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

The Minimum Wage in Massachusetts: Challenges & Opportunities

The Massachusetts economy is stronger when all working families can make ends meet. Unfortunately, since the 1970s, wages have generally stopped growing with the economy and many working families find it difficult to pay for basic needs. As shown in the graph below, hourly wages grew in tandem with productivity during the late 1940’s to the early 1970’s. During this period economic gains were broadly shared by the very workers who helped create this growth. Yet, after 1973, while productivity continued to grow, wages for most workers did not.

New York City’s Recovery Finally Starts Generating Wage Gains

In addition to our analysis and public education work around the New York State and City budgets and tax policies, the Fiscal Policy Institute (FPI) regularly tracks economic and labor market trends in the City and the State and provides commentary and prepares issue briefs, reports, and policy proposals. Our interest in economic policy is rooted in a concern for broadly shared prosperity.

Previous FPI economic reports have documented the historically weak nature of the national recovery since the Great Recession of 2008-09. One of the unique aspects of this recovery has been the prolonged period of high unemployment and a concomitant wage and income stagnation experienced by most workers and their families. Various reports in recent years, by FPI and others, have documented the tendency during the recovery, and in recent decades, for the bulk of income gains to flow to those at the high end of the income distribution. With unemployment finally falling and as a result of two state minimum wage increases, it appears that wage growth has started to pick up in New York City over the past year. In addition, collective bargaining agreements providing for retroactive wage increases have been reached with 300,000 New York City and Metropolitan Transportation Authority workers since April 2014. This report examines wage trends over the course of the recovery and considers the outlook for further wage growth over the next few years, and discusses the role of policy actions in creating a more durable local economy.

The Economic Contributions of Immigrants in Washington State

During this year’s legislative session, lawmakers have an opportunity to enhance the already important contributions immigrants make in our state. As the Legislature considers funding for schools, health care and other services, along with other policies, it is important to understand how immigrants play a major role in Washington state’s economy and society.

Immigrants are an important part of the fabric of our society, making our state more culturally rich and economically vibrant. Like so many new Washingtonians before them, they come from all regions of the world in search of opportunity.

The majority of immigrants in our state – who represent one in six workers (17 percent) – are from Mexico, the Philippines, Canada, Vietnam and Korea. (1) Immigrants – whether naturalized citizens, lawfully present, or undocumented – play a significant and growing role in Washington state’s economy. As 13 percent of the total Washington state population, immigrants’ share of total annual economic output is 14 percent.

Too Many Minnesota Workers Face Low Pay and Few Benefits: The State of Working Minnesota 2014

Minnesota is known for our hard-working residents, but too many find that their hard work is not enough. Wages haven’t kept up with the cost of living, and jobs that only offer part-time hours and lack critical benefits aren’t enough to make ends meet.

Even as the economic recovery has begun to take hold, too many Minnesotans still lack the quality jobs that would allow them to support themselves and their families.