Declining Health Benefits Means Fewer Dentists

As employers curtail health benefits, a Pew Report says that we will see a shortage of dentists—and by implication, have worse dental health. Highlights: 1. 127 million Americans lack dental insurance. 2. the supply of dentists is not meeting the demand for care, and this shortage is expected to intensify over the next 10 years. 3. There are 71 million children and adults who rely on Medicaid and the Children’s Health Insurance Program, but only one-third of dentists cared for patients on public insurance in 2013 due to low reimbursement rates and burdensome paperwork. 4. In 2012, there were more than two million dental-related visits to hospital emergency rooms – most could have been addressed earlier in a dental office. The cost for this care was about $1.6 billion. The story is here.

Does Your State Prohibit Genetic Discrimination in Employment? Answer Is Here

Interested in more information about genetic discrimination laws? We are covering new material in class Monday—I pass on this great link to applicable state laws (here). A federal also prohibits this type of employment discrimination (called Genetic Information Nondiscrimination Act, or GINA). For more, see this link. The main ambiguity in these statutes is the definition of genetic information. A narrow interpretation covers only a test that reveals a propensity for disease or actual condition. By this definition, an employer can use a cheek swab to link employees to workplace vandalism or theft or similar. But in a key ruling (here), a federal court rejected this definition and said that Congress intended to prohibit employers from collecting all genetic information, regardless of the purpose.

State of the Unions: Higher Wages, Declining Membership

Two Wall Street Journal articles summarize the state of the unions. First, union wages are, on average, higher than for nonunion workers. The chart above shows how the union wage premium varies by demographic group. For more, read here.  Second, union membership is declining—and has been for decades. Overall, the rate in 2014 was 11.1% last year, down from 11.3% the prior year. Membership in the private sector fell to a rate of 6.6% in 2014, from 6.7%. In the public-sector, the rate rose to 35.7%, from 35.3%.

The article is here.

 

 

Want Health in Old Age? Work for It

NPR reports on a major health study that finds better health outcomes for people who work in their 60s and 70s. The article features Michael Doucleff, who owns and operates a donut and coffee shop (what better place to meet people?). For 45 years, he has been waking up at 2 a.m. to make sure his donuts and pastries are ready by 6 a.m. Now 70, he is working hard— more than 40 hours a week—and he still carries 50-pound bags of flour upstairs from the basement. "You've got to wake up sometime in the morning — might as well have a purpose," Doucleff says. "I think I still contribute to society. For me, that's enjoyable." The study finds that “employed older adults had better health outcomes than unemployed older adults. Physically demanding occupations had the lowest risk of poor health outcomes, suggesting a stronger healthy worker effect: service workers were at lowest risk of multiple functional limitations; and blue-collar workers were at lowest risk of multimorbidity and multiple functional limitation. Hugs to Sarah for sharing this story (click here).

The New Face of American Unions: How An Illogical “Yogi-ism” Fits

Yogi Berra, passed away yesterday. He was famous for making up illogical sayings that had the essence of truth, such as: “When you reach a fork in the road, take it!” This applies to today’s American unions. For 70 years, they have tried to formally organize employees into collective bargaining units. Their goal was to bargain wages, hours, and terms and conditions of employment. After 40 years of adverse legal rulings, unions are finding it more advantageous, at times, to form employees into worker committees—without taking the next step of petitioning for an election. Ironically, these worker committees may have more potency than a formal union. One example: the SEIU’s $15 per hour wage push, which has been more productive for fast food employees than formal union organizing. For more on this second fork in the road for unions, see this New York Times article.

Wal-Mart Wrongfully Terminated Employees Who Fought Off Customer Assaults

Wal-Mart policy requires employees to avoid violent confrontations and call law enforcement. At one Utah store, two employees were fired after they pried a knife out of the hands of a woman caught shoplifting who threatened to stab them if they didn’t let her go. At another store, three employees stopped a man who was walking out with a computer. Spotting a gun on him, they pinned him to a wall and took away his weapon.

Last week, Utah’s Supreme Court ruled they were wrongfully discharged. The opinion said: “Although we acknowledge that Wal-Mart‘s interest in regulating its workforce is important, we conclude that there is a clear and substantial public policy in Utah favoring the right of self-defense for three reasons. First, the right of self-defense is enshrined in Utah statutes, the Utah Constitution, and our common law decisions. Second, a policy favoring the right protects human life and deters crime, conferring substantial benefits on the public. And third, the public policy supporting the right of self-defense outweighs an employer‘s countervailing interests in circumstances where an employee reasonably believes that force is necessary to defend against an imminent threat of serious bodily injury and the employee has no opportunity to withdraw.”  The decision is here.

Want a Better Wall? Expect Higher Housing Prices: 570,000 Mexican Construction Workers Leave U.S.

Several industries are unusually dependent on Mexican workers. Home construction is one. A Wall Street Journal article reports Commerce Department data showing that the number of Mexican construction workers in the U.S. has fallen from a peak of 1.89 million in 2007 to 1.32 million in 2014. Quoting the WSJ article: “many of those workers who went back to Mexico during the downturn haven’t returned to work in the U.S. due to tighter immigration controls—both for those entering legally and those not—and comparable job opportunities in some Mexican states with improving economies…. That doesn’t bode well for a home-building industry that increasingly has cited labor shortages among the factors deterring greater production of late.” Continuing: “a less hospitable environment in the U.S. in recent years for Mexican migration, legal or illegal…. Their report notes Commerce Department figures showing a 67% decline in immigration to the U.S. from Mexico from 2006 to 2013. What’s not in the report? The fact that Americans are not picking up the slack.  Read more here.

 

Uber Drivers on Strike in Dallas: Can Teamsters Be Far Behind?

Texas is an improbable place for a new type of strike. On Friday, “UberBlack” drivers turned off their Uber apps and have refused to pick up rides since then. UberBlack is the premium segment of the ride-market. UberBlack drivers typically buy black SUVs or limos—expensive luxury vehicles— in the hope that they’ll pay-off their investment and make more money. However, Uber’s policy compels them to accept cheaper rides under the basic UberX platform. In this article, reporter Robert Wilonsky writes: “As we noted Friday and again yesterday, UberBlack drivers who say they spent $40,000 to $50,000 on luxury SUVs and town cars are protesting a company directive forcing them to pick up passengers who wanted the cheaper UberX service, which bills itself as ‘everyday cars for everyday use.’ They say they didn’t sign on to Uber to make pennies on the dollar and work 14 hours a day to compete with drivers using their own cars who work when they want.” I note that the Dallas drivers sound more like employees than entrepreneurs.

Drinks Are Served … But Justice Is Not

Borgata is an Atlantic City casino that opened in 2003 to bring a touch of Vegas to the East Coast. The casino marketed “Borgata Babes”[see photo]— drink servers— to reflect "the fun, upscale, sensual, international image that is consistent with the Borgata brand."  All Babes were marketed in a brochure in these terms: “She moves toward you like a movie star, her smile melting the ice in your bourbon and water. You forget your own name. She kindly remembers it for you. You become the most important person in the room. And relax in the knowledge that there are no calories in eye candy.” Under the program, Borgata hired 686 women and 46 men. In time, 21 Babes—all women-- were for fired for failing to meet weight standards. On September 17^th a New Jersey appeals court ruled that their employment conditions did not constitute unlawful discrimination. The court’s dubious reasoning: “The record shows the BorgataBabe position comprised more than a job serving drinks and washing glasses. From its inception, an element of performance and a public appearance component was part of the described BorgataBabe position. The record does not dispute the BorgataBabes appeared as the face of the casino outside the casino floor. Further, based on their designated role on behalf of defendant BorgataBabes were provided lower and more flexible hours, more beneficial earning opportunities, and perquisites of employment not extended to defendant's other associates. These facts demonstrate the business specialization of the BorgataBabes among defendant's associates.” Read the decision here.

Under the Radar: U.S. Household Incomes Flat Since 1996

While Americans debate Donald Trump’s daily fulminations and insults, there is distressing news about the demise of the American dream-- the dream of economic progress. The news is from a study conducted by the U.S. Census Bureau. It finds that “the median annual household income stayed all but flat, at $53,657. Adjusted for inflation, incomes are barely above their 1996 level.” For more, read here.

Exotic Dancers: Employees or Independent Contractors? Why It Matters

Priya Verma sued The Penthouse Club of Philadelphia under federal and state wage laws. The recent case illustrates a trend I am seeing in my current research project— companies misclassify workers as “contractors” and they impose various chargebacks or fines, all of which are subtracted from their compensation. For dancers, the night club charged a fee for their dressing room, fined them for not wearing their hair down, charged a “stage rental fee,” required tips be paid to the disc jockey, fined them $100 for smoking and $50 for dress code violations, and so on. Think this is unique to strippers? Hardly. I am finding that many installers of cable services and delivery workers are misclassified as independent contractors. If they don’t complete work within a specified time, or their work is not satisfactory, they are deducted piece-rate pay in “chargebacks.” Besides the workers who are cheated out of overtime and minimum wage pay, the biggest losers are Social Security and other government units that collect employment taxes. Who pays for this cheating? Honest employers. Verma recently won a preliminary ruling in her lawsuit.

Is Speed Hiring Any Better Than Speed Dating?

Today’s Wall Street Journal highlights the latest trend in some HR circles, namely “fast track hiring.” Quoting from the article: “Fed up with recruiting that takes weeks or months, employers are experimenting with ways to take on new employees in a matter of days or even hours.  Chipotle Mexican Grill Inc. made a highly publicized push last week to hire 4,000 workers in a single day, and other technology and media companies are accelerating the way they woo and acquire talent, from entry-level workers to directors. Managers say that things like delaying or forgoing reference checks and scheduling back-to-back interviews are helping swiftly fill jobs with good employees, although some workplace experts caution that such sprints may result in costly mistakes.” Okay, then, the next HR trend will be speed firing, followed by speed lawsuits for wrongful termination and similar. One proponent of speed hiring, Prof. John Sullivan, opines: “In recruiting, LeBron [James] is gone after one day.” I guess he missed the concept that even pro sports teams do extensive evaluations before draft day. Nothing about drafting an athlete is hasty … and given the high costs of making a bad hire even for a Chipotle food server, why rush into a mistake? The article is here.

Pay for Traveling to Work? Yes, In Europe; No, in U.S.

The European Union’s highest court has ruled that workers without a stationary office—for example, a home health care worker, or a service technician who travels in a van— must be paid when they leave home until they return from work. In the U.S., this is highly implausible. The main law that covers this situation is the Portal-to-Portal Act. It says that “compensable time” begins with “principal” work activities, and also includes preliminary and postliminary activities if they are “integrally related” to principal activities. Examples: Refueling a company vehicle at the firm’s garage; donning and doffing safety equipment to work on a “cut line” in a meat packing plant. Excluded: Going through an employer’s security screening line in the Supreme Court’s recent (and narrow) construction of the Portal-to-Portal Act.  Read news about EU court here. Contrast with our Supreme Court's ruling in 2014 here, involving an Amazon fulfillment center.

 

Female Migrant Workers Win $17 Million for Sexual Harassment by Farm Managers

Migrant workers are a vulnerable population. Women are especially at risk for exploitation. The EEOC charged two sons of the owner of Moreno Farms and a third male supervisor with graphic acts of sexual harassment against females who worked in the packaging house. Allegedly, these men groped, propositioned, and  threatened female employees with termination if they refused the supervisors' sexual advances.  Allegations also included attempted rape. The women were fired for opposing this harassment. A Florida jury has now awarded them $17 million. Details are here.

Uber Update: Older Drivers Enjoy Social Aspect; Pay Overestimated

An interesting article in Ozy reports: “Bryan Yune doesn’t really need to work. The 73-year-old has a nest egg and his wife still brings in regular dough. So why is he driving his new Prius around Mountain View, California, for several hours every morning, moving Uber and Lyft customers from point A to point B? It’s simple, he says: ‘I can’t not be with people.’” The article continues:  “Of course, the majority of drivers for ride-hailing companies actually do care about the money. Three-quarters of Uber drivers said money was their biggest motivation, according to a company-commissioned report released in January, and they reported making an average of $19 per hour. Glassdoor, an independent salary tracking site, has Uber drivers making closer to $15 per hour, while SherpaShare, which tracks ride-hailing employees specifically, estimated that gross earnings per Uber trip were below $15 for every location outside of New York City. And that doesn’t even include Uber’s 20 percent cut, or fuel and vehicle costs that the contractor takes on. Uber is rarely a driver’s sole source of income, according to the company report.” Read more here.

Sponge Bob Agrees: Work Friendships Matter

A friend has passed along an unusually valuable article in the New York Times, “Friends at Work: Not So Much.” Here are key highlights: 1. In 1985, about half of Americans said they had a close friend at work; by 2004, this was true for only 30 percent [what is it today?!]. 2. Because work relationships are more transitory, work interactions are more narrow, with negative implications for organizational health and effectiveness. 3. The workplace is much more “transactional.” Consider this observation: “We may be underestimating the impact of workplace friendships on our happiness — and our effectiveness. Jobs are more satisfying when they provide opportunities to form friendships. Research shows that groups of friends outperform groups of acquaintances in both decision making and effort tasks. When friends work together, they’re more trusting and committed to one another’s success. That means they share more information and spend more time helping — and as long as they don’t hold back on constructive criticism out of politeness, they make better choices and get more done." Read here.

Slave Labor and Costco? The Link

What’s not to like about Costco? Huff Post lists it among the top ten companies on the basis of a positive reputation with customers and employees. There is a dark side to this success story, however: Costco, like so many large firms, relies on an extensive supply chain that threads into the most remote, dangerous, and lawless corners of the world. Far-flung corporations not only have “contractors” who make their goods—those contractors have sub-contractors, who have their who own sub-contractors, and so on.  Actual goods are sometimes made by slave laborers. Today, the Wall Street Journal reports on recent lawsuits against food company Nestle SA and big-box retailer Costco Wholesale Corp. alleging they sold products made from materials produced with slave labor. This news comes on the heels of the conviction in Brazil of construction firm Odebrecht Group for keeping workers in slave-like conditions. The challenge is for companies to understand how people work in every phase of their supply chains. The fascinating article is here.

Are More Older People Working?

For a happy Labor Day experience, I accompanied my wife to do something that is unnatural for me: go shopping. We both remarked on the older age of the workers we encountered, as well as their positive attitudes about working on a holiday. Being an older worker who sneaked back to work this Labor Day, I looked up a report on older workers in the Bureau of Labor Statistics (a great resource). Their last comprehensive study, published in 2008, found: “Between 1977 and 2007, employment of workers 65 and over increased 101 percent, compared to a much smaller increase of 59 percent for total employment (16 and over). The number of employed men 65 and over rose 75 percent, but employment of women 65 and older increased by nearly twice as much, climbing 147 percent. While the number of employed people age 75 and over is relatively small (0.8 percent of the employed in 2007), this group had the most dramatic gain, increasing 172 percent between 1977 and 2007.” My hunch? Those trends have accelerated from 2008 to the present. The study is here: http://www.bls.gov/spotlight/2008/older_workers/

More Vandalism?

This picture shows our campus-based Rabbi’s broken window. His van was parked for Sabbath over this Labor Day weekend. The building to the right is the place of worship, a modest frame house. The van transports his wife and young children. University of Illinois students gather there, not only for worship, but to socialize and plan activities to serve others. If the window shattered due to heat, it would be an unfortunate coincidence, occurring about 50 feet from where a menorah was torn down a month ago.

How Should We Handle Potty Mouths at Work? Your Thoughts….

LSU has fired a tenured professor for her repeated and off-putting use of the F-word in class, and using a vulgar term for genitalia. It doesn’t help that she is training future elementary teachers. But let’s put aside the fact that academe is home to crackpots as well as serious thinkers. Most of us deal with a potty mouth at work. In varying degrees, they offend … or inhibit group interactions. Does ignoring them address the issue? Don’t think so. How about a training module? Don’t think so. How about firing them? Don’t think so, unless there are aggravating factors, such as actionable harassment. Is a potty mouth on email or social media worse than in person? I don’t know, but to me, it often seems worse in print because these terms are not in my spellchecker. I have no panacea, but I wonder: How did the hiring or promotion process break down in bringing these social pollutants to our work lives? Were these tendencies observable and predictable at an earlier point? Your ideas and suggestions are invited. If I receive enough comments, I’ll follow up by sharing them.

Court Ruling: Independent Contractor Model Not So Uber

 

Today's ruling is a major setback for Uber’s contractor model. While the court agreed with Uber’s argument that drivers set their own schedules, the court weighed more heavily the fact that Uber controls drivers’ territories, unilaterally sets their compensation, restricts their ability to work independently for rivals such as Lyft and Sidecar, promulgates performance standards for drivers, requires an onboarding process for them, and allows Uber to terminate drivers without cause.  Key to note, according to the court, while Uber drivers believed that they were independent contractors, they came to this belief because Uber told them so. Under California law, what an individual believes about his or her work relationship to a parent organization does not negate the economic realities of work control exercised by the organization.  Uber, in effect, cannot hoodwink drivers into waiving their right to an employment relationship. This clears the way for anyone who drove for Uber in California since August 16, 2009 to join the plaintiff class. That group is likely to be very large, and the ruling today will exert pressure on Uber to settle short of facing large damages at trial—and worse, an adverse legal precedent for other courts. Uber’s work model has faced legal setbacks abroad; but this large setback, before a court in Uber’s home state and city, may undermine its chic appeal for signing up drivers who are looking for the Uber lifestyle. Court ruling is here: https://www.documentcloud.org/documents/2325473-gov-uscourts-cand-269290-341-0.html