Report: A Tipped Workers Minimum Wage Credit May Actually Help Arizonans

Waiter

A new report put out by the Arizona Common Sense Institute has found that allowing employers to pay tipped workers 25% less than the state minimum wage could actually help secure jobs for employees in the restaurant and service industries.

The report is an analysis of Proposition 138, an amendment that would allow for tipped workers to be paid 25% less per hour than the minimum wage if any tips received by the employee were not less than the minimum wage plus $2 for all hours worked. Arizona voters will decide the measure’s fate in the upcoming general election.

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Report: An Increase in Glendale’s Minimum Wage Could Derail the City’s Economy

Worker

Glendale residents will have the opportunity to decide whether or not to raise minimum wage and benefits for hotel and event workers this November. The Hotel and Event Center Minimum Wage Protection Act, proposed and funded by the Worker Political Action Committee, will be on the ballot this year and while it seems to stem from good intentions, a report from the Common Sense Institute of Arizona says it could have detrimental economic impacts.

The initiative not only states that hotel and event centers workers must earn a minimum of $20 per hour, but it would also set a limitation on the amount of square feet a room attendant is required to clean before the employer must pay twice the hourly wage, it would require employers to distribute service charges to the employees who performed those services and lastly, the city of Glendale would be required to enforce these rules.

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CEOs’ Pay Increases in 2023 Widen Income Gap with Workers

CEO Pay

The average salary for a company’s chief executive officer (CEO) soared by 13% in 2023, thus producing an even greater income gap between top executives and the workers they employ.

According to ABC News, a data analysis by Equilar for the Associated Press revealed that the median compensation package for a CEO rose in 2023 to $16.3 million, marking a 12.6% increase. At the same time, wages and benefits for the average worker rose by just 4.1%. At half of the companies included in the Equilar survey, it would take one worker at least 200 years to make the same amount of money that their CEO makes.

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Commentary: Vaccine Mandates Likely Exacerbated Healthcare Worker Shortage, New Research Shows

tired medical staff

In his book Economics in One Lesson, Henry Hazlitt makes a famous distinction between good and bad economists:

The bad economist sees only what immediately strikes the eye; the good economist also looks beyond. The bad economist sees only the direct consequences of a proposed course; the good economist looks also at the longer and indirect consequences. The bad economist sees only what the effect of a given policy has been or will be on one particular group; the good economist inquires also what the effect of the policy will be on all groups.

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Virginia Lawmakers Push Richer Employer-Provided Benefits to Workers

Working Mom

Calling her state and America behind “the entire industrialized world,” a Virginia senator is one of two lawmakers pushing legislation to implement an employer-provided benefit to workers.

“Virginia and our entire nation are woefully behind the entire industrialized world when it comes to helping workers when their families need them,” Sen. Jennifer Boysko, D-Fairfax, said Monday explaining a paid famil and medical leave program.

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Part-Time Jobs Are Booming Under Biden as Americans Look to Make Ends Meet

Uber Driver

More Americans are having to take part-time jobs as consumers struggle with economic factors like high inflation, while full-time employment has sunk in tandem, according to data from the Bureau of Labor Statistics (BLS).

Around 133,196,000 workers were employed with full-time jobs in the U.S. in December, which was down from 134,727,000 in November — a drop of more than 1.5 million, according to the BLS. During that same time frame, the number of Americans employed in part-time positions rose by 762,000, while the number of people with multiple jobs increased by 222,000.

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Job Growth Remains Cool Despite Boost from Returning Strikers

The U.S. added 199,000 nonfarm payroll jobs in November as the unemployment rate ticked down to 3.7%, according to Bureau of Labor Statistics (BLS) data released Friday.

Economists had anticipated that the country would add 180,000 jobs in November compared to the 150,000 jobs that were added in October and that the unemployment rate would remain at 3.9%, according to Reuters. The number of jobs added in the month was boosted due to the resumption of work by autoworkers and actors who participated in the recent strikes.

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Private Employers Hire 113,000 New Workers in October; Pay Growth Slows

U.S. private employers grew their payrolls by 113,000 workers in October versus September’s 89,000 new hires, a month-over increase of 21%, according to the October ADP National Employment Report, a collaboration with the Stanford Digital Economy Lab. 

“No single industry dominated hiring this month, and big post-pandemic pay increases seem to be behind us,” said Nela Richardson, ADP’s chief economist, said in a statement. “In all, October’s numbers paint a well-rounded jobs picture. And while the labor market has slowed, it’s still enough to support strong consumer spending.”

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Automakers Lay Off More Workers as Strike Takes Its Toll

Major automakers have laid off even more employees as union workers continue to strike at several manufacturing plants amid contract negotiations, according to The Wall Street Journal.

Ford and General Motors laid off an additional 500 workers this week, bringing the total number of workers that have lost their jobs at the companies to a combined 6,000 following a strike from the United Auto Workers (UAW), according to the WSJ. UAW is currently striking against Ford, GM and Stellantis at 43 manufacturing plants using a targeted strike strategy, with many workers remaining on the job as contract negotiations continue.

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Health Insurance Costs Expected to Spike at Highest Rate in over a Decade

Employer health insurance costs are expected to increase significantly in 2024, affecting costs for both workers and businesses as hospital operating costs rise, according to data reported by The Wall Street Journal.

Next year, the costs for health insurance coverage from employers are expected to increase by around 6.5%, which could be the biggest increase in more than a decade, according to survey data acquired by the WSJ. Driving the increase in health insurance costs are inflated labor costs for hospitals and a large demand for expensive new diabetes and obesity drugs, which are being passed down to insurance companies in new contracts with the hospitals.

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Commentary: Unions Have Betrayed America

Anyone suggesting there is no role for unions in America today might first consider a fact of history: more than a century ago, when oligarchs and the companies they owned had treated workers as if they were livestock, reduced to living in squalid pens with rationed food and water, it was unions that organized these workers to resist. It was unions who gave these workers back their humanity, and negotiated collective bargaining agreements and laws that eliminated child labor, enforced workplace safety, established an 8-hour work day, paid overtime, health benefits, and retirement pensions.

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Four-Day Workweek Offered as Part of Pennsylvania Labor Shortage Remedy

Four-day workweeks may boost Pennsylvania’s recruitment and retention of young workers – or at least some lawmakers would like to find out.

A new proposal offered in the House creates a pilot program for interested employers to transition their staff to a 32-hour weekly schedule – without a reduction in pay or benefits. In turn, qualifying employers would receive a tax credit. 

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‘Noncitizen Workers’ May Avoid Deportation if They Report Their Employers’ Labor Violations

The Department of Homeland Security announced on Friday that it would streamline a deferred action process for noncitizens who report labor violations so as to help them avoid deportation.

The agency hopes that the policy will help it to identify exploitative work environments by protecting those who come forward from “immigration-related retaliation from the exploitive employers,” according to a press release. DHS contends that workers often avoid reporting labor violations for fear that their employers will retaliate on the basis of their immigration status.

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Pennsylvania Is Missing 113,000 Workers

Pennsylvania is missing young workers and the problem is one that won’t simply go away.

While the commonwealth isn’t the only state struggling with a shrinking youth population, state-to-state comparisons are difficult to make due to data issues. What’s clear is that Pennsylvania has had a significant drop in its labor force participation rate. Rather than a story of older workers retiring, the majority of missing workers are under 45 rather than over.

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Connecticut Program Seeks to Land Workers in High-Demand Jobs

Connecticut is implementing a new training program that is designed to give workers the skills necessary to fill jobs in high-priority occupations.

CareerConneCT, a $70 million program, backed by American Rescue Plan Act funds, will operate 19 various job training programs, Gov. Ned Lamont said. The training programs are aimed at giving workers affected by the COVID-19 pandemic short-term training to get them the credentials needed to work in various sectors of the workforce in higher quality jobs that are in demand.

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Commentary: A Mastery of the Skilled Trades Is Essential for a Free People

The Government Accountability Office on Wednesday revealed that Boeing is having trouble finding qualified workers for its nearly $5 billion Air Force One project. Thanks to COVID-related delays and retirements, the project is understaffed and behind schedule. The aviation giant has already lost $1.1 billion on the deal, which was contracted in 2018 at a fixed price of $3.9 billion and may not be finished until mid-2025.

Not just any warmblood with a wrench can walk in and get a job assembling the president’s jet. Due to the top-secret nature of the aircraft – actually, two specially converted 747-8s that the Air Force officially designates as the VC-25B – anyone working on the project needs to undergo an in-depth background check for a security clearance.

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Businesses Fail to Find Workers, and Experts Say Federal Policies Have Made It Worse

A new labor market survey found that a majority of employers, particularly restaurants, still cannot find enough workers.

The new report from Alignable said that 83% of restaurants can’t find enough workers. Overall, the report found that “63% of all small business employers can’t find the help they need, after a year of an ongoing labor shortage.”

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Commentary: Unemployment Benefits Are Causing America’s Worker Shortage

These days, storefronts are adorned with “Now Hiring” and “Help Wanted” signs. Local family-owned businesses and restaurants are announcing reduced business hours and even closures, often citing a lack of employees. And many post signs imploring customers to be patient as fewer workers mean longer wait times.

A new jobs report released this week shows there are now more than 11 million unfilled jobs in the U.S. Where have the workers gone? Thanks to the Biden administration, millions are staying at home, where they’re given financial incentives not to return to the workforce. What started off as temporary measures to alleviate the pains of the pandemic have instead become a nearly two-year economic reality.

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Walmart to Hire Tens of Thousands of Workers

The nation’s largest private employer announced plans to hire tens of thousands of workers before the end of the quarter to help expand its business amid a tightening labor market.

Walmart announced Wednesday a plan to hire more than 50,000 workers in the U.S. by the end of April, the time of year when many companies decrease hiring following the busy holiday shopping season, The Wall Street Journal first reported. The new hires will reportedly fill positions in stores but also add staff in areas such as health, wellness and advertising.

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Commentary: I Am Challenging the Vaccine Mandate to Protect My Workers’ Jobs

Blue Collar Worker

The Biden administration has finally published its anticipated ultimatum threatening companies like mine with severe fines and penalties for not firing any employee who declines to be vaccinated against or submit to invasive weekly testing for COVID-19. The new rule promulgated by the U.S. Labor Department’s Occupational Safety and Health Administration (OSHA) under the guise of workplace safety may well bankrupt the business my father founded. So, as the CEO of the Phillips Manufacturing & Tower Company, I am joining with The Buckeye Institute to challenge OSHA’s vaccine mandate in court. Here’s why.

Phillips is a 54-year-old company based in Shelby, Ohio, that manufactures specialty welded steel tubing for automotive, appliance, and construction industries. OSHA’s emergency rule applies to companies with 100 or more employees — at our Shelby Welded Tube facility, we employ 104 people. As a family-owned business I take the health of my workers seriously — they are my neighbors and my friends. When I heard of the mandate, we conducted a survey of our workers to see what the impacts would be. It revealed that 28 Phillips employees are fully vaccinated, while antibody testing conducted at company expense found that another 16 employees have tested positive for COVID-19 antibodies and likely possess natural immunity. At least 47 employees have indicated that they have not and will not be vaccinated. Seventeen of those 47 unvaccinated workers said that they would quit or be fired before complying with the vaccine or testing mandate. Those are 17 skilled workers that Phillips cannot afford to lose.

Perhaps the Biden administration remains unaware of the labor shortage currently plaguing the U.S. labor market generally and industrial manufacturing especially. Like many companies, Phillips is already understaffed, with seven job openings we have been unable to fill. Employees already work overtime to keep pace with customer demand, working 10-hour shifts, six days a week on average. Firing 17 veteran members of the Phillips team certainly won’t help.

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Commentary: A $10K Bank-Snooping Threshold Would Intrude on Many Millions

Man standing at an ATM

Bowing to pressure from banks and taxpayers concerned about a proposal to require financial institutions to report to the IRS gross inflows and outflows for just about every account in the country, Democrats have attempted to quell concerns by raising the threshold. Unfortunately, even the raised threshold is still laughably low to accomplish Democrats’ stated purpose of cracking down on wealthy tax cheats.

The original proposal would have required financial institutions to report on any account (be it a checking account, savings account, stock portfolio, etc.) which handled more than $600 in inflows and outflows in a given year. Obviously, that’s just about every account.

But the new proposal isn’t much better. This time, the threshold would be set at $10,000, and exempt payroll deposits. In other words, if a given taxpayer received $20,000 in payroll deposits, they would only exceed the threshold were other deposits and spending, taken together, to exceed $30,000.

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Facebook Settles with Department of Justice over Claims It Discriminated Against U.S. Workers

Facebook reached separate settlement agreements with the Department of Justice and Department of Labor on Tuesday, resolving claims that the tech giant discriminated against U.S. workers in hiring and recruiting.

The Department of Justice (DOJ) sued Facebook in December 2020, alleging the company refused to hire or recruit qualified U.S. workers in thousands of open positions by reserving spots in its workforce for temporary visa holders through its permanent labor certification (PERM) program. The DOJ also alleged that Facebook intentionally tried to deter U.S. workers from applying for certain positions.

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Americans Remain Hard Workers Even Through the Pandemic, Especially in Red States

Blue Collar Worker

With Labor Day upon us, it’s time to take a look at which are the hardest-working states in America, and why. It has been a year that daily and weekly work routines have dramatically changed for tens of millions of Americans.

Researchers for WalletHub, a personal finance website, have once again set out to determine which states are home to the hardest working Americans in their annual report. They compare the 50 states based on both direct and indirect work factors, and then apply 10 different metrics to reach an overall score to rank each state.

The direct work factors, according to WalletHub, include “average workweek hours, employment rate, the share of households where no adults work, the share of workers leaving vacation time unused, share of engaged workers, and idle youth.”

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Biden Administration Won’t Push Pandemic Unemployment Bonus Extension

The Biden administration signaled to Capitol Hill lawmakers Thursday that it will not support an extension of pandemic-related unemployment benefits.

President Joe Biden won’t advocate for an extension of the $300 unemployment bonus given to millions of out-of-work Americans on a weekly basis, Treasury Secretary Janet Yellen and Labor Secretary Marty Walsh wrote in a letter to Senate Finance Committee Chair Ron Wyden and House Ways and Means Committee Chair Richard Neal. The Federal Pandemic Unemployment Compensation (FPUC) program, which was implemented in March 2020 and extended by Democrats’ recent American Rescue Plan, is set to expire in early September.

“As President Biden has said, the boost was always intended to be temporary and it is appropriate for that benefit boost to expire,” the secretaries wrote.

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Rieth-Riley Workers Win Settlements Against Union for Illegal Strike Retaliation

Rieth-Riley Construction paving a parking lot

Michigan Rieth-Riley Construction Company employees Rob Nevins and Jesse London won settlements against the International Union of Operating Engineers (IUOE) Local 324 union.

The settlements order IUOE union bosses not to discriminate against London and Nevins for leaving the union and pay $364 to London for owed health insurance premium.

The settlements stem from charges of retaliation the workers filed during the strike IUOE union bosses ordered in mid-2019. London and Nevins ended their union memberships and chose to keep working.

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‘Operation Warp Speed for Jobs’: Worker Shortage Is Getting Worse, U.S. Chamber Says

Construction workers

The U.S. Chamber of Commerce characterized the worker shortage as a crisis that is hurting businesses of all sizes and slowing the nation’s economic recovery.

The biggest challenge U.S. businesses currently face is the lack of qualified workers to fill open jobs, according to the Chamber of Commerce’s America Works Report released Tuesday morning. The national Worker Availability Ratio (WAR) — or ratio of number of available workers to number of available jobs — has dropped over the last several months, the report found.

The current WAR is 1.4, meaning for every job opening there are one or two workers available, according to the America Works Report. The historical WAR average over the last 20 years is 2.8.

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McDonald’s to Hire 260K People in the US as Pandemic Lockdowns Come to an End

McDonald’s plans to hire more than a quarter of a million people over the course of the summer as economic lockdowns continue to slow down, the company announced Thursday.

The restaurant chain will add 260,000 employees as it reopens dining rooms after shutting down amid lockdowns designed to slow the spread of the coronavirus, or COVID-19, according to the president of the company.

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Nearly 3.2 Million New Jobless Claims Across U.S. Drives Tally During Outbreak to 33.5 Million

Even as a handful of states have made tentative steps back to normalcy in recent days, new jobless claims continue to flood in across all 50 states, driving the number of unemployment claims to 33.5 million over the past seven weeks.

According to data released Thursday morning by the U.S. Department of Labor, 3.17 million Americans filed for new unemployment benefits for the week ending May 2. That was down 677,000 from the previous week’s revised level of 3.85 million but still well above the numbers seen before the coronavirus outbreak led to the shutdown of most of the national economy.

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