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Minimum wage 2(Cross-posted from Off the Charts - the blog of the Center on Budget and Policy Priorities.)

Raising the minimum wage would help the economy, CBPP Senior Fellow Jared Bernstein writes in the latest edition of the CQ Researcher.

Two well-established facts help back up this argument, Bernstein says:

The first fact is that the American economy is made up of 70 percent consumer spending.

Economists widely agree that an extra dollar earned by a wealthy person is less likely to be spent than an extra dollar earned by a low-income person….

The second fact Read More

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If you’re planning on heading out for a fast food meal today, you might want to check out this petition being advanced by the good folks at the Campaign for America’s Future entitled “Tell McDonald’s to stop buying luxury jets until they pay their workers a l;iving wage.” As the post notes:

“More than half of low-wage workers employed by the largest U.S. fast-food restaurants earn so little that they must rely on public assistance to get by.

McDonald’s is the worst offender, costing taxpayers $1.2 billion in poverty benefits for its employees. McDonald’s claims that they operate on razor-thin profit margins and can’t pay a living wage.

Yet they announced they had bought yet another brand new $35 million corporate jet for their fleet.”

And speaking of fat cats living large while others go hungry, Read More

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Living wageThe fallout from the destructive 2013 session of the North Carolina General Assembly continues to settle out across the state policy landscape.

As you will recall, during the waning days of the session, lawmakers enacted (and Governor McCrory approved) a new restriction on the ability of cities and counties to enter into contracts on their own terms. Last night, in response to the new law, Durham County Commissioners retracted part of the county’s forward-looking living wage ordinance.

The County Commissioners expressed regret about their action, which was in response to HB 74, signed into law by Gov. McCrory on August 23. The so-called “regulatory reform” law, among many other things,  Read More

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Fast food workersRaleigh’s News & Observer published an outstanding think piece by Kevin Rogers of Action NC today udner the headline “The high cost of fast-food’s low wages.” Rogers’ headline was simpler: “McWelfare.” 

As you can see below, either one works.

I recently met Willietta Dukes, a mother of two and fast-food employee in Durham, North Carolina. Willietta makes $7.85 at Burger King, despite 16 years of experience in the fast-food industry. In August, tired of struggling to get by, she walked off her job, just a month after losing her home because she could no longer afford rent payments. Despite working hard for as many hours as she gets from Burger King, Willietta is forced to rely on food stamps just to make ends meet.

Willietta is not alone. Research released this week finds that more than half – 52% – of fast-food workers nationwide are paid so little that the public needs to provide assistance to make sure workers can afford basic, everyday needs. In other words, fast-food employees are twice as likely as other workers to be forced to rely on programs like the Supplemental Nutritional Assistance Program (food stamps) or Medicaid. Read More

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The U.S. Department of Labor’s Wage and Hour Division announced a final rule today extending the Fair Labor Standards Act’s minimum wage and overtime protections to most of the nation’s direct care workers who provide essential home care assistance to elderly people and people with illnesses, injuries, or disabilities. This change, effective January 1, 2015, ensures that nearly two million workers – such as home health aides, personal care aides, and certified nursing assistants – will have the same basic protections already provided to most U.S. workers. It will help ensure that individuals and families who rely on the assistance of direct care workers have access to consistent and high quality care from a stable and increasingly professional workforce.

To help families, other employers, and workers understand the new requirements, the Department will be hosting five public webinars during the month of October and has created a new, dedicated web portal at dol.gov/whd/homecare with fact sheets, FAQs, interactive web tools, and other materials.