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

High Road WIOA: Building Higher Job Quality into Workforce Development

In response to the federal Workforce Investment and Opportunity Act (WIOA), most states are now in the latter stages of developing federally required plans and policies for operating their systems of workforce development under WIOA. This process creates an unprecedented opportunity to build into each state’s plan concrete ideas for using state and local workforce policy and practice to boost job quality. By developing new policies that help local boards connect workers to the best possible jobs, and supporting employers – individually and in partnerships – with efforts to improve jobs, WIOA implementation can create a “high road in workforce development.” It can make workforce systems an enduring force for better job quality.

 

In this brief, we propose three concrete disbursement policies that allow for more effective and focused use of WIOA resources, by ensuring that employer partners are the best possible fit for job seekers in the system. Many states or local areas already have some language supporting job quality – for example, seeking to target scarce training dollars to occupations that meet self-sufficiency wage standards (i.e., pay enough to support a family without public assistance). As this indicates, the goal of promoting the highest possible job quality for workers helped by the system is uncontroversial. The next logical step is to make this commitment more concrete and direct investments in ways that help secure the job quality outcomes on which there is strong consensus.

Women in Maryland Pay More in Taxes as a Share of Their Incomes

  • December 1, 2015
  • Mark Scott

Because women in Maryland typically earn less than men, they are more likely to pay a higher percentage of their household income in state and local taxes. The state’s highest-income households – more likely to be headed by men – pay a lower percentage of their yearly earnings in state and local taxes compared to middle-class and low-income households, which are more likely to be headed by women.

Women in Maryland, on average, earn more than their counterparts in all but one other state. Yet for every dollar women in Maryland earn, men on average earn 13 cents more—a pay gap that leaves households headed by women thousands of dollars behind those headed by men. This means that the more than 1.4 million female workers in Maryland (49 percent of the workforce) tend to shoulder a larger burden than men do when it comes to supporting our schools, the construction of our roads, and other services.

State of Working Vermont 2015

Vermont’s economy began to grow again after the recession, but has since cooled off. Even before the recession, real economic growth was slow. And figures released in December 2015 show
that Vermont’s gross state product—the value of goods and services produced in the state—was essentially the same in 2014 as it was in 2011, after adjusting for inflation.

Vermont’s labor market also faced challenges. Although employers finally replaced all of the jobs lost in the Great Recession, total employment in 2014—which counts farm and nonfarm workers as well as the self-employed—lingered below the 2006 peak and fell for the third year in a row. And while Vermont had the 5th lowest unemployment rate in the country, many Vermonters were underemployed or had given up looking for work.

Among the states, Vermont had the 14th highest percentage of working-age population in the labor force—either working or actively looking for a job. But there were fewer younger people in the labor force, due primarily to a smaller number of 35-to-54-year-olds in the population than prior to the recession. The labor force was more balanced by gender than in other states. However, unemployment for men remained higher than for women.

A Fair Wage for Human Services Workers: Ensuring a government funded $15 per hour minimum wage for human services workers throughout New York State

The Federation of Protestant Welfare Agencies, Fiscal Policy Institute, and Human Services Council applaud Governor Cuomo’s proposed minimum wage increase. Full time work at a minimum wage should meet families’ basic needs, not leave them in or on the brink of poverty. The Governor’s proposal will enhance the opportunity of upward mobility for individuals and families across the state, while strengthening the State’s economy and decreasing the need for public assistance. This wage increase will be especially impactful for human services workers, given that over half are currently paid
under $15 per hour; 30 percent under $10.50.

More than 200,000 human services workers are the driving force behind services like afterschool programs, child welfare, early education, services for older adults, public assistance programs, and many others vital programs. Even with full-time hours, their current wages do not meet the basic needs of individuals and families in most areas of the State; low-wage human services workers are often eligible for the same benefits as the clients they serve.