Today Amazon announced that it would raise the minimum wage for its U.S. employees to $15.00/hour. These wage increases will apply to more than 250,000 Amazon employees, including those working at grocery chain Whole Foods, as well as over 100,000 seasonal employees. The company has come under fire for its working conditions, particularly in its fast-paced fulfillment centers; in recent years, Amazon has faced lawsuits alleging that the company uses contract employees to avoid labor costs and workplace regulations. The wage increases announced today will apply to part-time and contract employees.
Amazon’s announcement comes on the heels of minimum wage hikes throughout the country, including in Seattle. On Monday the Seattle Office of Labor Standards announced that companies employing 500 or more workers worldwide would need to pay their employees at least $16.00/hour. This marks the end of a two-tier system under which employers who contributed toward medical benefits paid a lower minimum wage than those that did not.
According to a new working paper published this month by the National Bureau of Economic Research, increases in minimum wage reduce criminal recidivism for property and drug crimes. Researchers examined data from over six million released prisoners to identify the effect of higher minimum wages and the availability of state Earned Income Tax Credits on recidivism rates. Their findings implied that by increasing potential legal wages relative to illegal sources of income, higher wages attract released prisoners to the legal labor market more than they reduce employment in that population.
While the cost of employee wage increases is offset by corporate tax cuts, the Wall Street Journal reports that only a fraction of these savings are actually going to employees. A nonprofit tracking companies that have announced spending plans for their corporate tax savings found that while 80% are passing some of those savings onto workers, only 7% of these savings are going to workers in the form of wage increases, bonuses, benefits, training or retirement contributions. Meanwhile, a survey of 152 companies by an executive recruitment firm revealed that just 14% were funneling any part of their tax-cut savings into base salary increases.
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August 4
Trump fires head of BLS; Boeing workers authorize strike.
August 3
In today’s news and commentary, a federal court lifts an injunction on the Trump Administration’s plan to eliminate bargaining rights for federal workers, and trash collectors strike against Republic Services in Massachusetts.
August 1
The Michigan Supreme Court grants heightened judicial scrutiny over employment contracts that shorten the limitations period for filing civil rights claims; the California Labor Commission gains new enforcement power over tip theft; and a new Florida law further empowers employers issuing noncompete agreements.
July 31
EEOC sued over trans rights enforcement; railroad union opposes railroad merger; suits against NLRB slow down.
July 30
In today’s news and commentary, the First Circuit will hear oral arguments on the Department of Homeland Security’s (DHS) revocation of parole grants for thousands of migrants; United Airlines’ flight attendants vote against a new labor contract; and the AFL-CIO files a complaint against a Trump Administrative Executive Order that strips the collective bargaining rights of the vast majority of federal workers.
July 29
The Trump administration released new guidelines for federal employers regarding religious expression in the workplace; the International Brotherhood of Boilermakers is suing former union president for repayment of mismanagement of union funds; Uber has criticized a new proposal requiring delivery workers to carry company-issued identification numbers.