Inside the Dark Money-Fueled, 50-State Campaign Against American Workers

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In 2010, a wave election propelled tea party-endorsed candidates into statehouses across the country. Last week, the Economic Policy Institute issued the first comprehensive report surveying the impact that conservative legislation has had on workers’ rights in the past two years.

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The Legislative Attack on American Wages and Labor Standards, 2011–2012” reveals the existence of a multifaceted, nationwide campaign to not only deprive working people of the right to join a union, but also keep wages low and make it harder for people to take their employers to court when they’ve been wronged. Moyers & Company caught up with the report’s author Gordon Lafer – a political economist at the University of Oregon’s Labor Education and Research Center – to discuss his findings. Below is a lightly edited transcript of our conversation.

Joshua Holland: Your report looks at a wide array of state laws — passed or proposed — that undermined workers’ rights in 2011 and 2012. You say that this is an unprecedented assault on working people.

Reading your report, it struck me that this is exactly what people mean when they say that political inequality follows economic inequality: You have these growing fortunes on the one hand and then declining political clout on the other hand. It just seems like this is a cycle that keeps continuing.

To what degree is this a result of the 2010 wave election, when Republicans took a number of statehouses?

Gordon Lafer: What you’re saying is very important, and what’s even more important than just thinking about the wave election is that 2010 was the year that the Supreme Court said that corporations can spend unlimited amounts of money on politics [in its Citizens United decision].

The laws that I’m reporting on — and this is the first comprehensive report that looks at all 50 state legislatures over those two years — were passed by the first set of state legislators elected under the new laws where corporations could spend unlimited amounts of money. There were 11 states where Republicans took control of the governor’s mansion and both houses of the legislature in 2011. But we didn’t see this campaign only there, and it’s not strictly a partisan issue. We’ve seen a tremendous influence of a flood of outside money, particularly because the federal government has been more or less stuck on a lot of issues, deadlocked. A lot of the corporate money flooded into the states.

You can buy a state legislative race for $50,000 in a lot of places. Most people don’t know who their state legislator is. And so we’ve seen a lot of laws passed that are unpopular with the public, but are being passed by legislators who are backed by corporate lobbies. People have heard more about attacks on unions in Wisconsin and elsewhere, but what this report shows is that the attacks on public employee unions are really just a smaller part of an agenda that is an attack on all American workers. That includes trying to lower minimum wage, substituting child labor or teenage labor for adult workers, doing away with the right to sick pay, decreasing wages for waiters and waitresses, decreasing the right to sue over sex and race discrimination. It’s really a very broad agenda that is being pushed in almost every state, and it’s being pushed in a coordinated way by the most powerful political organizations in the country.

Holland: This isn’t just about unions and organized labor. It’s really about the 93.5 percent of private sector workers who are not protected by a union contract. They’re the ones who are really exposed to these laws, aren’t they?

Lafer: Well, that’s right. Look at minimum wage or sick leave. Those things have nothing to do with unions, because if you have a union, you have that in your contract. The people who are dependent on the laws to protect them — and who are affected by the laws being changed — are just who you said, the 93 percent of Americans in the private sector who don’t have a union.

One of the things I think is striking is that, for instance, in Wisconsin, when there was a very prominent attack on public employees, a bunch of the politicians presented themselves as if they’re attacking public employees because they’re on the side of hard-working non-union taxpayers in the private sector. In the research is, we ask, ‘What are those same people actually doing for non-union hard-working taxpayers in the private sector?’ They are trying to cut minimum wage, cut the right to overtime, classify people as independent contractors so they lose their rights under labor law, replace adult labor with teenager workers, and all kinds of things that are not about unions but that are going to make it much, much harder for normal working Americans who don’t have college degrees, who are not professionals, who are trying not to get rich but just to make a decent living and support their families.

Holland: Now, I want to go back a moment, because you made another important point, which is that a lot of people in these states think that these laws are being pushed by their local lawmakers. And in fact, when you dug into this issue, you saw the same legislation popping up in state after state after state. Who is behind this?

Lafer: Right. The American Legislative Exchange Council, ALEC, writes model laws. They’ll have five or six different model laws about the same thing that are kind of calibrated to see what can pass in a given state at a given time. So on minimum wage, their end goal is to have there be no minimum wage at all, and they have a bill that says abolish the minimum wage, but, well, if you can’t pass that, at least don’t increase it in a way that’s linked to the rate of inflation and goes up every year. So we see, in every state, people experience these as if they come from their local legislator or as if they’re a response to the particular problems in their state, and in fact, the laws are being written largely by ALEC.

And if you look behind ALEC — and all of this stuff is available to the public because there is a member of ALEC who was a whistle-blower and dumped a lot of the information that was supposed to be kept secret from the public out in the public domain — there’s a website called ALECexposed.org where you can see all the model bills. But if you look at the member companies behind them, it’s a bunch of the biggest and most powerful corporations in the country. They work through ALEC, but they also work through the Chamber of Commerce and the Restaurant Association and a bunch of other business lobbies. And what we see is the same corporations are helping write the law, are funding the campaigns of the candidates, are funding state-level corporate-backed think tanks that put out white papers and talking points and offer talking heads to go on TV, and then they spend the unlimited money on ads on radio and TV. It’s a very well-coordinated campaign.

Now, one of the things that I think is important to point out is that much of this is very unpopular when people have a chance to vote on the actual laws. So in places where people have a chance to vote, not for candidates, but on the actual laws — on minimum wage, on sick leave — there’s very broad support for those measures — among Republicans and Democrats, among conservatives and liberals. So recently, one of the big agendas of the Chamber of Commerce and ALEC and the rest of them has been trying to deny us the right to vote. They’ve passed legislation in 10 states that says that cities are not allowed to vote on establishing a right to paid sick leave or on establishing a higher minimum wage. Because there are now six cities where people voted to say everybody has a right to at least five days of paid sick leave a year, and the business lobby’s response has been to take away the right to vote wherever they can.

Holland: Right. Democracy is not in their interest. Let’s dig into a couple of these areas of the law. You spoke earlier about substituting child and teen labor. I remember during the 2011 GOP primaries, Newt Gingrich said that it was a tragedy that poor kids are trapped in these child labor laws,and that schools ought to get rid of unionized janitors and pay the students to take care of the schools. He said this would be like a bootstrap thing. They would have some cash in their pockets, they would have pride. That’s not the kind of thing you’re finding out there, is it?

Lafer: Yes it is, in fact. Idaho is the first state to basically adopt Gingrich’s vision. In Idaho, as of last year, it is now legal for kids as young as 12 to work up to 10 hours a week as custodians in their schools. And the school district says, ‘Oh, this is great, because we can pay them less than we have to pay adults and they learn the skills of following behavior, following orders.’

But also, in places like Michigan and Wisconsin, they raised the limits of how many hours a week teenagers can work during the school week. You can see the hypocrisy: Part of ALEC’s argument against raising the minimum wage is, they say ‘Well, if you raise the minimum wage, it encourages more high school kids to work more, and we all know that leads to more dropouts and is bad for education, so keep the minimum wage low.’ But in Michigan, the Restaurant Association, which is a major player in ALEC, went into the legislature when there was 10.6 percent unemployment, and said, ‘We cannot find enough adult labor to work in restaurants. We need you to increase the number of hours that high school kids can work during the school week. And it’ll be good for them because they’ll learn teamwork skills and customer service.’ But at 10.6 percent unemployment, it’s just not economically credible to think you can’t find adults to work in restaurants. But this is them saying, ‘We want to cut everything down,’ and one of the ways of cutting things down is to substitute teenagers for adult workers because they’re cheaper, and if it makes it harder for them to do well in school, well that’s too bad.

Holland: Gordon, how pervasive is wage theft?

Lafer: We have in America an epidemic of wage theft, which is when people are not paid wages that they’ve earned, where there’s no debate that they’ve earned it. And it has nothing to do with unions. It’s when you’re not paid minimum wage, you’re not paid overtime, or somebody comes and says, ‘Hey, can you work on this construction project for me?’ and then they don’t pay you.

This came to a head in Florida. Florida has a conservative legislature, and in 2002 they abolished their department of labor. So there’s not a single labor department inspector to police this in Florida, the attorney general’s office hasn’t filed a case about wage theft in recent memory, and the only recourse you have is to go to legal aid, which is all volunteer, so they’re overwhelmed.

But in 2010, Miami/Dade County established a model wage theft procedure. It works kind of like small claims court: It’s very streamlined. The employer pays the cost, so there’s no cost to the taxpayer. And in the first year, they found 600 people who had had money stolen out of their paychecks and they recovered almost $2 million in stolen wages. The response of the Chamber of Commerce and the restaurant industry — and Disney and Office Depot and Home Depot and a bunch of other companies — was to try to pass a law, and it’s come close to passing, that would make it illegal for any county or city to have a wage theft recovery procedure. And they say this explicitly — this is their goal: No city or county within the state should be allowed to have a wage theft procedure. It passed the House, and then it died in the Senate, but a similar bill passed in Tennessee. So if you are a normal worker, if you don’t have the money to go hire a big lawyer, and the amount of money that has been stolen from you is $250 or $1,000, which is a lot of money in the life of low-wage workers but is not enough money to go to a lawyer and say, ‘Hey, take a third of this as a contingency so it’ll be worth your while to take the case,’ they’re working hard to make sure you have absolutely no recourse in the system of justice to recover wages that everybody agrees were stolen out of your paycheck.

When we measure it, the total amount of money stolen out of American workers’ paychecks every year is far bigger than the total amount stolen in all the bank robberies, gas station robberies and convenience store robberies combined. It’s shocking how big it is and how much it impacts the low-wage labor market, and the corporate lobbies are working to see that it stays that way and that there’s no recourse for people who suffer from this.

For more details about corporate America’s campaign against workers’ rights read the report at the Economic Policy Institute.

Joshua Holland is a senior digital producer for BillMoyers.com. He’s the author of The Fifteen Biggest Lies About the Economy (and Everything Else the Right Doesn’t Want You to Know about Taxes, Jobs and Corporate America) (Wiley: 2010), and host of Politics and Reality Radio. Follow him on Twitter or drop him an email at hollandj [at] moyersmedia [dot] com.
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  • Fedup

    I hate the Tea Party, but they actually did what they wanted. They fielded candidates and won elections and are pushing their agenda in government. The Occupy movement is still arguing over what shoes to wear to the next protest.. The far far right
    maybe pouring money into these extremist groups, but the far far left groups
    aren’t doing anything to force change. Why hasn’t the Occupy movement organized
    and fielded candidates to make changes from within? All they seem to do is say
    how terrible things are and the corruption is destroying the country, but they
    don’t try to change the laws or the power base that is doing the damage.

  • Fedup

    I hate the Tea
    Party, but they actually did what they wanted. They fielded candidates and won
    elections and are pushing their agenda in government. The Occupy movement is
    still arguing over what shoes to wear to the next protest.. The far far right
    maybe pouring money into these extremist groups, but the far far left groups
    aren’t doing anything to force change. Why hasn’t the Occupy movement organized
    and fielded candidates to make changes from within? All they seem to do is say
    how terrible things are and the corruption is destroying the country, but they
    don’t try to change the laws or the power base that is doing the damage.

  • Thomas MacMichael

    There is a major concept to minimum wage laws and dynamics that was left out of this discussion. I am 58 and I have worked for “minimum wages” as low as $1.25 per hour because it was farm labor. When I was a bit older, I worked one of my first jobs for $1.85 per hour. No one back then thought of this as abusive and I never heard of a legitimate employer (which one should check on before accepting a job) cheating an employee who had logged working hours. Maybe I just lived in a more decent time and place.

    The main point is that I understood, as did everyone who worked these positions, was that they were “entry level jobs”. I do not see that phrased used in your dialogue. This was and is an important distinction. There are few employers who can offer family level “living wages” to a new worker who know little or nothing about a job they are about to take. If you raise the minimums too much, entry level jobs become pressure-packed and sparse. There is less a ability and latitude for new worker to learn skills or a trade.

    My dad tells of a time when he went to work for a carpenter in town for “nothing” for a whole summer, just so he could learn how to build a house. It paid off big time for him down the road in so many ways.

    Your idea that minimum wage practices are the cause of the decline of “democracy” is laughable by the way. Learning, character, training, respect of authority and dedication to tasks and missions come first, then you begin to know how to “make a living”. My dad taught me that from the time I was young. You guys have it just about completely backwards.

    More freedom in the work place over time with less government intrusion used to create the environment for excellence in products, development of workers and a much better work-wage dynamic. So why don’t we have that anymore??

  • Anonymous

    Thomas – the 1.25 if you indexed it for inflation would be well above 8 dollars now. I worked part time at a university I attended in ’66-67 for 1.25/hr. But when I graduated it was 6500.00/yr to start.

    The reality is there are millions of employed persons working for Denny’s,.Shsti’s laem service – fencing- orchards who will work there sll their lives. I worked at a small Denver restaurant in 1966 – college girls worked grave the permanent full time people worked the best shifts and one lady had worked rhere 30 years & raised her family. We all knew how to work.

    These are professions! Real business people used to have apprentice programs. Newly hired engineers went into internal rotations to learn the compsny and find a good fit. Business people don’t have any interest in investing in their people just use & discard.

  • Rick Kissell

    It’s very appropriate that you publish this today, the birthday of Eugene V. Debs!

  • Thomas MacMichael

    Agreed. So the questions remain. Why do we have this situation and will a 2 or 3 dollar change in the minimum wage help create a situation where more employers invest in their workforce and value them?

    That is not at all clear! My opinion is that our current culture and esp with regard to government, there is little going on that bolsters and promotes responsibility, even with regard to employers. I do not believe that can be legislated. The more the “Hand-out” mentality expands, the worse the situation seems to become. Rewarding innovation and freeing people to do so has worked best in our past.

  • Skip Moreland

    These jobs are not entry level jobs anymore, they are jobs for life now. And that freedom from government intrusion is exactly what causes these conditions. No government means businesses can do whatever they want to people.

  • Thomas MacMichael

    Skip – I hope you are using hyperbole on purpose. No one is advocating for “no government”. With a reasonably educated work force (we lag way behind other dev countries in ed., BTW) people are able to choose careers with a decent wage path. We hear that we need to reform immigration so more qualified people can come here it fill highly skilled jobs. How can this be? Raising the minimum wage and increasing government regulations will do exactly nothing for this situation.

    And, what about business taxes more in line with the rest of the developed world? What about NOT mandating what benefits businesses can and can not provide in addition to salary? No one I know views minimum wage jobs, especially jobs at McDonald’s, as a reasonable career track. The problem is a sluggish economy that is not producing the kind of industries and jobs that it used to. Mandates from on high do NOT produce better jobs. I wish they could! That idea is just chasing unicorns. Please say we have better ideas than that.

  • Anne Dugan

    Repeating myself here, but welcome to the United Corporations of America!

  • Brook Whyte

    i know about wage theft, but am unable to do anything about it. i was paid for 40 hrs per week no matter how many hours i worked. company said it was in the verbal contract that i agreed to ten years before when i was working on an average 80 hrs per pay period. by 2010 that changed to working 93 hrs average per pay period, so i wasn’t paid for 13 hrs that i worked on average. some periods i worked as much as 110 hrs. most of the people who work for the company are afraid to leave because they are afraid of not having a steady income or say that the benefits outweigh the lack of paid hours. wonder how they feel now? i left, but they are now working an average of 101 hrs. per pay period. company sent out a letter in 2011 saying as soon as health insurance exchanges were opened, they were cancelling employer covered health insurance. HA!HA! the insurance on the exchanges is $300+ more costly for the lowest coverages. employees won’t be able to afford insurance without being paid for those unpaid work hours.

  • JonThomas

    There is no ‘sluggish’ economy! The ‘economy’ itself has recovered and is flourishing!

    What is sluggish is the amount of disposable income available.

    Investment is made where returns are maximized. In a global economy, where over-seas labor, operating, and shipping costs are costs are low, those with enough capital to invest, do so in places where returns are maximized.

    What is ‘sluggish’ are wages. Walmart employs more Americans than any other business, fast food corporations are a close second. These businesses are infamous for their low wages.

    The time period that you described above, where such employers, and the wages they offer, represented “entry level jobs” is long past. The jobs that people traditionally ‘moved on to,’ after working, low skill, entry level positions, are long gone!

    If wages were to rise, disposable income would rise. If disposable income rose, then entrepreneurial opportunities would increase.

    Low wages are creating a cycle of globally-competitive non-entry market places.

    When large, global corporate retail chains enter a community, every small business and independent is low-priced out of the market.

    When these large chains are allowed to low bottom their wages, and maximize investor returns, then dollars are vacuumed out of communities. Minimum wages need to increase enough for local competition to return.

    Minimum wage-caused inflation, if it even happened, would only effect business models whose labor costs are predicated on that minimum wage. Utilities, building, and manufacturing, for instance, are not based on minimum wages.

    There are many ways inflation can be battled, but the immediate dangers are wage stagnation, global competition, corporate profits based on wage exploitation, and the corresponding draining of local-community dollars.

  • JonThomas

    “Rewarding innovation and freeing people to do so has worked best in our past…”

    That was before globalization. Innovation IS being rewarded and we ARE free to compete, but competition now includes places where $2 PER DAY! is an acceptable, even a good wage. There is not enough innovation in the universe that can compete with such a situation.

    Investment follows maximized returns. If you want to compete for that type of labor and production market investment, then you go ahead and accept $2 per day.

  • Thomas MacMichael

    I am not so sure that this economy no longer supports “long-past” jobs that are significantly above minimum wage. I hope that is not the case. If so, your point STILL begs the big question: why?. Working at a store or at McDonald’s was an entry level job 30 years ago and it SHOULD be now as well. Why do we hear in conjunction with immigration reform that we need it because of the lack of high skill labor in the US? Why are so may jobs going overseas so that everything sold in Walmart is made somewhere else? These are the questions that undergird your point and mine. To me, the priority should be to increase the competitiveness of US industries. Simply increasing the minimum wage will not do that and may do the reverse.

    To your point about the trickle-down effects of unilaterally increased minimum wage: prices would certainly increase in any industry with significant numbers of entry level folks. The highest level of unemployment at present is among those between 18 and 29 years old. Please talk to some employers about this. They will be obligated to raise mid-level wages also to ensure that folks who have experience and have longevity are adequately rewarded and will stay.

  • JonThomas

    I don’t really disagree with most of your points, and I did try to answer your why… investment follows maximum profit opportunities. The intersection of acceptable risk and maximized profit is where and when investment takes place.

    These opportunities, at this point in history, are most often found in places where costs of production and shipping are manageable… translation: buy cheap, sell high!

    The attraction to low skill jobs is a pay check. The continuance in low skill jobs is… wait for it… a pay check.

    In all fairness, it would be nice if low wage jobs were still “entry level,’ but unfortunately this is not today’s reality.

    I haven’t heard any discussion about needing immigration reform to fill ‘high-skill jobs.’ On the other hand, I have heard immigration reform discussions surrounding low-skilled farm and construction laborer jobs.

    Whether we agree or disagree with specific proposals, attempts at immigration reform are efforts to address a practical reality.

    I do disagree with your over-all point concerning minimum wage, but I think we both made our points. As far as high wage employers raising wages in response to a minimum wage increase, I hope you won’t mind if I don’t hold my breath!

    I have operated my own business, and I never, ever paid at, or below minimum wage! Minimum wage is an insult! I paid above minimum wage to people who never worked a day in their lives.

    “Entry level” seems to roll off the tongue, but if an employer is willing to make a decent profit, while paying minimum wages to their employees, then that employer does not merit my support!

    This entire argument of ‘entry level’ is based on an unethical, disrespectful predication. I do not agree, support, nor endorse such a concept. My principles do not allow me to contribute to such an exploitative mindset existing in a healthy society. Day to day life puts me in positions that do support such exploitation, but I do what I can to minimize those times.

  • Thomas MacMichael

    Thanks for a well reasoned reply. I will only add that as you believe “entry-level” to be a pejorative, I see it as an opportunity for learning a skill or trade. When I was young, I participated in unpaid internships, knowing they would lead to experience and opportunity. I agree that low wages should be temporary and in my life, it was when I was single, young and without a clue. It was about what I was worth. Humility in thinking about money is sorely missing in todays culture, especially at the highest levels. In my experience, employers increased my pay commensurate with my value to the company. You see that dynamic as having evaporated. Let us hope not entirely!