Creating a so called “culture of compliance” among employers (Skidmore 1999: 435) is a low-cost strategy for facilitating the self-enforcement of minimum wage. This strategy implies the construction of persuasive arguments in favor of the minimum wage and the appeal to common values and beliefs such as, for instance, the principle of “fair pay – fair play”.
Here, two main strategies for building commitment among employers can be identified. First, persuasive processes at the interpersonal level may take place. A strategy of interpersonal persuasion was used, for example, in the interaction between labor inspectors and managers in British and US-American coal mines from the Sixties to the Eighties, when “open and frank discussions” as
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Monitoring Through Labor Inspections
Both the management and the enforcement approach highlight the importance of monitoring non-compliance. Transparency prevents free riding and allows actors to take targeted measures to defend their rights. Labor inspections seem to be the main instrument for ensuring monitoring: they are provided by law in the almost one hundred countries included in the ILO Minimum Wage Database. From reports and academic studies, two main problems seem to prevent labor inspections from being an effective enforcement tool. First, labor inspectors are at risk of corruption, also because they are often underpaid (Skidmore 1999: 428). Furthermore, inspectors receive a fairly high salary, which can be integrated through performance-based rewards (Almeida & Carneiro 2009: 7).
Secondly, labor inspections are costly, and governments do not invest enough funds for financing them. Employers also consider monitoring structures a cost burden and are not ready to commit to their financing (Gallina 2005: 15; Skidmore 1999: 428). Beyond labor inspections, an important method of monitoring compliance is the self-monitoring, record-keeping and self-reporting by the workers. Allowing individual workers and unions to denounce non-compliant employers constitutes a form of monitoring additional to labor inspections and, most of all, it gives workers the opportunity to enforce their rights by themselves, as we
The minimum wage was established in the United States by the Fair Labor Standards Act of 1938 at 25 cents per hour. These laws are broadly supported by the public. Congress enacted these rules to combat “labor conditions detrimental to the maintenance of the minimum standard of living necessary for health, efficiency, and the general well-being of the workers” (Sharp, 2013 p. 71). The purpose and intent of
The minimum wage debate brings about a range of reactions from different people. There are those who believe that there shouldn’t even be a minimum wage and that wages should be determined by the markets. On the other hand, we have those who vigorously argue for increasing the wage minimum citing inflation, the poverty line and worker productivity. Regardless, we do have a federal minimum wage rate in the United States at $7.25 per hour, with some states having a higher minimum wage than the federal minimum. President Obama, in his first state of the union address of his second term proposed “Tonight, let’s declare that, in the wealthiest nation on Earth, no one who works full-time should have to live in poverty, and raise the federal minimum wage to $9 an hour” (The White House 2013). A year later, he has revised that number to $10.10 per hour after signing an executive order that has already raised the minimum wage for federal workers to that number. (The White House 2014). With more and more states raising their own minimum wage, a minimum wage increase seems almost imminent with Democrats and Republicans getting closer to a deal. (Bolton 2014). But we are more interested in the efficiency of a minimum wage implemented at the federal level. The main question that surrounds this debate is whether this price floor in labor markets is efficient given that the stated goal of the minimum wage is to make sure full-time workers earn a living wage and are above the poverty line.
Research shows if minimum wage was to climb that it would hurt the least skilled and the least experienced people trying to seek a job the most. There are different of opinions people believe in about the positive and negative aspect of minimum wage. Supporters argue that such a boost will shrink poverty without plummeting jobs and that it will boost confidence, increase the normal living, and cut inequality and have businesses to be well-organized. Opponents that are not for minimum wage say it will increase poverty, unemployment and is not good toward businesses. The question about minimum wage and the effects it would cause if it was to rise, remains one of the most commonly studied topics.
House Bill 230, or the most recent bill introduced in North Carolina to increase minimum wage, was introduced by the House of Representatives on March 12, 2015. After the first version of the Bill was introduced, it was revised once. The bill was introduced because the goal of the state is to provide a minimum wage that allows for a decent and healthy life for its citizens. As the value of the American dollar continues to change, so does the average cost of living. The primary sponsors of the Bill were Representatives Farmer-Butterfield, L. Hall, Fisher, and Cunningham. The Bill states that “Employers shall pay employees wages no less than the minimum wage for all hours worked in North Carolina.” It then states that minimum wage in North
Both of these company’s stress the importance of human rights, minimum wages, and healthy workplaces for all employees. The Governments of these low wage countries try their best to ignore and disregard these conditions that are not normal. The benefits of these workers working under these conditions are too high and production is increasing in countries such as China and India.
Today our society encounters multiple controversial issues that generations before hand would have never dreamed of having. A common controversy in America is the issue over minimum wage. The main issue over minimum wage is whether or not it should be raised or if it should stay the same. Personally I feel that it should remain the same. Minimum wage jobs were not created to become careers. Increasing minimum wage can lead to many things such as the loss of jobs, the increase of prices, and could also keep people from reaching their true potential.
In this essay I will be discussing minimum wage legislation and minimum wage. I will be defining minimum wage and explains what minimum wage legislation is. This essay will be answering question like what is the minimum wage law, and why was it made a law in the U.S. or what minimum wage pay rate would I like to see as the minimum wage rate. I also will be discussing the reason why fast food workers are seeking a higher minimum wage. I will be using the book compensation by Milkovich and the internet to apply facts and answers to this paper.
One metapor used to describe contemporary elections is “choosing the lesser of two evils”, however, unlike other elections, this year's is one of the most controversial and dividing elections in recent years. This year there is a chance for change, and currently there are four main head runners for the presidential nomination; out of these candidates only one shines as someone who will really change the US for the better, Bernie Sanders. He plans to rejuvenate the economy, and support the middle and lower class. Bernie also is easily one of the only candidates that support civil rights that help the people, not some values that would increase voter polls. When it comes to international affairs Bernie respects other countries and understands
Initially the minimum wage law was introduced to reduce poverty and inequality. Proponents of the Minimum wage do believe that these laws attain to these objectives. They do guarantee that the workers at the bottom level of the pay scale are being treated right and don’t get underpaid as the result of the belonging to a particular race or sex. They also guarantee that the workers are receiving a reasonable compensation from the employer (Cho, n.d.). The proponents of minimum wage also believe that it may have a positive reflection on the work ethics of the low-pay workers, thus it may benefit employers. It is also might encourage more people to join the workforce instead of trying to gain earnings by the means of unlawful methods, such as prostitution, selling narcotics
“I could be easily replaced by someone tomorrow for less money.” What a dispiriting statement. I was told this from a coworker in October of last year. This coworker has worked for the same grocery store for over twenty years. His remark caused me to formulate many questions about the ethics of business. More specifically though is the question of how this can be a bigger problem than I had originally thought. I have worked many low end jobs, and have seen first hand many people who struggled because of their low wage.
In 1938, the Federal Government established a minimum wage through the Fair Labor Standards Act, during the Great Depression. Its stated purpose was to keep American workers out of poverty and increase consumer purchasing power to help stimulate the economy. President Franklin Roosevelt, understood that the minimum wage should be a living wage, he stated “by living wages, I mean more than a bare subsistence level — I mean the wages of a decent living.” Today, the Minimum wage is critical for ensuring that hard work is rewarded with fair pay. However, its value has eroded substantially, factors such as inflation and rising prices are decreasing its purchasing power, and the minimum wage is no longer what it used to be, despite decades of economic growth. Today, a family can no longer live on minimum wage; and a single person working full time on minimum wage is barely above the poverty line. When President Obama gave his 2013 State of the Union address, he advocated raising minimum wage from $7.25 an hour to $10.10-yet a year later, this still hasn’t happened. For many working Americans a higher minimum wage will make the difference between living in poverty or not, furthermore it provides a stepping stone into the middle class for many families. If the minimum wage is increased to equal a current living wage, the income inequality gap will decrease and the quality of life for those living on minimum wage salaries will increase,
Michigan's minimum wage is currently placed at eight dollars and fifty cents an hour and will be rising for the next couple years (Minimum Wage, 2016). Minimum wage laws are still a controversial topic among economist and are commonly utilized in campaigns as a promise to help the poor but how does this price floor impact the industries it affects. This paper will explore Michigan's current minimum wage law, its conception and history, the problem it was supposed to fix, it's effectiveness in solving the problem, how it helps and hurts the economy, what it costs and its unintended consequences, and my beliefs on Michigan's minimum wage
The government has set a minimum wage for labor market, businesses are forced to pay the least amount. An individual working full time only earns $15,080 due to the minimum yarn of $8.05 per hour, this is below the federal poverty level for a family of two. They will have a difficult time supporting a household. With minimum wage it is not enough to pay bills like energy, water, cable, health insurance, and our necessities. As a student, I know minimum wage is not enough to pay school owns or tuitions, that is the reason why most students are in dept. Many people will get a second job. Even though having two jobs to support their family and household, it is still not enough with minimum wage. We all have responsibilities and many bills to pay.
Minimum wage is the topic I chose because there has been a controversy regarding raising minimum wage and the impact of minimum wage to the society. Whether it would aid workers or not. There have been arguments of laypersons of increasing minimum wage to a very high level and there are arguments against it.
In this article the authors focus on the uncompensated wages that workers do not receive. They explained that across the US, violations of the minimum wage laws is becoming more common. The three largest municipalities under scrutiny are Chicago, New York and Los Angeles. In addition to not being fairly compensated for their work, low income workers have to deal with added stress imposed by managers, as to breaks while at work, not being compensated for work when asked to perform their duties and being paid late. Which can cause additional issues with bill collectors for late payments. According to the FLSA, states are able to supersede federal mandates by increasing standards of the legislation, not to lower it. However, to thwart the misbehavior