Widespread FLSA Violations By Michigan Blueberry Growers

December 17, 2010

The U.S. Department of Labor has ordered several Michigan blueberry farmers and contractors to pay $106,000 in penalties and back wages after an investigation revealed migrant housing and child labor law violations. The farmers were also order to pay close to $30,000 in back wages to hand-harvest growers for wage and overtime violations.

The Fair Labor Standards Act (FLSA) requires employers to pay minimum wage, currently $7.25 an hour for all hours worked, and provides standards regarding overtime compensation and employment of minors.

The penalties were assessed against 18 blueberry growers after DOL officials discovered that the migrant workers were provided with horrible living conditions, such as no hot water, insect infestations and overcrowding. In addition to the inhumane living conditions, the growers failed to pay adequate wages, provide overtime compensation and follow laws regarding underage workers.

Some of the growers have paid the fines and back wages, although many are appealing.

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Minimum Wage Laws Help Local Economies

December 8, 2010

Two significant studies issued this week conclude benefits exist from paying Americans more. First, a New York study found that “living wage” requirements on businesses that receive government subsidies do not negatively impact job and business creation, debunking notions that “living wage” laws hurt competition and local economies. The study looked at 15 states across the country that had living wage laws tied to subsidies. Research concluded that the cities that had “living wages” tied to subsidies had the same level of business growth as those cities without such laws. Further, the results revealed that these laws do not harm low-wage workers.

Similarly, a new study published in the November issue of the journal The Review of Economics and Statistics concluded that increasing the minimum wage does not lead to the short- or long-term loss of low-paying jobs. As noted by a Harvard University professor, “this is one of the best and most convincing minimum wage papers in recent years.” The study’s authors noted that an entire generation of previous minimum wage studies that found negative effects of jobs were fundamentally flawed.

Increasing the minimum wage has significant benefits such as stimulating the economy by putting more money in the pockets of those most likely to spend it on necessities.

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New Law Provides Domestic Workers Reason To Give Thanks

December 2, 2010

A new law went into effect on Monday in New York – The Domestic Workers Bill of Rights. Similar to the Fair Labor Standards Act (FLSA) the Bill of Rights will mandate that those who employ domestic workers full-time provide eight-hour days, minimum wage and paid overtime, along with 24 consecutive hours for rest each week, paid sick days, and paid annual vacation days.

Under the FLSA, nearly all employers are required to pay minimum wage and overtime compensation. The FLSA governs individual employees whose work affects interstate commerce, or work in a business involved in interstate commerce. This definition has been interpreted broadly, and includes virtually all employers. However, households that hire domestic workers have typically not been covered by the FLSA. This is slowly changing.

The New York law is the first state to enact a law governing domestic workers. A few communities across the country have similar provisions, recognizing that domestic workers are often underpaid, not paid overtime, and “expected to be on call to serve the needs of their employers’ families regardless of the needs of their own families.”

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