Wage Standards and Workplace Freedom

Too often workers are forced by employers to listen to religious, political, or anti-union propaganda that has nothing to do with their work responsibilities-- yet they are threatened with being fired if they don't attend such employer-mandated meetings.  The Oregon legislature this past week joined New Jersey in giving employees the right to skip such employer propaganda meetings without fearing reprisals.

In this Dispatch, we emphasize that any stimulus spending has to be tied to increased accountability and transparency in spending decisions, especially by government contractors who often operate like a shadow government with little oversight.  One key reality is that those most in need often don't receive help from government spending without transparency and accountability measures built into the rules.  While the recent federal recovery plan made real strides in expanding such accountability, additional measures are still needed if the recovery plan is going to deliver real equity in our economic recovery.

It seems relatively simple.  The proposed federal Employee Free Choice Act would give employees the freedom to form a union when a majority of workers sign cards saying that they want one, avoiding the often months of employer harassment that have inevitably accompanied traditional National Labor Relations Board (NLRB) election processes.

Earlier this month, the Maryland legislature joined a number of states in cracking down on worker misclassification by enacting the Maryland Workplace Fraud Act (S 909 / H 819 ) which has the support of Gov. O'Malley who is expected to sign the bill shortly.  The main focus of the bill was stopping the misclassification of workers as "independent contractors" used by employers to deny them a minimum wage, overtime and key workplace benefits.

New Mexico Governor Bill Richardson recently signed a wage enforcement bill (H 489) to allow underpaid workers to collect their back wages plus twice that amount in damages. The bill was backed by community groups and labor unions as well as the New Mexico Department of Workforce Solutions.  New Mexico now becomes the eighth state that allows workers to collect treble damages against employers violating the minimum wage – a key deterrent to employers to ensure compliance with the minimum wage. 

Given the central role of private contractors in delivering public services, this Dispatch continues our series of Privatization Updates (see November's edition). Today we focus on current privatization debates in the education, prison and mental health sectors -- and what states are doing to increase accountability for contractors.

Recently conservatives in Montana sought to roll back the annual cost-of-living wage increases for minimum wage workers that voters overwhelmingly approved in 2006 by 73-27%. Montana is one of twenty-seven states (plus the District of Columbia) that has a minimum wage higher than the federal minimum wage, and one of eleven states that index the minimum wage to the consumer price index. Montana progressives successfully fought a conservative push by the restaurant industry to keep wages stagnant.

With a new administration in Washington, D.C. promising to enact federal labor law reform for the first time in generations, corporations are plowing money into the states in an attempt to undermine workers rights there.  Calling itself the "Save Our Secret Ballot" (SOSB) coalition, this corporate effort is looking to amend the state constitutions of Arizona, Arkansas, Missouri, Nevada and Utah to block workers from choosing majority sign-up rules to form unions -- a clear attempt to thwart implementation of the proposed Employee Free Choice Act which if enacted would give employees the choice of traditional elections run by the federal government or signing authorization cards by a majority of employees. 

Washington State minimum wage workers got a raise January 1st to $8.55 per hour -- now the highest minimum wage in the country.   Like nine other states, Washington automatically increases its minimum wage each year at the rate of inflation to make sure families don't face a de facto pay cut as rising costs eat into family budgets.  Because the federal minimum wage is not indexed to inflation in this way, we have seen a decline in its value from $9.34 in inflation-adjusted dollars down to just $6.55 per hour this past year.  This trend highlights why state efforts to index the minimum wage to keep up with inflation are so critical.

In New York State, 31% of uninsured residents are young adults between the ages 19 and 29. To help this population and reduce the state's uninsured rolls, Governor Paterson wants to require private employers to offer health insurance to workers' dependents who are between the ages 19 and 29.  The proposal would expand eligibility to some 800,000 uninsured New Yorkers and the Governor's Office projects about 80,000 would take advantage of the new rule. According to the New York Times, business groups appear to be supportive of the idea, which would not require employers to help pay for coverage, merely to make it available.