Nearly one-third of all jobs pay about $11 an hour or less, often providing no employment benefits and little flexibility. Even though the U.S. is among the wealthiest nations in the world, employers pay these workers less than workers who hold similar jobs elsewhere.
The last decade has seen some progress on advancing a number of well-known policies to improve job quality by boosting the minimum wage and expanding publicly subsidized employment benefits, like child care and wage subsidies such as the Earned Income Tax Credit. Similar progress has been made to address education and advancement strategies to prepare workers for skilled jobs.
However, when one worker advances out of a low-wage job and another worker takes it, the job does not change. Across the nation, state and local stakeholders are experimenting with a host of new initiatives to improve low-wage jobs. These innovative ideas are far less well known and are not commonly incorporated into an anti-poverty agenda.
We aim to identify and develop a more complete understanding of a new and exciting set of policies to improve the jobs in this large and growing segment of our labor market. Based on an initial scan, these policies can be divided into seven categories.
1. Work-Life Policies
include a broad spectrum of options such as offering and permitting
paid sick days, an expansion of the Federal Family and Medical Leave
Act (allowing time off from work for family medical leave when a family
member is seriously ill or to care for a new child) to smaller
employers, paid family leave, “flex time,” and occasional flexible
scheduling with considerations for an employee’s health and family
commitments. Other proposals focus on creating part-time and overtime
options, additional job options like part-time work with benefits,
unpaid family leave, and optional (as opposed to mandatory) overtime.
2. Employer Investment Strategies
include a broad array of employment benefits provided by employers.
Providing such benefits is not only beneficial to employees but also
pays dividends to employers by enhancing recruitment, retention, and
productivity. These benefits can include homeownership and rental
assistance, public transportation subsidies and assistance with car
purchase, child care, and lower-interest loans (to combat the high
interest of payday lenders and buy-here-pay-here car dealers). Some
organizations are developing initiatives designed to improve employee
engagement by developing and supporting employee understanding of job
expectations and importance, providing on-the-job career planning and
advancement options, promoting positive relationships between workers
and a shared understanding of organizational goals and values. Other
employers are considering providing assistance accessing public and
private employment benefits through in-house human resource offices or
outsourced providers.
3. Democratic Workplaces
address the system of leadership and decision-making within the
workplace. New strategies focus on employment sectors that have
traditionally been excluded from activities such as collectively
negotiating better working conditions. Recent examples include state
policy changes that give home-based child care workers the right to
organize and collectively bargain with state and local governments for
better pay and benefits. Employee ownership and co-ops can also address
issues of job security and quality.
4. Accountable Public Investment
is a broad category describing the opportunity for policymakers to
ensure that public investment results in real returns for the
community, including better jobs. Strategies include community-benefit
agreements (CBAs) between developers or employers and the community in
which a proposed development or business wants to locate. Such
agreements ensure an open process for utilizing public resources and
considering benefits for all sectors of the community. The benefits
negotiated as part of a CBA can include hiring from a specific
geographic area for development and permanent jobs, allowing workers to
negotiate and organize, paying a living wage, providing health
coverage, and creating jobs with advancement opportunities. In
addition, some workforce development agencies are negotiating for
better job quality in exchange for providing employer-designed training
opportunities.
5. Universal Voluntary Retirement Accounts
fill the gap created when employers do not provide a tax-deferred
retirement option for workers. Under this proposal, workers would be
able to open an account with a sponsoring state agency and make
contributions that employers and states could match. For small
employers, this policy could create an opportunity to provide some
retirement security without the expense of account setup and
management.
6. Healthcare Coverage
proposals move toward providing affordable healthcare coverage and
benefits for all residents, while beginning to de-link health care
coverage from employment. Proposals include a universal method of
healthcare coverage, financed with a combination of government,
individual, and employer. These proposals utilize the collective buying
and bargaining power of residents to obtain affordable insurance rates
for services such as vision, dental, routine medical care, more complex
procedures, and preventative care. Many proposals would provide
coverage for people independent of their employment or residency
status.
7. Wage and Hour Enforcement
policies and proposals ensure that employers pay workers the legal
minimum wage, including appropriate pay for overtime work. Researchers
find that employers in the restaurant, garment, and nursing home
industries routinely violate the wage and hour laws. Barriers to
enforcement include inadequate funding for enforcement agencies at all
levels of government, and the misclassification of many jobs (in the
health care and domestic sectors, for example) resulting in exclusion
from wage and hour protections. Proposals to reduce these violations
and expand coverage include worker-center organizing (particularly for
immigrant workers who are often subject to pressure to accept below
minimum wage rates of pay), encouraging collective action by employee
groups, reducing illegal retaliation against workers, enforcing full
repayment, and creating disincentives to reduce the economic rationale
for sub-legal payments.