08/26/2024 | News release | Distributed by Public on 08/26/2024 07:01
Photo Credit: Getty
Labor Day was established in the late 1800s to celebrate workers and their achievements. Back then, manual labor was the dominant type of work for average Americans, and 12-hour workdays and use of child labor were not uncommon. Since that Industrial Revolution era, with the technical innovations and increased wealth of all society, we all have much to celebrate in this post-modern world. But the 2024 labor world has its own particular problems. Here are the top five problems we face headed into the 2024 election and the new Congress that starts in January 2025.
#1- The once-hot jobs market has cooled
Bad news. This is a tough time to be a member of the workforce. Just a few years ago, the situation was much better. The unemployment rate got as low as 3.5 percent in December 2022. Employers fought over workers and wages, and benefits rose as a consequence. The market has since cooled, with unemployment rising to 4.3 percent currently.
The bad news for workers is that they no longer have their pick of jobs. The situation might even be worse than it appears. The Labor Department has been struggling to track the changes and has had to adjust its data more than once.
#2 - Taxes on tipping may be eliminated
Good news. Republican Presidential nominee Donald Trump and his Democratic opponent Vice President Kamala Harris agree on at least one thing: workers shouldn't have taxes on tips they receive from customers. The proposals haven't been fleshed out by either party, so some questions linger, but overall it's a good idea. It will put money directly into the pockets of lower income workers without raising costs for businesses or pushing inflation upwards.
#3 - Anti-'Worker Misclassification' push threatens freelancing
Bad news. Both the Labor Department and the Federal Trade Commission have announced plans to crack down on alleged "worker misclassification," a move that will harm the ability of workers to freelance. Misclassification is when a business mislabels workers as contractors rather than traditional employees. This exempts the worker from coverage under several federal rules like overtime and the minimum wage. Critics charge the businesses do this to shirk their legal responsibilities. However, having a contractor status is what allows for flexible work schedules, so limiting the ability of employers to hire workers as contractors will undermine the ability of many freelancers to earn a living in their profession.
#4 - The NLRB Backs down on "joint employer" - for now
Good news. The National Labor Relations Board (NLRB), the federal agency that enforces union-related laws, is no longer challenging a district court ruling that struck down its 2023 so-called "joint employer" rulemaking. The court found that the agency exceeded its authority in issuing the rule. The joint employer doctrine refers to when one business can be held legally responsible for violations of the National Labor Relations Act at another business. Traditionally, this has required one business to have direct control over the other business, such as when one business is a subsidiary of a larger company. The NLRB sought to expand that to include "indirect control" - essentially whenever the agency says it happens. That would have been a major problem for businesses that franchise. Parent corporations would become more cautious about doing that since it exposes them to legal liability for anything the franchisee does. That would hinder a common means for entrepreneurs to get started in business.
#5 - The federal minimum wage debate returns
The federal minimum wage rate has been at $7.25 an hour since 2009, and Democratic Presidential nominee Kamala Harris has called for raising it to as high as $15 an hour. That's irrelevant for most workers, since average wages have risen on their own well past that. A total of 34 states, including Washington D.C., have their own minimums. Some are as high as $15 an hour, and California has a $20 minimum specific to the fast-food industry, a rate so high that it has cost workers jobs. In any event, the number of people working at the federal minimum wage level who are not students and young people living at home is vanishingly small. Raising the federal minimum to $15 would, in short, be a feel-good measure that wouldn't benefit most workers. But it would undercut employment for the very workers earning less than that now when employers cut back on hiring due to the sudden spike in labor costs.
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