LONG BEACH, Wash. – Jobs are coming back and incomes are improving across Washington state, but families still are struggling to pay for the basics, according to a new report.
The analysis Time for a Raise: Statewide Growth and Washington's Minimum Wage found many of the jobs in the Evergreen State's growing economy are low-wage. It says workers in those jobs are finding it hard to cover increasing costs for housing, child care and other necessities.
Study author Marilyn Watkins, policy director for the Economic Opportunity Institute, believes voters should pass Initiative 1433 this November and raise the minimum wage for workers.
"Those are important jobs. Those people should not be living in poverty; paying them something that's going to allow them to cover the basics and live in basic dignity is an important thing," says Watkins. "It also is something that's going to help boost our own economy. When people have a little more to spend, they're going to spend that money."
Initiative 1433 would raise the minimum wage to $13.50 an hour statewide by 2020. Opponents of the measure argue that the increase could cost jobs or mean that businesses will have to raise their prices; some have suggested the minimum wage should be increased regionally rather than statewide.
The measure also would require employers to provide paid sick leave for employees.
Tiffany Turner, CEO of the Adrift Hotel in Long Beach, Wash., says she supports the initiative. Turner is convinced it's shortsighted to think only about any initial squeeze businesses might feel because of an increased minimum wage.
"We're a low-wage industry, but we fundamentally pride ourselves on how we treat our workers and how we work within our community," she says of the hospitality industry. "And I think that businesses can and will figure out how to adapt, and ultimately I believe it will make our businesses stronger."
Watkins points to recent studies that have looked at neighboring counties across state lines and found a number of benefits to raising the minimum wage, including higher worker retention.
"What does happen when you raise the minimum wage is that incomes for low-wage workers rise and turnover decreases among low-wage workers," says Watkins. "So, that saves businesses lots of money, and there really is no impact on the number of jobs that are available."
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A newly enacted law provides New York freelancers with labor protections.
The "Freelance Isn't Free Act" prevents companies from not paying freelancers. The law requires a contract between freelancers and clients for any work valued at $800 or more. It also requires clients to pay freelancers by the contract's due date or within 30 days of work completion if no date is specified.
Rafael Espinal, executive director of the Freelancers Union, said the law has been needed for a long time.
"We've found that freelancers, on average, lose about $6,000 a year because of nonpaying clients," Espinal reported. "We know, in a state like New York, $6,000 goes a long way in being able to keep up with the cost of living and being able to pay their bills like their rent, utilities, putting food on the table."
Freelancers have provided positive feedback on the law but it faced hurdles before passing in late 2023. Some companies expressed compliance concerns about larger businesses' interactions with freelancers. Gov. Kathy Hochul initially vetoed the bill. At first, enforcing the bill went to the Department of Labor but the passed version puts the responsibility on the Attorney General's office.
Before the bill passed, Espinal advised freelancers about how to make contracts bulletproof so they were guaranteed payment. Some steps involve stipulations ensuring payment at milestone periods of a job and net payment terms. Espinal noted the new law expands what is considered a written agreement to protect freelancers further.
"The law really captures all written agreements and considers them to be contracts," Espinal explained. "It could be anything as simple as a text message, outlining the work with the payment terms. It can be an email, it doesn't necessarily have to be a traditional contract on legal paper."
This bill was modeled after New York City's own "Freelance Isn't Free" law. Aside from New York, Kansas, Missouri and Los Angeles have similar protections for freelancers.
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As the Biden-Harris Administration prepares to invest up to $175 billion in tax money into semiconductor manufacturing under the CHIPS Act, a new Institute for Policy Studies report warns guardrails are necessary to ensure that workers in Colorado and across the U.S. - who make tiny chips critical for electronic devices - are getting good jobs.
Report author Chris Rodrigo, the managing editor at the institute's Inequality.org website, said the U.S. Department of Commerce should add key worker protections - including good wages, safety from toxic chemicals, and the freedom to unionize - to all contracts before backing up the Brinks trucks.
"Commerce should require, or at least strongly encourage, companies to not try to disrupt any organizing activity going on," said Rodrigo. "Having unions at these companies is a good back stop to make sure there aren't too many violations of people's labor rights."
The report also recommends banning stock buy-backs and other executive perks - to make sure that more taxpayer dollars are invested in workers in the form of improved wages, training, and safety measures.
Despite pledges from companies in the 1990s to phase out dangerous chemicals, miscarriage and cancer rates remain high among the global semiconductor workforce.
The industry and the administration cite rapid growth as a sign of a smart economic policy. And in fact the companies claim there aren't enough qualified Americans willing to take on jobs created by the CHIPS Act.
But researchers found there was no deficit of credentialed workers. Rodrigo cited a recent survey showing that many are turning to other industries because of bad work environments.
"And over half of the workers interviewed said they were likely to leave their jobs within the next three to six months," said Rodrigo. "Companies should look inward and try to improve the quality of jobs before blaming it on external factors like workers not being available or not being interested in working in their industry."
Rodrigo said he believes setting a good precedent now by demanding high quality jobs could be transformative for future public investments across the economy.
"This is an opportunity," said Rodrigo, "for the federal government to set strong standards for what jobs look like when public money is being given to any industry."
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A new report highlights Pennsylvania's strong economic growth and recovery, making the state a favorable environment for job seekers.
The findings from the Keystone Research Center show job growth in the state has consistently kept pace with, or exceeded, national rates over the past three years - despite slow working-age population growth.
Economist and the center's Executive Director Stephen Herzenberg said wages for nearly all groups of workers are increasing when adjusted for inflation.
"Whether you're a low wage worker, whether you're in the middle, whether you're a woman or a person of color or even a blue collar worker," said Herzenberg, "all of those categories of workers have seen inflation adjusted wages go up in the last year, in the last four or five years, and in the last decade."
Pennsylvania's unemployment rate is holding steady at 3.4%.
Despite overall positive trends, Herzenberg said income inequality remains a concern - because the benefits of economic growth were so unevenly distributed between 1980 and 2015.
Herzenberg pointed out the economy's success can be attributed to effective policies implemented during and after the pandemic.
He added that large-scale federal relief and investment bills have played a crucial role in the recovery.
"We've had investments in infrastructure and climate and innovation," said Herzenberg. "Two of those three bills passed in a bipartisan way, one of them with just Democratic votes - and those federal investments have helped sustain economic growth."
Herzenberg said he believes the Biden administration has possibly been the most pro-worker and pro-union in White House history.
The report indicates that in 2023 alone, union membership in Pennsylvania jumped 30% in the broad private service sector - up 64,000 workers to a new total of 279,000.
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