How about that timing of worker pay report?

The same day public workers were rescuing hurricane victims out East, and Iowa police officers were being shot in a bank robbery, the Branstad administration chose to release a study on state workers’ pay.

Mike Owen
Mike Owen

Timing is everything.

Consider the announcement Tuesday by the Branstad administration of a new report produced by an outside company to examine whether Iowa state workers are paid too much.

Paid too much?

As the Department of Administrative Services was releasing the report, emergency rescue workers across the Eastern seaboard were putting themselves in harm’s way to help their neighbors in the path of the deadly Hurricane Sandy. And right here in Iowa, within a couple hours of the DAS news conference, bank robbers shot two law enforcement officers — critically wounding the Sumner police chief and injuring a state trooper.

We count on public servants every day, sometimes when lives are at stake, sometimes in enriching life with education, sometimes in just keeping life orderly enough that we can enjoy it without worrying whether the water or food will poison us, or that our job will not put us in danger we did not sign up for.

Oh, and the report? It found that pay scales for Iowa state workers are generally competitive. Where the report cited potential problems, the information provided was too sketchy to delve in and really go through it. And, being produced by a private company that copyrighted the report, we might just never know what our tax dollars produced. This is what happens with privatization, folks. But if you want a quick look at the holes in the report, see the review Tuesday by IPP’s Peter Fisher.

So, for those less inclined toward knee-jerk appeals against public workers, the timing of this report, you might say, wasn’t too bad.

Posted by Mike Owen, Assistant Director

 

Time to address wage theft in Iowa

Annually, wage theft deprives low-wage Iowa workers of an estimated $600 million, deprives state and local government of revenue, and puts law-abiding businesses at a competitive disadvantage.

Every year, far too many Iowans experience “wage theft” when they are cheated out of wages they have earned. Some are not paid for all of the hours they actually worked; some are paid “off the books” at less than the legally mandated minimum wage; some earn tips they do not get to keep; some are not paid at the legally mandated rate for overtime; some leave a job or contract arrangement and never receive their final paycheck.

What is Wage Theft?

Wage theft occurs whenever a worker is robbed of legally owed wages because an employer breaks the law or a contract. Common forms of wage theft include:

•   Nonpayment of wages: An employer fails to pay workers for some or all hours of work performed, or fails to pay workers in a timely fashion.

•   Underpayment of wages: An employer pays workers less than they were promised or less than they are legally owed under state or federal minimum wage or overtime statutes.

•   Tipped job violations: An employer pays tipped employees less than the legally mandated minimum wage for tipped jobs, forces tips to be “shared” with managers or steals workers’ tips.

•   Deduction violations: An employer diminishes workers’ pay by making unauthorized or illegal deductions from paychecks

•   Misclassification of employees: An employer falsely labels an employee as an “independent contractor” in order to avoid obligations to pay minimum wage and overtime (along with a host of other employment laws, and unemployment insurance, workers’ compensation, and income tax payments). The “independent contractor” exemption is not meant to apply to those providing services under the direction and control of others; one example of misclassification would be to call a cashier a “salaried manager” to avoid the overtime provisions of federal law.

Annually, wage theft deprives low-wage Iowa workers of an estimated $600 million, deprives state and local government of revenue, and puts law-abiding businesses at a competitive disadvantage. A new report for the Iowa Policy Project estimates the impact of wage theft in Iowa, assesses the current state of public policy and enforcement systems intended to prevent wage theft, and surveys effective models for addressing the problem so that communities, state agencies, and policymakers in Iowa can begin to address it.

Posted by Jennifer Sherer
Director, University of Iowa Labor Center
President, Iowa Policy Project board of directors