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Long Hours and Low Pay Leave Workers at a Loss THE JOB GAP ECONOMIC PROSPERITY SERIES Long Hours and Low Pay Leave Workers at a Loss October 2015 By Allyson Fredericksen The Alliance for a Just Society’s mission is to execute regional and national campaigns and build strong state affiliate organizations and partnerships that address economic, racial, and social inequities. www.allianceforajustsociety.org The Alliance’s Job Gap Economic Prosperity series examines the ability of working families to move beyond living paycheck-to-paycheck in today’s econ- omy, seeking to understand both the barriers keeping families from achieving economic prosperity and what actions policymakers can take to help families and communities thrive. www.thejobgap.org ALLIANCEFORAJUSTSOCIETY.ORG 206.568.5400 3518 SOUTH EDMUNDS ST., SEATTLE, WA 98118 TABLE OF CONTENTS Executive Summary ............................................................................................5 Introduction ..........................................................................................................6 National Findings ................................................................................................8 State Findings .......................................................................................................13 California ................................................................................................................................................13 Connecticut ............................................................................................................................................15 District of Columbia ............................................................................................................................17 Florida ......................................................................................................................................................18 Idaho .........................................................................................................................................................19 Illinois ......................................................................................................................................................21 Louisiana .................................................................................................................................................22 Maine........................................................................................................................................................23 Massachusetts .......................................................................................................................................25 Michigan .................................................................................................................................................26 Montana ..................................................................................................................................................27 New York .................................................................................................................................................28 Oregon ......................................................................................................................................................30 Pennsylvania .........................................................................................................................................31 Texas .........................................................................................................................................................32 Virginia ....................................................................................................................................................33 Washington ............................................................................................................................................35 Recommendations ...............................................................................................36 Conclusion .............................................................................................................38 Technical Notes ....................................................................................................39 References .............................................................................................................43 In recent years, a number of cities have raised their minimum wage to $15 an hour, which is significantly above federal and state minimum wages. These changes have prompted debate around the country regarding what constitutes an adequate minimum. This report contributes to that conversation by providing living wage figures, finding that current minimum wage rates are far too low to meet individuals’ and families’ needs. Since 1999, the Alliance for a Just Society has produced Workers supporting families must earn even more. In Mas- an annual living wage report calculating the actual cost of sachusetts, for example, a single parent with two children living for households in selected states. For the first time must be paid $43.30 per hour to make ends meet. this year, the Job Gap Economic Prosperity Series includes When workers do not earn a living wage, they must either a living wage for all 50 states and Washington, D.C. find a way to work more hours or cut back on necessities. Our research finds that, although $15 per hour is signifi- Often, these are workers in important occupations that cantly higher than any minimum wage in the country, it others depend on, such as fast food and restaurant workers, is not a living wage in most states. A national living wage retail salespersons, child care workers, and more. Women for a single adult is actually $16.87 per hour, based on a and people of color, who are more likely to work in these weighted average of living wages across the country. occupations, are less likely than their peers to earn a living wage. In 35 states and in Washington, D.C., a living wage for a single adult is more than $15 per hour. In no state is a living Increasing the federal minimum wage to $15 an hour and wage less than $14.26 an hour. abolishing the tipped subminimum wage would move wages in the right direction, while unionization and en- The federal minimum wage of $7.25 per hour represents forcement of equal opportunity statutes will ensure that less than half of a living wage for a single adult and the fed- all workers have access to benefits and protections in the eral tipped subminimum wage of $2.13 per hour is less than workplace. a third of that the non-tipped minimum wage. A worker supporting only herself would have to put in 93 hours a At a minimum, working full-time should ensure financial week at the federal minimum wage to make ends meet, and stability. Such a change requires action on the part of elect- a tipped worker could have to work more hours than there ed officials. are in a week to support herself if tips are not enough to make up the difference. Alliance for a Just Society | The Job Gap Economic Prosperity Series 5 Recently, efforts have been growing to set a minimum wage of $15. From Seattle1 to Los Angeles2 to New York,3 lawmakers have adopted the $15 minimum to help families move beyond living paycheck to paycheck. Such a wage is significantly higher than state and federal minimums and would move families closer to a living wage. Continued progress would be needed to guarantee a living wage for all workers and families. Since 1999, the Alliance for a Just Society In the 16 states and Washington, D.C. has produced an annual living wage WHAT IS A where a living wage for other family report calculating what it actually costs LIVING WAGE? sizes was calculated, the living wage to make ends meet for households in for a single adult with two children selected states. For the first time this A living wage is one that allows ranges from $25.56 in Idaho to $43.30 families to meet their basic needs, year, the Job Gap Economic Prosperity without public assistance, and that in Massachusetts, and $44.17 in Series includes a living wage for all 50 provides them some ability to deal with emergencies and plan ahead. Washington, D.C. states and Washington, D.C. It is not a poverty or survival wage. In this report, living wages are Nowhere in the country can a family A living wage is the amount a full-time calculated on the basis of family with two children and two parents worker needs to be paid to make ends budgets for several household types. Family budgets include (who are both working) make ends meet, including having the ability to set basic necessities, such as food, meet if each working parent is paid money aside for savings and emergencies. housing, utilities, transportation, health care, child care, clothing less $17.85 per hour. In most of the In urban and rural states across the and other personal items, savings, and state and federal taxes. This country, it costs even more. country, the living wage is consistently assumes full-time work on a year- far higher than the minimum wage, and round basis. Often, it is the workers in occupations more than most people would guess. For more information, see the that other workers depend on, such Technical Notes section of this report. In 35 states and in Washington, D.C., the as fast food and restaurant workers, living wage for a single adult is greater retail salespersons, child care workers, than $15 per hour. No state has a living and more, who are paid low wages and wage for a single adult
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