States are sitting on American Rescue Plan funds that could help against the Omicron variant

The Omicron variant of COVID is surging throughout the world, including in the United States, which is still being hit hard by the Delta variant, too. New cases in the United States are up more than 20% from two weeks prior.

There is strong evidence that financial challenges for low-wage workers are both reducing vaccination rates and hindering the success of COVID mitigation strategies. With soaring budget surpluses and plenty of unspent American Rescue Plan Act (ARPA) funding available, states should invest in paid sick and family leave, financial support to low-wage workers, and active vaccination efforts to protect lives and public health.

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An economic recovery for whom?: Black women’s employment gaps show important differences in recovery rates

Public discussions about the U.S. economic recovery fail to adequately portray the vastly uneven recovery that has been occurring since pandemic shutdowns began. Black women, who are pushed to the periphery of policymaking priorities, are among those whose experiences are most obscured by headline statistics.

The employment-to-population ratio (EPOP) of Black women in their prime working years (ages 25 to 54) in the past year is still 3.4 percentage points below their rate one year before the pandemic began, compared with 2.3 percentage points for all other women and 1.9 percentage points for white women. There are currently roughly 257,700 fewer employed prime-age Black women than a year before the pandemic. If Black women’s EPOP remained at their pre-pandemic level, there would over 312,500 more employed Black women due to population growth. Furthermore, the employment gap varies significantly across the country’s nine Census divisions. Black women in the Mountain, New England, and East North Central divisions suffer the biggest gaps in their employment ratios, ranging from an astonishing 10.7 percentage points in the Mountain division to 4.9 percentage points in the East North Central division.

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EPI’s top charts of 2021

The economic fallout from the COVID-19 pandemic exposed a range of stark inequalities in American society. Besides highlighting these inequalities, EPI’s research over the past year has identified the clear fingerprints of intentional policy decisions in driving the inequalities.

Building a better and fairer economy in the pandemic’s wake will require a fundamental reorientation of economic policy along many dimensions. While 2021 has seen a decent start in some of this reorientation, much more remains to be done. Here are the charts that we selected as our top ones of 2021.

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OSHA vaccine-or-test mandate is smart public policy

The Occupational Safety and Health Administration (OSHA) has proposed an emergency temporary standard (ETS) for employers to cope with the health dangers posed by COVID-19. The centerpiece of the ETS is a vaccine-or-test mandate for employees working at firms with over 100 employees to be vaccinated against COVID-19. The mandate is good public policy: it will reduce deaths and hospitalizations, and it will also increase economic growth and reduce the main inflationary pressures facing the U.S. economy.

The proposed ETS has spurred a large legal battle and its eventual fate is uncertain, even though exemptions for religious and health reasons are possible, and a version of these standards is already in effect for federal government employees, government contractors, and health care workers. In early November, the U.S. Court of Appeals for the Fifth Circuit stayed the ETS pending judicial review. However, over this past weekend, the stay was removed by the court with current jurisdiction over the case (the U.S. Court of Appeals for the Sixth Circuit).

The lifting of the ETS stay is welcome news. The vaccine-or-test mandate is a key plank in an effective public health response to the continuing havoc wreaked by COVID-19. For example, a recent paper examining the introduction of vaccine mandates at the provincial level in Canada, France, and Germany found “that the announcement of a mandate is associated with a rapid and significant surge in new vaccinations (more than 60% increase in weekly first doses)…” Higher vaccination rates will contribute meaningfully to reducing deaths and hospitalizations from COVID-19.

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Top five EPI blog posts of 2021

In 2021, many readers were looking to make sense of worries around potential labor shortages, despite little evidence that shortages in leisure and hospitality that popped up would spill over into the rest of the economy.

Aside from interest in labor shortages, what also got the attention of our readers was a post on how to fix the H-1B visa program, an important program that allows U.S. employers to hire college-educated migrant workers.

In addition, we saw a focus on the importance of state-level policy change amid federal inaction on a number of issues. Some states raised their own minimum wage above the federal level, included undocumented immigrants in critical pandemic aid, and extended unemployment benefits to school workers during the summer.

Here’s a countdown of the five most-read EPI blog posts in 2021. 

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Top EPI reports of 2021 focused on economic injustice and its remedies

As the nation pivoted to recovery, readers sought information on ways to remedy the economic injustices laid bare by the pandemic. Given the heavy burden borne by low-wage front-line workers, it is no surprise that raising wages, boosting worker power, and scrutinizing excessive compensation of people at the top were highest on the reading list. Here’s a countdown of EPI’s most-read reports in 2021.

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Wage inequality continued to increase in 2020: Top 1.0% of earners see wages up 179% since 1979 while share of wages for bottom 90% hits new low

Key numbers:

  • In 2020, annual wages rose fastest for the top 1.0% of earners (up 7.3%) and top 0.1% (up 9.9%) while those in the bottom 90% saw wages grow by just 1.7%.
  • The top 1.0% earned 13.8% of all wages in 2020, up from 7.3% in 1979.
  • The bottom 90% received just 60.2% of all wages in 2020, the lowest share since data began in 1937 and far lower than the 69.8% share in 1979.
  • Over the 1979–2020 period:
    • Wages for the top 1.0% and top 0.1% skyrocketed by 179.3% and 389.1%, respectively.
    • Wages for the bottom 90% grew just 28.2%.

Newly available wage data from the Social Security Administration allow us to analyze wage trends for the top 1.0% and other very high earners as well as for the bottom 90% during 2020. The upward distribution of wages from the bottom 90% to the top 1.0% that was evident over the period from 1979 to 2019 was especially strong in the 2020 pandemic year, yielding historically high wage levels and shares of all wages for the top 1.0% and 0.1%. Correspondingly, the share of wages earned by the bottom 95% fell in 2020.

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Job openings rose and quits fell in Job Openings and Labor Turnover Survey for October

Below, EPI senior economist Elise Gould offers her initial insights on today’s release of the Job Openings and Labor Turnover Survey (JOLTS) for October. Read the full Twitter thread here.

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State attorney general addresses extreme underpayment of immigrant detainees: A snapshot of state and local enforcement actions to protect workers

Series: The New Labor Law Enforcers

State attorneys general, district attorneys, and localities like cities are increasingly key players in protecting workers’ rights. This new series by Terri Gerstein provides snapshots of enforcement and other actions to protect workers’ rights by these new and emerging labor law enforcers at the state and local level. Gerstein is an EPI senior fellow and director of the state and local enforcement project at the Harvard Labor and Worklife Program, who has chronicled the growing influence of these new enforcers.  

Recent cases brought by state and local enforcers address a host of violations. These include extreme underpayment of immigrant detainees; failure to pay overtime or provide paid sick leave to home health aides; unsafe working conditions at Amazon; failure to provide hotel workers with advance notice of a jobsite closure; and underpayment of construction workers on a public university building. State and local enforcers also weighed in on federal policy issues, sending a letter to the Department of Homeland Security (DHS) about how DHS enforcement could facilitate labor protections, and announcing the resolution of a lawsuit challenging a Trump-era rule weakening tipped workers’ rights. 

Here’s a snapshot of some enforcement actions across the country:

Protecting the labor rights of immigrant detainees in Washington: The Washington State Attorney General’s Office in late October obtained a unanimous federal jury verdict determining that GEO Group, a for-profit prison company, violated state minimum wage laws by paying immigrant detainees as little as $1/day. The company owes workers over $17 million in back wages, plus $5.9 million in unjust enrichment restitution, for a total exceeding $23 million.

Ensuring paid sick leave and overtime pay for 12,000 home health aides in New York: On November 16, the New York State Attorney General and the New York City Department of Consumer and Worker Protection jointly announced an agreement resulting in recovery of up to $18 million for 12,000 home health aides. The case involved two large home health agencies that underpaid workers and failed to provide required paid sick leave. The agencies were jointly owned and operated as a single enterprise but failed to combine all hours worked (for both agencies) for purposes of calculating overtime pay.

Ensuring that Amazon notifies workers and public health agencies of COVID-19 cases in California: The California State Attorney General on November 15 announced a stipulated judgment with Amazon, based on the AG’s complaint alleging that the company failed to notify warehouse workers and local health agencies of COVID-19 case numbers. The judgment requires Amazon to modify its notifications to workers and local health agencies, submit to monitoring about these practices, and pay $500,000.

Recovering restitution for New York hotel workers laid off without required warning: On October 27, the New York State Attorney General announced the recovery of $2.7 million for 250 Westchester hotel workers who were laid off without the notice required by the state’s Worker Adjustment and Retaining Act (WARN Act), which requires employers with 50 or more employees to give 90 days of notice to workers and to the state labor department before a mass layoff.

Criminally prosecuting wage theft in Maryland: On November 5, the Maryland Attorney General announced the guilty plea of a labor broker in the office’s first criminal labor case. Workers performed public construction on a state university building and the payroll records appeared to be compliant with prevailing wage laws. But in reality, workers were required to kick back money to the labor broker each week. (Prevailing wage laws require contractors on government construction projects to pay workers on those projects at a rate higher than minimum wage, specifically, the wage and benefits that are commonly paid in the region for a given type of work. These laws ensure that contractors cannot gain an unfair advantage in bidding for government contracts by paying sub-par wages.)        

Advocating for workers in federal policy: On November 15, a coalition of 11 attorneys general and eight local labor enforcement agencies and prosecutors sent a letter to the Department of Homeland Security (DHS) supporting the agency’s plan to change its approach to worksite enforcement to support labor rights, and recommending changes to DHS policies and practices to facilitate the ability of state and local labor officials to enforce workplace laws. The letter was in response to a recent DHS memorandum to Immigration and Customs Enforcement (ICE), Customs and Border Protection (CBP), and U.S. Citizenship and Immigration Services (USCIS) calling on them to adopt practices and policies to deliver more severe consequences to exploitative employers and increase workers’ willingness to report violations of worker protection laws.

Lastly, on November 16, the attorneys general of Pennsylvania and Illinois announced the stipulated dismissal of a lawsuit filed by a multi-state attorney general coalition against the U.S. Department of Labor challenging a Trump-era rule that would have allowed employers to pay workers a lower “tipped” minimum wage for significant time spent doing non-tipped work. A new Biden administration regulation adopts the 80/20 rule, under which workers can be paid the tipped minimum wage only for tasks that directly support tipped work and take up no more than 20% of a worker’s time. In other words, the new regulation allows payment of the lower tipped wage only when the vast majority of their work generates tips. The new regulation removes the need for the attorney general lawsuit challenging the prior rule.  

Jobs report tells two different stories of the November labor market

Below, EPI economists offer their initial insights on the November jobs report released this morning.

From EPI senior economist, Elise Gould (@eliselgould):

Read the full Twitter thread here.

 

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