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

No Substitute: Assemblyman Kolb’s Proposed EITC Expansion Is No Substitute for Governor Cuomo’s Proposed $15 Minimum Wage

As an alternative to the Governor’s proposed phased increase in the state’s minimum wage to $15 by 2019 in New York City and by mid-2021 outside of New York City, Assemblyman Brian Kolb recently proposed to increase the state’s Earned Income Tax Credit (EITC) from 30% to 45% of the Federal EITC. The bill memorandum in support of his proposed legislation states: “Expanding the EITC is a much better alternative because it would put more money in the
taxpayers’ pockets, boost the economy and create employment opportunities for the unemployed.”

While the state’s EITC is a beneficial program for working people receiving low- and moderate wages and should be enhanced, for several reasons, it is not a substitute for increasing the state’s minimum wage. In fact, it does not even come close.

The Retail Sector—New York’s Biggest Low-wage Employer Needs to Provide Higher Wages

Among all sectors, retail trade has the most low-wage workers in New York State. Over a half million (555,200) retail workers will benefit from an increase in the statewide minimum wage to $15 an hour. These workers make up nearly a fifth (18 percent) of the 3.2 million workers receiving a wage boost, although retail jobs represent one in nine of all New York jobs. With the phased-in $15 minimum wage floor, 61 percent of all women retail workers would receive higher wages, as would 55 percent of all men retail workers. Retail workers are overwhelmingly adults (91 percent), only 9 percent are teenagers. Fifty-three percent of the retail workers who would benefit are white, non-Hispanic, and 47 percent are persons of color. Of all African-American retail workers, 62 percent would receive a wage increase, as would 65 percent of all Latino retail workers. More than one-quarter (27 percent) of all retail workers are parents struggling to raise families on very low wages. Over half of all retail workers (53 percent) who would benefit from an increase in the minimum wage receive some form of public assistance because their retail wages are so low. Median hourly pay for New York’s retail workers has fallen by 7-9 percent since 2002, adjusted for inflation, this is far greater than the 1 percent decline in the overall median wage.

$15 Minimum Wage Would Raise Earnings for 1.1 Million Immigrants

Gradually raising the New York State minimum wage from its current level of $9/hour to $15/hour by 2019 in New York City and mid-2021 in the rest of the state would give a much needed raise to 1.1 million immigrant workers. In all, there are 3.2 million New York workers who will benefit from the phased-in wage increase, which would on average increase wages by $4,900 per year. These numbers reflect the workers who would gain once a phased-in minimum wage is fully in place. Setting a wage floor at $15/hour will disproportionately benefit immigrants, who are more likely to be in lower-wage jobs than their U.S.-born counterparts. Forty-three percent of all immigrants working in the state would get a raise, as would 36 percent of all workers.

Better Pay for Honest Work Brief

Georgia’s economy is increasingly tilted toward the types of jobs that don’t pay workers enough to make ends meet or
keep their families out of poverty. They are food servers at local restaurants. Retail clerks selling products they can’t
afford. Home health aides helping the frail and disabled live with dignity. More Georgians are working in these types of
jobs than ever, and the state’s economy is leaving them behind. Wages are flat, workers put in extra hours at lowerquality
jobs, while inequality skyrockets. Georgia businesses and the economy struggle as a result, as working families
spend and invest less.