Recognizing that the federal minimum wage falls short of what families need to make ends meet, other states and cities across the country have raised their minimum wages above the federal level of $7.25 an hour. No Texas cities have done this because Texas state law currently stops cities and counties from making most local decisions about the minimum wage. Local governments are only able to raise minimum wages for their own government employees and contract workers. What cities can do, however, is to insure that other benefits like paid sick time are available to all workers in that city which is what the City of Austin has done.
But how did we get here on the dollar minimum wage?
State policy can also rig the system against workers. The Ohio legislature has barred local governments from improving working conditions, banned local hire ordinances that help set aside work for local residents, and passed tax cuts that favor the wealthiest Ohioans at the expense of our roads, schools and health care. But there are solutions. We can strengthen Ohio’s working people and create an economy that works for everyone by helping workers to speak up together, raising wages, and investing in communities instead of corporations.
State and federal policy makers can make sure all Ohio’s working people – not just the top 1 percent – can enjoy a decent life free from economic insecurity. Although this is by no means a definitive list, this report offers a new path forward with practical policy solutions that can be implemented today.
On August 28, 2017, low-wage workers in St. Louis, Missouri, became the latest victims of state preemption laws. “Preemption” in this context refers to a situation in which a state law is enacted to block a local ordinance from taking effect—or dismantle an existing ordinance. In this case, St. Louis had raised its minimum wage above the state minimum—but was then forced to lower it back down when the Missouri state legislature preempted the local ordinance.
Ironically, state preemption of labor standards has historically been used for good: to ensure that minimum labor standards are applied statewide. It is only in recent years that it has been so frequently used to take earnings and protections away from workers.
This report looks at the rising use of preemption by state legislatures to undercut local labor standards. It provides an overview of five key areas of labor and employment policy affected by preemption—including minimum wage, paid leave, fair work scheduling, prevailing wage, and project labor agreements—and details the extent and impact of such preemption practices throughout the United States. Finally, it presents ways local governments can push back against state preemption in their efforts to raise the living standards of their residents.
Minimum wage workers in St. Louis just had a taste of what life might be like with a raise, only to have it taken back by the Missouri state legislature. St. Louis is part of a growing number of cities across the country seeking to raise their own minimum wage by city ordinance.