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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July 3
Unions seek a preliminary injunction to prevent USDA downsizing; the D.C. District Court issues a preliminary injunction against new student loan regulations; Matt Bruenig releases an analysis of Starbucks’ ongoing legal battle against Starbucks Workers United.
July 2
First Circuit denies federal worker unions’ mandamus petition; federal court denies preliminary injunction against new union reporting rule; House introduces the Securing Agriculture’s Workforce Act.
July 1
Trump nominates Keith Sonderling as Labor Secretary; DOL eliminates disparate-impact liability from Title VI regulations; OPM finalizes rule allowing suitability-based removal of federal employees for post-appointment conduct.
June 30
SCOTUS ends removal protections for agencies; staff at NYC cocktail bar vote to unionize.
June 29
In today’s News and Commentary, student-athletes file a class action suit challenging the NCAA’s new Age-Based Rule, a federal judge declines to issue a preliminary injunction against FEMA’s reduction in force but expedites proceedings, and Gavin Newsom opposes California’s proposed billionaire tax in favor of a federal approach. On Thursday, DeJuan Campbell, at basketball player […]
June 28
Philadelphia utility workers announce July 4 strike; national parks workers vote to unionize; Michigan considers “right to disconnect” bill.