A new Economic Policy Institute report finds that workers in “right-to-work” (RTW) states are paid 6.7% less on average than workers in non-RTW states, more than double the 3.2% wage penalty found in similar research a decade ago. The wage penalty translates to over $4,000 less per year for a median full-time worker in a RTW state and is even steeper for women (7.3%), Black (9.7%), and Hispanic workers (10.0%).    

The report is accompanied by an FAQ that answers common questions about the economic impacts of RTW laws and their racist, anti-union origins dating back to the 1940s. Despite their name, RTW laws provide no job protections or job rights—instead, they weaken unions’ ability to negotiate fair contracts and represent workers effectively. Unionization rates are clearly lower in the 26 states with RTW laws—and since unions raise wages for all workers, that suppression lowers pay and benefits for all workers.   

States with RTW laws are also more likely to have other anti-worker laws and generally weaker labor standards, according to the report. This is likely because both RTW and other anti-worker policies stem from the same anti-worker political roots, and because RTW’s suppression of unions deprives these states of strong potential political champions—organized labor—for other pro-worker policies.   

By contrast, non-RTW states are more likely to have pro-worker policies like higher minimum wages and prevailing wage laws, restrictions on noncompete agreements, pay transparency policies, and more protective unemployment insurance benefits. 

The analysis suggests that repealing anti-union RTW laws and enabling workers to increase unionization levels are key to raising wages. 

“The evidence is clear: wages are lower in ‘right-to-work’ states. Despite the misleading label, ‘right-to-work’ laws don’t boost job growth but do make it harder for workers to form and sustain strong unions. States with ‘right-to-work’ laws have lower unionization rates and more anti-worker policies,” said EPI senior economist Elise Gould.  

“Unions are extremely popular today, and a recent survey suggests 56 million workers would join a union tomorrow if they could. Yet many can’t get one because of weak federal labor law and the spread of state anti-union ‘right-to-work’ laws. It’s critical that lawmakers restore workers’ collective bargaining power by removing ‘right-to-work’ laws and other obstacles to unionization,” said Jennifer Sherer, deputy director of EPI’s Economic Analysis and Research Network.