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
Start your day with our roundup of the latest labor developments. See all
September 15
Unemployment claims rise; a federal court hands victory to government employees union; and employers fire workers over social media posts.
September 14
Workers at Boeing reject the company’s third contract proposal; NLRB Acting General Counsel William Cohen plans to sue New York over the state’s trigger bill; Air Canada flight attendants reject a tentative contract.
September 12
Zohran Mamdani calls on FIFA to end dynamic pricing for the World Cup; the San Francisco Office of Labor Standards Enforcement opens a probe into Scale AI’s labor practices; and union members organize immigration defense trainings.
September 11
California rideshare deal advances; Boeing reaches tentative agreement with union; FTC scrutinizes healthcare noncompetes.
September 10
A federal judge denies a motion by the Trump Administration to dismiss a lawsuit led by the American Federation of Government Employees against President Trump for his mass layoffs of federal workers; the Supreme Court grants a stay on a federal district court order that originally barred ICE agents from questioning and detaining individuals based on their presence at a particular location, the type of work they do, their race or ethnicity, and their accent while speaking English or Spanish; and a hospital seeks to limit OSHA's ability to cite employers for failing to halt workplace violence without a specific regulation in place.
September 9
Ninth Circuit revives Trader Joe’s lawsuit against employee union; new bill aims to make striking workers eligible for benefits; university lecturer who praised Hitler gets another chance at First Amendment claims.