Tag Archives: American jobs

Let’s Lobby Congress to Pass the Paycheck Fairness Act

When U.S. Senator Barbara Mikulski recently announced her decision not to run for a sixth term, she noted that one of the issues she cares about “most deeply” is the issue of fair pay.

Mikulski, who was elected to the U.S. Senate in 1986 as the only Democratic woman and one of only two women in the Senate (the other was Kansas’s Nancy Kassebaum), has a long record of promoting issues that loom large in the lives of American women and families.

Mikulski noted that every year, on average, women who work full-time lose more than $10,800 in income because of the wage gap between what women and men earn. She plans to spend every day of the two years remaining in her term fighting for critical legislation like the Paycheck Fairness Act.

I’m joining Senator Mikulski in her campaign to enact the Paycheck Fairness Act (the PFA). I first wrote about this issue in an op-ed in the San Francisco Chronicle on April 23, 2010, “Unequal pay harms U.S. women.” (It appeared on this blog in October 2012.)

In the five years since my SF Chronicle op-ed appeared, nothing has happened. When the House of Representatives still had a Democratic majority, the House passed the PFA. But because it never passed in the Senate, it never became law.

Now, post-2014, when the Republicans hold a majority in both the Senate and the House, passage of the PFA seems impossible. But let’s not throw in the towel just yet. Because it’s such a vital issue, affecting millions of American workers and their families, I, like Senator Mikulski, am once again climbing on my soapbox and doing what I can to promote its passage.

I’ll begin by asking this question: How many working women think they’re paid fairly for the work they do? Right now, with the economy improving but still struggling to provide good-paying jobs for all of those who want them, some women may be happy just to be employed.

But women are still paid only 78 cents for every dollar men receive, making unequal pay a continuing problem for American women and the families who depend on their wages.

Did you know that women are now the primary breadwinners in 40 percent of American households? This fact makes closing the wage gap a crucial issue for all of these families, not merely for working women alone.

Why is the PFA so important? Because it would level the playing field for working women.

It would amend the Equal Pay Act (the EPA), which was enacted over 50 years ago in 1963 but hasn’t gone far enough to do what it was supposed to.

The EPA made it illegal for employers to pay unequal wages to those who perform substantially equal work. That sounds great, doesn’t it? So why hasn’t it made a real difference? Because of a startling failure in enforcement.

Enforcement by the EEOC during the past five decades has narrowed the wage gap to some degree. But the gap still exists because the EPA’s enforcement tools are outdated, making the gender-disparity in pay almost impossible to eradicate.

While other federal civil rights statutes have been amended numerous times, the EPA has never been amended. That’s why passing the PFA can make a real difference.

Let’s understand something right off the bat: The PFA doesn’t give employers a lot to complain about. It wouldn’t create an onerous burden because it wouldn’t give their employees any new rights. Employers are already required to comply with the EPA. The only difference is that under the PFA, women would be better able to ENFORCE those rights.

Many of the bill’s provisions make no demands on employers whatsoever. One provision would merely create a grant program that would help women and girls develop better skills at salary negotiation. Another would improve the way the government collects information from federal contractors.

Other provisions focus on the role of the Equal Employment Opportunity Commission. For example, it would give EEOC staff additional training to do a better job identifying and handling wage disputes.

Of course, some provisions do directly affect employers. Most significantly, the PFA would give women the same remedies as those available to employees discriminated against on the basis of race or national origin. Currently women can get only limited awards like back pay. The PFA would allow women to get compensatory and punitive damages for pay discrimination. These are the kinds of damages those suffering from racial and national-origin bias already get.

The PFA would also prohibit employers from retaliating against women who share salary information with their coworkers. This kind of information-sharing helps employees get vital information about wage disparities and discrimination at their workplace. But right now employers can retaliate against women who share such information. Women can be fired or suffer other repercussions for sharing the kind of salary info they need if they’re going to discover how much less they’re earning. This has to change.

Under the PFA, an EPA lawsuit could also proceed as a class action under the rules that apply to other federal lawsuits, instead of the restrictive 1963 rules that have never been amended.

Finally, a significant loophole now keeps women from winning cases brought under the EPA. Employers who are paying women less than men for equal work can claim that the difference in pay is based on a “factor other than sex.” This language is far too broad. It allows employers to make claims that have little or no merit. For example, this language has been used to argue that male workers have stronger negotiation skills and for that reason can negotiate higher salaries. Does that sound right to you? Should arguments like that allow men to earn more than a woman doing the same work? I don’t think so.

That result is NOT what Congress intended when it passed the EPA. The PFA would alter this language and allow different pay for men and women only when an employer can show that the difference relates to job performance and business necessity.

It’s time to shake things up and put women on a level playing field with their male co-workers. Women and men need to speak out and demand passage of the PFA. If we don’t speak out, we have to ask ourselves: When will Congress make pay equity a reality for America’s working women? And what did I do to try to make it happen?

I’ve Got a Tip for You

Next time you order a BLT at your favorite restaurant, will you leave your server a tip?

Tipping is an issue fraught with questions. Who do I tip? Where do I tip? How much do I tip?

When it comes to tipping, lots of people are confused.

But the people on the fuzzy end of the lollipop–the ones who do the hard work–live in hope that the folks they serve will cough up a big tip.

People who work as servers in restaurants are particularly vulnerable. Thanks to a crazy federal minimum-wage provision, in some states employers can pay tipped workers only $2.13 an hour, the same rate allowed since 1991.

The result? Tipped workers are about twice as likely to be living in poverty as workers who don’t rely on tips. According to a recent study by the Economic Policy Institute, tipped workers have a poverty rate of about 13 percent, compared with a rate of 6.5 percent for other workers. The median wage for tipped workers—including tips—is $10.22, compared with $16.48 for workers overall.

Let’s look at how this result has come about.

Most of us favor a fair minimum wage for employees in our country. Witness the recent adoption of a higher minimum wage in such politically conservative states as Arkansas, Nebraska, and South Dakota, where referenda increasing the minimum wage passed in the 2014 midterm elections. And even though Republicans in Congress have stood in the way of enacting a higher federal minimum wage from $7.25 to $10.10 an hour, as proposed by President Obama, some state lawmakers have taken the initiative and increased the income of workers in their states by passing minimum-wage legislation of their own.

One group has been largely left out of this benevolent trend: Workers who depend on tips. According to articles in Mother Jones magazine in May 2014 and the Wall Street Journal in August 2014, only seven states, including California and Alaska, require employers to pay tipped workers the same minimum wage as nontipped workers.

The federal minimum wage for tipped workers has remained stagnant at $2.13 since 1991. If tipped workers aren’t earning the regular minimum wage (currently $7.25) via tips, employers are supposed to make up the difference. Are you surprised to learn that they don’t always do it?

President Obama’s proposed Minimum Wage Fairness Act would gradually raise tipped workers’ minimum wage to 70 percent of the regular minimum wage. That would help. But this increase has been opposed by the National Restaurant Association, which spent more than $2 million lobbying against it in 2013. (Some may remember that former Republican presidential candidate Herman Cain lobbied against any change during his tenure as president of the NRA.)

The NRA claims that no one is making only $2.13 an hour. But the “servers who make ‘good money’ are in the minority,” according to a spokeswoman for Restaurant Opportunities Center United, a group that tries to improve conditions for servers. She notes that servers are hit especially hard by the “wage theft” by restaurant owners who don’t make up the difference they’re supposed to. When the U.S. Department of Labor’s Wage and Hour Division investigated the restaurant industry from 2010 to 2012, it discovered that nearly 84 percent of restaurants had some kind of wage and hour violation.

Barbara Ehrenreich has documented the deplorable life of servers in her 2001 bestseller, Nickel and Dimed. Trying life at poverty-level wages, she spent her first month as a waitress, resulting in a “monthlong plunge into poverty” during which she often endured dehumanizing treatment at the hands of restaurant managers.

One problem is that servers are often unaware of the law requiring employers to make up the difference. One server states that unless tips were on credit card receipts, “We never logged our tips or reported them to our employers.” And when she told other servers what they were entitled to, “nobody felt comfortable asking employers about it.”

In the last few years, a new trend has appeared: a ban on tipping. A handful of restaurants in California, New York, and elsewhere have adopted a no-tipping policy, paying servers between $10 and $20 an hour in lieu of lower wages plus tips. How do these restaurants cover the cost of the higher wages they pay? Some, like Chez Panisse in Berkeley, California, add a service charge (like 15 or 20 percent) to their diners’ bills. Others are experimenting with higher menu prices. The San Francisco Chronicle noted in November 2014 that a new restaurant in that city plans to simply raise all prices on the menu by 15 percent.

As the Wall Street Journal has noted, servers in some upscale restaurants who currently earn “a handsome income” might not welcome losing out on tips. But the no-tipping trend is clearly underway. If adopted throughout the industry, it would likely benefit the vast majority of servers who right now are seriously underpaid, often living in poverty as a result. Doing away with tipping would require enormous change for most restaurants, however, so it may never become the standard policy in American restaurants.

In the meantime, next time you order that BLT, think about putting a generous wad of your own lettuce in the hands of your server. You just may be helping that server escape the grip of poverty.

The Politicization of Christmas Trees

I’m not planning to buy a Christmas tree this year.  I didn’t buy one last year either.  But as a consumer who’s interested in American retailing, I was disturbed to learn what happened in the Christmas tree industry in 2011.

According to a report that appeared in the San Francisco Chronicle, Christmas tree farmers were (and undoubtedly still are) struggling to compete with artificial-tree producers, who spend millions of dollars each year persuading shoppers to buy fake trees instead of real ones.  In an effort to improve their own sales, tree farmers united behind a program that promised to be helpful.  They petitioned the U.S. Department of Agriculture to administer a fund they would pay for themselves, and the USDA agreed to do it.

The growers wanted to contribute 15 cents—15 cents—from the sale of each real tree.  This tiny amount would have created a Christmas Tree Promotion Board that would remind shoppers of the delights of a real tree.

What happened?  The politicization that has infected so much of our public life suddenly spread to the very non-political world of Christmas trees.  Although the USDA has overseen at least 20 of these kinds of programs for many different types of farmers during the past 45 years (including the popular “Got Milk?” program for the dairy industry), some conservative commentators got wind of the tree farmers’ plan and decided to make it a political football.

Suddenly critics became incensed by the idea that shoppers would have to pay an additional 15 cents for each tree purchased.  They decided to dub this miniscule amount as a “tax,” even though it was nothing of the kind.  The 15 cents was to be paid by the farmers, who hoped the new Board would persuade shoppers to return to putting real trees in their living rooms.

But instead, these critics seized on the fact that the USDA, as part of the Obama administration, would administer this program.  President Obama became the target.  He was described by one U.S. Senator as the Grinch who stole Christmas and likened to Scrooge in “A Christmas Carol.”   A member of the U.S. House called the 15-cent amount a “new tax” that was “a smack in the face to each and every American who celebrates Christmas.”  Huh?

As criticism became more heated, the Obama administration backed off and pulled its support for the program.  The whole scenario baffled the tree farmers.  They were disillusioned by the critics on the right, who described the farmers’ contribution as a tax and skewered the President for supporting it.  But they were also disheartened by the President’s staff, which buckled under what one farmer called “misinformed pressure.”

This farmer noted that “unlike artificial trees exported from foreign countries, ours are from America and create jobs for Americans.”  Unfortunately, knee-jerk politics got in the way and stopped a valuable program in its tracks.

As Christmas nears, tree buyers are once again considering their options. But whether or not we plan to buy a Christmas tree this year, all of us should reflect on what happened last year.  Should we allow American farmers to spend their own money to promote their products?  Or should we let dysfunctional political leaders shut them down in order to gain a cheap political advantage?

[A version of this commentary previously appeared as an op-ed in the San Francisco Chronicle.]