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

When Matters are Settled but Not Resolved: Misclassification in the Rideshare Sector

  • June 9, 2016

FIU’s Research Institute on Social and Economic Policy (RISEP) is excited to co-release, with UCLA’s Institute for Research on Labor and Employment, a new research report on the so-called “gig economy”.“When Matters are Settled but Not Resolved: Misclassification in the Rideshare Sector” reviews the law and judicial decisions to date on whether Uber and Lyft drivers are employees or independent contractors. RISEP Director Pamela Izvanariu makes a compelling argument that despite recent class-action settlements that left this question unresolved, there is a compelling legal case for concluding that rideshare “contractors” are in fact employees.

It is time for earned sick leave in Michigan

Michigan should enact an earned sick leave law. This would help low-paid workers keep their jobs, increase productivity and reduce employee turnover, and protect the health of other employees and the public.

Many middle- and upper-income workers have the ability to take time off for sickness or family needs. But for many low-paid workers in Michigan, becoming sick can cause loss of money or even a job. It can put a worker in the difficult position of having to decide whether to stay home and lose wages, or to go to work and risk becoming sicker, work less productively and expose coworkers (and in many cases the public) to illness. Parents may feel pressure to forgo needed doctor checkups and medical care for themselves or their children because they cannot afford to lose the wages due to absence from work. They may even send their child to school sick because they cannot afford to stay home to take care of them.

An earned sick leave law in Michigan would require most employers to bank sick time for their workers based on the number of hours they have worked. Several cities and states have already passed sick leave laws and it is time for Michigan to do the same.

A Pittsburgh that Works for Working People

During the 20th Century, Pittsburgh was known for the steel industry and the broad middle class prosperity that was shared by many residents. Today, Pittsburgh is in the process of rebuilding its economy around new sectors, such as tech start-ups. The city has found some success in this economic transition, and the population has stabilized as highly educated tech workers move into trendy neighborhoods, but too many working people are being left behind. Residents worry about displacement from their homes and high housing costs, median income has stagnated, and racial disparities persist. The good news is that there are meaningful steps the Mayor and City Council can take to lead the city into an era of fair, inclusive, democratic and economically sustainable growth. Once again, Pittsburgh can become known for a broad middle class prosperity that is shared by many. This report provides recommendations and best practices models for how to take those steps. The vision presented in this report is one in which Pittsburgh is known as the city that rebuilt its economy into one of broadly shared prosperity and strong labor standards; with a housing market that meets the needs of long-term residents while also welcoming newcomers; that offers equitable, accessible and safe transportation choices that connect all residents to employment and other critical destinations; and that prioritizes strong community-police relations with historically marginalized communities of color and new immigrants to ensure Pittsburgh is a most livable city for all residents.