low-wage workers Archives - Talk Poverty https://talkpoverty.org/tag/low-wage-workers/ Real People. Real Stories. Real Solutions. Fri, 10 Jul 2020 14:30:08 +0000 en-US hourly 1 https://cdn.talkpoverty.org/content/uploads/2016/02/29205224/tp-logo.png low-wage workers Archives - Talk Poverty https://talkpoverty.org/tag/low-wage-workers/ 32 32 What Happens When a Grocery Store Job Is the Only One You Can Get? https://talkpoverty.org/2020/05/07/essential-workers-grocery-formerly-incarcerated/ Thu, 07 May 2020 18:05:25 +0000 https://talkpoverty.org/?p=29073 My great-aunt works at a grocery store in a populous suburb of Philadelphia. She’s worked there for about two years, following a stint of part-time jobs, including one at a temp agency working in factories. Normally she works behind the deli counter with a team and helps customers on the floor; now she mostly works alone behind the counter because there’s not enough space for multiple people to social distance back there. She pre-slices the most popular cold cuts to place out in front of the counter, so people don’t have to ask for them.

My great-aunt’s workplace hasn’t provided her with any protective gear, even though grocery workers are, as Vogue decreed, “the new first responders” under COVID-19. She had to purchase masks for herself off Groupon for $30, no small expense on her wages. She was excited about her recent COVID-19-induced raise from $11 an hour to $13 an hour, even though the store cut her hours so ultimately she’s making about the same amount.

“Before I guess I didn’t take this all serious,” my aunt says. “But I am anxious now, because people just keep coming in here. They’re not listening to the stay at home order. People come in there, and they’re not wearing masks.”

My great-aunt has a felony record, so she’s limited in the work she’s able to get. She can’t quit her job, because she went through so much to get this one: working at the temp agency and being driven across state lines to work in factories, getting rides to local hotels to beg for housekeeping work, struggling to make enough to get out of her recovery housing. “I just couldn’t get a job,” she recalls.

Nearly three-fourths of people released from prison remain unemployed a year after their release, and a criminal record can halve the chances of a job callback or offer; those chances are worse for Black applicants than white applicants. Gender complicates it further: Because women often work in fields that require background checks, like retail and caregiving, they may have an even harder time finding employment. In many states, including Pennsylvania, state law bars people with criminal records from caregiving jobs.

Many parole deals include an offer of employment as a requirement of release, increasing the urgency of the job search. It took my great-aunt, who is white, a year to get her part-time job at the grocery store; she’s worked there ever since.

People with a history of incarceration tend to be pushed into dangerous jobs.

Despite the risks, her position at the grocery store is a blessing. Other re-entry-friendly fields like retail have faced massive layoffs — more than 33 million Americans have filed for unemployment since late March, with Pennsylvania hit particularly hard — leaving more people with records looking for jobs. Grocery stores, on the other hand, are desperate for employees. Since they are considered essential, grocery stores are among the few establishments open, making them the main place for people to purchase household goods.

As a result, grocery stores may be where formerly incarcerated people turn first for work, despite the dangers. My great-aunt says her friend’s son was released from a Philly prison a few weeks ago with no warning — presumably due to COVID-19 concerns, but they’re not sure — and showed up on her friend’s doorstep. After a few days, they were able to get him into a halfway house a few towns away. He got a job at a local grocery store a week later.

People with a history of incarceration tend to be pushed into dangerous jobs, like construction, maintenance, and factory lines, with wages below the poverty line. These are often the jobs that others see as menial work; right now, these are the jobs that are on the frontlines of the COVID-19 pandemic, because they don’t allow for social distancing and provide essential services to protect us all.

After all, you need to get your groceries somewhere. And when you get them, my great-aunt will be there, in the deli section, slicing your cold cuts, at great risk to her health. “I’m a little nervous about going, but I don’t have a choice,” she admits. “I need my paycheck. I’m grateful I still have a job, I look at how many people are unemployed and I’m just grateful I have a job.”

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Everything You Need to Know About Today’s Instacart Strike https://talkpoverty.org/2020/03/30/coronavirus-instacart-strike/ Mon, 30 Mar 2020 20:50:39 +0000 https://talkpoverty.org/?p=29002 On March 25, the U.S. became the leading country in the world for coronavirus cases. As of March 30, there were more than 140,000 confirmed cases and 2,400 deaths, according to a Johns Hopkins University database.

Cities have all but shut down in response to public health advisories. Millions of people are working from home or other non-office locations in order to honor “social distancing,” leading to a surge in home deliveries for app-based workers like Instacart’s Shoppers, who are tasked with shopping and delivering customers’ groceries. Instacart itself reported that Shoppers have seen on average a 15 percent increase in basket sizes.

However, despite the heightened risk that Shoppers are facing by doing the work that is considered too dangerous for the general public, Shoppers say Instacart hasn’t made much of an effort to protect them from potential transmission or incentivized them to cease working despite the risks it poses.

Instacart initially said it would give two weeks’ paid leave through April 8 to any Shopper who tested positive for the coronavirus, despite the fact that tests are rarely accessible . However, one Shopper TalkPoverty spoke to said that they didn’t know a single person who had received paid sick leave.

In response, Instacart Shoppers nationwide walked off the job March 30, their second strike in four months, and are refusing to return until their demands are met. Because gig workers like Instacart Shoppers work alone, they rarely have face-to-face contact with one another, highlighting how extraordinarily prepared they must be to conduct a large-scale labor action such as this.

In a Medium post announcing the strike, Instacart Shoppers working with labor organization Gig Workers Collective wrote that they were demanding an added $5 of hazard pay per order as well as provision of complimentary sanitation supplies such as cleansing wipes and hand sanitizer, paid time off for Shoppers with preexisting conditions that put them at high risk if they contracted coronavirus or whose doctors advised them to self-isolate, and an extension of these benefits beyond April 8.

“Instacart has turned this pandemic into a PR campaign, portraying itself the hero of families that are sheltered-in-place, isolated, or quarantined,” Gig Workers Collective wrote.

“Instacart has refused to act proactively in the interests of its Shoppers, customers, and public health, so we are forced to take matters into our own hands. We will not continue to work under these conditions. We will not risk our safety, our health, or our lives for a company that fails to adequately protect us, fails to adequately pay us, and fails to provide us with accessible benefits should we become sick.”

Instacart Shoppers can make as little as $7 for up to three orders or $5 for up to five deliveries only, due to the company’s opaque algorithm structure for compensation, and aren’t automatically entitled to employment benefits such as sick leave or health care due to their independent contractor status. Some have argued that they are being misclassified and should be termed employees. In a historic first, the CARES Act, which President Trump signed into law March 27, extended unemployment benefits to gig workers. However, because these benefits are taxpayer-subsidized, they relieve gig companies like Instacart of any legal obligation to provide employee benefits.

Matthew Telles, a veteran Shopper in the Chicago suburbs, said that while he makes himself available on the Instacart app to work for as many as 77 hours a week, the amount of time he actually spends working for Instacart has dwindled since fewer and fewer batches can actually cover his expenses.

“I work anywhere from about zero to eight hours a week for Instacart, and that’s [only] when they pay enough to obtain my secured services,” he said, adding that the pandemic has driven down wages even more.

He explained that since authorities began encouraging people to stay home, Instacart has essentially begun bundling three orders into one by combining multiple “orders” into one batch. That allows the company to elide per-order pricing, leading Shoppers to accept batches that may promise a large amount of money that decreases when they reach the actual register to check.

If a customer asks for, say, 20 unique items, Shoppers are guaranteed a base pay plus tip that’s a particular percentage of the entire order. However, because grocers are now limiting the quantity of particular items one can buy, such as toilet paper and wipes, Shoppers are forced to buy less of a particular item, allowing Instacart to pare down the guaranteed wage and tip for every item a Shopper can’t secure for a customer.

On top of that, Telles added, Instacart is capitalizing upon laid off workers’ desperate need to pay the bills by ramping up their operations. On March 23, Instacart CEO Apoorva Mehta announced plans to hire 300,000 new Shoppers in response to anticipated customer demand over the next few months.

“They’re not vetting who’s a Shopper now,” Telles said. “It’s pretty much — if you’re alive, you can be a Shopper.”

Vanessa Bain, a Silicon Valley-based Shopper and founder of Gig Workers Collective, agreed.

“It’s going to be a disaster if [Instacart] is successful in hiring 300,000 people,” she said. “Veteran Shoppers are breaking down. The last time I shopped, I had an anxiety attack. And that’s just speaking about veteran Shoppers who are used to the general stress of the job. I can’t imagine what it’s like for new people just getting their footing. It’s really uncharted territory, shopping during the middle of a pandemic. People aren’t respecting social distancing in grocery stores.”

Bain added that because she lives with multiple elderly people who are at high risk of contracting coronavirus, she hasn’t shopped since March 13.

We’re out here risking our lives.

Sarah Clarke, another Gig Workers Collective organizer, said Instacart was capitalizing upon the divide between its corporate employees, who are guaranteed benefits such as health insurance and remote work, and that of Shoppers, whom many cities and local governments consider “essential workers” but aren’t treating as such.

“Instacart knows there are workers who can afford to stay at home and shelter in place, and then there are workers who absolutely need the money and who will work under any conditions because they have to,” Clarke said. “But you can’t really fault someone who’s working while they’re sick if they absolutely need to [to pay their bills].”

Above all else, however, all three organizers TalkPoverty spoke to said that the strike was being conducted out of concern for Shoppers’ customers, who bear the brunt of the risks they say Instacart is forcing them to shoulder by not guaranteeing basic sick leave and protective equipment.

“If [Shoppers] get the virus, most likely we will pass it on to customers,” Clarke said. “Lots of Shoppers are living in fear because they’re terrified they’ll pass it on to customers.”

“We’re the people customers interface with,” Bain said. “Most people who have ordered [from Instacart] are doing so to comply with the shelter in place, and to mitigate the risk of spreading disease. It’s literally now a matter of public health and safety.”

“It’s reckless,” Telles stated, speaking for himself, not the strike organizers. “We’re out here risking our lives. If I were a state official, I’d bar Instacart from my state.”

Following the strike announcement, Instacart almost immediately updated its policies. In an email to TalkPoverty, the company said it had extended its paid leave through May 6 to anyone who had been ordered by a state, local, or public health official to self-isolate or quarantine, but made no mention of Shoppers’ demands for personal protective equipment (PPE) or added hazard pay. Instacart added on Sunday that it would allow customers to set their own default tip payment, but workers said it’s not enough: The company is still refusing hazard pay and expanded sick pay.

But it’s too little too late, Bain said.

“We all have the potential of becoming vectors. Everyone’s a stakeholder. The stakes are very different from normal working conditions. Nobody should be against the idea of workers having safety measures to keep their customers alive and themselves safe.”

Editor’s note: This post has been updated to clarify Instacart’s compensation structure for batch orders. 

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Coronavirus Is Spreading. Your Waiter Can’t Stay Home To Stop It. https://talkpoverty.org/2020/03/06/covid-19-coronavirus-service-workers/ Fri, 06 Mar 2020 16:58:26 +0000 https://talkpoverty.org/?p=28941 Earlier this month, I contracted the flu — not COVID-19 but the regular, everyday, miserable but run of the mill flu that has been floating around my community.

I developed a severe case which turned into bacterial pneumonia; although otherwise fit and healthy, I have asthma, which makes me especially susceptible to respiratory illnesses. I spent Valentine’s Day flat on my back, wheezing and struggling to breathe while the antibiotics worked their magic.

Say what you will about azithromycin; it sure does kill bacteria good.

I work as a server, and I almost certainly contracted the flu from my workplace; prior to becoming sick, I served multiple customers who told me they were ill, which means exposure to their breath, used plates, napkins and cutlery, and surfaces they have touched. Moreover, several of my coworkers were ill with the same symptoms on the last shift I worked before becoming sick.

If you are worried about infection from COVID-19, you should be less concerned about hoarding masks and hand sanitizer (which you really shouldn’t be doing) and more concerned about the ways that poverty, a lack of access to health care, and general class inequality in North America could contribute to spreading it.

In Canada, where I live, servers are usually paid at or slightly below provincial minimum wage, and in the USA it’s often less than the already abysmal minimum wage. Most food service workers — servers, like myself, as well as cooks, bussers, and a vast variety of other folks working for an hourly wage — do not get paid sick days, which means taking time off even when you are pretty much dying costs you money.

Money you probably don’t have, which means you come into work sick.

For me, this was the first time in my 15-year career in the service industry that I have ever called in sick for multiple, back to back shifts. Tips are variable, but I estimate my three days off cost me about $350, plus $100 worth of medication. That doesn’t include the cost of my emergency room visit, which an uninsured American would also have to pay for.

I recovered faster because I got the medical care and rest I needed.

I’m really lucky that I work with good people and have a kind boss, who helped me cover my shifts; in many restaurants, the culture is not so forgiving, and calling in sick with anything less than a brain aneurysm is a sign of weakness. You’ve “screwed everyone over” by not coming in and making someone else work a double or else work shorthanded. In many other restaurants  I’ve worked in, you may find yourself missing shifts you would usually work on the next schedule — a “punishment” for the selfish act of allowing a virus to infiltrate your body and replicate within your cells, you lazy prick.

The main reason I was able to take a couple sick days this time around — regardless of the fact that I had to, since I couldn’t actually get out of bed — was that I have another job where I’m self-employed. In short, I had some extra money and could afford to not go to work and sweat and sneeze and cough all over people, food, and objects.

Not only does this mean I didn’t infect other people — COVID-19, incidentally, is primarily spread through respiratory droplets in the air, and by person to person contact — but I recovered faster because I got the medical care and rest I needed, which means I returned to work more quickly. Better for me, better for my boss, better for the health of everyone.

By contrast, as I recently tweeted about, this isn’t the first time I’ve had pneumonia; in 2013, I had walking pneumonia for two weeks, during which I worked the majority of the time handling food in close proximity to customers. I didn’t do that because I’m a selfish jerk unaware or unconcerned about the health of others, I did so because I wouldn’t make my rent if I took time off and because I was working in a place where I was afraid of what would happen if I called in.

Not only was I sick much longer in that case — and therefore capable of infecting others for a longer period of time — it took me months to fully recover, which had further economic impacts for me. I would have been a better worker, infected fewer people, and been less of a strain on the health system had someone just given me a goddamn paid sick day; it would have been cheaper and better for literally everyone in my community.

In 2017, 130 people were sickened by an outbreak of norovirus — a highly contagious gastrointestinal illness — which was directly linked to Chipotle’s management policies around sick workers. It’s not just about the policy, though; even if workers had been “allowed” to call in sick and supported by management to do so, they’re going to come into work if missing that shift means no gas in their car, or their kid doesn’t get lunch tomorrow, or it’s ramen for dinner every single day for the next week.

When you economically punish people for getting sick, more people are going to get sick.

All signs point to COVID-19 being a genuine pandemic that we should all be concerned about and thinking about — which means we need to care not only for ourselves, but for others. If you care about your health, care about how the people around you live and are treated in their everyday lives.

Viruses don’t care how much money their host makes, but how much money their host makes, and how we treat working-class people when they get sick, may impact how many opportunities COVID-19 has to spread.

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New York’s Salon Workers Are Fighting For Better Conditions—And Winning https://talkpoverty.org/2020/02/21/new-york-nail-salon-wage-theft/ Fri, 21 Feb 2020 13:05:13 +0000 https://talkpoverty.org/?p=28910 Glenda Sefla got a job in a nail salon in New York City when she first arrived from her home country of Ecuador because it was the first option she could find to make some money. But from the very beginning she knew something was wrong. “The conditions were really bad,” she told me, speaking in Spanish through an interpreter. One of those conditions was wage theft. She was working 10-hour days but making just $30 a day. That amounted to a mere $3 an hour, even though her wages and tips were supposed to come to at least $8 an hour.

That small amount of money didn’t cover her bills and expenses. “So then I just ended up working more,” she explained. She would work six or even seven days a week just to try to make ends meet. “I would just go to sleep and then go to work and then go to sleep and go to work,” she said. She spent three years putting in those kinds of hours. “I felt totally exhausted, physically and mentally.”

She eventually started working in a different salon in Manhattan where she made slightly more: $50-60 a day for the same hours. It still wasn’t enough to cover her bills. She had to eat “the most basic things,” always at home because she couldn’t afford to eat a meal out. She couldn’t buy herself anything, not even new clothes. “I couldn’t take care of my physical and mental health,” she said.

“You’re working so hard, but at the end of the week you still don’t have enough,” she added. “It makes it impossible to imagine a dignified life.”

Meanwhile, the salon owners never gave her and her coworkers information about how to protect their health and safety when working with chemicals everyday. Salon workers are routinely exposed to the “toxic trio” of formaldehyde, toluene, and dibutyl phthalate, common nail polish ingredients, as well as disinfectants such as alcohol. Exposure can lead to skin irritation and chronic conditions, allergies, and even reproductive problems.

Sefla didn’t realize that she had the right to more pay and better protection until she found the New York Nail Salon Workers Association, which organizes nail salon workers in the state around wages and working conditions. She’s now an organizer there.

“This wasn’t just something that was just happening to me,” she noted. For all of her compañeras in the industry, “This is the reality that we’re living.”

Low prices translate into illegal poverty wages.

A new report backs her up. In a survey of about 100 nail salon workers in New York City and surrounding counties, the New York Nail Salon Workers Association found that 82 percent experienced wage theft. Employers are failing to pay the state’s tipped minimum wage, aren’t making up the difference when employees’ base wages and tips don’t add up to the full minimum wage, and don’t pay extra for overtime work. The hours are long: nearly two-thirds of nail salon employees say they work shifts that are at least 10 hours. But many aren’t paid time and a half for the extra hours they put in.

That wage theft is costing them, on average, more than $180 a week, or over $9,000 a year—steep sums for the majority immigrant female workers who survive off of little pay to begin with. More than 10 percent of respondents were losing more than $400 a week.

One source of the problem, the report finds, can be traced back to how little it costs to get a manicure in New York. Workers at salons that charge the lowest prices—$9 or less for a manicure—reported experiencing higher rates of wage theft and losing more money, while those at salons that charged at least $16 for a manicure kept more of the money they were due. “Low prices translate into illegal poverty wages,” the report states. But “as service prices increase, wage theft decreases.”

On top of the inadequate pay, the report also found that 86 percent of nail salon workers in New York City aren’t being given paid sick days, as is the law.

In 2015, a New York Times expose shone a light on the rampant mistreatment of nail salon employees in the city, who are often forced to work extremely long hours in harsh conditions for little pay. In its wake, the state implemented health and safety standards dealing with ventilation and protective equipment. It also now requires owners to take financial steps to ensure that workers can recover wages if it’s found they’re being underpaid and created a voluntary recognition process for those deploying best practices. But workers argue that even with some protections in place, they need stronger enforcement to get what they’re due. “While the legislation provided new protections for workers and regulations for employers, workers continue to organize to make those protections a reality,” the report notes.

“We still aren’t really seeing changes,” Sefla said. “We have established better laws, but we’re seeing that a lot of the owners are not complying with the new laws. So we haven’t seen the change that we’re looking for.”

In December, Governor Andrew Cuomo announced he would get phase out the tipped minimum wage for a group of workers that includes nail salon employees (although excluded restaurant and hospitality workers), meaning salon owners will be required to pay the full minimum wage regardless of how much customers tip. But as the report notes, many workers weren’t even being paid the lower tipped wage to begin with. So they’re demanding more legislative action.

“We need mechanisms for enforcing those established laws,” Sefla said. “There won’t be any change without consequences and accountability.”

The heart of their demand is that the state legislature pass the Nail Salon Accountability Act, which will be introduced later this month. The law would change the licensing process so that workers’ feedback would be incorporated into the renewal process and owners would have to get certification proving that they are complying with labor, health, and safety laws. It would also mandate training for owners and workers on those laws. “Compliance with the law must become part of the cost of doing business,” the report states.

There are other potential legislative fixes in the works as well. Members of the assembly are considering a bill that would criminalize wage theft. The New York City council is working on a bill that would give salon owners subsidies so they could add proper ventilation.

“Esos son básicos,” Sefla said: These are basic things. “Son derechos que tenemos aquí en este país.” These are rights we have here in this country.

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A Secret Spreadsheet Shows There Are No Raises In Coffee https://talkpoverty.org/2020/02/11/coffee-pay-transparency-spreadsheet/ Tue, 11 Feb 2020 17:25:11 +0000 https://talkpoverty.org/?p=28383 In early October of 2019, a Google spreadsheet circulated through the Philadelphia coffee community. Baristas could anonymously report their wages and compare what they were making with their colleagues. Since then, the spreadsheet has become a powerful tool, making information that is often difficult to track accessible, and it has allowed baristas to advocate for higher wages. The spreadsheet, however, unexpectedly uncovered another problem: there’s not a lot of upward mobility in coffee.

On the spreadsheet, managers and shift leads made the same amount as new baristas. Some entries showed that many baristas worked for companies for years and still made the same amount as those just starting in their careers; the average wage of hourly employees hovered just above $10 an hour, regardless of their role. Over 200 baristas entered their wages into the spreadsheet, which was first reported on by the Philadelphia Inquirer and has inspired similar lists across the nation. Although the spreadsheet isn’t wholly scientific — information, like average tips, benefits, and if they receive federal aid, is self-reported — it does call into question if there’s a correlation between how much experience and knowledge a person has and their ability to move up in their careers and make more money. And in the coffee world, despite the fact that jokes about getting a “real job” run prevalent, a considerable amount of skill, technique, and practice are required just to make a beverage properly, let alone do it well.

Service work has the potential to equalize. There aren’t a lot of jobs where almost everyone starts at the bottom, and the low barrier to entry means anyone can work their way up. Upward mobility can seem really clear in these types of roles — barista to shift lead to… — but where do these roles lead? If you’re making the same amount of money you were ten years ago, or if accepting a leadership position means you make less money because you lose tips, does the idea of upward mobility actually exist?

“I had been working in various capacities on the cafe side of things for nearly ten years when an opportunity to become a roaster came my way,” said Trevor Szewczyk, a roaster based in Philadelphia. He was working in Oakland when he started exploring positions outside of the cafe. “At the time, I was pretty ready to do something else, as it felt like I had been bumping my head on the ceiling of cafe management in the Bay Area.” He balanced two realities: a barista job that pays a lower hourly wage but collects tips at the end of the day, or a slightly higher wage without tips in a management position, which is a pretty common reality for most baristas.

After oscillating between both options, he decided to pursue a different coffee journey.

Szewczyk interviewed for an open position with a coffee company just outside of Oakland. He said the initial interview went well, and he expected to get an offer that was at least comparable to what he was making in his last position. “As I had been the shift lead for the cafe I was leaving at the time, I was making about $25 an hour — a base wage of $14 averaging $10 an hour in tips. So when the offer letter came I was a little taken aback that I was being offered $17 an hour.”

The position — an associate roaster for a local but large coffee company with multiple locations and wholesale accounts — seemed like a step up. However, Szewczyk never made close to the amount he was making as a shift lead, even though he was learning new skills. After a year and a half with the company, Szewczyk’s wage was bumped up to $18.50, but never matched what he was making at the cafe.

The promise of a career is what drives many to accept positions that, given a closer look, don’t actually deliver on what they promise: a stable life in their chosen field. And often, that means taking jobs that are underwhelming and financially not viable to escape the perceived bottom of the field.

“There have been a few instances where I have really been underwhelmed by promotion promises — the most recent was leaving my management role to go over to a different cafe where I was hired to do beverage development,” says Oodie Taliaferro, a barista working in Austin, Texas. “In that move I was also promised that I’d start at a higher rate than their starting rate…and after it was all said and done I started at the company’s minimum and my non-tipped hours in research and development were just that — full shifts with no tips and making only $10 an hour.”

Taliaferro left that job and did what a lot of baristas do after being let down by seemingly better job: they go back to being a barista. For many baristas attempting to “move up,” barista work often ends up being the best balance between responsibility and wages. Most management and behind-the-scenes jobs pay nominally more than a barista wage, and without tips, jobs with more responsibility are often not worth it. However, that means that there’s nowhere to go when you want to move further in your career.

Essentially, you’re stuck.

Mika Turberville is right in the middle of navigating that messy place — moving from a job that sounded like a step up in their career to working back on the floor.

“I initially took this job because I was working as an intermediate manager at a cafe and had been for several years with no prospects of upward mobility,” they said, even moving from Austin to New York to pursue a new opportunity within the same company. Turberville had ten years of experience, and when they landed the job, was surprised to learn that although their wages were technically higher, they didn’t cover the added cost of living in a city with higher expenses, let alone the fact that their position was technically a promotion.

“My pay as an intermediary manger in Austin was $13.50 an hour with tips, which is almost twice the minimum wage for that area…In New York, I used my savings to move for this job, they paid me $19 an hour, $4 more than the minimum for New York, and I don’t know if you’ve ever been here, but that’s not a living wage at all.”

Service work is both mentally and physically exhausting.

Eventually, Turberville left, and has since returned to making drinks. “While I feel I have taken a step backwards a bit, I feel hopeful that I can continue to pursue a Q Grader certification [a coffee certification similar to a test a sommelier would have to take for wine] while working there and that they will support whatever next steps in coffee look like for me.” The Q grader certification is a three-day class followed by 17 coffee evaluation tests — the classes cost about $2,000 and people study for months, expecting to fail at least a few of the tests on their first try. Although it’s a helpful certification for roasters and green buyers to have, it’s rare that a coffee company would pay for this course for a barista.

Folks like Szewczyk and Turberville are still fighting to establish a career in coffee, but it’s common for people to walk away from the industry. “I left my last coffee job for a lot of reasons, one of which was not being paid appropriately for my work,” says Meghan-Annette Reida, a former barista working in Milwaukee. After years of being underpaid, Reida decided to leave coffee altogether. “I got a job in insurance; I’m the lowest paid staff member and I’m still paid twice what I was paid to run a coffee shop.”

On Twitter, Taliaiferro asked folks to detail their coffee journeys, charting the ups and downs of their own employment in coffee as an example. Their reason for asking echoes the experiences of a number of baristas: “Feeling like half a dozen lateral moves isn’t what I pictured for my career, but wondering if it’s more common than I think.” When your career is a series of seemingly similar jobs dressed up in titles like “manager” or “shift lead,” which are often codes for “no tips,” it can be difficult to see a clear pathway for baristas to pursue.

An opportunity to move away from barista work is tempting. Along with wage ceilings, service work is both mentally and physically exhausting, and baristas are often not making the same in tips as their other service colleagues are, so the drive to move off the floor and into roles with more responsibilities is enticing, and many baristas are led down a false pathway that often leaves them both stagnant and burnt out. Because of the way tips are ingrained into specific service settings and because coffee is often priced lower than similar food and beverage experiences, it’s much more lucrative to be a career waiter or bartender than it is a career barista.

Documents like the barista wage spreadsheet will hopefully give power to baristas to demand more from their employers. Baristas at Starbucks have already banded together to call for better wages and more predictable schedules after the company added a meditation app to its benefits package while slashing employee hours. If anything, it’s a cautionary tale to the pitfalls of trying to build a career in coffee — what should be an arrow pointing upward often ends up being a web of ups, downs, crashes, peaks, all together writing an uncertain future for many of our most vulnerable service industry members.

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Minimum Wage Increases Are Great. But Only If Workers Actually Get Them. https://talkpoverty.org/2020/01/30/wage-theft-worker-protections/ Thu, 30 Jan 2020 18:06:28 +0000 https://talkpoverty.org/?p=28334 New Year’s Day 2020 made history for workers, as minimum wage increases went into effect in 47 states, cities, and counties.

But when cities and states take action to raise wages, they often ignore a pretty obvious problem: across most of the country, employers routinely skirt paying the minimum wage, overtime wages, or contractually promised wages, with little fear of facing consequences.

When the Broken Laws study surveyed 4,387 workers in 2008 across Los Angeles, Chicago, and New York in low-wage industries like hospitality and domestic care, they found that 44 percent had been paid less than the law required within the past year. In 2017, the Economic Policy Institute estimated that employers steal $15 billion annually from workers by paying less than the minimum wage.

Two basic facts add up to create an environment where wage thieves operate with impunity. The first is that most wage thieves will never be caught. Workers often fear retaliation for speaking up or don’t have the resources they’d need to file a complaint or bring a lawsuit. And only a handful of local or state wage theft enforcement agencies have demonstrated an effective strategy for tracking down wage thieves, explaining why in places like Houston, Texas, and Charlotte, North Carolina, a typical year might only bring a single successful wage theft prosecution.

The second is that even when wage thieves are caught, our legal system protects business owners at the expense of workers: wealthy individuals and profitable companies get ample opportunity to claim they just don’t have the money to pay workers what they’re owed. A 15-state investigation by Politico found that workers who won their wage theft lawsuits only ultimately recovered 59 percent of the money that judges or juries had agreed they’d been owed. In New York City, ten delivery workers won a $700,000 wage theft ruling against the restaurant Indus Valley — although these workers started their complaint in 2008 and won their lawsuit before a federal judge in 2014, they say they’ve collected only about 15 percent of what they’re owed.

These are both solvable problems if we’re willing to change a legal and economic system that stacks the deck against working people.

Catching Wage Thieves In the Act

Workers know complaining about unpaid or underpaid hours can mean risking their jobs or getting shunted into a less favorable schedule. According to a 2019 report by the National Employment Law Project, 45 states lack one or more of the provisions of an effective anti-retaliation law.

Undocumented workers are especially vulnerable to retaliation. Speaking about undocumented workers in Houston, Texas, Josef Buenker, a private employment lawyer, said, “I can’t count the number of times workers have told us that that it’s an overt threat used against them, [when bosses say] ‘I’m going to report you to ICE, what are you going to do about it?’” He added, “We regularly meet with people who want to pursue their claim, but then they go home and think about it and decide not to because they’re concerned about their immigration status.” As long as the threat of deportation can be used against workers, wage theft will persist. Aggressive deportation policies undermine labor conditions for both immigrants and for their U.S.-born coworkers, whose bargaining power is undermined by their bosses’ ability to exploit those without papers.

The cost of going to court is another key consideration. Some workers are able to find free legal counsel from a local legal services agency, but these agencies are stretched thin, forced to choose between helping people in poverty avoid eviction, fight wrongful debt collection lawsuits, win wage theft cases, and gain protection from domestic violence. A worker making more than $15,000 per year is often totally ineligible for legal services aid.

Our legal system protects business owners at the expense of workers.

Some legal aid organizations lack the funding to take on wage theft cases at all. In Charlotte, North Carolina, for example, there are two organizations providing civil representation to low-income workers, the Charlotte Center for Legal Advocacy and Legal Aid of North Carolina, explained Ken Schorr, Charlotte Center for Legal Advocacy’s executive director, and he noted that neither organization will represent low-income workers in court for wage theft cases. Schorr explained, “The majority of our funding is grant-based for particular areas.” He added, “We haven’t been able to find funding to do employment law based work such as wage claims.” Our country considers legal representation in civil cases a privilege, not a right — which means many low-wage workers can’t use the court system to hold their employers accountable.

That’s why, as Tallulah Knopp, a staff attorney at Boston’s Volunteer Lawyer Project, points out, it’s so important for states to have clear “fee-shifting” statutes: in many states, when a worker wins a wage theft lawsuit, the employer will have to pay their back wages, but not necessarily their legal fees. A strong “fee-shifting” statute, like Massachusetts’, sets a standard where, if a worker wins their case, their employer pays the legal fees, instead of the worker having to pay the lawyer out of their recovered damages. That encourages private lawyers to come to the table on behalf of workers, Knopp explains. In a state like Texas, where filing fees are $400, and many attorneys bill at $100 per hour or more, there’s no real way to get your wages back if you’re owed just $500. That’s why Knopp and Nick Wertsch, of Texas’ Workers Defense Project, both point to fee-shifting statutes as a critical part of fighting wage theft.

But Jennifer Lee, associate professor at Temple Law School, argues that relying on workers to come forward against their bosses can’t solve wage theft by itself, even in the presence of fee-shifting.

As Lee explains, the information barriers and risks for workers to report their own wage theft remain high, even when states try to protect workers from retaliation. “The number of workers who are suffering violations versus the number of people who come forward is miniscule,” says Lee.

After investigating 141 state and local anti-wage-theft laws, she concluded that we can’t rely on workers to file complaints or lawsuits: while a worker’s “private right of action” can be part of the solution, we also need strong wage theft enforcement agencies that don’t just react to workers’ complaints, but are on the lookout for abuse.

Funding is part of the problem in some cities and states, says Lee, but she also points to cities whose enforcement agencies are dramatically underutilized. Many agencies, Lee says, wait for workers to file complaints, rather than entering the community to inform workers of their rights, and to find bad actors.

The most promising approach, says Lee, is collaboration between government agencies and workers’ centers. Although workers in the industries susceptible to wage theft often aren’t unionized, many are organized through local worker’s centers like the Domestic Worker & Day Laborer Center of Chicago and Houston’s Fe y Justicia. “Agencies aren’t always in the best position to identify which workplaces have issues or to build trust with workers,” says Lee, adding that worker’s centers are often more embedded in the community. The cooperation of worker’s centers gathers useful information about labor conditions and can encourage more workers to come forward. Lee pointed to Seattle as an example of a city that has effectively partnered with local community groups — their Office of Labor Standards selected ten community organizations to receive $1 million contracts to provide education and outreach to workers. Reporting by the Philadelphia Enquirer found that, in 2018, Seattle’s Office of Labor Standards received 10 times the number of wage theft questions and complaints than Philadelphia received, a larger city that lacked such a strategy.

Making Them Pay the Bill 

But even once wage theft is brought to light, workers don’t always get paid. Across the country, nominally “successful” wage theft lawsuits often result in empty judgments: just because a judge or jury agreed that a worker experienced wage theft, it doesn’t always mean that the worker will be able to collect her back wages.

A report by the National Center for Law and Economic Justice found at least $125 million in unpaid wage theft judgments and orders within New York City alone. Carmela Huang, a supervising attorney at New York City’s Legal Aid Society, says “it’s just far too easy for employers to transfer their assets.” As an example, Huang explains, a restaurant owner faced with a high-dollar wage theft lawsuit will recruit a friend to create a new corporation and transfer the restaurant to the new corporation. That makes the original corporation facing the lawsuit nominally unable to pay its wage debts. “For more than a decade employer-side attorneys have been advising clients on how to hide their assets — it is definitely a part of the practice to advise clients on how to make themselves judgment-proof,” says Huang. That’s why the Legal Aid Society called on New York Governor Andrew Cuomo to sign the SWEAT Act, which would have allowed workers to place a lien on their employers’ assets while wage theft litigation was ongoing, stopping bad companies from using suspicious transfers to hide assets. Cuomo vetoed the SWEAT Act on January 2.

Our country arrests 1.5 million people for burglary and larceny per year — but workers facing stolen wages are routinely deprived of justice. Businesses can dial 911 and expect the cops to show up to arrest a shoplifter, while millions of Americans work for poverty wages, as victims of theft from their employers, with little hope of recourse. To end wage theft, we should lift the threat of deportation, guarantee workers access to the legal system, build strong wage theft enforcement agencies, and close the loopholes that allow employers to shirk responsibility to pay owed wages.

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