New York Governor Lays Down Ultimatum on Gig Worker Rights

From today’s Bloomberg Law Online:

New York Gov. Andrew Cuomo (D) kicked gig worker rights out of the state’s budget discussion, instead creating a task force to study the issue. But he also provided lawmakers with an ultimatum.

If the issue isn’t resolved by May 1, the state’s labor department will be authorized to enact regulations protecting workers, Cuomo announced Jan. 21 as part of his executive budget proposal.

Policy is often negotiated alongside fiscal plans in the state’s budget process, which is kicked off by the governor. The state budget is due by March 31, before the next fiscal year begins.

One political expert says creating a task force is a way to delay a difficult decision that puts the governor between the state’s powerful unions and popular companies like Uber Technologies Inc. and Lyft Inc.

Some Albany insiders, companies, and lobbyists say the governor’s legislative proposal is vague. Several lawmakers and union leaders, however, are applauding Cuomo’s plan to further study whether many workers currently operating as independent contractors should instead be classified as employees, entitling them to benefits such as minimum wage, overtime, workers’ compensation, and the right to collectively bargain.

“We certainly are in a better place now, than we were at the end of last session,” New York State AFL-CIO President Mario Cilento said in an emailed statement. “In addition to creating a task force, the legislation would establish a framework to provide rights and protections to workers in the growing gig economy.”

Companies and business coalitions said they’re glad to have a seat at the table. “No matter the forum, we are ready to discuss solutions that provide workers with the protections they deserve while maintaining the flexibility they want and the economic growth vital to the state,” said Christina Fisher, a spokeswoman for Flexible Work for New York, a coalition of app-based technology companies, business groups, and civic organizations.

Read the complete article here.

Fashion Nova’s Secret: Underpaid Workers in Los Angeles Factories

From today’s New York Times:

Fashion Nova has perfected fast fashion for the Instagram era. The mostly online retailer leans on a vast network of celebrities, influencers, and random selfie takers who post about the brand relentlessly on social media. It is built to satisfy a very online clientele, mass-producing cheap clothes that look expensive.

“They need to buy a lot of different styles and probably only wear them a couple times so their Instagram feeds can stay fresh,” Richard Saghian, Fashion Nova’s founder, said in an interview last year.

To enable that habit, he gives them a constant stream of new options that are priced to sell. The days of $200 jeans are over, if you ask Mr. Saghian. Fashion Nova’s skintight denim goes for $24.99. And, he said, the company can get its clothes made “in less than two weeks,” often by manufacturers in Los Angeles, a short drive from the company’s headquarters.

That model hints at an ugly secret behind the brand’s runaway success: The federal Labor Department has found that many Fashion Nova garments are stitched together by a work force in the United States that is paid illegally low wages. Los Angeles is filled with factories that pay workers off the books and as little as possible, battling overseas competitors that can pay even less. Many of the people behind the sewing machines are undocumented, and unlikely to challenge their bosses.

“It has all the advantages of a sweatshop system,” said David Weil, who led the United States Labor Department’s wage and hour division from 2014 to 2017.

Every year, the department investigates allegations of wage violations at sewing contractors in Los Angeles, showing up unannounced to review payroll data, interview employees and question the owners.

In investigations conducted from 2016 through this year, the department discovered Fashion Nova clothing being made in dozens of factories that owed $3.8 million in back wages to hundreds of workers, according to internal federal documents that summarized the findings and were reviewed by The New York Times.

Read the complete article here.

Andrew Yang claims, “Yes, Robots Are Stealing Your Job.” So now what?

From today’s New York Times:

During the last Democratic debate, in Ohio, there was a moment that stood out. Elizabeth Warren and I got into a debate over the impact of automation versus trade on the elimination of manufacturing jobs. Joe Biden also chimed in, agreeing that the fourth industrial revolution is costing jobs, so it’s important to deal with the root causes.

Immediately, fact checkers were quick to point to a study showing that 88 percent of factory job losses from 2000 to 2010 were caused by automation. Yet, in the days following that debate, some prominent media figures asserted that the threat of automation is not real. The Times columnist Paul Krugman even called it “a sort of escapist fantasy for centrists who don’t want to confront truly hard questions.”

It’s easy to cite incomplete statistics that ignore the full picture and the situation on the ground, but I’ve done the math while spending time in struggling communities. Venture for America, the nonprofit I founded, sent me across this country, to Detroit, St. Louis, Birmingham, Ala., and other communities, where we attempted to spur entrepreneurship and create jobs. It was during this time when I spoke with workers who had lost their jobs to automation and couldn’t find more work. My organization was helping to create jobs, but automation was displacing tens of thousands of workers in these states. We were pouring water into a bathtub with a giant hole ripped in the bottom.

On the campaign trail, I’ve spoken with workers in Michigan, Ohio and western Pennsylvania, workers who are worried about the inevitability of their jobs falling victim to automation.

Read the complete article here.

For 53 million Americans stuck in low-wage jobs, the road out is hard

From today’s Los Angeles Times:

Unemployment is hovering near a five-decade low, workforce participation is at the highest level in six years and Federal Reserve Chairman Jerome H. Powell recently called the labor market “strong.”

Yet, 44% of Americans age 18 to 64 are low-wage workers with few prospects for improving their lot, according to a Brookings Institution report.

An estimated 53 million Americans are earning low wages, according to the study. That number is more than twice the number of people in the 10 most populous U.S. cities combined, the report notes. The median wage for those workers is $10.22 an hour and their annual pay is $17,950.

Although many are benefiting from high demand for labor, the data indicated that not all new jobs are good, high-paying positions. The definition of “low-wage” differs from place to place. The authors define low-wage workers as those who earn less than two-thirds of the median wage for full-time workers, adjusted for the regional cost of living. For instance, a worker would be considered low wage in Beckley, W.Va., with earnings of $12.54 an hour or less, but in San Jose, Calif., the low wage bar rises to $20.02 an hour.

“We have the largest and longest expansion and job growth in modern history,” Marcela Escobari, coauthor of the report, said in a phone interview. That expansion “is showing up in very different ways to half of the worker population that finds itself unable to move.”

Read the complete article here.

Wage inequality is surging in California, and not just on the coast. Here’s why

From today’s Los Angeles Times:

Wage inequality has risen more in California cities than in the metropolitan areas of any other state, with seven of the nation’s 15 most unequal cities located in the Golden State.

San Jose, with its concentration of Silicon Valley technology jobs, had the largest gap of any California metro area between those at the top of the pay scale and those at the bottom. It ranked second in the nation after the suburb of Fairfield, Conn., home to wealthy New York financiers, according to a new analysis of 2015 U.S. Census data by Federal Reserve economists. San Francisco and Los Angeles also ranked high on the list.

More surprising, perhaps, is the inclusion of Bakersfield, where high-wage engineering jobs are juxtaposed with poverty-wage farm work.The heavy concentration of California metro areas is a striking turnabout from 1980, when just three figured in the top 15.

As inequality has soared across the United States, most sharply since the 1980s, it has been the focus of widespread debate and become a hot political issue. But less attention has focused on dramatic geographical differences in inequality.

“Wage inequality … has risen quite sharply in some parts of the country, while it has been much more subdued in other places,” wrote Jaison Abel and Richard Deitz, economists at the Federal Reserve Bank of New York, who titled their report, “Why Are Some Places So Much More Unequal than Others?

Large cities with dynamic economies tend to have higher wage disparities, while midsized cities with “sluggish economies” are less unequal because they attract fewer high-wage workers, the authors found.

Read the complete article here.

Yes, America Is Rigged Against Workers

From today’s New York Times:

The United States is the only advanced industrial nation that doesn’t have national laws guaranteeing paid maternity leave. It is also the only advanced economy that doesn’t guarantee workers any vacation, paid or unpaid, and the only highly developedcountry (other than South Korea) that doesn’t guarantee paid sick days. In contrast, the European Union’s 28 nations guarantee workers at least four weeks’ paid vacation.

Among the three dozen industrial countries in the Organization for Economic Cooperation and Development, the United States has the lowest minimum wage as a percentage of the median wage — just 34 percent of the typical wage, compared with 62 percent in France and 54 percent in Britain. It also has the second-highest percentage of low-wage workers among that group, exceeded only by Latvia.

All this means the United States suffers from what I call “anti-worker exceptionalism.”

Academics debate why American workers are in many ways worse off than their counterparts elsewhere, but there is overriding agreement on one reason: Labor unions are weaker in the United States than in other industrial nations. Just one in 16 private-sector American workers is in a union, largely because corporations are so adept and aggressive at beating back unionization. In no other industrial nation do corporations fight so hard to keep out unions.

The consequences are enormous, not only for wages and income inequality, but also for our politics and policymaking and for the many Americans who are mistreated at work.

Read the complete article here.

Opinion: Should women’s soccer players be paid as much as men?

From today’s Washington Post:

The tipping point may have been the sixth goal. Or the seventh. Or the 13th, which turned out to be the last goal scored in the U.S. women’s national team’s handy defeat of Thailand in their first World Cup game.

Whichever goal it was that fans thought should have been the last for ecstatic celebration by the likes of Megan Rapinoe and Alex Morgan on Tuesday, the debate over the players’ sliding, kicking and group hugging drew attention to another issue: the 38 cents on the dollar that the women are paid compared to the men’s team.

On International Women’s Day in March, all 28 members of the women’s team filed a class-action gender discrimination lawsuit against the U.S. Soccer Federation, alleging they do the same job as the men’s team in exchange for lower wages and inferior working conditions. The men’s national team has never won a world title and did not qualify for last year’s World Cup.

The women have been fighting for fair pay for years. Five of them filed a wage-discrimination complaint in 2016 with the Equal Employment Opportunity Commission, the federal agency that enforces civil-rights laws in the workplace. Some of them then made the rounds on major television networks to plead their case.

Read the complete article here.

Walmart workers invite Sen. Sanders to crash the company’s annual meeting

From today’s Washington Post:

For years, Walmart workers have attended the company’s annual shareholders meeting to call for higher wages, better benefits and more predictable schedules.

This year they’ll have someone new delivering the message on their behalf: Sen. Bernie Sanders.

The presidential candidate, who has repeatedly called on Walmart to improve its working conditions, is heading to Bentonville, Ark., on June 5 to introduce a shareholders’ proposal that would give hourly Walmart workers a seat on the company’s board.

“These workers need and deserve a seat at the table,” Sanders (I-Vt.) told The Washington Post. “If hourly workers at Walmart were well represented on its board, I doubt you would see the CEO of Walmart making over a thousand times more than its average worker.”

If passed, the measure would require the retailer to consider its 1.5 million hourly U.S. employees when nominating candidates to its board, which is currently companies of a dozen wealthy executives from companies like McDonald’s and NBCUniversal.

Read the complete article herhttps://www.washingtonpost.com/business/2019/05/21/walmart-workers-invited-special-guest-crash-companys-annual-meeting-bernie-sanders/?utm_term=.92102ae998b9e.

Workers, Should You Tell the World How Much Money You Make?

From today’s New York Times:

There are many questions Alison Green is asked as a columnist who writes about workplace issues. There was the woman who wanted to know if she should attend couple’s therapy with her boss and the boss’s boyfriend. (The boyfriend happened to be her father.) Another time she heard complaints about a janitor who cast a hex on her colleagues.

But Ms. Green was taken aback recently when asked about her salary, a topic so fraught even she couldn’t come up with a good answer. “No one has ever asked me that,” she said. “I don’t want to say.”

Many employees are loath to discuss their salaries, she said, worried it would cause resentment, or worse, among peers. “We are all so weird about telling people how much money we make, even me.”

Perhaps it is why, too, Ms. Green recently asked readers of her “Ask A Manager” website to share their job title, where they live and how much they make each year. Answers were anonymous; the data was compiled in a spreadsheet on Ms. Green’s website so people could sort through the data.

Within a half-hour, she had 1,000 responses. A day later, so many people posted their salaries her website froze. So far, three weeks later, she has more than 26,000 responses, everything from an accountant in Chicago who makes $90,000 to a librarian in Austin who earns $39,000. She was surprised by the overwhelming response: Previous surveys in 2014 and 2017 garnered a fraction of interest, fewer than 2,700 comments apiece.

Why the interest now? Attitudes about workers disclosing pay are shifting, for one, as unemployment has reached a five-decade low. And the gig economy has made salary comparing a near necessity for many. (How else does a person know what to charge if they are a freelancer?)

Read the complete article here.


He Has Driven for Uber Since 2012 and He Makes About $40,000 a Year

From today’s New York Times:

Uber’s public stock offering next month will make a bunch of people remarkably rich. Peter Ashlock is not one of them, although he has toiled for the ride-hailing company almost since the beginning.

Mr. Ashlock, who will be 71 next week, has racked up more than 25,000 trips as an Uber driver since 2012. His Nissan Altima has 218,000 miles on it — nearly the distance to the moon. His passengers rate him 4.93 out of five stars. His favorite review: “Dude drove like a cabdriver.”

While he is an integral part of Uber’s success, Mr. Ashlock is barely getting by. His 2018 tax return will show an adjusted gross income in the neighborhood of $40,000, better than 2016 and 2017. But he has maxed out his $3,200 credit limit at the local Midas car-repair shop and needs to come up with $5,000 to pay his taxes. He has Social Security but no savings to buy a new car that will let him keep working.

Silicon Valley has always been a lottery where immense wealth is secured by a few while everyone else must hope for better luck some other time. Rarely, however, has the disparity been on such stark display as with Uber. Its stock market value is expected to be about $100 billion, which would make it one of the richest Silicon Valley public offerings of all time.

Among those with something to celebrate: Uber’s founders, the Japanese conglomerate SoftBank, the elite venture capitalists Benchmark and Google’s GV, Saudi Arabia’s Public Investment Fund and the mutual fund giant Fidelity. Some have already cashed in. Travis Kalanick, Uber’s co-founder and chief executive until he was forced out after a series of scandals, reaped $1.4 billion by selling fewer than a third of his shares to private investors in 2017.

As independent contractors, drivers are not eligible for employee benefits like paid vacations or stock options. Uber said Thursday that it would offer bonuses of $100 to $10,000 to long-serving drivers. Its chief competitor, Lyft, did the same when it went public in March.

Read the complete article here.