Following President Obama’s State of the Union address on Tuesday, Politico took a look into one policy proposal in particular: wage insurance. This is not the first time President Obama has made this suggestion; wage insurance was included in a 2011 jobs bill and again in a job retraining package Obama offered in his 2012 State of the Union address. The 2012 scheme focused on workers ages 50 and over, and provided that wage insurance would compensate workers who lost their jobs and found new ones that paid less (as long as the new salary was less than $50,000). Generally, wage insurance is thought to provide an alternative to job retraining, supplementing lower salaries for people who have lost their jobs and found new ones.
Lydia DePillis at the Washington Post analyzed the drop in union density over the past few years, and its impact on the American middle class. According to a Center for American Progress report, the decrease of union coverage accounts for about 35% of the declining size of the middle class. The study shows that lower union membership leads to fewer people earning stable, middle-class incomes. Critics argue that studies like this confuse correlation with causation, but CAP senior fellow David Madland argues this study is especially effective at proving causation, and that lower union membership renders unions less able to pull people up into the middle class.
Another celebrity chef has joined the no-tipping movement: David Chang, founder of Momofuku, the famous New York noodle bar, and its affiliates. A couple of months ago, the New York Times reported that Danny Meyer would begin a “hospitality included” policy in 13 of his New York restaurants and bars. You can also read Professor Sachin Pandya’s take on some of the merits of a no-tipping policy in his November guest post here. Now, according to the Huffington Post, Chang is implementing a no-tipping policy in his new Manhattan restaurant Nishi. He explained in his magazine earlier this week, “Bottom line is we want to pay sous chefs, cooks, and dishwashers a living wage.” He went on to say, “And if it doesn’t work, we can always go back to the old way.”
Daily News & Commentary
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February 1
The moratorium blocking the Trump Administration from implementing Reductions in Force (RIFs) against federal workers expires, and workers throughout the country protest to defund ICE.
January 30
Multiple unions endorse a national general strike, and tech companies spend millions on ad campaigns for data centers.
January 29
Texas pauses H-1B hiring; NLRB General Counsel announces new procedures and priorities; Fourth Circuit rejects a teacher's challenge to pronoun policies.
January 28
Over 15,000 New York City nurses continue to strike with support from Mayor Mamdani; a judge grants a preliminary injunction that prevents DHS from ending family reunification parole programs for thousands of family members of U.S. citizens and green-card holders; and decisions in SDNY address whether employees may receive accommodations for telework due to potential exposure to COVID-19 when essential functions cannot be completed at home.
January 27
NYC's new delivery-app tipping law takes effect; 31,000 Kaiser Permanente nurses and healthcare workers go on strike; the NJ Appellate Division revives Atlantic City casino workers’ lawsuit challenging the state’s casino smoking exemption.
January 26
Unions mourn Alex Pretti, EEOC concentrates power, courts decide reach of EFAA.