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Recent Blog Posts
Study Highlights Gap Between Living and Minimum Wage
As stories of fast-food industry workers protesting for higher wages continue to hit headlines around the country, a recent study suggests that such demands may be founded on at least a kernel of truth. Claims have abounded for decades that the federal and state minimum wages could not produce a sufficient income on which to live and raise a family. Researchers have developed a method to quantify exactly what constitutes a living wage for a particular area of the country, and, comparing that to the minimum wage currently in place, establishing a dollar measurement of the gap between the two.
Cost of Living
Amy Glasmeier is a professor of economic geography at the Massachusetts Institute of Technology, better known as MIT. She and a team of researchers developed what they call the Living Wage Calculator designed to take into account various financial, governmental, and tax factors at work in an area to determine a fairly precise cost of living. Applying the calculator to the entire country, Glasmeier found serious discrepancies between the amount per hour required to live and raise a family and the minimum hourly wage in nearly every region of the nation.
Teen Takes Down Prof’s Theory of Irish Discrimination Myth
With the power of the internet and the determination to find answers, a Washington, D.C. girl challenged the work of a retired history professor regarding the prevalence of employment discrimination against Irish immigrants from the mid-19th century into the 20th century. What started with a Google search ultimately lead to the teen’s findings being published in the same journal that carried the historian’s thesis more than a decade ago.
An Urban Legend?
The professor, Richard Jensen, retired from the University of Illinois at Chicago, published a research project in 2002 that concluded that claims of victimhood for Irish Americans were overstated, and the that the now semi-iconic “No Irish Need Apply” signs rarely, if ever, graced the windows of establishments looking to hire help. In his research, Jensen found only a handful of examples of such blatant discrimination, either in shop windows or in printed want-ads. He determined that the myth of prejudice against the Irish was based on misperception and exaggeration, and perpetuated by popular drinking songs and lore.
Ridesharing Service Blurs the Line Between Employees and Contractors
As a business owner, you are most likely very aware that the misclassification of your workers as either employees or independent contractors can have a dramatic impact on your company. If done incorrectly, you could be facing serious fines and penalties imposed by the IRS. Rarely, however, do such concerns get played out on a national stage, but over the last few months, the ridesharing provider Uber has faced a large concerns regarding the employment status of its drivers.
In early June, the California Labor Commissioner’s Office found in favor of a former Uber driver who claimed that the San Francisco-based tech company owed her more than $4,000 for unreimbursed business expenses. The ruling, although limited to the driver’s case alone, essentially declared that she was employee of Uber, and therefore, eligible for the reimbursement. Uber maintains that those who drive for the company are independent contractors.
Off-Duty Marijuana Use Not Grounds to Deny Unemployment Benefits
As a business owner, you have the right to create workplace policies that encourage a safe and productive work environment. For many employers, this means a complete ban on alcohol and controlled substances on the job. The use of drugs or alcohol while working can be extremely dangerous, and, in a large number of companies, grounds for severe discipline up to and including termination. Recreational use away from the workplace, however, is a different story, at least according to a recent Illinois appellate court decision.
Marijuana While on Vacation
The lawsuit before the appeals court was based on the denial of unemployment benefits to man who verbally acknowledged the use of marijuana on personal time. His case, Eastham vs. Housing Authority of Jefferson County, claimed that he was wrongfully denied unemployment compensation, as his marijuana use did not violate his employer’s drug-free workplace policy.
Employee Handbooks and At-Will Employment
As a business owner, staffing your company properly is one of the keys to success. Your employees not only help you provide goods or services to your customers, they are also a representation of your company, both on and off the clock. To ensure that employees are living up to the expected standards, many employers will draft an employee handbook which addresses a staff member’s rights and responsibilities. As you develop a handbook, however, there some things you should keep in mind that can help you protect your company.
Illinois At-Will Employment
In Illinois, as in just about every state, employment relationships are presumed to be “at-will,” meaning that either party may end the relationship at any time and for any reason, other than those prohibited by law, or no reason. Of course, there may economic or reputation-related consequences that result from terminating employment unfairly, but, with certain exceptions, there is no legal liability incurred.
Thousands Swarm McDonald’s Headquarters over Wages
Earlier this week, protesters from as far as New York City descended upon the Oak Brook headquarters of McDonald’s pushing for increases in the wages for front-line workers. This protest is the latest in an ongoing push among fast-food workers toward raising the minimum wage and the quality of life for employees in the nation’s restaurants.
According to reports, organizers were expecting a turnout of more than 5,000 participants, many of whom currently work for the fast-food giant. Oak Brook police estimated that about 2,000 people participated in Wednesday’s demonstration that was held one day before the company’s annual shareholder meeting. A similar protest was held last year about the same time, which led to the arrest of more than 135 people for trespassing.
Ban the Box Law Now Effective in Illinois
People sometimes make mistakes and bad decisions. For some, the impact of those bad decisions can last for many years, especially when such decisions are related to illegal activity. A criminal history, especially one with certain types of charges or convictions, can be difficult to overcome, even if the individual has successfully committed to a new, positive lifestyle. A new law in Illinois, known as a “Ban the Box law,” however, may offer job-seekers some assistance in this area, possibly making it easier to find employment and improve their lives.
Signed into law in July of 2014, and taking effect at the beginning of this year, the state’s Ban the Box measure is officially titled the Job Opportunities for Qualified Applicants Act. The colloquial name “Ban the Box” refers to requirements based on legislation of this type to remove of a “box” from employment applications asking whether the applicant has ever been convicted of a crime. Lawmakers and proponents of such laws have indicated that banning the box can reduce the likelihood that an applicant will be immediately removed from consideration for a job based on a criminal history without first considering other qualifications.
Future Uncertain for Illinois Minimum Wage Increase
In recent months, lawmakers in Illinois have begun a serious push for raising the state’s minimum wage by nearly three dollars over the next two years. As one of 29 states with a minimum wage above the $7.25 per hour required by federal law, the minimum wage in the state is $8.25 per hour. With public pressure mounting, however, members of the Illinois legislature have proposed plans which would increase minimum wage to $11.00 per hour by July 1, 2017.
Illinois residents also had the opportunity in November to express their opinion on Election Day by means of an advisory question on the general election ballot. The advisory measure was approved by a margin of more than two to one, with nearly 64% of voters expressing their support of raising the minimum wage to $10.00 per hour in 2015.
Overtime, Productivity, and the 40-Hour Work Week
When most people think about the requirements of a full-time job, they typically envision the average eight hour day and a resulting 40-hour week. Recent economic trends, however, are quickly proving that image to be no longer true. In fact, a recent Gallup study suggests that half of all full-time workers in the United States work more than 40 hours per week, and almost 40 percent work 50 hours or more. While expectations for longer work days and weeks are becoming increasingly common in many jobs, there are indications that putting in all the overtime may not actually be worth it.
In 1926, Henry Ford was the first prominent American business owner to experiment with a new expectation for his employees. After years of research within his company and against the recommendations of his contemporaries, Ford made the drastic decision to increase his workers’ wages while reducing the length of a standard work day to eight hours. The years that followed for the Ford Motor Company were among the most successful of any company in the country’s history, and unsurprisingly, other business owners took notice, making similar changes within their own organizations.
Independent Contractors or Employees?
For a small business owner, one of the most important decisions he or she must make is how to acquire the help needed to run the company. An owner must choose between hiring employees, utilizing independent contractors, or some combination of both. It is very important to understand the difference between employees and independent contractors, as each classification carries with it different requirements and responsibilities.
According to labor and tax regulations, there is no single standard for determining employee or contractor status. There are, however, a number of factors which, when weighed together, may offer some clarification to an individual’s classification. The Internal Revenue Service (IRS) has divided the relevant considerations into three basic categories:
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