch of Restaurant Opportunities Center United (ROC) — which is in charge of the national One Fair Wage Campaign to get rid of the tipped wage system — and many workers who the ballot initiative actually affects.

Although under law, tipped workers are supposed to receive the minimum wage, they say enforcement is another issue entirely. (Workers spoke to ThinkProgress on the condition that we do not publish their real names, out of fear of retaliation from their employers.)

Jamie, who works at a midsize restaurant in Petworth said, “Theoretically, we already have that level playing field, because restaurants are obligated to make up the difference if wage and tips doesn’t come out to minimum wage for workers, but most restaurants are non-compliant and don’t explain this policy to workers.”

Melissa, who works as a server at a restaurant on U Street, said it’s about making things more consistent and enforceable.

“I just think everyone should have that security of knowing they are going to have that paycheck that is going to equal at least a certain amount and it’s a lot more easy to enforce,” she said. “We’ll have tips on top of that and the service as we know it isn’t going to change.”

Michelle, who works as a bartender, said there are Save Our Tips signs on the walls and windows of the restaurant she works at. The restaurant group that owns the restaurant she works for, sends a weekly newsletter to employees, which provides links to instructions on how to volunteer at polls and anti-Initiative 77 videos.

She has heard from servers that they are encouraged to talk to customers about it and “make sure they know the server are against it and that it affects their livelihood and that they should vote against it.”  

Jamie said their employer posted signs that read “NO on 77” and encouraged workers to vote against it. “My managers have also made a point to speak negatively of community organizations that advocate for [Initiative] 77,” they said.

Melissa said she doesn’t have a problem with restaurant owners making their views known as long as they aren’t “lecturing workers on company time” about the ballot measure or spreading misinformation.

“This Save Our Tips campaign has so much fear mongering and misinformation. People believe so many inaccurate ideas because their bosses have said, ‘This is what’s going on,’” she said. “I just think they should have the correct information. I don’t think that’s happening right now.”

Melissa said she thinks workers are being misled when they’re told by employers that people will go eat in Virginia or Maryland instead or that restaurants will close, when in reality, the ballot measure allows the change to take effect gradually. She said some people have told her that they believe ROC is a union and that they will have to pay union dues.

“It’s just a shame they’re being given so many reasons to be afraid,” she said.

NAJ said a lot of people who support the ballot measure are afraid to say anything at their workplace for fear of retaliation.

“Some of those employees are doing so by choice, either because they’re against it or don’t understand it,” they said. “A lot of them can’t come out in support of it because they could lose their livelihoods. They could lose their jobs.”

Many places have already gotten rid of the subminimum wage for tipped workers, including California, Minnesota, Hawaii, Montana, Oregon, Alaska, Washington, and Nevada, and a number of cities. According to the Economic Policy Institute, poverty rates for servers and bartenders are much lower in states that don’t allow a subminimum wage.

Michelle moved to D.C. from California, where they got rid of the subminimum wage, and said she shares her experience working in California with other tipped workers.

“The differences have been pretty striking to me in terms of take-home money, the consistency of a paycheck or the consistency of what I make in a week to two weeks, and also the overtime that is expected of you in a non-tipped wage state,” she said. “I’ve really noticed the difference.”

Michelle said she has asked coworkers who wear No on 77 buttons to tell her more about their opposition to the ballot initiative.

“They’re like, ‘I don’t want to lose my tips’ and I’m like, ‘Oh is that what you believe is going to happen?’ and they say yes. I ask where they’re getting their information from. The only source they have is management and coworkers,” she said. “But they seem to be responsive when I tell them how it was for me when I worked in California and I had a regular paycheck. It wasn’t paying much but at least I could depend on the paycheck every couple weeks that I knew was coming and it was a consistent income as opposed to one week making a difference of $200 to $300 dollars a week depending on tips.”

Workers in support of Initiative 77 say the most privileged voices are the loudest

Servers and bartenders ThinkProgress spoke to said that although some tipped workers who oppose Initiative 77 seem uninformed, others appeared to oppose it because they benefit the most from the current system.

“Most of the white male bartenders I work with are very strongly anti-77,” Michelle said. “Mostly men and white guys are becoming voice of No on Initiative 77 and they are the loudest voice speaking for tipped workers. They aren’t my voice. And the people of color I know in the industry, they are not their voice either.”

NAJ said they don’t see enough people from marginalized groups represented in the debate in the media over Initiative 77.

“The idea that the experience of highest-tier people making the most money should be the representative experience is insulting to people who work in these positions who, for whatever reason, could not move into field of choice because of marginalized identities or whatever it is,” they said. “They are having their livelihoods affected by policies and by business models that literally privilege already privileged people.”

Melissa said people’s opinions seem to be divided along class lines, with people who make more money in the industry opposing the initiative, whereas people who suffer more from wage theft, make lower tips, and work several jobs tend to support it.

“They’re the ones being hurt by the current system,” she said.

Sexual harassment, queerphobia, and racism also needs to be part of the discussion on Initiative 77, servers and bartenders say.

ThinkProgress spoke to queer tipped workers, tipped workers of color, and tipped workers who have experienced sexual harassment. Although servers acknowledge that Initiative 77 won’t eliminate discrimination and sexual harassment from customers, they won’t be as worried about customer biases and behaviors affecting their ability to pay rent or buy groceries — or their ability to push back against harassment.

“I have been kissed by customers against my will. I have been groped. I have had my ass grabbed while I was pouring wine for a table,” Melissa said. “I have had so much inappropriate behavior that I was expected to put up with both by customers and by management because hey, it was a slow night and I needed the money so I guess I’m going to let you grope me if you’re going to tip me.”

Melissa said that even with tables she feels more comfortable talking to, she worries about outing herself as queer because she doesn’t know how her customers will feel.

“I have friends who present queer, much more than I do, who have faced discrimination from customers. I don’t want that to happen to me,” she said.

“White men consistently get tipped better than people of other races and genders — I don’t just mean statistically, but I mean that my own experiences have shown this to be the case,” Jamie said.

Michelle said, “As a bartender you’re likely to let a lot more stuff slide that you would otherwise call people out on when you know you’re not as dependent on tips.”

NAJ, who identifies as a Black femme, said, “I most certainly won’t be tipped by a homophobe or someone who is racist. Disabled workers experience this and transgender servers and bartenders experience this.”

“One of the arguments against 77 is that it will affect highest tipped workers in the business,” they added. “Many of them are from privileged groups, usually white men, usually straight appearing, and conventionally attractive and so they’re able to exploit a system that oppresses a certain class in order to make what they consider to be a fair wage. But a black trans woman working at IHOP can’t make anywhere near that.”

This article was originally published at ThinkProgress on June 12, 2018. Reprinted with permission. 

About the Author: Casey Quinlan is a policy reporter at ThinkProgress covering economic policy and civil rights issues. Her work has been published in The Establishment, The Atlantic, The Crime Report, and City Limits.

Busting some myths about tipped workers and the minimum wage

Wednesday, June 6th, 2018

There’s a referendum in Washington, D.C., to end the tipped minimum wage and make sure tipped workers get the full minimum wage. Restaurant groups are fighting hard and spreading misinformation, so the Economic Policy Institute sets the record straight. A lower wage for tipped workers disproportionately affects women and people of color—it “perpetuates racial and gender inequities, and results in worse economic outcomes for tipped workers,” especially given research showing that white people get higher tips.

Tipped workers in states where they get a subminimum wage experience higher poverty levels than in equal treatment states—a difference of 18.5 percent poverty vs. 11.1 percent poverty. And while restaurant owners are threatening that if the tipped minimum wage goes up, tips will go down or go away:

The data show that tipped workers’ median hourly pay (counting both base wages and tips) is significantly higher in equal treatment states. Waiters, waitresses, and bartenders in these states earn 17 percent more per hour (including both tips and base pay) than their counterparts in states where tipped workers receive the federal tipped minimum wage of $2.13 per hour. There is no evidence that net hourly earnings go down, such as from customers tipping less, when tipped workers are paid the regular minimum wage.

Finally, giving tipped workers the full minimum wage is not going to devastate the restaurant industry:

The restaurant industry thrives in equal treatment states. In one of the most comprehensive studies on the minimum wage, researchers aggregated the results of over four decades of studies on the employment effects of the minimum wage. They concluded that there is “little or no significant impact of minimum wage increases on employment.” Affected businesses are typically able to absorb additional labor costs through increases in productivity, reductions in turnover costs, compressing internal wage ladders, and modest price increases. Furthermore, research specific to the tipped minimum wage also found no significant effect on employment.

This blog was originally published at Daily Kos on June 2, 2018. Reprinted with permission.

About the Author: Laura Clawson is labor editor at DailyKos.

Former Houston Texans cheerleaders sue team over low pay and harassment

Monday, June 4th, 2018

Five former Houston Texans cheerleaders are suing the NFL team, claiming they weren’t paid for many hours of work and were subjected to intimidation and harassment on the job.

“We were harassed, bullied, and body shamed for $7.25 an hour,” former cheerleader Ainsley Parish said at a press conference Friday.

The women, who are represented by prominent women’s rights attorney Gloria Allred, accuse the team of failing to pay its cheerleaders minimum wage and overtime, as well as failing to provide a safe working environment.

“I was attacked by a fan at a game leaving abrasions on my shoulder. My attacker was not approached, nor was he removed from the game,” former cheerleader Hannah Turnbow said during the press conference. “I was told to just suck it up.”

The five women aren’t alone; just last month, three other former Houston Texans cheerleaders sued the team and its cheerleading supervisor for failing to adequately compensate the women for hours worked, and accused the supervisor of body-shaming and failing to protect the cheerleaders from physical harm.

The suit alleges that the cheerleader director, Altovise Gary, told one cheerleader that she had a “jelly belly,” and criticized another cheerleader’s hairstyle, threatening to “find another Latina girl to replace her.”

In a statement, the team said it is “proud of the cheerleader program” and “will continue to make adjustments as needed to make the program enjoyable for everyone.”

The legal actions against the Texans are the latest in a growing body of reports and lawsuits detailing the exploitation of cheerleaders across the NFL.

Last month, the New York Times reported on disturbing allegations from former cheerleaders for Washington, D.C.’s NFL team, who claim they were forced to pose topless during a trip to Costa Rica in 2013 while male sponsors and suiteholders watched. Some of the women were then told they had to escort the men to a club later that night.

A former New Orleans Saints cheerleader filed a complaint with the Equal Opportunity Employment Commission earlier this year, claiming she was fired for posting a photo of herself in a bathing suit on her private Instagram account and for attending a party where Saints players may have also been present. Saints cheerleaders are instructed to avoid players in any setting, even on social media, and as ThinkProgress’ Lindsay Gibbs wrote, the onus is fully on the cheerleaders to comply.

In recent years, cheerleaders for the Oakland Raiders, Cincinnati Bengals, Buffalo Bills, Tampa Bay Buccaneers, and New York Jets have all filed lawsuits just to be paid the minimum wage for their work.

This blog was originally published at ThinkProgress on June 2, 2018. Reprinted with permission.

About the Author: Kiley Kroh is a senior editor at ThinkProgress.

Legislation from DeLauro and Clark Would Strengthen Protections for Tipped Workers

Tuesday, March 13th, 2018

As we reported in January, President Donald Trump’s Department of Labor is proposing a rule change that would mean restaurant servers and bartenders could lose a large portion of their earnings. The rule would overturn one put in place by the Barack Obama administration, which prevents workers in tipped industries from having their tips taken by their employers. Under the new rule, business owners could pay their waitstaff and bartenders as little as $7.25 per hour and keep all tips above that amount without having to tell customers what happened.

An independent analysis estimates this rule would steal $5.8 billion from the pockets of workers each year. A whopping $4.6 billion of that would come out of the pockets of working women. This is bigger than simply the well-deserved tips of restaurant workers. This is another example of extreme legislators, greedy CEOs and corporate lobbyists uniting in opposition to working people. They want to further rig the economic playing field against workers, people of color and women.

Last week, Reps. Rosa DeLauro (D-Conn.) and Katherine Clark (D-Mass.) offered up legislation that will strengthen protections for tipped workers and secure tips as the property of the workers who earn them. Department of Labor Secretary Alexander Acosta indicated that he will support Congress’ legislative efforts to stop companies from claiming ownership over tips instead of the workers who earn them.

Hundreds of thousands of you already have spoken out, sending comments of opposition to the rule straight to the Labor Department. It’s time for us to take the next step together. We can hold Trump’s Department of Labor accountable and make sure that Congress hears our opposition to this ridiculous and unfair change. Take action, and tell Acosta to support amendments to the Fair Labor Standards Act that will secure tips as the property of workers and oppose Trump’s rule legalizing wage theft.

Women Deserve a Raise

Thursday, March 8th, 2018

Today is International Women’s Day, and there is no better time to lift up the role unions play in achieving economic equality for women. The Institute for Women’s Policy Research recently released a brief, titled The Union Advantage for Women, which quantifies the benefits of union membership for working women, and the numbers don’t lie!

 IWPR estimates that the typical union woman makes a whopping 30% more per week than her nonunion sister. The benefits of unions are greatest for women of color, who otherwise face stronger economic barriers than their white counterparts. Latina union members make an estimated 47% more than Latinas who are not union members, and the union wage premium for black women is about 28%. For comparison, the union difference for men overall is not as large; union men make about 20% more than nonunion men.

So what’s behind the union advantage? When working women come together (and with our male allies), we are able to bargain for the wages we deserve, robust benefits, and respect and dignity on the job. Outside of the workplace, unions fight for state and local policies such as paid sick leave, family and medical leave insurance, fair schedules, and raising the minimum wage—all which disproportionately benefit women and their families.

Ladies, we deserve a raise! And it starts with a voice and power on the job.

Alaska will no longer allow workers with disabilities to be paid less than minimum wage

Tuesday, February 20th, 2018

As of Friday, Alaskan businesses will no longer be allowed to pay disabled workers less than the minimum wage, which is currently $9.84 an hour.

“Workers who experience disabilities are valued members of Alaska’s workforce,” said the state’s Department of Labor and Workforce Development Acting Commissioner Greg Cashen, in a press release. “They deserve minimum wage protections as much as any other Alaskan worker.”

The state announced last week it would repeal the regulation first put in place in 1978. Alaska joins New Hampshire and Maryland as the first states to get rid of sub-minimum wage for employees with disabilities, an act which is entirely legal under federal law, and has been since 1938 when the Fair Labor Standards Act was implemented.

The minimum wage exception was initially created to help those with disabilities get jobs, but despite its intentions, the legislation still fell short. Disability advocates argue the law is outdated and that many disabled individuals can succeed in jobs earning minimum wage or more, and that no other class of people faces this kind of government-sanctioned wage discrimination. In addition to being paid a sub-minimum wage, employees with disabilities often perform their jobs in what are called “sheltered workshops.” This term is generally used to describe facilities that employ people with disabilities exclusively or primarily, but has been interpreted by disability advocates as a form of segregation in the workplace.

Goodwill Industries is arguably one of the biggest offenders when it comes to exploiting this kind of wage discrimination. The company is one of the largest employers for people with disabilities, many of whom are contracted by Goodwill through the government’s AbilityOne program, which ensures contracts are set aside for places that employ workers with disabilities.

Goodwill, however, is a $5.59 billion organization, and many argue they can afford to pay all of their workers a fair wage.

“You’ve got entities that are doing quite well, that are raking in donations, that get government contracts to make everything from military uniforms to…pens to whatever,” says Chris Danielsen, a spokesperson for the National Federation of the Blind told The Nation. “They get these contracts, and they’re paying their workers less than the minimum wage.”

Goodwill’s own CEO, Jim Gibbons, is blind. In 2015, he raked in more than $712,000 in salary and additional compensation while his disabled employees were making less than $9 an hour in some states.

In a comment to NBC News in 2013, Gibbons defended his salary and the million dollar salaries of other Goodwill executives. At the time, Goodwill’s total compensation for all its franchise CEOs was more than $30 million.

“These leaders are having a great impact in terms of new solutions, in terms of innovation, and in terms of job creation,” he said.

Speaking of those employees with disabilities working for less than minimum wage, he punted. “It’s typically not about their livelihood. It’s about their fulfillment. It’s about being a part of something. And it’s probably a small part of their overall program,” he added.

 Just last week, disability activists were dealt a blow by the House of Representatives, which voted 225 to 192 in favor of a bill that would significantly weaken the Americans with Disabilities Act, letting businesses off the hook for failing to provide accessibility accommodations.

Twenty-two percent of Americans live with some form of disability and 13 percent of those experience mobility issues, such as walking or climbing stairs, according to the Centers for Disease Control and Prevention (CDC). The share of people with disabilities is higher among women and people of color: according to the CDC, one in four women have a disability and three in 10 non-Latinx Black people have a disability.

One in three adults who are able to work have reported having a disability, and half of those making less than $15,000 a year have reported a disability as well, according to the CDC’s numbers.

This article was originally published at ThinkProgress on February 20, 2018. Reprinted with permission.

About the Author: Rebekah Entralgo is a reporter at ThinkProgress. Previously she was a news assistant on the NPR Business Desk. She has also worked for NPR member stations WFSU in Tallahassee and WLRN in Miami.

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