Overtime
Working people need a raise. Families are struggling to pay the bills. Middle class people have helped corporations rack up record profits, but we are not sharing in the benefits.
New overtime eligibility rules proposed by the Obama administration in May 2016 would give millions of working people either a pay raise or more time to spend with their families (without a cut in pay). According to the Labor Department, the rule would extend overtime eligibility to 4.2 million working people and make it harder for employers to misclassify another 8.9 million people who are already eligible for overtime.
Restoring overtime is necessary to ensure that working people get paid for all the hours we work. One of the reasons why paychecks keep falling behind is because too many people can be forced to work overtime at no extra pay. Under the rules proposed by the Obama administration, more people would get paid time-and-a-half whenever they work more than 40 hours in a week.
The new eligibility rules would restore overtime protections that have been eroded since 1975. The whittling away of overtime protections is one of the ways the rules of our economy have been rewritten to favor corporations over middle class families. Even with these new rules, the share of salaried working people who are automatically eligible for overtime pay (regardless of their job duties) would be lower than it was in 1975.
The erosion of overtime protections has denied millions of people overtime pay and time away from work to spend with their families, and has weakened the incentive for employers to hire more people to spread the work.
What’s Happening with Overtime in 2017 under a Donald Trump Presidency?
In a shocking decision, a U.S. district court judge in the Eastern District of Texas ruled in November 2016 to deny overtime protection for millions of America’s working people by blocking the new federal overtime eligibility rules, which were scheduled to take effect on December 1, 2016. The Texas AFL-CIO has asked to join this litigation to defend the new overtime regulation.
It is unclear if President Donald Trump and his labor secretary nominee Alexander Acosta will defend the new overtime eligibility rules, but early signals from the administration are not encouraging.
The AFL-CIO and working people in unions remain committed to restoring overtime protections for working people and will fight any attempt to take away overtime protection or make it harder for working people to earn fair wages.
The AFL-CIO also calls upon our elected officials in the U.S. Congress to oppose any bill that would weaken or delay overtime protection.
Full and Fair Employment
People call it a lot of different things—the gig economy, sharing economy, 1099 economy—but one thing is definite: While the technology powering companies like Uber and TaskRabbit may be new and pretty cool, the way these big Silicon Valley “start-ups” treat people who work for them is pretty old-school and really not cool.
For as long as we’ve had laws protecting and giving rights to “employees”, bosses have looked for ways to get out of obeying the law is simply calling the people who work for them “independent contractors”, shifting all of the costs and risks of doing business onto their backs—and making it illegal for them to unionize—while the bosses walk away with fat pockets and $60 billion valuations. They did it to newsies way back in the day, and now they’re doing it to the hundreds of thousands of folks looking to make ends meet through this “new” economy. That means your Lyft driver or Postmates courier may be making less than minimum wage, subsidizing their bosses by paying for their own commercial car insurance, and might not be covered by workers’ compensation if they’re hurt on the job. And if they try to form a union, they could be sued by their billionaire bosses.
The labor movement has always believed that all people should be treated with dignity and respect, have safe working conditions, and be paid a fair share of the value they create. While we believe that many people who work in the gig economy are legally employees and should be covered by existing laws, we also believe that all people who work, no matter what their bosses call them, deserve the exact same protections and rights—including the right to join a union.
What is the On-Demand Economy?
The “On Demand Economy” is made up of companies such as Uber, Lyft and Task Rabbit that use digital platforms and digital networks to provide labor services to customers. The people who work for these companies are known as “On Demand workers” or the “On Demand workforce.” Some On Demand companies treat people who work for them as employees, but most treat them as independent contractors. The “On Demand Economy” also includes companies such as Airbnb that use digital capital platforms and digital networks to rent things. Because the “On Demand Economy” is made up of both digital labor platforms and digital capital platforms, it is sometimes called the “Platform Economy.”
The term “Gig Economy,” by contrast, means different things to different people. To some, it just means the “On Demand Economy,” which is still very small. To others, it includes the much larger group of people who do other kinds of insecure work—such as temporary employees, part-time employees, employees supplied by contract firms, on-call employees, and legitimate independent contractors—but have no connection to digital platforms. The lack of an agreed definition makes this term confusing.
The “On Demand Economy” is also tiny compared to the much larger “digital economy,” which encompasses all economic transactions conducted via computers and smart phones. The “digital economy” includes online marketplaces such as Craigslist.com.
Why is the On-Demand economy a labor issue?
The labor movement is committed to raising wages and living standards for all people, including people who work in the "On Demand" economy and other insecure areas such as temporary employees and part-time employees. All people deserve a decent job with decent wages and benefits, strong labor standards, protection against discrimination, workplace safety and union representation.
The current trend of wage stagnation and economic inequality is unsustainable and threatens future economic growth. To restore balance to our economy, we must ensure that emerging forms of work be decent jobs and that people who work in emerging sectors of the economy can join together with their co-workers to negotiate together to improve their lives. If the On Demand workforce and other kinds of insecure work continue to grow, as expected, it will be increasingly important to guarantee rights and protection for these people. We should not allow or encourage businesses to treat their employees as independent contractors in the On Demand economy or anywhere else because this weakens working people's ability to negotiate, lowers labor standards for all working people, and puts good employers at an unfair disadvantage.
How can we use technology to empower working people?
We embrace technological progress and innovation because they make it possible for us to become more prosperous as a society. The gains from technological progress can be broadly shared—as they were throughout the postwar period—but they have not been broadly shared for the past 35 years. We must make smart policy choices to ensure that the gains from progress are once again shared by the many, not just the few. New technologies have always shaped the nature of work, but technology must not be used as an excuse for old-style injustice.
Technology has the potential to connect people and enable them to engage in collective action in new and creative ways. Moreover, working people who were once isolated from one another—such as people who work in the domestic and home care areas—may find new opportunities to negotiate together with the digital platform companies that employ them.
New technologies will make it easier and less costly to monitor compliance with labor standards. New software also offers the possibility of scheduling work hours to prioritize the needs of working people, while still meeting the legitimate needs of employers and consumers.
How can we ensure decent benefits for all working people, regardless of how they work?
All people, regardless of their employment status, should have health benefits that allow them and their family members to get the medical care they need when they need it, be able to look forward to a comfortable and secure retirement, and be protected against the financial risks that are difficult and costly to deal with on their own. To this end, we should ensure that all working people are covered by a strong system of benefits and protections that move with them from job to job. One solution is to broaden and strengthen coverage under existing portable benefits programs such as Social Security, Medicare, Medicaid, Unemployment Compensation, and Workers’ Compensation.
The Affordable Care Act’s (ACA) guaranteed right to buy private health insurance and financial assistance to help pay premiums for individual coverage for people not offered affordable health insurance through their work are another way in which we have addressed the need for portable benefits. Currently, all of these portable benefits are under attack. Another solution is to deliver portable benefits through non-governmental systems, but experience shows that these mechanisms are only sustainable when working people can exercise collective negotiating power and the businesses for which they work contribute towards the funding of benefits.
Collectively bargained health, retirement, and other benefit plans that cover highly mobile construction workers and entertainers, such as actors and musicians, are examples of highly successful non-governmental portable benefit systems. A critical step towards making portable benefits feasible is therefore to ensure that employers treat the people who work for them as employees and engage in collective bargaining with employee representatives. The need for portable benefits must not be used as an excuse to give employers a “safe harbor” to misclassify their employees as independent contractors, or to otherwise make it easier for employers to misclassify.
Family Leave
Everyone knows—family comes first. Whether it’s for that newborn you swear already smiles, your elderly mom or your spouse nursing an injury, being there and providing for family isn’t negotiable. And sometimes your most important job is being at home with family.
That’s why the Family and Medical Leave Act, known as FMLA, which allows working people who are eligible to take 12 weeks of unpaid leave to care for family, is an important first step towards a better work/life balance.
What is the FMLA?
Eligible working people can take unpaid leave while their job is protected for specified family and medical reasons and keep health coverage.
The U.S. Department of Labor enforces the FMLA.
Am I Eligible for FMLA Leave?
The FMLA applies to all private-sector employers with 50 or more working people and to all public agencies—state, local and federal.
To be eligible for leave under the act, you must have worked for the same covered employer for a total of 12 months and must also have worked for a total of 1,250 hours or more in the previous 12 months. You also must work at a location in the United States or in any territory or possession of the United States where at least 50 employees are employed by the employer within 75 miles.
Who Can Take FMLA Leave?
You may take leave for the birth and care of a newborn; for adoption or foster care of a child; to care for an immediate family member (spouse, child or parent) with a serious health condition; or for your own serious health condition. If you qualify for FMLA, your employer cannot fire you for taking leave.
The Department of Labor has more information on FMLA if you have further questions.
Why FMLA Isn't Good Enough
While the FMLA is an important step forward, 40% of people are not eligible for FMLA. They either work for an employer with 50 or fewer employees, didn’t work enough hours or simply can’t afford to go without pay for 12 weeks.
Even for two-income families 12 weeks without pay for the birth of a new child or an adoption or caring for a sick family member could make it impossible to pay the bills.
That’s why we support an expanded, paid FMLA for all working people.
What Could Make FMLA Better for Working People?
Congress should build upon the FMLA to expand the number of covered working people, address more family need, and create a paid family and medical leave insurance program.
It should also pass legislation to guarantee working people paid time to get routine medical care, recover from short-term illnesses and care for a sick family member.
Paid sick days makes FMLA practical. Read more about paid sick days.
Why Does the United States Lag in Paid Leave Compared to the Rest of the World?
The United States is one of three countries that doesn’t provide paid maternity leave for working women. Having a baby or adopting a child is a part of life for many U.S. families.
Parents should be able to spend time bonding with their child before returning to work and still afford to pay the bills and have job security.
Unfortunately big business interest and corporate lobbyists have halted making paid leave a reality.
But when working people come together as a team, we can can make sure everyone has paid maternity and parental leave so they can put their families first.
Maternity/Paternity Leave
Paid parental leave for parents welcoming a newborn into the family, is something people can negotiate with their employer when they have a union voice.
The Labor Project for Working Families has resources for shop stewards who are going to bargain family-friendly workplace policies.
Quality Education
A high-quality public education builds skills and knowledge and helps children reach their greatest potential. It fosters teamwork, critical thinking and problem-solving skills needed to land good jobs and help the United States compete in the global economy. We need to make sure all kids have access to equal resources, including computers, smaller class sizes, nurses, counselors and support staff.
But instead of investing in the comprehensive services and support our children deserve, politicians have taken money away from public schools to fund private school voucher programs and charter schools, which lack public accountability and oversight, and often fail to meet the educational and developmental needs of our most vulnerable children. The privatization of public schools, and attacks on the bargaining rights of public school teachers and personnel, are sold as altruistic and in the best interests of our children but if you scratch the surface and follow the money, you’ll find only empty promises for our children and fatter bank accounts for the wealthy.
Careers and Apprenticeships
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