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Study: Repeal Of Wisconsin’s Prevailing Wage Law Led To Drop In Wages For Construction Workers

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A new study from the Midwest Economic Policy Institute (MEPI) released exclusively to Wisconsin Public Radio finds the repeal of Wisconsin’s prevailing wage laws has resulted in lower wages for construction workers in Wisconsin, despite having no statistically significant impact on the cost of public construction projects.

Prevailing wage laws set minimum pay requirements for wages paid to workers on public construction projects, like school buildings or highway construction. 

Former Gov. Scott Walker along with GOP lawmakers in the state Legislature repealed Wisconsin’s prevailing wage law for local construction projects in 2015. Two years later, the GOP repealed Wisconsin’s prevailing wage law for state construction projects. 

Using data from the U.S. Census Bureau, the study shows that before the laws were repealed, the average annual income for full-time construction and extraction workers was close to $49,000. After the laws were repealed, average annual income was a little over $46,000, a drop of more than 5 percent. When the study removed factors such as education and age, the average annual income for workers was 6 percent less than income pre-repeal.

“Prevailing wage provided ladders of access into the middle class for Wisconsin construction workers,” Frank Manzo IV, policy director for the MEPI, said, adding that repealing it has had negative consequences for those same workers. 

Two of Wisconsin’s neighboring states with prevailing wage laws in place showed a smaller drop in annual average income between 2015 and 2018. In Illinois and Minnesota, annual incomes dropped by under 2 percent combined.

The study further found that at the same time, construction industry CEOs saw an increase in pay after the repeal of the prevailing wage, worsening economic inequality, according to the authors. Researchers estimate construction industry CEOs in Wisconsin saw slightly more than a 54 percent increase in inflation-adjusted total income after the laws were repealed.

The data also showed that, following repeal, there was a decrease in the likelihood that skilled construction workers had employer-sponsored health insurance. 

“Repeal has lowered wages and reduced health coverage for skilled construction workers, and resulted in less work for local contractors,” Manzo said. “At the same time, repeal has failed to deliver cost-savings on public projects and to increase bid competition — both of which were promised by politicians.”

Kevin Duncan, an economics professor at Colorado State University-Pueblo who was part of the study’s research team, said when construction workers have a lower income and less health insurance coverage, it has broader effects on local economies.

“When income goes down for construction workers they have less to spend in local retail and service industries,” Duncan said. “And then also with a decrease in health insurance … benefits, that results in greater reliance on public assistance. When construction workers are paid less they have to rely more on public assistance — (food stamps), that sort of thing — so that tends to increase the taxpayer burden.”

Fewer Wisconsin Contractors, No Effect On Construction Costs

At the time of the repeal on state construction projects, many Republicans criticized the law, saying itinflated the costs on public projects, and arguing that repealing the laws would save taxpayers money. 

But researchers with MEPI said the data shows repealing prevailing wage had no statistically significant effect on the costs for public construction projects.  

Researchers also found that the Wisconsin Department of Transportation saw fewer bids from Wisconsin-based contractors after the laws were repealed compared to before. Between January 2015 and September 2017, more than 2,600 bids for DOT projects came from Wisconsin contractors. But between October 2017 and December 2019, following the repeal of the laws, that number dropped to a little over 1,700 bids.

The drop meant the share of bids from out-of-state contractors increased from 9 percent to 13 percent in the same timeframe.  

“What that means is … Wisconsin tax dollars that previously went to Wisconsin contractors and construction workers, (are) now being used to pay workers from out of state,” said Duncan. “When that happens, Wisconsin tax money leaks out of Wisconsin and it stimulates economies in neighboring states instead of supporting the local economy.”

The MEPI study also found there was no statistically significant impact on the racial or ethnic diversity of construction workers before and after repeal. The study did find a drop in the share of women working in construction in Wisconsin after the repeal of prevailing wage, despite that number being extremely low prior to the repeal. 

This blog originally appeared at Wisconsin Public Radio on October 2, 2020. Reprinted with permission.

About the Author: Rachel Vasquez is a producer at Wisconsin Public Radio.


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Unemployment Systems Floundering Without Worker-Centered Design

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New York, NY—The Century Foundation, the National Employment Law Project, and Philadelphia Legal Assistance today released the findings of an intensive study of state efforts to modernize their unemployment insurance benefit systems. This is the first report to detail how technology modernization has altered the experience of jobless workers.

The report, which was supported by a grant from the Robert Wood Johnson Foundation, draws lessons from state modernization experiences and recommends user-friendly design and implementation methods for future projects.

Read the new report, “Centering Workers: How to Modernize Unemployment Insurance Technology”

The COVID-19 pandemic has laid bare the struggling technology holding up our unemployment systems and the harm to workers when they cannot navigate or access their unemployment benefits.  Many state systems were programmed with COBOL, a long-outdated computer language.  While some states have undertaken modernization projects, many encountered significant problems and workers paid the price through inaccessible systems, delayed payments, and even false fraud accusations. The COVID-19 pandemic, which led to an unprecedented spike in unemployment claims, has further exposed the weaknesses in these systems and the difficulties workers face with their unemployment claims.

State officials have at times been candid about the deep flaws in their systems. Pennsylvania’s labor secretary described their 50-year old computer system as “held together with chewing gum and duct tape.”  Florida’s own state auditor found numerous flaws in the state’s new computerized system that went unfixed through multiple administrations. States and the private companies that develop these systems failed to consistently seek worker input and build systems focused on user experience.

The report also explores how modernization and controversial new technology like predictive analytics can affect access to benefits.

“Much remains unknown about how state unemployment agencies are using technology like automated decision-making, predictive analytics, and artificial intelligence,” added Julia Simon-Mishel, supervising attorney of the Unemployment Compensation Unit of Philadelphia Legal Assistance and principal investigator for the report. “While these tools can sometimes be helpful, we remain concerned about fairness, accuracy, and due process.”

“The pandemic has underscored that unemployment insurance is a lifeline for workers, yet state systems are rarely built with workers’ needs in mind,” said?Michele Evermore, senior policy analyst with NELP and a co-author of the report. “Our report finds that Black and Latinx workers are particularly poorly served by unemployment insurance systems. We have to do better.”

To date, fewer than half of states have modernized their unemployment benefits systems. Several have plans to modernize or are already in the midst of modernizing. The report provides guidance for them, as well as for modernized states looking to improve their systems.

The report also recommends six steps states can take right now, to expand access to benefits during the pandemic:

  1. provide 24/7 access to online and mobile services for unemployed workers;
  2. mobile-optimize unemployment websites and applications;
  3. update password reset protocols;
  4. use call-back and chat technology;
  5. adopt a triage business model for call centers; and
  6. comply with civil rights laws requiring that websites and applications be translated into Spanish and other commonly spoken languages.

“Modernization needs to be approached carefully to avoid creating new problems for workers,” noted?Andrew Stettner, senior fellow at The Century Foundation and a co-author of the report. “Our analysis shows that states were able to pay benefits more quickly after modernizing their systems, but workers were more likely to be denied assistance and too many of these denials were inaccurate. These problems have been magnified during the pandemic when no one should have to choose between paying rent, putting food on the table, and good health.”

The findings and recommendations in the report are grounded in publicly available data on unemployment insurance system performance, interviews with officials from more than a dozen states, and in-depth case studies of modernization in Maine, Minnesota, and Washington, conducted from October 2018 to January 2020.

This blog originally appeared at National Employment Law Project on October 5, 2020. Reprinted with permission.

About the Author: The National Employment Law Project is a non-partisan, not-for-profit organization that conducts research and advocates on issues affecting low-wage and unemployed?workers. For more about NELP, visit?www.nelp.org. Follow NELP on Twitter at @NelpNews.


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‘Tidal wave’: States fear fiscal disaster as Congress slow-walks aid

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The most vulnerable states for seeing their federal aid cut are those that already carried some of the lowest credit ratings.

Senate Majority Leader Mitch McConnell and New York Gov. Andrew Cuomo couldn’t be farther apart in their views of how Congress should help states recover from the recession. But their states are among those with the most to lose if the situation gets much worse. 

While every state is feeling the pressure, the most vulnerable ones are those that already carried some of the lowest credit ratings even when the economy was at its best — including Illinois, New Jersey, Connecticut and Kentucky. Even New York, which had good credit, has seen its outlook downgraded and will suffer without more federal help.

That’s left some local officials bitter that the federal government has been willing to cut blank checks to businesses regardless of how they are run but views helping state governments as unacceptable “blue state bailouts.” Now, with Congress debating another economic relief package that is unlikely to contain the $500 billion in aid that state officials were hoping for, they’re warning of a looming fiscal disaster, not only for themselves but for the country. 

“If Congress underestimates the economic tidal wave that is coming, even by the smallest of margins, we are all going to be swept away,” said Illinois State Treasurer Michael Frerichs. 

Already, the U.S. Labor Department has reported that some 1.5 million state and local government jobs were lost from February to June, adding to the tens of millions of private sector jobs that have been shed nationwide.

Nowhere is the politics of state aid more complicated than in McConnell’s Kentucky, which Donald Trump won by 30 points in the 2016 presidential election. Next fiscal year, its shortfall could be as high as $1 billion, according to the state’s budget director. 

McConnell has largely stayed out of the debate since setting off a political firestorm — and drawing a blistering rebuke from Cuomo — in April with the suggestion that states might use bankruptcy as a way to emerge from a fiscal crisis – a step that they’re not even allowed to take under federal law.

He walked that back a week later, saying there “probably will be” more funding from Congress.

Kentucky Gov. Andy Beshear — a Democrat — averted deeper cuts or layoffs this budget cycle by instituting hiring freezes and asking for a 1 percent reduction in agency budgets government-wide after coronavirus shutdowns suggested a potentially massive shortfall. But he warned this month that without additional federal support, cuts in the next cycle will need to go deeper than even during the Great Recession. Beshear has urged Congress and the Kentucky delegation, including McConnell, to approve more state funding.

Cuomo said the characterization that only Democratic states needed budget help was “the epitome of hypocrisy.” 

“You now have Republican states that are suffering worse than Democratic states,” he said earlier in July of the new surge of coronavirus outbreaks. “If they want to get this economy back running, you have to fund state and local governments.” 

Kentucky and New York have already begun either reductions in services or payment slowdowns, as have New Jersey and Illinois. 

While Connecticut planned to fill an operating deficit estimated to exceed $1 billion using reserve funds, the state ultimately balanced its budget through a combination of higher-than-expected revenue, tax increases and spending reductions, including by postponing service increases. Still, that the rainy-day fund is expected to quickly dry up in the future with deficits projected to increase.

The finances of those and other state governments have been upside down since the wave of economic shutdowns squeezed tax revenue. A federal delay in the tax filing deadline led many states to follow suit, which also slowed money coming in. At the same time, a historic plunge in crude oil prices further decimated oil-rich states like Alaska and North Dakota that rely heavily on royalties.

While the federal government has been able to print money to blunt the crisis’s economic blow to businesses, workers and the unemployed, states don’t have that option. Already, credit downgrades for some like New Jersey and Illinois mean future borrowing could be more costly, disrupting recovery plans. 

Still, state officials were hoping Congress would provide enough in direct grants to fill budget holes after lawmakers agreed to dole out hundreds of billions in forgivable loans to small businesses in the March stimulus bill. Then in May, House lawmakers agreed on legislation that included $250 billion to backfill state budgets.

Legislation proposed by McConnell’s Republicans on July 27 didn’t offer much room for optimism, however. The legislation calls for $105 billion to go to states for schools — but two-thirds of that is dependent on maintaining certain levels of in-person instruction.

The National Governors Association slammed the lack of additional state aid in the GOP package as “disappointing” in a statement Wednesday from Republican Gov. Larry Hogan of Maryland, the group’s chair, and Cuomo, the vice chair. 

Sen. Pat Toomey (R-Pa.) said in an interview on CNBC Tuesday that it was unlikely Congress would spend much more on local budget issues: “There’s a lot that’s already been done,” he said.

Toomey said money appropriated to states has not even been fully spent and that the Federal Reserve has set up a short-term government credit facility “that has not been drawn significantly but that is available.”

recent report from the Treasury Inspector General backs up Toomey’s argument. The report found that as of June 30, states nationwide had only used an average of about a quarter of the funds from the CARES Act, the $2 trillion economic relief package Congress approved in March. But the National Governors association countered that states have already allocated approximately 74 percent of those funds, on average.

The next agreement will probably fall short because unemployment benefits, stimulus checks and additional small business loans — not state budget deficits — have dominated the debate. 

One ray of hope for the states: Legislation proposed by Sen. John Kennedy (R-La.) in May would give them more discretion to use a $150 billion coronavirus relief fund to cover operating expenses. Congress explicitly prohibited the use of the fund for that purpose when the money was appropriated in March.Language similar to Kennedy’s bill was included in the Finance Committee portion of the Republican Senate package.

But Sen. Rick Scott (R-Fla.), a former governor of Florida, criticized the increased spending flexibility in the Republican plan. “What I don’t want to do is bail out the states,” he said to POLITICO.

“We’re not crying wolf out here in the states about some of the drastic measures that would be necessary, and we’ve got proof in past recessions that we will cut,” said John Hicks, Kentucky’s budget director. “Federal fiscal relief is just critical for us to be able to maintain education, health and public safety.”

For its part, New York’s fate is tied financially to New Jersey and Connecticut — both states in worse economic shape — putting the financial health of its massive public transportation network at risk.

The Metropolitan Transportation Authority, which also provides rail service to Connecticut, is burning through $200 million a week.

New York officials said the state has already reduced spending by $4 billion since April through a combination of hiring freezes, new contracts and pay raises, as well as holding back 20 percent of funds to some of the state’s larger cities.

“This means lower spending for police, schools, health care, roads, courts, and support for our most vulnerable neighbors,” Freeman Klopott, a spokesperson for the New York State Division of the Budget, told POLITICO. “The Federal government must act to provide states with the resources we need or the negative impacts of its failure to do so thus far will only deepen.”

New Jersey has cut $1.2 billion in spending and delayed some major payments to schools and pensions. On top of that, Democratic Gov. Phil Murphy pared operating costs and grants and has ordered 15 percent reductions across departments. The governor is trying to get clearance to borrow up to $9.9 billion, but Republicans are challenging him in court.

“I would hope this is the moment right now for Congress,” Murphy said at a daily coronavirus press briefing in Trenton. “The next three weeks is do-or-die.” 

“I can’t tell you exactly what happens to our services or programs without that federal cash, but it’s ugly,” he said. 

Financial analysts sense big trouble in Illinois, which has the worst credit rating in the nation. Even before the crisis, the state had to slow down payments because expenditures exceeded revenue, and the coronavirus has stalled them even more, according to the comptroller. The state was hit with a series of negative financial assessments in April, further imperiling future borrowing.

Democratic Gov. J.B. Pritzker signed a budget with a $6 billion deficit in June and has warned that layoffs could come without significant extra federal funding.

In a sign of how bad things have gotten, the state is among the few to have accessed short-term credit from a Federal Reserve emergency facility set up in March. Advocates for more state aid have criticized the Fed’s lending option as too expensive, but the terms were actually more favorable for Illinois than the open market because of its poor credit. 

With all the election year pressure, governors fear Congress will opt for the approach taken in the Great Recession: Let states cut their budgets and gripe about a dragged-out economic recovery later. But this time around, it’s clear that governors are laying the groundwork to blame Congress. 

“It doesn’t matter what the political party of the state’s legislature or governor is,” Hicks of Kentucky said. “We’re all in the same boat together.”

This blog originally appeared at Politico on August 3, 2020. Reprinted with permission.

About the Author: Katherine Landergan covers the state budget, tax policy and labor issues for POLITICO New Jersey.

About the Author: Kellie Mejdrich is a reporter for POLITICO Pro Financial Services.


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Governors release new plan for reopening — and suggest few states are ready

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Rachel Roubein

A new road map from the nation’s governors for reopening the economy urges a cautious approach, saying the White House must dramatically ramp up testing and help states bolster other public health measures before social distancing can be safely pulled back.

The plan from the National Governors Association and state health officials suggests a wide-scale reopening of the country isn’t imminent, even as President Donald Trump roots on Southern states that are dialing down restrictions despite warnings from health experts.

The 10-point governors’ road map insists there aren’t enough coronavirus tests and said the federal government needs to better distribute testing supplies to the states. The report echoes concerns from health experts that moving too quickly could reignite the spread of the virus in communities and undo the health benefits gained by weeks of social distancing.

“Opening prematurely — or opening without the tools in place to rapidly identify and stop the spread of the virus — could send states back into crisis mode, push health systems past capacity and force states back into strict social distancing measures,” reads the report from the NGA and the Association of State and Territorial Health Officials.

The report comes amid broader debate over whether states like Georgia and Tennessee, which are lifting prohibitions, are moving too quickly, while protests cheered on by conservative groups and Trump himself are playing out in capitals across the country. Trump this morning congratulated the mostly Republican-led states moving to reopen their economies, even as coronavirus hot spots remain within their borders.

The states’ plan largely tracks with the phased approach for reopening Trump outlined last week, but said states should proceed carefully without broader testing. Despite Trump’s insistence that states have the testing they need to reopen, the states’ report said “testing capacity remains inadequate.” Several governors are still complaining of shortages of swabs and reagents needed to conduct wide scale testing.

The plan, which tacitly criticizes the Trump administration for poorly distributing supplies, estimates that the nation will need to be able to test anywhere from 750,000 to tens of millions per week, though states are still rationing testing and struggling with supply shortages.

Trump in recent weeks has pushed responsibility for testing onto the states, but the new road map said the federal government should “rapidly build” up testing capacity and coordinate distribution of supplies. A new coronavirus package moving through Congress this week includes $25 billion for testing, while calling for testing strategies from the Trump administration and the states.

Maryland’s Republican governor, Larry Hogan, who chairs the NGA, has criticized the administration for not doing enough to help states increase testing. Hogan’s administration over the weekend secured thousands of test kits from South Korea, prompting criticism from Trump for turning to a foreign government for help.

The plan recommends a “a significant increase” in workers who help identify those infected with the coronavirus and try to convince their contacts to self-quarantine to guard against an explosion in cases. The country currently only has a fraction of the workers needed to trace the virus. Louisiana, for example, hopes to expand its workforce for contact tracing from 70 to 700, said state health Secretary Courtney Phillips. Many of the new volunteers states are bringing on will receive just a few hours of training for work that has little margin for error.

The governors’ report also says states should have plans for quarantining the contacts of people who have become infected at places like hotels, dorms or military barracks. They should also have a robust public health infrastructure in place as they reopen, including a strong surveillance system for detecting Covid-19, develop metrics to assess the hospital’s capacity to treat both coronavirus and non-infected patients and protect at-risk populations. Those are similar to measures Trump’s reopening plan but includes more detail.

“These steps require the full participation of the federal government, state health agencies, other state agencies, local governments, the private sector, and the public,” the report said.

This article was originally published by Politico on April 22, 2020. Reprinted with permission. 

About the Author: Rachel Roubein is a health care reporter for POLITICO Pro, focusing on doctors and hospitals. She previously covered health policy and politics at The Hill and National Journal, where she reported extensively on Obamacare and the opioid epidemic. She got her start in journalism reporting for Carroll County Times, a local newspaper in Maryland, and covered everything from the rise of heroin in the county to state efforts to start a medical marijuana program, from town budgets to crime. She studied journalism at the University of Maryland, and grew up in Oklahoma — and also Louisiana, Texas and Kentucky.

Dan Goldberg

About the Author: Dan Goldberg is a health care reporter for POLITICO Pro covering health care politics and policy in the states. He previously covered New York State health care for POLITICO New York. Before joining POLITICO New York, Dan was the health care reporter for the New Jersey Star-Ledger. Dan holds a bachelor’s degree from Binghamton University, and a master’s degree in Journalism from Columbia University.

Brianna Ehley

About the Author: Brianna Ehley is a reporter on POLITICO Pro’s health care team. She covers federal public health policy, as well as addiction and mental health issues. Prior to joining POLITICO, she wrote about health care, economic policy and government agencies for The Fiscal Times and blogged about the DC media scene for Fishbowl DC. She started her career at the St. Louis Post-Dispatch covering Illinois state government while earning her master’s degree in public affairs reporting from the University of Illinois.


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Wisconsin bill would ban cities from passing worker-friendly laws

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Wisconsin is considering a bill that would prevent local governments from enacting worker-friendly ordinances relating to overtime, discrimination, benefits, and wages. On Wednesday, the Senate held a public hearing on the GOP-backed bill.

The bill, Senate Bill 634, would prevent local municipalities in Wisconsin from increasing the minimum wage, stop enforcement of licensing regulations stricter than state standards, and prohibit labor peace agreements (in which employers agree to not resist a union’s organizing attempts). The bill also specifically says that no city, village, or town can prohibit an employer from soliciting information on a prospective employee’s salary history, because uniformity on employer rights is a “matter of statewide concern.” Since research shows that women are paid less right out of college compared to male counterparts and there are large racial wage gaps, proponents of these ordinances say that prohibiting employers from asking about salary history could help narrow the pay gap.

Madison City Attorney Mike May told Wisconsin-State Journal in December that the “biggest impact” would be on protected classes under Madison’s Equal Opportunity Ordinance. If the bill became law, May said it would mean that discrimination based on student status, citizenship, and even being a victim of domestic abuse would all be “fair game for discriminatory practices.”

“This bill attacks workers, our rights and our democratic processes,” Stephanie Bloomingdale, secretary-treasurer for the Wisconsin State AFL-CIO, testified during the hearing. “This bill is about power, the power to overreach and tell citizens in their own communities that they don’t know what’s best for them.”

Wisconsin state Democratic senators Robert Wirch and Janis Ringhand voiced their opposition to the bill in statements on Wednesday. Both senators focused on how the bill could affect municipalities’ power to pass ordinances pertaining to sexual harassment.

“We need to be expanding avenues for victims of sexual harassment and assault to get justice, and not making it harder,” Wirch stated.

The committee didn’t take immediate action on the bill on Wednesday, but it’s still concerning that it’s being considered. Wisconsin Republicans have trifecta control of the state and have been successful in pushing a number of anti-worker bills through the legislature. Wisconsin Gov. Scott Walker (R) is nationally known for his long record of supporting anti-union bills. He signed bills that stripped the majority of Wisconsin’s public sector unions of their collective bargaining rights and made Wisconsin a “right-to-work” state, which means workers can decide not to pay fees to unions because the union has to represent them regardless.

The Wisconsin Counties Association, Wisconsin Council of Churches, League of Wisconsin Municipalities and some labor unions oppose the bill, according to the Associated Press. Americans for Prosperity, a conservative advocacy group funded by the Koch brothers, Wisconsin Manufacturers and Commerce, and groups representing various businesses support the bill.

Nick Zavos, government relations officer in Madison Mayor Paul Soglin’s office, told Wisconsin State-Journal that the mayor is “deeply concerned about the direction (the legislation) represents,” with particular emphasis on the preempting of local ordinances relating to employment discrimination.

Wisconsin is not an outlier in considering this kind of legislation. As city governments have pushed for better labor standards, states across the country have passed laws to preempt increased protections for workers. At least 15 states have passed 28 preemption laws like this one that cover labor issues such as paid leave, minimum wage, and fair scheduling, according to the Economic Policy Institute’s August 2017 report. As the report notes, historically, preemption laws were used to set minimum statewide standards for workers that local governments couldn’t lower. These recent laws are doing the opposite. 

This article was originally published at ThinkProgress on January 11, 2017. Reprinted with permission. 

About the Author: Casey Quinlan is a policy reporter at ThinkProgress covering economic policy and civil rights issues. Her work has been published in The Establishment, The Atlantic, The Crime Report, and City Limits.


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Pro-Working People Laws Catching on Around the Country

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As the new year begins, New York, Nevada and Washington state are implementing paid family leave laws, and Rhode Island will join them in July. Rhode Island will bring the total number of states with a paid family leave law to eight. 

NPR breaks down the legislation going into effect relating to paid family leave:

Washington on Monday became the seventh state—in addition to Washington, D.C.—to require employers to offer paid sick leave to their workers. Rhode Island is set to become the eighth to do so later this year, when its own law takes effect in July.

Meanwhile, New York has joined the small handful of states that require employers to provide paid family leave benefits. There, as NBC reports, employees will eventually be entitled to up to 12 weeks a year once the law takes full effect.

And in Nevada, employers are now required to offer up to 160 hours of leave per 12-month period to workers who have been—or whose family members have been—victims of domestic violence.

Similarly, states are taking proactive steps to help raise wages for working families. Across the country, 18 states and 20 local governments raised their minimum wage on Jan. 1. The following were included in the wave of states that increased their minimum wage: Alaska, Arizona, California, Colorado, Florida, Hawaii, Maine, Michigan, Minnesota, Missouri, Montana, New Jersey, New York, Ohio, Rhode Island, South Dakota, Vermont and Washington.

AFL-CIO Policy Director Damon Silvers explained the importance of raising the minimum wage:

It puts money in motion. We’ve seen the distribution of income and wealth skew very much to the top of the income scale. The fact is that rich people don’t spend money the way that middle-class and poor people do, and that makes our economy weak. Raising the minimum wage puts more money in the hands of people who need to spend it.

This blog was originally published at AFL-CIO on January 4, 2018. Reprinted with permission. 

About the Author: Kenneth Quinnell is a long-time blogger, campaign staffer and political activist. Before joining the AFLCIO in 2012, he worked as labor reporter for the blog Crooks and Liars.


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Day 1 in the Newly Seated Kentucky Legislature Is About Attacking Working People

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Kentucky Republican leaders, led by Gov. Matt Bevin, gained control of the state House, giving them control of the executive and legislative branches. Their first order of business? Go after working families. Bevin and the Republicans are pushing forward with several anti-worker resolutions. In the process, they have given more say in the state’s future to outsider billionaires and CEOs than the people of the state.

Kentucky Republicans abused their power, changing the rules to move the anti-working people bills as “emergency legislation,” even though the only emergency happening is the one they are creating for working families. Legislators don’t even have time to read the bills, much less take the time to fully understand the impact of the legislation. New legislators don’t even have phones or offices yet, and they’re being asked to quickly vote yes or no on dangerous, destructive bills.

Even worse, by bending the rules in their favor, Republicans have given the public no chance to weigh in on the legislation. The bills have been reported out of committee and could be voted on the floor of the legislature as early as Saturday.

The Kentucky State AFL-CIO condemned the sneaky move:

The so-called right to work and prevailing wage repeal bills passed (out of committee) today will deny economic opportunities for Kentucky’s working families.
Kentucky’s working families are suffering. They are facing employment, health care access and education challenges. The Kentucky GOP not only ignored their plight, they made them worse with these anti-worker bills.

Kentucky Governor Matt Bevin and House Republican leadership made hurting working Kentuckians their number one priority. They did not advance bills to increase education funding, raise wages, or fund vital services in our community. Instead they chose to give multi-national corporations more power to outsource jobs, cut wages, and reduce benefits at the expense of our workers, small businesses, and the local economy. This is shameful.

The Kentucky labor movement will continue to fight for the rights of Kentucky’s working families, like we have been doing for more than 100 years. We will demand government transparency and accountability. And we will continue to fight for better wages, reasonable hours and safer working conditions. We will take this opportunity to grow the labor movement and organize like hell!

Politicians didn’t create the labor movement and politicians aren’t going to destroy the labor movement.

Other working family advocates agree. Bill Finn, director of the Kentucky State Building and Construction Trades Council, said: “A lot of working people voted for change in this election. They didn’t vote for this. They didn’t vote for a pay cut.”

Learn more at Kentucky State AFL-CIO.

This blog originally appeared in aflcio.org on January 4, 2017.  Reprinted with permission.

Kenneth Quinnell: I am a long-time blogger, campaign staffer and political activist.  Before joining the AFL-CIO in 2012, I worked as labor reporter for the blog Crooks and Liars.  Previous experience includes Communications Director for the Darcy Burner for Congress Campaign and New Media Director for the Kendrick Meek for Senate Campaign, founding and serving as the primary author for the influential state blog Florida Progressive Coalition and more than 10 years as a college instructor teaching political science and American History.  My writings have also appeared on Daily Kos, Alternet, the Guardian Online, Media Matters for America, Think Progress, Campaign for America’s Future and elsewhere.  I am the proud father of three future progressive activists, an accomplished rapper and karaoke enthusiast.


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