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    Restaurants and Unions Agree to Raise Pay to $20 an Hour in California

    The deal will avoid a ballot fight over a law passed last year that could have resulted in higher pay and other changes opposed by restaurant companies and franchisees.Labor groups and fast-food companies in California reached an agreement over the weekend that will pave the way for workers in the industry to receive a minimum wage of $20 per hour.The deal, which will result in changes to Assembly Bill 1228, was announced by the Service Employees International Union on Monday, and will mean an increase to the minimum wage for California fast-food workers by April. In exchange, labor groups and their allies in the Legislature will agree to the fast-food industry’s demands to remove a provision from the bill that could have made restaurant companies liable for workplace violations committed by their franchisees.The agreement is contingent on the withdrawal of a referendum proposal by restaurant companies in California that would have challenged the proposed legislation in the 2024 ballot. Businesses, labor groups and others have often used ballot measures in California to block legislation or advance their causes. The proposed legislation would also create a council for overseeing future increases to the minimum wage and enact workplace regulations.“With these important changes, A.B. 1228 clears the path for us to start making much-needed improvements to the policies that affect our workplaces and the lives of more than half a million fast-food workers in our state,” Ingrid Vilorio, a fast-food worker and union member, said in a statement released by the S.E.I.U.Sean Kennedy, executive vice president of public affairs at the National Restaurant Association, said the deal also benefited restaurants. “This agreement protects local restaurant owners from significant threats that would have made it difficult to continue to operate in California,” he said. “It provides a more predictable and stable future for restaurants, workers and consumers.”Last year, the California Legislature passed Assembly Bill 257, which would have created a council with the authority to raise the minimum wage to $22 per hour for restaurant workers. Gov. Gavin Newsom signed it on Labor Day last year.But the bill met fierce opposition from business interests and restaurant companies, and a petition received enough signatures to put a measure on the November 2024 ballot to stop the law from going into effect.Other business groups in California have successfully used that tactic to change or reverse legislation they opposed.In 2020, ride-sharing and delivery companies like Uber and Instacart campaigned for and received an exemption from a key provision of Assembly Bill 5, which was signed by Mr. Newsom and would have made it much harder for the companies to classify drivers as independent contractors rather than employees.Those companies collected enough signatures to get the issue on the ballot as Proposition 22, which passed in November 2020. More than $200 million was spent on that measure, making it the costliest ballot initiative in the state at the time.And in February, oil companies received enough signatures for a measure that aims to block legislation banning new drilling projects near homes and schools. That initiative will be on the 2024 ballot.In response to calls from advocacy groups who have said the referendum process unfairly benefits wealthy special-interest groups, and in an effort to demystify a system that many Californians say is confusing, Mr. Newsom signed legislation on Sept. 8 that aims to simplify the referendum process. More

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    An Unusual G.O.P. Presidential Debate

    The New York Times Audio app is home to journalism and storytelling, and provides news, depth and serendipity. If you haven’t already, download it here — available to Times news subscribers on iOS — and sign up for our weekly newsletter.The Headlines brings you the biggest stories of the day from the Times journalists who are covering them, all in about 10 minutes. Hosted by Annie Correal, the new morning show features three top stories from reporters across the newsroom and around the world, so you always have a sense of what’s happening, even if you only have a few minutes to spare.Eight candidates have qualified for the Republican debate on Wednesday.Associated PressOn Today’s Episode:Why Republican Candidates With Little Chance of Beating Trump Keep Running, with Trip GabrielUkraine’s Forces and Firepower Are Misallocated, U.S. Officials Say, with Eric SchmittIn a Hot Job Market, the Minimum Wage Becomes an Afterthought, with Ben CasselmanEli Cohen More

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    We must raise the minimum wage to a living wage | Bernie Sanders

    Congress can no longer ignore the needs of the working class of this country. At a time of massive and growing income and wealth inequality and record-breaking corporate profits, we must stand up for working families – many of whom are struggling every day to provide a minimal standard of living for their families.One important way to do that is to raise the federal minimum wage to a living wage. In the year 2023, nobody in the US should be forced to work for starvation wages. It should be a basic truism that in the US, the richest country on earth, if you work 40 hours a week you do not live in poverty. Raising the minimum wage is not only the right thing to do morally. It is also good economics. Putting money into the hands of people who will spend it on basic needs is a strong economic stimulant.When over 60% of American workers are now living paycheck to paycheck, when the life expectancy of low-income Americans is in decline, when we have the highest rate of childhood poverty of almost any major country, we can no longer tolerate a federal minimum wage of $7.25 an hour, a wage that has not been raised since 2009. Incredibly, the federal minimum wage has lost over 27% of its purchasing power since it was last raised 14 years ago. That is unacceptable. Millions of Americans cannot be allowed to fall further and further behind economically, unable to afford the housing, food, healthcare, childcare and education they desperately need in order to live in health and dignity.Whether they are greeting us at Walmart, serving us hamburgers at McDonald’s, providing childcare for our kids or waiting on our table at a diner in rural America, there are too many Americans trying to survive and raise families on $9, $10 or $12 an hour. It cannot be done. This injustice must end. Low-income workers need a pay raise and the American people want them to get that raise.Poll after poll shows overwhelming support for raising the minimum wage to a living wage. But it’s not just polls. In 2021, the Democratic majority in the US House of Representatives voted to increase the minimum wage to $15 an hour. The bad news is that we lacked the votes to pass this legislation through the equally divided Senate. Not only did a $15-an-hour minimum wage bill fail to win the vote of a single Republican in the Senate, eight Democrats voted against it as well.That was then. Now is now. And things are changing. As a result of years of congressional inaction, cities and states all across the country are taking the low-wage crisis into their own hands and raising their minimum wage. Some are doing it through legislative action. Others are doing it through ballot initiatives.Since 2013, the people of 12 states – New Jersey, South Dakota, Arkansas (twice), Alaska, Washington, Maine, Colorado, Arizona, Missouri, Florida, Nevada and Nebraska (twice) – have voted on ballot initiatives to raise their state’s minimum wage. Every single one of these initiatives passed, none with less than 55% of the vote. And these are not just strong “blue states” voting for economic justice. In the recent November 2022 midterm election, two states that voted in Republican governors, Nebraska and Nevada, voted to raise the minimum wage. In 2020, the citizens of Florida, with a Republican governor and two Republican senators, also voted to raise the minimum wage to $15 an hour.The MIT living wage calculator estimates a living wage as a salary that is adequate enough to support a family without luxuries. For two working adults and one child, a living hourly wage for each adult would be $18.69 in West Virginia, $17.55 in South Carolina, $21.57 in Maryland, $20.01 in Utah and $19.33 in Wisconsin. Even in my own state of Vermont, the living wage is $19.58, more than $6 above the current state minimum wage.But there are many families that do not have two working adults and rely on single moms who are raising their children on their own. In that case, the required living wage is much higher. As an example, a single mother in West Virginia would need to make $33.39 an hour to support herself and one child.So it is not radical to suggest that raising the minimum wage to $17 an hour over a period of several years is the right thing to do. In fact, had my 2015 bill to increase the minimum wage to $15 an hour that was indexed to median wages became law, the federal minimum wage this January would be at least $17.40 an hour. And while we deal with the minimum wage, we must also address the scandal of the tipped wage, which has been stuck at an abysmally low $2.13 an hour for more than 30 years thanks, in large part, to the powerful restaurant lobby which has spent millions in campaign contributions and lobbying expenses since 1991 to keep workers in poverty.Together, these two proposals would provide an increase in pay for tens of millions of desperate Americans – disproportionately women and people of color. It would also be a huge boost to single moms. Let us not forget that these are the essential workers who kept the economy going during the worst of the Covid pandemic. At that time we called them heroes and heroines. Well, rhetorical praise is nice. A livable paycheck is better. Let’s do it.
    Bernie Sanders is a US senator from Vermont and the chair of the Senate committee on health, education, labor and pensions More

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    Congress must act to overhaul healthcare, minimum wage and education for US families | Bernie Sanders

    Congress must listen to working families and overhaul healthcare, minimum wage and educationBernie SandersAmericans are united on some of the most important issues facing our country and they want government to address them I am proud to be assuming the chairmanship of the US Senate’s health, education, labor and pensions committee (Help), a committee with wide jurisdiction over some of the most important issues facing the American people. As I move into that position I’m thinking about how we can best address some of the serious challenges facing my fellow Vermonters and working families all across the country.Today, in terms of health, we have a dysfunctional healthcare system in which we spend the astronomical and unsustainable sum of nearly $13,000 for every man, woman and child, twice as much as most developed countries and almost 20% of our GDP. Yet, despite that huge expenditure, 85 million Americans are uninsured or underinsured and we have worse health outcomes and lower life expectancy than many other nations. While the insurance companies make huge profits, over 500,000 people declare bankruptcy each year from medically related debt, and over 68,000 die because they can’t afford the care they need. Our complicated and fragmented system is so broken that it cannot even produce the number of doctors, nurses, dentists and mental health personnel that we desperately need.As a nation, we must focus on the reality that the function of a rational healthcare system is to provide quality care for all, not simply huge profits for the insurance industry.Today, as we pay by far the highest prices in the world for prescription drugs, the pharmaceutical industry is making record-breaking profits and more than a few executives in drug companies are becoming billionaires. Meanwhile, despite billions in government investment in prescription drug research and development, nearly one out of four Americans are unable to afford the medicine their doctors prescribe and too many seniors are splitting their lifesaving pills in half because they can’t afford them. And because Medicare doesn’t cover dental, hearing and vision, there are millions of seniors who are trying to survive without these basic healthcare needs.But it’s not just our healthcare “system” which needs a major overhaul. In terms of education, we need to take a hard look at how we are educating our kids – from childcare to graduate school.While psychologists tell us that the first four years of life are the most important in terms of human intellectual and emotional growth, it’s hard to deny that our childcare system is in disarray. The cost is unaffordable for many working parents, there are not enough slots available, the quality is spotty and the pay and benefits childcare workers receive is unconscionably low. This is not how we should be treating our children, the future of America.The situation in K-12 education is not much better. For a variety of reasons – lack of respect, low pay, the stress of Covid and the politicization of school boards – thousands of gifted and dedicated teachers are quitting the profession, leaving students unprepared for the challenges they face as they enter the adult world. The future of this country depends upon the quality of education we provide our kids, and there is no reason why we cannot create the best public educational system in the world.In terms of higher education, we face the absurd situation of hundreds of thousands of bright young people who have the desire and ability to get a college education but cannot do so because their families lack the money. How many great doctors, scientists, and teachers are we losing as a result? There are also millions of young people who need training in order to become skilled mechanics, carpenters, welders, and electricians who are not getting the post-high school training they need. Further, 45 million Americans are struggling with student debt – sometimes in the hundreds of thousands of dollars.In terms of labor and our economy, we must recognize that we live in a period of more income and wealth inequality than at any time in the last hundred years. While the very rich become richer and three people now own more wealth than the bottom half of American society, 60% of American workers live paycheck to paycheck and millions are trying to exist on starvation wages. Meanwhile, we have a pathetic federal minimum wage of $7.25 per hour which has not been raised since 2009.As more and more workers try to improve their standard of living by forming unions, they are facing fierce and illegal union busting from such employers as Starbucks, Amazon, McDonalds and other major employers.There is a lot of discussion in the media about how “divided” our nation is and, on many issues, that is absolutely true. But what we don’t appreciate is that on some of the most important issues facing our country the American people – Democrats, Republicans, independents – are quite united.The American people know we are being ripped off by the drug companies and they want lower prescription drugs prices.The American people know that our healthcare system is outrageously expensive and they want universal and lower cost health care.The American people know that education is essential to our lives and the future of this country and they want high quality and affordable education from childcare to graduate school.The American people know that no one can survive on a $7.25-an-hour minimum wage, and they want to raise the minimum wage to a living wage.The American people know that workers have a constitutional right to form unions and that corporations that engage in illegal union busting activities must be held accountable.And these are just a few of the issues within the jurisdiction of the Help committee that a strong majority of the American people want us to address.At a time when too many Americans are giving up on democracy, now is the time to attempt to restore faith in our government. Now is the time for Congress to have the courage to take on the lobbyists and powerful special interests and show the American people that our government can work for them, and not just the 1%. Let’s do it.
    Bernie Sanders is a US senator, and the ranking member of the Senate budget committee. He represents the state of Vermont, and is the longest-serving independent in the history of Congress
    TopicsUS healthcareOpinionMinimum wageUS politicsUS educationUS CongressBernie SanderscommentReuse this content More

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    ‘The success is inspirational’: the Fight for $15 movement 10 years on

    Analysis‘The success is inspirational’: the Fight for $15 movement 10 years onSteven GreenhouseFederal lawmakers failed to increase the minimum wage, but US workers made other gains, and they are setting their sights on new goals Ten years ago next week, 200 fast-food workers walked out at 20 New York City restaurants, demanding $15 an hour in pay. At the time, many observers scoffed at $15 as an absurd, pie-in-the-sky demand. As the movement’s anniversary approaches, the Fight for $15 movement has proven the naysayers wrong.‘$15 an hour is not enough’: US domestic workers rally on eve of midterms Read moreTopicsMinimum wageUS unionsUS politicsMcDonald’sStarbucksnewsReuse this content More

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    These Days, ‘Help Wanted’ Has So Many Meanings

    Gail Collins: Bret, let’s relax and talk about long-term goals that we totally do not share. For instance, how would you feel about raising the minimum wage to $15 an hour?Bret Stephens: Why not raise the standard of living for everyone by making the minimum wage $100? Just kidding. I think the correct figure is $0.Gail: If your goal is a self-supporting populace that doesn’t depend on government aid, you’ve got to make sure employers are shelling out at least minimal survival salaries. The current bottom line is $7.25 an hour. Nobody can live on that.Bret: I’m taking my $0 cue from a famous Times editorial from 1987, which made the case that “those at greatest risk from a higher minimum wage would be young, poor workers, who already face formidable barriers to getting and keeping jobs.” The editorial may be old but the economic logic is right. Raising the minimum wage is a well-intentioned idea that won’t help its intended beneficiaries. It will hurt them by giving companies like McDonald’s additional incentives to move toward even more automation.Tell me why I’m wrong.Gail: Well, I could quote an editorial from 2020 that said raising the minimum wage “ought to be a priority of economic policymakers ….”And you know, I was once the Times Opinion editor, and the editorial page does evolve in its outlook. Back when the Civil Rights Act passed in the 1960s, our editorial writers made fun of the idea of applying it to gender employment discrimination, theorizing that federal enforcers “may find it would have been better if Congress had just abolished sex itself” and warning it could lead to male Bunnies at the Playboy clubs.Bret: I’m sure we agree that The Times has been wrong about many things in the past — and might even be wrong about a thing or two in the present. I’m still not seeing how the economics have changed since the 1980s.Gail: A higher minimum wage might cause some employers to reduce the number of jobs, at least temporarily. But the danger there is always way overplayed, and those higher-paid minimum wage workers will be spending their new money to lift the economy.Bret: We are living through a period of deep labor shortages, especially in service industries, that allows workers to bargain for higher wages. That makes raising the minimum wage a faulty solution to a fading problem. But I see your point, and this is one of those issues on which conservatives and liberals will argue forever — or at least until automation and robots make it moot.Gail: Meanwhile, on a totally completely different subject, last week we missed the chance to converse about The Slap. Any lingering thoughts about Will Smith hitting Chris Rock at the Oscars?Bret: The truly nauseating part was the standing ovation Smith got for his interminable, self-pitying acceptance speech after hitting Rock. It’s a good reminder of why the American romance with Hollywood is coming to an end, as our colleague Ross Douthat reminded us recently. The best thing the Oscars could do now is to cancel itself.Gail: I have to confess, my husband and I are really into the Oscars. Not the program, which I acknowledge is frequently dreadful. But all the run-up publicity encourages us to catch some fine movies in the more obscure categories like foreign films. I’ll bet you haven’t seen “Lunana: A Yak in the Classroom.”Bret: Should I? The only movie I’ve seen in ages is “King Richard,” which, I have to admit, I liked.Gail: I truly hated Will Smith’s performance in “King Richard.”Bret: Really?Gail: Really, from the start. Don’t know why he turned me off, but acting-wise, I’d go with the yak from Lunana every time.As to The Slap, one of the many things that ticked me off was the whole gender aspect. If a female comedian made fun of an actor’s hair loss, would anybody expect his wife to come storming up and slug the offender? No, in part because a guy going semi-bald is regarded as normal. In part because physical violence is still sort of accepted for men.Bret: If the other Rock, Dwayne Johnson, had made the same joke in Chris Rock’s place, it would have been interesting to watch Smith try to slap him.Gail: Chris Rock’s joke was in bad taste the way a lot of the jokes you hear in public performances are in bad taste. It’s presumed that some people’s feelings may get hurt. Someday I’m going to make a list of all the age-related laugh lines comics in their 40s make about people who are older.Bret: Speaking of tasteless jokes, how about Madison Cawthorn?Gail: You mean the part when the young congressman from North Carolina claimed Washington was a wild place where people he admired invited him to orgies and snorted cocaine? I want to say right off the bat that Cawthorn’s behavior should not be a blot on the reputation of 26-year-olds in general.Bret: To fall afoul of House Republican leader Kevin McCarthy, as Cawthorn did, is like having George Carlin rebuke you for an excessively foul mouth.Gail: Cawthorn’s Republican colleagues in the House sure are ready to dump him, but Donald Trump seems to still be in his corner.Sort of amazing how consistent our former president is in gravitating to the worst politicians imaginable.Bret: If by some miracle Democrats hang on to one or both houses of Congress this November, it will be because of Cawthorn, Paul Gosar, Marjorie Taylor Greene, Lauren Boebert and other would-be G.O.P. candidates trying to be just like them — the Radioactive Republicans. Trump’s embrace of these characters diminishes his chances of being renominated in 2024.In that respect, my money is on Ron DeSantis, the governor of Florida, winning the Republican nomination and facing the governor of Michigan, Gretchen Whitmer, in the general, with Senator Tim Scott of South Carolina and Senator Michael Bennet of Colorado as their respective running mates. Placing any bets of your own?Gail: Impressed by your long-range thinking. If for some reason Trump doesn’t run again — which I can’t really imagine — DeSantis certainly has positioned himself to be next in line. By being as loathsome as possible. I find him completely appalling, but you’re mainly opposed to him as a Trump backer, right? How would you rate him as governor?Bret: I’m no fan of the “Don’t Say Gay” bill. But Democrats underestimate DeSantis at their peril. Florida is hopping, Miami feels like the hottest destination in the country and, barring some scandal or mishandled crisis, DeSantis is going to crush his most likely Democratic opponent, Charlie Crist, in his race for re-election this fall. He also has a genius for baiting liberals and the media and he’s figured out a way to triangulate between the evangelical, business and Trumpian wings of the Republican Party.Long and short of it: If Biden doesn’t dramatically turn his presidency around to boost the Democratic brand and Trump doesn’t torpedo DeSantis’s candidacy out of spite — two big ifs, I’ll admit — DeSantis is going to be awfully hard to defeat in a general election. How would you propose to beat him?Gail: As far as his current re-election race in Florida goes, this is one of those contests where the impartial experts, asked to comment on the opposition’s chances, say things like “There’s always hope.” Don’t think I’m going to invest any energy in dreaming of a DeSantis defeat this year. But definitely going to keep watching him warily on the national level. I’m kinda fascinated that right now he’s at war with Disney over the Magic Kingdom’s defense of gay rights. Who’d have thought?Bret: Strange to say this, but one of the few things Trump did to the G.O.P. that I liked was try to push it to embrace gay rights. So much for that.The larger question here is how far private companies like Disney should go to take politically divisive positions, especially when corporate executives are dealing with a more politically active work force. My general sense is that it’s a bad idea for them to do so — but an even worse idea for politicians to punish them for essentially making business decisions. If people are offended by Disney’s stances, they’re free to skip Disney World.Gail: Florida aside, it’s gonna be a heck of an election year. One of my own fascination points is Ohio, my old home state, where there seem to be more Republicans running for the Senate than squirrels in Central Park. Recently one of them tweeted that when it comes to Ukraine, “We’ve got our own problems.”Bret: You’re referring to J.D. Vance of “Hillbilly Elegy” fame, whose political views seem to spin about as fast as the revolving doors at Macy’s. The last time I saw him, right before the election in 2016, we were on Fareed Zakaria’s show agreeing that Donald Trump should lose. One of us stuck to his guns.Gail: Any contest you’re focused on at the moment? If you want a break until the end of March Madness, I would totally understand …Bret: The only contest that really matters to me right now is the one between Volodymyr Zelensky and Vladimir Putin, between democracy and darkness. On this, I’m happy that you and I and most Americans are on the same page — whatever people like Vance, Tucker Carlson and the rest of the mental wet-burp gang happen to think.The Times is committed to publishing a diversity of letters to the editor. We’d like to hear what you think about this or any of our articles. Here are some tips. And here’s our email: letters@nytimes.com.Follow The New York Times Opinion section on Facebook, Twitter (@NYTopinion) and Instagram. More

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    Long hours, dangerous chemicals: nail salon workers fight for industry change

    Long hours, dangerous chemicals: nail salon workers fight for industry changeLegislation in New York’s senate and assembly would create a council with powers to establish workplace standards Dolma Sherpa worked as a nail technician for four years in New York City, up until the Covid-19 pandemic shut down the industry and left her with severely reduced work hours when the industry reopened.The work was already unstable, Sherpa explained, as she often worked seven days a week during busy times of the year, and then struggled to get hours and work through the winter.In 2019, Sherpa and other workers organizing in the nail salon industry succeeded in their fight for a $15 minimum wage, eliminating the tipped minimum wage in the industry that was driving wages down, but she noted there are still many employers who aren’t following the law or have found other ways to cut corners at the expense of workers.West Hollywood votes to set highest minimum wage in USRead more“They’re cutting tips, they’re cutting commissions. We don’t have control over schedules, they’re cutting our days, hours, and it’s not fair,” said Sherpa. “There are just so many ongoing challenges, despite what we’ve won in the past, whether it’s a lack of benefits, a lack of ventilation, health and safety issues, and retaliation.”She is now an organizer with Adhikaar, a non-profit worker center organizing Nepali-speaking communities. It is also one of the groups currently advocating for a bill introduced this year in the New York senate and assembly that would create a nail salon industry council with powers to establish workplace standards throughout the industry in the state.Sherpa argued nail salon workers deserve to be valued with fair wages, benefits and working conditions as professionals in other industries, as nail technicians undergo significant hours of training, courses and exams to obtain licenses to work in the industry.“This campaign is a continuation of our work and a way for us to make sure that we can speak up without fear and get some permanent changes to the industry,” added Sherpa. “What we’re proposing is something for not just now, but for the future and the creation of something that will exist for a very long time if we can win this.”The council would be the first of its kind in the nail salon industry in the US, similar to efforts in California to establish a fast-food sector council. The council would include 15 voting members and six non-voting members, including six workers, six employers, three public representatives, and three representatives each for employers and workers.“Creating an industry-wide body that brings workers, salon owners and the state together to bargain and establish a uniform set of expectations and standards is how we ensure that every worker has recourse and authority to fight back against their exploitation,” said state senator Jessica Ramos, co-author of the legislation, in a press release on the bill’s introduction. “Any policies that are made for workers need to be developed with workers at the table.”Both assembly and senate versions of the bill are currently in the committee phase, awaiting a decision on whether the bills will be reported to the full legislature for a vote.The need for change seems urgent.There are about 4,000 nail salons in New York City and 7,000 throughout the state. The industry in New York has an egregious record of abuses and exploitation of workers. In 2015, New York passed several laws aimed at reining in abuses, wage theft and exploitation in the industry in response to a New York Times expose on the industry in New York City, but workers and organizers say there remains a significant lack of enforcement as these issues persist in the industry.In a February 2020 report by the New York Nail Salon Workers Association, 82% of workers reported experiencing wage theft at an average amount of $181 per week. Rates were highest at salons with the cheapest services. The vast majority of the workforce in the nail salon industry are immigrant women of color.Maritza Ovalles has worked as a nail tech in New York City for 24 years and is a member of the New York Nail Salon Workers Association.Throughout her career, Ovalles has worked long hours for low pay, with few or no breaks, no benefits and a lack of proper protection from the hazardous chemicals.“I used to get a lot of headaches when I did acrylic nails and was exposed to all these chemicals,” said Ovalles. “There was no ventilation and there was a lot of dust from filing nails and chemicals from removing nail polish.”When she started working in the industry, she made only $30 a day, despite working 10 to 12 hours a day, five or six days a week, and was never paid for working overtime.“After all these years, I’ve had to take physical therapy for my arm. My joints are in pain,” added Ovalles. “I’ve had gastritis and had to remove my gallbladder from stones because we never were able to have a full lunch break. We used to eat at 4 or 5pm and had to rush to get back to work.”TopicsNew YorkUS politicsBeautyMinimum wagenewsReuse this content More

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    Joe Biden raises minimum wage to $15 an hour for federal contractors

    Joe Biden has signed an executive order that will raise the minimum wage to $15 an hour for federal contractors, providing a pay bump to hundreds of thousands of workers.Biden administration officials said that the higher wages would lead to greater worker productivity, offsetting any additional costs to taxpayers.“This executive order will promote economy and efficiency in federal contracting, providing value for taxpayers by enhancing worker productivity and generating higher-quality work by boosting workers’ health, morale and effort,” the White House said in a statement.Biden has pushed to establish a $15 hourly minimum wage nationwide for all workers, making it a part of his coronavirus relief package. But the Senate parliamentarian said the wage hike did not follow the budgetary rules that allowed the $1.9tn plan to pass with a simple majority, so it was not included in the bill that became law in March.The liberal Economic Policy Institute estimates that as many as 390,000 low-wage federal contractors would receive a raise, with roughly half of the beneficiaries being Black or Hispanic workers. There are an estimated 5 million contract workers in the federal government, according to a posting last year for the Brookings Institution by Paul Light, a public policy professor at New York University.Sylvia Walker, a federal contract worker at Maximus, which operates call centers for the Centers for Medicare and Medicaid Services, called the executive order an “important first step”.“We’ve fought hard for fair pay and better working conditions, and we are thankful Biden’s administration has heard our call to action,” Walker said.The increase could be dramatic for workers who earn the current minimum of $10.95 an hour. Those workers would receive a 37% pay hike, though the increase would be rolled out gradually, according to the terms of the order.The White House said the workers would include cleaning professionals and maintenance workers, nursing assistants who care for veterans, cafeteria workers providing for the military and laborers who build and repair federal infrastructure.All federal agencies would need to include the higher wage in new contract offerings by 30 January of next year. By 30 March, agencies would need to implement the higher wage into new contracts. The increase would also be in existing contracts that are extended.The wage would be indexed to inflation, so it would automatically increase with each year to reflect changes in prices. The tipped minimum wage of $7.65 an hour for federal contractors would be replaced by the standard minimum by 2024.Congress has not raised the federal minimum wage for all workers – $7.25 an hour – since 2007, despite opinion polls showing Americans overwhelmingly favor an increase.“Change is possible. We urge Congress to follow President Biden’s courageous leadership and make sure all workers – not just federally contracted workers – are given the same opportunity to thrive by passing the Raise the Wage Act,” said Saru Jayaraman, the president of One Fair Wage, a national nonprofit that advocates on behalf of tipped workers. More