Where Have All the Raises Gone?

Today's post was shared by Steven Greenhouse and comes from www.nytimes.com

Most people who work for a living know that for a long time now, raises have been few and far between. Wages typically fall or stagnate in recessions, and the Great Recession was particularly severe, exerting a drag on pay that persists to this day. But that is only a partial explanation, because declining and stagnant wages predate the latest downturn. Understanding the causes is essential for determining the policies needed to create good jobs. Research by three economists — Paul Beaudry, David Green and Benjamin Sand — goes beyond familiar explanations for wage stagnation like global competition and labor-saving technology. Examining the demand for college-educated workers, they found that businesses increased hiring of college graduates in the 1980s and 1990s in adapting to technological changes. But as the information technology revolution matured, employer demand waned for the “cognitive skills” associated with a college education. As a result, since 2000, many college graduates have taken jobs that do not require college degrees and, in the process, have displaced less-educated lower-skilled workers. “In this maturity stage,” the report says, “having a B.A. is less about obtaining access to high paying managerial and technology jobs and more about beating out less-educated workers for the barista or clerical job.” The findings help to explain the trajectory in wages for workers with...

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NJ Gas Station Owner Agrees to Pay $3 Million in Back Wages to Employees

Daniyal Enterprises LLC and owner Waseem Chaudhary, and other companies owned and operated by Chaudhary, have agreed to pay $2 million in overtime back wages and an additional $1 million in liquidated damages to 417 workers employed at 72 of Chaudhary’s New Jersey gas stations after investigations by the U.S. Department of Labor’s Wage and Hour Division found violations of the Fair Labor Standards Act.

The department also has assessed $91,000 in civil money penalties against this employer because of the repeat and willful nature of the violations. Additionally, the employer has agreed to take proactive measures, including a three-year monitoring program at each gas station, to ensure future FLSA compliance.

“This agreement returns hard-earned wages to workers in one of only two states that still mandates full-service gas pumps,” said acting Secretary of Labor Seth D. Harris. “All gas station owners and operators in New Jersey should take note of this precedent by reviewing their payroll practices and legal obligations. Gas station attendants are few in number, earn low wages, work long hours and often lack English proficiency – factors that contribute to their vulnerability as well as the importance of protecting their right to be paid properly.”