Wages, Labor Standards, and Job Quality

Every American who wants to work should be able to get a good paying job. When stable employment is available to all, it improves the welfare of the country not only because more people are working, but because at full employment, employers have to compete for personnel, raising wages for workers more broadly. Moreover, workers of color and those without four-year college degrees—who have substantially higher unemployment—gain the most when the economy approaches genuine full employment. To make employers genuinely value their low- and middle-wage workers—no matter where they live or what credentials they hold—lawmakers must pursue policies that make more jobs available, and reduce barriers to employment.

EARN groups develop and advocate for policies that will create good jobs, such as investments in infrastructure and responsible economic development programs, tailoring programs target underserved communities and areas of high unemployment. They also work to reduce barriers to employment by supporting workforce development programs with good labor standards, sector partnerships, and policies such as ban-the-box that help formerly incarcerated individuals rejoin the workforce. Lastly, EARN groups’ work to strengthen state unemployment insurance programs, so that unemployed workers have support when looking for a new job.

The vast majority of American households’ income comes from what workers receive in their paychecks – which is why wages are so important. Unfortunately, wages for most workers grew exceptionally slowly between 1979 and 2012, despite productivity—which essentially measures the economy’s potential for providing rising living standards for all—rising 64 percent. In other words, most Americans, even those with college degrees, have only been treading water—despite working more productively (and being better educated) than ever.

EARN groups provide key research and policy analysis describing how these trends have played out at the state and local levels, and what policymakers can do about it.

Job Training and Apprenticeships

Meaningful training that leads to improved skills and higher pay costs money. Read More.

Enforcement

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Wage Theft

Wage theft, the practice of employers failing to pay workers the full wages to which they are legally entitled, is a widespread and deep-rooted problem that directly harms millions of U.S. workers each year. Read More.

Minimum Wage

The minimum wage is a critical labor standard meant to ensure a fair wage for even the lowest paid workers. EARN groups have provided research and policy guidance for minimum wage laws passed in of states, cities, and counties across the country. Read more.

Overtime

Overtime pay rules ensure that most workers who put in more than 40 hours a week get paid 1.5 times their regular pay for the extra hours they work. Almost all hourly workers are automatically eligible for overtime pay, but salaried workers are only automatically eligible for overtime pay if they make below a certain salary threshold, and that threshold has been so eroded by inflation that dramatically fewer workers qualify today than they did in 1975. Read More.

Worker Misclassification

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Paid Sick, Family, and Medical Leave

Paid family leave and paid sick leave enable workers to take time off for the arrival of a child, or a serious health condition affecting themselves or a relative, without forcing them to choose between work and family.

There is no federal law that ensures all workers are able to earn paid sick days in the United States. EARN groups are working to enact state and local laws to ensure workers can take time off when they are sick. Read more.

Unemployment Insurance

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Work Hours and Fair Scheduling

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Publications

Vermont’s economy: Nothing to write home about

Most Vermont counties are below average—at least when it comes to wages. The latest annual figures for 2016 show that only three counties had annual wages higher than the state average. Workers did worst in Orleans, Essex, and Grand Isle counties, where annual wages came in at more than 20 percent below the state average.

Gov. Christie Guts Family Leave Bill in Conditional Veto

Today Gov. Christie gutted a landmark bill improving New Jersey’s paid family leave program (A-4927), taking out every single important policy change and leaving behind modest mandates to improve the state’s processing of paid leave claims and the public reporting about those claims. And in an ironic twist, the governor removed some of the dollars ($3 million, to be exact) needed to make such improvements in his budget veto a few weeks ago.
The legislation (A-4927) closely followed several key recommendations laid out by New Jersey Policy Perspective in an April report.

Gov. Christie’s gutting of these paid leave improvements is a slap in the face to New Jersey’s working families. New Jersey can – and must – do better for its working caregivers, so we can build a strong workforce and a strong economy.

The governor’s veto message focuses only on the modest costs associated with these fixes, and completely ignores the enormous benefits – both the workers and to businesses.

Minimum wage isn’t what it used to be – it’s worse

The federal minimum wage was established in 1938 at 25¢ an hour (about $4.26 in today’s dollars). Since then it’s been adjusted 29 times to keep up with inflation and rising living standards. The most recent change was in 2009, when the minimum wage increased to $7.25 an hour — but that hasn’t been enough to maintain the value of the wage.

Adjusted for inflation, today’s minimum wage is worth about 33 percent less than it was in 1968 (the year of its peak adjusted value). Simply put, the minimum wage has not kept pace with the cost of living in America or what our society views as the basic income that a job should provide.

Innovative Training Solutions for Shifting Workforce Demands

  • July 5, 2017
  • Staff Report

Pairing skilled workers with quality, high-paying jobs is one way to ensure Mississippi families succeed. However, limited access to skills training and low educational attainment keep many workers from securing good-paying skilled jobs. This gap between middle-skill positions and a comparably skilled workforce limits productivity for employers and access to jobs that support self-sufficiency for working families. Bridging the gap starts with investments in working families and skills training opportunities that are accessible for all Mississippians. This brief examines two enterprising programs tackling the intersections of persistent poverty, low educational attainment levels, and high unemployment rates, which threaten the economic security of Mississippians.