Facing pressure from numerous states, the Obama administration yesterday announced that it would delay implementation of a plan to “extend minimum-wage and overtime protections to the nation’s nearly two million home-care workers,” according to the New York Times. The plan had originally been slated to take place on January 1, 2015; instead, the Department of Labor said that it would not enforce it before July 1, and would do so only discretionally until January 1, 2016. Some states are facing sharply increased costs under the new rule, and have called for more time to prepare. California, for example, has said that its costs will exceed $600 million per year. However, advocacy groups criticized the decision to delay the plan. As the Times notes, the “new rule ends a 40-year-old exemption from federal wage laws that treated these workers as companions, like babysitters, who did not qualify.”
The Los Angeles Times reports that Joe Biden appeared in Los Angeles with Mayor Eric Garcetti on Tuesday, offering support for the Mayor’s plan to raise the city’s minimum wage to $13.25 per hour by 2017. The Vice President said that such wage increases represent the “bare minimum that we should be doing to re-establish economic growth in this country.” Meanwhile, members of the L.A. city council are pushing for an even more aggressive plan, one that would raise the minimum wage to $15.25 per hour by 2019.
The Wall Street Journal reports that Wal-Mart, citing rising costs under the Affordable Care Act, will cut health-insurance coverage for over 30,000 part-time workers working less than 30 hours per week. The company also announced that it would raise premiums for all workers, including a 20% increase for its cheapest and most popular plan. Wal-Mart is just the latest large retailer to make changes of this sort: both Target and Home Depot last year ended coverage for part-time workers.
In international news, the Department of Labor released a report on Tuesday that says that worldwide, around 168 million children ages 5-7 worked as laborers last year, “about half of them in hazardous jobs.” The Associated Press reports that U.S. Secretary of Labor Thomas Perez said that countries in the West should be doing more to combat these practices: “We are seeing more countries take action to address the issue, but the world can and must do more to accelerate these efforts.” The U.S. currently denies some trade benefits to those countries with the worst child labor practices.
Daily News & Commentary
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December 22
Worker-friendly legislation enacted in New York; UW Professor wins free speech case; Trucking company ordered to pay $23 million to Teamsters.
December 21
Argentine unions march against labor law reform; WNBA players vote to authorize a strike; and the NLRB prepares to clear its backlog.
December 19
Labor law professors file an amici curiae and the NLRB regains quorum.
December 18
New Jersey adopts disparate impact rules; Teamsters oppose railroad merger; court pauses more shutdown layoffs.
December 17
The TSA suspends a labor union representing 47,000 officers for a second time; the Trump administration seeks to recruit over 1,000 artificial intelligence experts to the federal workforce; and the New York Times reports on the tumultuous changes that U.S. labor relations has seen over the past year.
December 16
Second Circuit affirms dismissal of former collegiate athletes’ antitrust suit; UPS will invest $120 million in truck-unloading robots; Sharon Block argues there are reasons for optimism about labor’s future.