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University of Wisconsin–Madison
Poverty-related issues in the news, from the Institute for Research on Poverty

Tag: Low-wage work

Minimum Wage Increases

Minimum wage increases in six cities working as intended, Berkeley study of food-service jobs finds, By Benjamin Romano, September 6, 2018, Seattle Times: “The minimum wage increases that started four years ago in SeaTac are spreading across the country, but economists continue to study – and disagree about – the impact of the new policies on pay and jobs. The latest look at increased wage floors in six U.S. cities, including Seattle, finds that food-service workers saw increases in pay and no widespread job losses. That reinforces the conclusions that the same group of University of California, Berkeley, researchers reached in 2017 after studying the impact just in Seattle…”

Minimum Wage – Minnesota

Minnesota sets new minimum wage for 2019, By Don Davis, August 23, 2018, Twin Cities Pioneer Press: “The 219,000 Minnesotans paid minimum wage will get a raise Jan. 1. State officials announced Thursday that employees of large businesses will be paid at least $9.86 an hour, up from $9.65 that is required today. Those who work for smaller businesses will be paid a minimum of $8.04, compared to the current $7.87…”

Minimum Wage – Birmingham, AL

In battle pitting cities vs. states over minimum wage, Birmingham scores a win, By Yuki Noguchi, July 27, 2018, National Public Radio: “A federal appeals court handed workers in Birmingham, Ala., a significant win this week. The city is in a battle against state lawmakers over whether it has the right to raise its minimum wage…”

Low-Wage Work

  • As economy hums, fewer workers make minimum wage, By Laurent Belsie, July 6, 2018, Christian Science Monitor: “It’s ‘flip flop frenzy’ week at the Dollar Tree here on Valley Street, which is celebrating another milestone. Eight months after coming on board, the manager finally has a full complement of workers in place. He has been training the final two associates this week. Starting pay: $8 an hour – 75 cents above the federal minimum wage. It’s almost impossible to find anyone in Manchester, N.H., paying the $7.25 minimum…”
  • 7 fast-food chains to end ‘no poach’ deals that lock down low-wage workers, By Rachel Abrams, July 12, 2018, New York Times: “Seven major restaurant chains, including Arby’s, Carl’s Jr., McDonald’s and Jimmy John’s, agreed to drop a hiring practice that critics say may be keeping tens of thousands of fast-food workers locked in low-wage jobs…”

Minimum Wage

  • How big is the minimum-wage workforce in your state?, By Mike Maciag, April 25, 2018, Governing: “The last time the federal minimum wage increased, Barack Obama was only a few months into his first term as president and the country was mired in the depths of the Great Recession. Nearly nine years later, a small segment of the workforce is still earning $7.25 an hour or less. The latest Labor Department estimates indicate that just over 1.8 million hourly workers were paid at or below the federal minimum last year. While that’s a small part of the overall workforce — a mere 2.3 percent of hourly workers — it makes up a larger portion in some states…”
  • The case for raising the minimum wage keeps getting stronger, By Lydia DePillis, April 27, 2018, CNN Money: “It’s been too cold to campaign in frozen North Dakota. But as spring has crept across the state, an unusual ballot initiative is starting to emerge: One that would more than double the minimum wage, from $7.25 to $15 an hour by 2021…”

Low-Wage Occupations

For millions, low-wage work really is a dead end, By Irina Ivanova, April 20, 2018, CBS News: “The U.S. economy is booming, unemployment is at a 17-year low and wages appear to be picking up. So what’s not to like?  If you’re one of the approximately 65 million Americans in low-paid service jobs, getting a share of that economic prosperity may be unbearably difficult. Jobs may be plentiful, but finding one that pays better than your current gig is much more rare than commonly believed, according to new research paper from the Federal Reserve Bank of New York…”

Retirement Security

Think income inequality is bad? Retirement inequality may be worse., By Mike Maciag, March 2018, Governing: “For years, salon owner Luke Huffstutter, of Portland, Ore., wanted to offer his employees a way to save for retirement. Costs  were too steep for the small company, though, and few employees took the initiative to set up 401(k) plans on their own. But last summer, Oregon launched a retirement savings program that automatically enrolls employees in Roth IRAs, the first such state-sponsored program in the nation. Huffstutter signed up, and most of his 38 employees are now enrolled…”

Minimum Wage – St. Paul, MN

As St. Paul considers a minimum wage increase, some want to exempt youth workers, By Frederick Melo, February 16, 2018, Twin Cities Pioneer Press: “Cookie Cart produces more than just delicious snickerdoodle, chocolate chip and hand-decorated cookies. The Minneapolis-based nonprofit also claims to ‘bake bright futures’ by training low-income teenagers in every aspect of the business, from marketing to distribution, on top of soft skills such as business etiquette and résumé-building…”

Minimum Wage

After nine years of no change, is the federal minimum wage irrelevant?, By Jana Kasperkevic, January 15, 2018, Marketplace: “If President Donald Trump does not increase the federal minimum wage within the next two years, it will be more than ten years since its last increase — the longest that the federal minimum wage has remained unchanged since it was enacted. With the federal minimum wage stuck at $7.25, states and cities across the U.S. have increased their local minimum wages instead — some going as far as more than doubling the amount to $15 an hour…”

State Minimum Wages

Minimum wage hikes: 18 states, 20 cities to lift pay floors Jan. 1, By Paul Davidson, December 19, 2017, USA Today: “The movement to lift earnings of low-paid workers will gather force in 2018, with a growing number of states and cities raising their minimum wages as high as $15 an hour. Proponents say the initiatives can help narrow a widening income gap between the wealthy and poor. Business advocates say they’re already leading to restaurant closings and layoffs…”

Minimum Wage – Chicago, IL

Chicago raised its minimum wage two years ago, but some still earn less. Here’s why., By Nereida Moreno and Greg Trotter, December 1, 2017, Chicago Tribune: “Maria Leon, a single mother of three and longtime Gage Park resident, says she worked for years in two Chicago restaurants for less than the city’s minimum wage. Last year, she sued the restaurants, which have the same owner, alleging they were violating city, state and federal wage laws. The two sides reached a settlement, but Leon believes it’s important to speak up on the matter…”

City Minimum Wages

  • Minnesota Chamber of Commerce sues Minneapolis over $15 minimum wage, By Emma Nelson, November 10, 2017, Star Tribune: “The Minnesota Chamber of Commerce is taking the city of Minneapolis to court over the $15 minimum wage, saying the ordinance conflicts with existing state law…”
  • San Diego has fined businesses $60,000 over minimum wage violations, By David Garrick, November 10, 2017, San Diego Union-Tribune: “Investigators enforcing San Diego’s minimum wage law have handled more than 500 complaints against 70 businesses and levied nearly $60,000 in fines since the law took effect last year. City officials say those numbers will increase as outreach efforts make more people aware that San Diego’s hourly minimum wage of $11.50 is higher than the state minimum of $10 for small businesses and $10.50 for large ones…”

State Minimum Wages – Ohio, Florida

  • Ohio minimum wage increases to $8.30 in 2018, By Olivera Perkins, October 17, 2017, Cleveland Plain Dealer: “Ohio’s hourly minimum wage will increase to $8.30 Jan. 1, according to the Ohio Department of Commerce. Ohio’s minimum wage is currently $8.15. The $8.30 rate applies to non-tipped employees. The minimum wage for tipped workers will increase to $4.15 from $4.08…”
  • Florida minimum wage rises to $8.25 in 2018, By Marcia Heroux Pounds, October 17, 2017, Sun Sentinel: “Florida’s minimum wages will rise 15 cents to $8.25 an hour on Jan. 1, an increase from $8.10 an hour this year. While higher, the state’s minimum is a far cry from the $15 an hour some labor groups and legislators have been seeking in recent years. At the same time, many South Florida employers and top retail employers already pay more than minimum wage to recruit the workers they need in a tighter labor market, economists say…”

Minimum Wage – St. Louis, MO

St. Louis gave minimum-wage workers a raise. On Monday, it was taken away, By Melissa Etehad, August 28, 2017, Los Angeles Times: “Ontario Pope has long struggled to stretch his McDonald’s paycheck to cover the basics and provide for his four young children. But even after more than nine years with the fast-food chain, the 31-year-old St. Louis man said he still lived with relatives or in motels, the fear of becoming homeless never far from his thoughts.  Pope was hopeful when the city passed an ordinance in May that raised the minimum wage from the state’s $7.70 to $10…”

Minimum Wage – Minnesota

Minnesota minimum wage set to rise with inflation in 2018, By Erin Golden, August 17, 2017, Star Tribune: “Minnesota’s minimum wage will increase next year by 15 cents to keep up with inflation, rising to $9.65 per hour for workers at many businesses across the state.  The increase, announced Thursday by the Minnesota Department of Labor and Industry, is effective Jan. 1, 2018. It’s the result of a 2014 law that boosted the minimum wage to $9.50 and required the state to begin calculating automatic inflationary increases for each year, starting with 2018…”

Low-Income Employment

After years of stagnation, low-income jobs join the recovery, By Story Hinckley, August 4, 2017, Christian Science Monitor: “What do waitresses in California, security guards in Tennessee, and hairstylists in Virginia have in common? All of these employees are starting to get bigger paychecks, economists say. The Great Recession of 2008 triggered a double-digit spike in the US unemployment rate, which led to lower wages as employers were not obligated to offer competitive salaries. The national unemployment rate has decreased every year since 2010, according to the Bureau of Labor Statistics (BLS), causing most paychecks to rise. Low-income workers, however, missed out…”

Retirement Savings for Low-Income Workers

Trump Administration ends low-income retirement savings plan, By Paul Davidson, July 28, 2017, USA Today: “The Trump Administration said Friday it’s shutting down an Obama-era program aimed at encouraging low- and moderate-income households to save for retirement because the scant participation didn’t justify the cost…”

Minimum Wage

  • Here’s why you can expect a higher minimum wage in January, By Jim Miller, July 20, 2017, Sacramento Bee: “Barring a surprise sag in the state’s employment picture, California’s hourly minimum wage will increase as scheduled on Jan. 1. The hourly wage is scheduled to go from $10.50 to $11 at workplaces with 26 or more employees and from $10 to $10.50 at smaller workplaces…”
  • Report shows who was affected by St. Louis minimum wage change, By Uliana Pavlova, July 20, 2017, St. Louis Post-Dispatch: “St. Louis’ minimum wage will soon to drop to $7.70, but who benefited from the short-lived increase to $10 an hour? Economist Charles Gascon and Senior Research Associate Daniel Eubanks looked into the issue and their findings were released in May by the Federal Reserve Bank of St. Louis…”

State and Local Minimum Wages

  • In many states, a long-awaited raise for low-paid workers, By Tim Henderson, July 14, 2017, Stateline: “In 44 states, jobs paying roughly $30,000 were among those that got the largest salary bumps since 2010 — evidence that the steady but modest economic growth of the past half-decade may be reaching people at the bottom of the income ladder…”
  • St. Louis businesses pressured to keep $10 minimum wage, By Jim Salter (AP), July 13, 2017, Washington Post: “The $10 per hour minimum wage law in St. Louis will be short-lived, but an effort launching Friday will encourage and pressure businesses to honor the higher wage even if state law doesn’t require it…”

State and Local Minimum Wages

  • The minimum wage is going up in D.C., two states. How California’s compares, By Nick Perez, June 28, 2017, Sacramento Bee: “On July 1, the minimum wage will increase in Oregon, Maryland and Washington, D.C. – but California will still have fourth-highest minimum wage in the country. The District of Columbia pays minimum wage workers the most – $12.50 per hour, as of July 1, according to the National Conference of State Legislatures. Nineteen states increased their minimum wages at the beginning of 2017…”
  • A ‘very credible’ new study on Seattle’s $15 minimum wage has bad news for liberals, By Max Ehrenfreund, June 26, 2017, Washington Post: “When Seattle officials voted three years ago to incrementally boost the city’s minimum wage up to $15 an hour, they’d hoped to improve the lives of low-income workers. Yet according to a major new study that could force economists to reassess past research on the issue, the hike has had the opposite effect. The city is gradually increasing the hourly minimum to $15 over several years. Already, though, some employers have not been able to afford the increased minimums. They’ve cut their payrolls, putting off new hiring, reducing hours or letting their workers go, the study found…”