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

State of Working Wisconsin 2016

In The State of Working Wisconsin 2016, COWS finds that the long shadow of the Great Recession is finally lifting in Wisconsin. The state has more jobs than ever before, unemployment rates have fallen to pre-recession levels, and workers that want full-time work are having an easier time finding it. Labor market opportunities are more clear and consistent than they have been in nearly a decade.

Longer-term challenges that Wisconsin faces, long documented by COWS, remain daunting. Wages have been stagnant over the last three and a half decades and workers have very little to show for increasing productivity. Women earn less than men and the gap is slow to close. African Americans have suffered declining wages and growing disparity. The wage reward for higher education is evident, as is the difficulty of making ends meet without completing some post-secondary education. One-in-four workers toils in a poverty wage job and low-wage sectors are growing faster than better-paying ones. Racial disparities, while hardly unique to Wisconsin, are particularly extreme here. A variety of economic and social indicators of racial inequality consistently identify us as among the most racially unequal states in the nation.

How Raising Incomes for Low-Wage Workers Boosts the Economy: A Study of Washington State’s Home Care Workforce

This report explores the impact of wage increases on statewide economic activity through a study of the potential impacts of increasing wages for state-paid home care workers in Washington state to $15 per hour. The report also analyzes the potential local economic impact of this wage increase on five counties: Adams, Clark, Cowlitz, King, and Spokane. In Washington state, public home care workers are paid through the state Medicaid program to provide support for seniors and people with disabilities to remain in their homes. Home care is provided either by an individual worker who directly contracts with the state, known as an “individual provider,” or workers hired by private home care agencies. The analysis in this report focuses on the 34,686 state-paid individual provider home care workers for which detailed wage data is readily available from Service Employees International Union 775, the union that represents these workers. A $15 minimum wage for home care workers would impact 81 percent of the state’s individual provider workforce. The economic analysis in this report is focused on the impact and projected spending on workers – for wage increases up to $15 per hour.

State of Working North Carolina 2016: Don’t Call It a Comeback

Hard work is supposed to provide the income to allow people to get by and set their children up for future success. North Carolina policymakers have violated that promise, both with their policy choices that make it more difficult for North Carolinians to connect to good jobs and with their failure to enact the policies that make sure work translates into greater economic security.

The national economic recovery began in 2009, but it has yet to reach North Carolinians across the state. Too many workers have failed to find work or left the labor market for lack of jobs in their community. Far too many who are working find their wages falling short of what it takes to make ends meet and otherwise contribute to their communities’ improvement.

The State of Working Pennsylvania 2016

This is a divisive time in America. One contributing factor is nearly 40 years of economic stagnation, with some workers, families and communities going backwards economically. Particularly when political leaders fail to offer those hurt by a restructuring economy a realistic promise of better days, anger and despair can spread and undermine the fabric of our society. Some may even be lead to resent “other” groups—to think that their lack of progress results from the undue gains made by another group.

The State of Working Pennsylvania 2016 documents the reality of difficult economic times for many groups. It tells a fairly simple story: most Pennsylvania workers have shared little of the economic gains of the last four decades because a tiny slice at the top has garnered so much of those gains. Whatever group people see themselves belonging to, in many cases that group has not done well. But our numbers also validate that most of those “other” groups have not done well either. The data show that if you think some “other” group is unfairly receiving some of the economic well-being that is rightfully yours, you are mostly wrong—unless that “other” group is the highest-income 1 percent.