Tuesday, February 18, 2014
Inflation and $10.10 Minimum Wage
President Obama has proposed an increase in the minimum wage to $10.10 an hour that might be considered and passed by Congress, or might not. The last increase in the minimum wage was July 24, 2009 when it went up to $7.25 an hour. Even though inflation rates are low a wage fixed for almost 5 years loses buying power over time.
How much buying power changes depends on the comparison years. For example the minimum wage in 2000 was $5.15 an hour, but now it is $7.25 an hour. To have the buying power of the 2000 minimum wage in 2013, the 2013 minimum wage would need to be $6.97. Instead it is $7.25, a 3.9 percent increase in the buying power of the minimum wage from 2000 to 2013. Buying power adjustments to value are made with the all city Consumer Price Index published by the Bureau of Labor Statistics.
However, the minimum wage has a history of remaining fixed for long periods. One period was 1981 to until 1989 when the minimum wage was fixed at $3.35 an hour. Another was the late 1990’s until 2007 when the minimum wage was fixed at $5.15 an hour. It was these long periods where the buying power declined the most. For example, to have the buying power of the 1980 minimum wage the 2013 minimum wage would need to be $8.76 an hour. Instead it is $7.25 an hour, a 21 percent decrease in the value of the minimum wage from 1980 to 2013.
To have the buying power of the 1960 minimum wage the 2013 minimum wage would need to be $9.84 an hour. Instead it is $7.25, a 35.7 percent decrease in the buying power of the minimum wage from 1960 to 2013.
Between 1960 and 1990 the minimum wage lost 64 percent of its buying power. Inflation in the late 1970’s and early 1980’s ran as high as 11 percent a year and low wage jobs lost significant value during these years. Between 1990 and 2013 the minimum wage has recovered 17.6 percent of its lost value. For those who took minimum wage jobs after 1990 their buying power has increased slightly although almost all of the recovered value has came after 2007. Unfortunately, the value of the minimum wage remains far below what it was in the 1960’s and 1970’s.
Indexing
The minimum wage would be more effective to protect low wage buying power if it was indexed to the Consumer Price Index at the end of each year. A comparison of President Obama’s proposed new minimum wage of $10.10 an hour and $7.25 an hour with an annual cost of living adjustment illustrates the benefit.
For someone earning the minimum wage working full time from 2010 through 2014, their annual income would be $15,080. [$7.25 x 2080] At a minimum wage of $10.10 an hour they would earn $21,008. The additional income over the old minimum totals $5,928, if the cost of living adjustment comes at the end of this year for the 2015 year.
For someone earning $7.25 an hour adjusted for the published inflation rate applied at the end of the year and a forecast two percent inflation rate through 2014, their wage at the beginning of 2015 would be $8.19 an hour. But here is the surprise: the extra income including the raise they would get for 2015, even at the low $8.19 an hour, comes to $6,704.00 or $776.00 more than the Obama plan. The result assumes any new minimum wage would apply at the beginning of 2015.
In general the longer the Congress delays a cost of living adjustment for the minimum wage and the higher the rate of inflation, the more benefit from indexing. But that is the purpose of indexing: prevent delays and take advantage of compounding.
The politics of the minimum wage confounds the best hopes for a significant increase in the minimum wage. Even a $10.10 an hour minimum draws complaints and opposition. Business and the Republicans always oppose an increase since it adds costs but not profits. Economists use their most sinister tones to forecast a decline in employment, as if those who lose their low wage job will never work again. Democrats take a more accommodating tone, but have not protected the value of the minimum wage. If President Obama wants to discuss a living wage indexed to inflation it will be something new after years of the status quo on wages. I am not holding my breath!
Tuesday, January 28, 2014
The Unwinding
George Packer, The Unwinding: An Inner History of the New America, (NY: Farrar, Straus, Giroux, 2013), 430 pages, $27.00
Some believe Americans live in a new age of decline. In The Unwinding author George Packer invites readers to test their views on decline while reading 430 pages of journalistic narrative on a selection of Americans and their activities from the last twenty-five years.
The book does not have chapters, but conveys the passage of time with one page reprints of media headlines and quotations from selected years: 1978, 1984, 1987, 1994, 1999, 2003, 2008, 2010, 2012. In between there are sections with extensive interview material from the lives of three people, Dean, Jeff and Tammy, and background material and interviews of people connected to three places, Silicon Valley, Tampa, Florida and Wall Street. Interspersed among these sections are somewhat shorter reviews of ten people with varied claims to celebrity status: Newt Gingrich, Oprah Winfrey, Raymond Carver, Sam Walton, Colin Powell, Alice Waters, Robert Rubin, Jay-Z, Andrew Breitbart, and Elizabeth Warren.
Almost half the book, 201 pages, narrates the interviews and biographical material of Dean, Jeff and Tammy. Dean grew up north of Greensboro, North Carolina on a family owned tobacco farm actually farmed by his grandfather. After finishing high school in 1981 he worked at RJ Reynolds Tobacco, but then returned to college. After college he spent eight years in Pennsylvania selling Johnson and Johnson products, but was too restless to continue. He returned to North Carolina to begin a career as an entrepreneur, opening a store he called Red Birch Country Market in 1997 and later a bio-diesel processing facility.
Jeff grew up in Huntsville Alabama the son of a chemical engineer. As a student at the University of Alabama he started the Alabama Political Union and invited Senator Joe Biden to debate SALT II with Senator Jake Garn. He finished college, got an MBA, worked for Smith Barney and E.F. Hutton, but he was so impressed with Biden he was always ready to work in a Biden for president campaign, which he did starting in 1986.
Tammy grew up on the east side of Youngstown, Ohio. She lived with her great grandmother, who supported her and her mother cleaning houses. She got pregnant at 15, was on welfare, worked as a cashier, had two more children, got an AA degree, and finally left welfare for a manufacturing job in 1988.
Their continuing tales of hard work and effort in the 1990’s and up to the present become the symbols for the unwinding of small entrepreneurial opportunities in the story of Dean, for a career in politics for Jeff, and for supporting yourself and a family in manufacturing for Tammy. No happy endings here.
I would call the material for Dean, Jeff and Tammy subtle compared to the material for Silicon Valley, Tampa, and Wall Street. These sections offer a blunter picture of ethical choices, or failures as you can decide. Silicon Valley material primarily follows the career and attitudes of Peter Thiel, best known for his part in developing PayPal and financing the expansion of Facebook.
In the narrative sections on Tampa we read about local homeowners victimized by the rogues and scoundrels who brought America the collateralized debt security and millions of home mortgage foreclosures. The section on Wall Street briefly develops the Wall Street contribution to the 2008 recession, but most of the material here covers the Occupy Wall Street movement, its organizers, their efforts, hopes and failures.
The ten celebrity profiles vary widely, but not as much from varied achievements as from varied degrees of arrogance and personal ambition run wild. Among the profiles I believe Packer picked the best symbol of an America unwinding: Newt Gingrich. In the early 1990’s Gingrich unified the angry and disaffected into a GOP voting block perfecting empty statements like “Corrupt liberal bosses cheat, lie, and steal to impose their sick pathetic cynicism and bizarre radical stagnation in order to destroy America.” Others among the celebrity ten let ambition cloud their personal and ethical judgment but none in the group quite so much as Gingrich.
The author avoids making personal judgments or drawing conclusions for the reader. He chose the people and places to make his argument, but leaves it up to the reader to agree or disagree. The book is long but the sections remain separate from each other and can be read as individual pieces. There is historical material mentioned in a few places like a discussion of the steel industry in Youngstown, but the narrative relies almost entirely on interviews and recently published secondary material. There is a short bibliography and notes on sources but not text citations.
I marked a couple of places that jumped out for me. In the commentary about Dean there was mention of white people living in small, obscure places and getting poorer and poorer who vote for the party that wants to deregulate Wall Street and zero out taxes on capital gains. I always want to believe voters are smart enough to vote for their best interests, but I can’t think of a thing the GOP is offering the working poor.
Toward the end of the book Packer quotes from commentary by Peter Thiel made after the lucrative sale of PayPal. He is quoted on page 388 as refusing to submit to “the ideology of the inevitability of the death of every individual.” With the current state of medical research he expects to live to 120, but 150 is becoming thinkable and research might extend to infinity and beyond.
Sometimes I hear comments from the rich and well placed that suggest they think of themselves as too important to die, but I do not recall any quite as blunt as Mr. Thiel. While I remain unsure that America’s current troubles mean decline, the Unwinding gives many reasons to distrust the rich, but that is a recurring American theme and not an Unwinding.
Some believe Americans live in a new age of decline. In The Unwinding author George Packer invites readers to test their views on decline while reading 430 pages of journalistic narrative on a selection of Americans and their activities from the last twenty-five years.
The book does not have chapters, but conveys the passage of time with one page reprints of media headlines and quotations from selected years: 1978, 1984, 1987, 1994, 1999, 2003, 2008, 2010, 2012. In between there are sections with extensive interview material from the lives of three people, Dean, Jeff and Tammy, and background material and interviews of people connected to three places, Silicon Valley, Tampa, Florida and Wall Street. Interspersed among these sections are somewhat shorter reviews of ten people with varied claims to celebrity status: Newt Gingrich, Oprah Winfrey, Raymond Carver, Sam Walton, Colin Powell, Alice Waters, Robert Rubin, Jay-Z, Andrew Breitbart, and Elizabeth Warren.
Almost half the book, 201 pages, narrates the interviews and biographical material of Dean, Jeff and Tammy. Dean grew up north of Greensboro, North Carolina on a family owned tobacco farm actually farmed by his grandfather. After finishing high school in 1981 he worked at RJ Reynolds Tobacco, but then returned to college. After college he spent eight years in Pennsylvania selling Johnson and Johnson products, but was too restless to continue. He returned to North Carolina to begin a career as an entrepreneur, opening a store he called Red Birch Country Market in 1997 and later a bio-diesel processing facility.
Jeff grew up in Huntsville Alabama the son of a chemical engineer. As a student at the University of Alabama he started the Alabama Political Union and invited Senator Joe Biden to debate SALT II with Senator Jake Garn. He finished college, got an MBA, worked for Smith Barney and E.F. Hutton, but he was so impressed with Biden he was always ready to work in a Biden for president campaign, which he did starting in 1986.
Tammy grew up on the east side of Youngstown, Ohio. She lived with her great grandmother, who supported her and her mother cleaning houses. She got pregnant at 15, was on welfare, worked as a cashier, had two more children, got an AA degree, and finally left welfare for a manufacturing job in 1988.
Their continuing tales of hard work and effort in the 1990’s and up to the present become the symbols for the unwinding of small entrepreneurial opportunities in the story of Dean, for a career in politics for Jeff, and for supporting yourself and a family in manufacturing for Tammy. No happy endings here.
I would call the material for Dean, Jeff and Tammy subtle compared to the material for Silicon Valley, Tampa, and Wall Street. These sections offer a blunter picture of ethical choices, or failures as you can decide. Silicon Valley material primarily follows the career and attitudes of Peter Thiel, best known for his part in developing PayPal and financing the expansion of Facebook.
In the narrative sections on Tampa we read about local homeowners victimized by the rogues and scoundrels who brought America the collateralized debt security and millions of home mortgage foreclosures. The section on Wall Street briefly develops the Wall Street contribution to the 2008 recession, but most of the material here covers the Occupy Wall Street movement, its organizers, their efforts, hopes and failures.
The ten celebrity profiles vary widely, but not as much from varied achievements as from varied degrees of arrogance and personal ambition run wild. Among the profiles I believe Packer picked the best symbol of an America unwinding: Newt Gingrich. In the early 1990’s Gingrich unified the angry and disaffected into a GOP voting block perfecting empty statements like “Corrupt liberal bosses cheat, lie, and steal to impose their sick pathetic cynicism and bizarre radical stagnation in order to destroy America.” Others among the celebrity ten let ambition cloud their personal and ethical judgment but none in the group quite so much as Gingrich.
The author avoids making personal judgments or drawing conclusions for the reader. He chose the people and places to make his argument, but leaves it up to the reader to agree or disagree. The book is long but the sections remain separate from each other and can be read as individual pieces. There is historical material mentioned in a few places like a discussion of the steel industry in Youngstown, but the narrative relies almost entirely on interviews and recently published secondary material. There is a short bibliography and notes on sources but not text citations.
I marked a couple of places that jumped out for me. In the commentary about Dean there was mention of white people living in small, obscure places and getting poorer and poorer who vote for the party that wants to deregulate Wall Street and zero out taxes on capital gains. I always want to believe voters are smart enough to vote for their best interests, but I can’t think of a thing the GOP is offering the working poor.
Toward the end of the book Packer quotes from commentary by Peter Thiel made after the lucrative sale of PayPal. He is quoted on page 388 as refusing to submit to “the ideology of the inevitability of the death of every individual.” With the current state of medical research he expects to live to 120, but 150 is becoming thinkable and research might extend to infinity and beyond.
Sometimes I hear comments from the rich and well placed that suggest they think of themselves as too important to die, but I do not recall any quite as blunt as Mr. Thiel. While I remain unsure that America’s current troubles mean decline, the Unwinding gives many reasons to distrust the rich, but that is a recurring American theme and not an Unwinding.
Sunday, January 19, 2014
Toll Lane Finance
Some cities and states are experimenting with tolls lanes on congested commuter highways to cut commute times. The new lanes are called HOT lanes, which stands for High Occupancy Toll. Highway officials argue the new policy gives a choice to crawl along in traffic or get in the fast lane.
State Department of Transportation officials around the country tell reporters they see toll lanes as a crucial way to generate revenue in an era of tight budgets. But they have not generated the revenue they expected even though they like the idea of managing traffic by adjusting prices. However, the economics of Hot Lanes guarantees the desire to raise revenue works against their ability to ease traffic congestion.
The Wall Street Journal reports 21 HOT lanes open around the country. [“Life in the Fast Lane, at a Cost”, WSJ, Nov 29, 2013] Road planners require a transponder mounted in commuter’s cars that allow charging a toll that can be varied depending on traffic, but admit tolls as high as $.90 a mile in the Atlanta HOT lanes have kept revenue and use down. Some who object to the charges call HOT lanes “Lexus Lanes” useful to the well-to-do who can afford high tolls.
It is important to remember the only reason to pay for a trip in a HOT lane is to save time. If the fees go down that does encourage more use of the lanes, but it also means the HOT lanes will be more congested and potentially raise trip times. It also suggests the free lanes will be less congested and lower trip times for the free users.
In Virginia along I-95, officials have promoted car pooling by reserving 2 lanes as HOV lanes of three or more people while leaving 3 lanes open to all traffic. To show how well the 14 mile car pool lanes work they released a compilation of information of several recent years about respective travel times from 6:30 AM to 9:30 AM.
The two HOV-3 lanes carried an average 31,700 people in 8,600 cars at an average time of 29 minutes. The three open lanes carried 23,500 people in 21,300 cars at an average time of 64 minutes. The HOV-3 lanes allowed a savings of 35 minutes with an average of 4,300 cars per lane, but the unrestricted lanes were badly congested with 7,100 cars per lane.
The system of car pool lanes has operated for many years without tolls, which officials say they want to keep, but in addition to allow single or two occupancy cars to switch into the HOV3 lanes by paying a toll. Officials in Virginia are suggesting a toll of $5 to $7 dollars is needed for the 14 mile trip on I-95, but the higher the fee the fewer the riders and the less the revenue.
Lower fees will not raise revenue unless the percentage increase in riders is greater than the percentage decrease in the tolls. However, the bigger the increase of riders they get to switch the more quickly the fast lanes will get congested and raise travel times in the HOT lanes and defeat the program.
Everything about the proposals so far indicates fees will have to be high to keep travel times down. High tolls mean HOT lanes work primarily for the well-to-do that do not, or cannot, carpool or worry about travel expenses. In the mean time road planners will have to decide whether they want to allocate scare travel space to the highest bidder or raise revenue for road budgets. They can’t do both.
State Department of Transportation officials around the country tell reporters they see toll lanes as a crucial way to generate revenue in an era of tight budgets. But they have not generated the revenue they expected even though they like the idea of managing traffic by adjusting prices. However, the economics of Hot Lanes guarantees the desire to raise revenue works against their ability to ease traffic congestion.
The Wall Street Journal reports 21 HOT lanes open around the country. [“Life in the Fast Lane, at a Cost”, WSJ, Nov 29, 2013] Road planners require a transponder mounted in commuter’s cars that allow charging a toll that can be varied depending on traffic, but admit tolls as high as $.90 a mile in the Atlanta HOT lanes have kept revenue and use down. Some who object to the charges call HOT lanes “Lexus Lanes” useful to the well-to-do who can afford high tolls.
It is important to remember the only reason to pay for a trip in a HOT lane is to save time. If the fees go down that does encourage more use of the lanes, but it also means the HOT lanes will be more congested and potentially raise trip times. It also suggests the free lanes will be less congested and lower trip times for the free users.
In Virginia along I-95, officials have promoted car pooling by reserving 2 lanes as HOV lanes of three or more people while leaving 3 lanes open to all traffic. To show how well the 14 mile car pool lanes work they released a compilation of information of several recent years about respective travel times from 6:30 AM to 9:30 AM.
The two HOV-3 lanes carried an average 31,700 people in 8,600 cars at an average time of 29 minutes. The three open lanes carried 23,500 people in 21,300 cars at an average time of 64 minutes. The HOV-3 lanes allowed a savings of 35 minutes with an average of 4,300 cars per lane, but the unrestricted lanes were badly congested with 7,100 cars per lane.
The system of car pool lanes has operated for many years without tolls, which officials say they want to keep, but in addition to allow single or two occupancy cars to switch into the HOV3 lanes by paying a toll. Officials in Virginia are suggesting a toll of $5 to $7 dollars is needed for the 14 mile trip on I-95, but the higher the fee the fewer the riders and the less the revenue.
Lower fees will not raise revenue unless the percentage increase in riders is greater than the percentage decrease in the tolls. However, the bigger the increase of riders they get to switch the more quickly the fast lanes will get congested and raise travel times in the HOT lanes and defeat the program.
Everything about the proposals so far indicates fees will have to be high to keep travel times down. High tolls mean HOT lanes work primarily for the well-to-do that do not, or cannot, carpool or worry about travel expenses. In the mean time road planners will have to decide whether they want to allocate scare travel space to the highest bidder or raise revenue for road budgets. They can’t do both.
Monday, January 13, 2014
Jobs with Animals
For those with an interest in animals who would like to pursue a career working with animals it is worth knowing the Standard Occupational Classification has ten occupations doing various things with, or for, animals. In 2012 there were 437.9 thousand jobs in these occupations.
The ten Standard Occupational Classifications with their 2012 employment, average annual change in employment since 2000.and SOC definition are below.
#19-1011 Animal Scientist– 2,120, 45/yr
Conduct research in the genetics, nutrition, reproduction, growth, and development of domestic farm animals. Also known as dairy scientist, poultry scientist. Animal scientists work for better, lower cost ways to produce meat, poultry, eggs and milk.
A few animal scientists work in private industry especially food processing, but most work at state universities and state funded agricultural experiment stations doing food related research. A doctorate in biology, chemistry or relevant engineering is necessary for independent research although a BA degree in an agricultural science field qualifies to assist in research.
The entry wage for the national market in the 10th percentile for animal scientist is reported as $34,550 in 2012. The 25th percentile wage equals $43,940. The median wage is $61,680, the 75th percentile wage equals $91,160, and the 90th percentile wage is $129,440.
The wages of animal scientists have kept up with inflation for the last decade. For example, to have the buying power of the 2006 median wage of $47,800 in 2012, the animal scientist wage would need to be $54,437.53. In stead it was $61,680, a 13.3 percent increase in the real wage for those six years.
#19-1023 Zoologists and Wildlife Biologists– 18,650, 578/yr
Study the origins, behavior, diseases, genetics, and life processes of animals and wildlife. May specialize in wildlife research and management, including the collection and analysis of biological data to determine the environmental effects of present and potential use of land and water areas. Also known by specialty as Ornithologist, Mammalogists, Herpetologist, Ichthyologists
Government employs nearly two thirds of zoologists and wildlife biologists. A few percent work in education as teachers and few more work in the private sector as consultants. A B.A. degree is a minimum requirement, but a PhD is necessary to lead independent research.
The entry wage for the national market in the 10th percentile for Zoologists and Wildlife Biologists is reported as $37,100 in 2012. The 25th percentile wage equals $45,790. The median wage is $57,710, the 75th percentile wage equals $73,010, and the 90th percentile wage is $95,430.
The wages of Zoologists and Wildlife Biologists have not kept up with inflation for the last decade. For example, to have the buying power of the 2006 median wage of $53,300 in 2012, the Zoologists and Wildlife Biologists wage would need to be $60,701.15. Instead it was $57,710, a -4.93 percent increase in the real wage for those six years.
#29-1131 Veterinarian– 56,020, 1,313/yr
Diagnose and treat diseases and dysfunctions of animals. May engage in a particular function, such as research and development, consultation, administration, technical writing, sale or production of commercial products, or rendering of technical services to commercial firms or other organizations. Include veterinarians who inspect livestock. Also known as Animal Pathologist, Animal Surgeon, Veterinary Bacteriologist, Veterinary Inspector
A Veterinarian requires four years of college and then a veterinarian degree from one of Americans 29 vet schools, which are primarily at state universities. Almost all work in veterinary services either as a salaried employee or self employed. A small percent work teaching and a small percent in research.
The entry wage for the national market in the 10th percentile for Veterinarian is reported as $51,530 in 2012. The 25th percentile wage equals $67,040. The median wage is $84,460, the 75th percentile wage equals $108,640, and the 90th percentile wage is $144,100.
The wages of Veterinarian have kept up with inflation for the last decade. For example, to have the buying power of the 2006 median wage of $71,990 in 2012, the Veterinarian wage would need to be $81,986.41. In stead it was $84,460, a 3.02 percent increase in the real wage for those six years.
#29-2056 Veterinary Technologists and Technicians– 83,350, 2,748/yr
Perform medical tests in a laboratory environment for use in the treatment and diagnosis of diseases in animals. Prepare vaccines and serums for prevention of diseases. Prepare tissue samples, take blood samples, and execute laboratory tests, such as urinalysis and blood counts. Clean and sterilize instruments and materials and maintain equipment and machines. Also known as Animal Technician; Veterinary X-ray Operator
A Veterinary Technologist or Technician has the same types of duties in a veterinary practice that a registered nurse has in the health care field. To qualify an AA or BA degree in animal health technology or veterinary technician assistant is necessary. Virtually all of them work in veterinary services because they assist veterinarians.
The entry wage for the national market in the 10th percentile for Veterinary Technologists and Technicians is reported as $21,030 in 2012. The 25th percentile wage equals $25,150. The median wage is $30,290, the 75th percentile wage equals $36,580, and the 90th percentile wage is $44,030.
The wages of Veterinary Technologists and Technicians have not kept up with inflation for the last decade. For example, to have the buying power of the 2006 median wage of $26,780 in 2012, the Veterinary Technologists and Technicians wage would need to be $30,498.63. In stead it was $30,290, a -.68 percent increase in the real wage for those six years.
#31-9096 Veterinary Assistants & Laboratory Animal Caretakers– 71,500, 1,358/yr
Feed, water, and examine pets and other non-farm animals for signs of illness, disease, or injury in laboratories and animal hospitals and clinics. Clean and disinfect cages and work areas, and sterilize laboratory and surgical equipment. May provide routine post-operative care, administer medication orally or topically, or prepare samples for laboratory examination under the supervision of veterinary or laboratory animal technologists or technicians, veterinarians, or scientists.
Veterinary assistants work for veterinary technologists or veterinarians either in their vet practices or helping to care for animals that are part of veterinary research Training is usually on the job training.
The entry wage for the national market in the 10th percentile for Veterinary Assistants and Laboratory Animal Caretakers is reported as $17,150 in 2012. The 25th percentile wage equals $19,220. The median wage is $23,130, the 75th percentile wage equals $28,840, and the 90th percentile wage is $35,510.
The wages of Veterinary Assistants and Laboratory Animal Caretakers have kept up with inflation for the last decade. For example, to have the buying power of the 2006 median wage of $19,960 in 2012, the Veterinary Assistants and Laboratory Animal Caretakers wage would need to be $22,731.61. In stead it was $23,130, a 1.75 percent increase in the real wage for those six years.
#33-9011 Animal Control Workers – 13,890, 486/yr
Handle animals for the purpose of investigations of mistreatment, or control of abandoned, dangerous, or unattended animals. Also known as Animal Warden; Dog Catcher; Humane Officer
Almost 90 percent of Animal Control Workers work for a municipal government. The rest work for civic associations like humane societies. There are no educational requirements beyond high school. Training is mostly on the job training.
The entry wage for the national market in the 10th percentile for Animal Control Workers is reported as $19,730 in 2012. The 25th percentile wage equals $25,090. The median wage is $31,680, the 75th percentile wage equals $39,920, and the 90th percentile wage is $50,730.
The wages of Animal Control Workers have not kept up with inflation for the last decade. For example, to have the buying power of the 2006 median wage of $27,910 in 2012, the Animal Control Workers wage would need to be $31,785.54. In stead it was $31,680, a -.33 percent increase in the real wage for those six years.
#39-2011 Animal Trainers - 11,170, 398/yr
Train animals for riding, harness, security, performance, or obedience, or assisting persons with disabilities. Accustom animals to human voice and contact; condition animals to respond to commands. Train animals according to prescribed standards for show or competition. May train animals to carry pack loads or work as part of a pack team. Also known as Dog Trainer; Horse Breaker; Lion Trainer
More than half of animal trainers are self-employed and most train dogs or horses. Agriculture, forestry and hunting also employ another 25 to 30 percent. Nine to ten percent train animals as paid employees of pet services companies or retail pet stores. Zoos, nature parks, historical sites, spectator sports employ another 5 percent. A high school education is adequate as formal education and the rest is on the job training from someone more experienced.
The entry wage for the national market in the 10th percentile for Animal Trainers is reported as $17,580 in 2012. The 25th percentile wage equals $19,860. The median wage is $25,270, the 75th percentile wage equals $36,560, and the 90th percentile wage is $49,840.
The wages of Animal Trainers have not kept up with inflation for the last decade. For example, to have the buying power of the 2006 median wage of $26,310 in 2012, the Animal Trainers wage would need to be $29,963.37. In stead it was $25,270, a -15.66 percent increase in the real wage for those six years.
#39-2021 Non-farm Animal Caretakers -- 150,140, 5,275/yr
Feed, water, groom, bathe, exercise, or otherwise care for pets and other nonfarm animals, such as dogs, cats, ornamental fish or birds, zoo animals, and mice. Work in settings such as kennels, animal shelters, zoos, circuses, and aquariums. May keep records of feedings, treatments, and animals received or discharged. May clean, disinfect, and repair cages, pens, or fish tanks. Also known as Dog Walker, Dog Groomer, Kennel Worker; Stable Attendant
The entry wage for the national market in the 10th percentile for Non-farm Animal Caretakers is reported as $16,490 in 2012. The 25th percentile wage equals $17,790. The median wage is $19,690, the 75th percentile wage equals $24,590, and the 90th percentile wage is $32,500.
The wages of Non-farm Animal Caretakers have not kept up with inflation for the last decade. For example, to have the buying power of the 2006 median wage of $18,140 in 2012, the Non-farm Animal Caretakers wage would need to be $20,658.89. In stead it was $19,690, a -4.69 percent increase in the real wage for those six years.
#45-2021 Animal Breeders– 1,460, -18/yr
Breed animals such as cattle, goats, horses, sheep, swine, poultry, dogs, cats, or pet birds. Select and breed animals according to their genealogy, characteristics, and offspring. May require knowledge of artificial insemination techniques and equipment use. May involve keeping records on heats, birth intervals, or pedigree. Also known as Artificial Inseminator; Chicken Fancier; Horse Breeder
Animal breeders are mostly self employed but many do work as salaried employees in agriculture. Less than one percent work in other industries. A high school education and prior experience with animals is enough training in many situations but more animal breeders use the science of genetics and statistics to evaluate breeding rates for good growth, meat, milk and egg production rates.
The entry wage for the national market in the 10th percentile for Animal Breeders is reported as $18,110 in 2012. The 25th percentile wage equals $24,650. The median wage is $34,250, the 75th percentile wage equals $49,460, and the 90th percentile wage is $59,340.
The wages of Animal Breeders have kept up with inflation for the last decade. For example, to have the buying power of the 2006 median wage of $27,090 in 2012, the Animal Breeders wage would need to be $30,851.67. In stead it was $34,250, an 11.02 percent increase in the real wage for those six years.
#45-2093 Farm workers– 29,570, -558/yr
Attend to live farm, ranch, or aqua-cultural animals that may include cattle, sheep, swine, goats, horses and other equines, poultry, finfish, shellfish, and bees. Attend to animals produced for animal products, such as meat, fur, skins, feathers, eggs, milk, and honey. Duties may include feeding, watering, herding, grazing, castrating, branding, de-beaking, weighing, catching, and loading animals. May maintain records on animals; examine animals to detect diseases and injuries; assist in birth deliveries; and administer medications, vaccinations, or insecticides as appropriate. May clean and maintain animal housing areas. Include workers who shear wool from sheep, and collect eggs in hatcheries. Also known as Horse Groomer; Beekeeper; Livestock Feeder
The entry wage for the national market in the 10th percentile for Farm workers is reported as $16,690 in 2012. The 25th percentile wage equals $18,430. The median wage is $22,060, the 75th percentile wage equals $28,210, and the 90th percentile wage is $35,790.
The wages of farm workers have kept up with inflation for the last decade. For example, to have the buying power of the 2006 median wage of $19,060 in 2012, the Farm workers wage would need to be $21,706.64. In stead it was $22,060, a 1.63 percent increase in the real wage for those six years.
Summary
Non-farm animal care taker has 34 percent of the 437.9 thousand jobs in the ten occupations. It also has the most new jobs over the last decade, but unfortunately the lowest median wage, which has not kept up with inflation since 2006. Only three of the ten occupations have a median wage over $50,000 – animal scientist, zoologist and wildlife biologist, veterinarian – and three more have median wages in the $30,000’s -- Veterinary Technologists and Technicians, Animal Control Workers, Animal Breeders can be considered career employment. Three have median wages in the $20,000’s – Veterinary Assistants & Laboratory Animal Caretakers, animal trainer, farm worker. Non-farm Animal Caretakers – has a median salary below $19,690.
The ten Standard Occupational Classifications with their 2012 employment, average annual change in employment since 2000.and SOC definition are below.
#19-1011 Animal Scientist– 2,120, 45/yr
Conduct research in the genetics, nutrition, reproduction, growth, and development of domestic farm animals. Also known as dairy scientist, poultry scientist. Animal scientists work for better, lower cost ways to produce meat, poultry, eggs and milk.
A few animal scientists work in private industry especially food processing, but most work at state universities and state funded agricultural experiment stations doing food related research. A doctorate in biology, chemistry or relevant engineering is necessary for independent research although a BA degree in an agricultural science field qualifies to assist in research.
The entry wage for the national market in the 10th percentile for animal scientist is reported as $34,550 in 2012. The 25th percentile wage equals $43,940. The median wage is $61,680, the 75th percentile wage equals $91,160, and the 90th percentile wage is $129,440.
The wages of animal scientists have kept up with inflation for the last decade. For example, to have the buying power of the 2006 median wage of $47,800 in 2012, the animal scientist wage would need to be $54,437.53. In stead it was $61,680, a 13.3 percent increase in the real wage for those six years.
#19-1023 Zoologists and Wildlife Biologists– 18,650, 578/yr
Study the origins, behavior, diseases, genetics, and life processes of animals and wildlife. May specialize in wildlife research and management, including the collection and analysis of biological data to determine the environmental effects of present and potential use of land and water areas. Also known by specialty as Ornithologist, Mammalogists, Herpetologist, Ichthyologists
Government employs nearly two thirds of zoologists and wildlife biologists. A few percent work in education as teachers and few more work in the private sector as consultants. A B.A. degree is a minimum requirement, but a PhD is necessary to lead independent research.
The entry wage for the national market in the 10th percentile for Zoologists and Wildlife Biologists is reported as $37,100 in 2012. The 25th percentile wage equals $45,790. The median wage is $57,710, the 75th percentile wage equals $73,010, and the 90th percentile wage is $95,430.
The wages of Zoologists and Wildlife Biologists have not kept up with inflation for the last decade. For example, to have the buying power of the 2006 median wage of $53,300 in 2012, the Zoologists and Wildlife Biologists wage would need to be $60,701.15. Instead it was $57,710, a -4.93 percent increase in the real wage for those six years.
#29-1131 Veterinarian– 56,020, 1,313/yr
Diagnose and treat diseases and dysfunctions of animals. May engage in a particular function, such as research and development, consultation, administration, technical writing, sale or production of commercial products, or rendering of technical services to commercial firms or other organizations. Include veterinarians who inspect livestock. Also known as Animal Pathologist, Animal Surgeon, Veterinary Bacteriologist, Veterinary Inspector
A Veterinarian requires four years of college and then a veterinarian degree from one of Americans 29 vet schools, which are primarily at state universities. Almost all work in veterinary services either as a salaried employee or self employed. A small percent work teaching and a small percent in research.
The entry wage for the national market in the 10th percentile for Veterinarian is reported as $51,530 in 2012. The 25th percentile wage equals $67,040. The median wage is $84,460, the 75th percentile wage equals $108,640, and the 90th percentile wage is $144,100.
The wages of Veterinarian have kept up with inflation for the last decade. For example, to have the buying power of the 2006 median wage of $71,990 in 2012, the Veterinarian wage would need to be $81,986.41. In stead it was $84,460, a 3.02 percent increase in the real wage for those six years.
#29-2056 Veterinary Technologists and Technicians– 83,350, 2,748/yr
Perform medical tests in a laboratory environment for use in the treatment and diagnosis of diseases in animals. Prepare vaccines and serums for prevention of diseases. Prepare tissue samples, take blood samples, and execute laboratory tests, such as urinalysis and blood counts. Clean and sterilize instruments and materials and maintain equipment and machines. Also known as Animal Technician; Veterinary X-ray Operator
A Veterinary Technologist or Technician has the same types of duties in a veterinary practice that a registered nurse has in the health care field. To qualify an AA or BA degree in animal health technology or veterinary technician assistant is necessary. Virtually all of them work in veterinary services because they assist veterinarians.
The entry wage for the national market in the 10th percentile for Veterinary Technologists and Technicians is reported as $21,030 in 2012. The 25th percentile wage equals $25,150. The median wage is $30,290, the 75th percentile wage equals $36,580, and the 90th percentile wage is $44,030.
The wages of Veterinary Technologists and Technicians have not kept up with inflation for the last decade. For example, to have the buying power of the 2006 median wage of $26,780 in 2012, the Veterinary Technologists and Technicians wage would need to be $30,498.63. In stead it was $30,290, a -.68 percent increase in the real wage for those six years.
#31-9096 Veterinary Assistants & Laboratory Animal Caretakers– 71,500, 1,358/yr
Feed, water, and examine pets and other non-farm animals for signs of illness, disease, or injury in laboratories and animal hospitals and clinics. Clean and disinfect cages and work areas, and sterilize laboratory and surgical equipment. May provide routine post-operative care, administer medication orally or topically, or prepare samples for laboratory examination under the supervision of veterinary or laboratory animal technologists or technicians, veterinarians, or scientists.
Veterinary assistants work for veterinary technologists or veterinarians either in their vet practices or helping to care for animals that are part of veterinary research Training is usually on the job training.
The entry wage for the national market in the 10th percentile for Veterinary Assistants and Laboratory Animal Caretakers is reported as $17,150 in 2012. The 25th percentile wage equals $19,220. The median wage is $23,130, the 75th percentile wage equals $28,840, and the 90th percentile wage is $35,510.
The wages of Veterinary Assistants and Laboratory Animal Caretakers have kept up with inflation for the last decade. For example, to have the buying power of the 2006 median wage of $19,960 in 2012, the Veterinary Assistants and Laboratory Animal Caretakers wage would need to be $22,731.61. In stead it was $23,130, a 1.75 percent increase in the real wage for those six years.
#33-9011 Animal Control Workers – 13,890, 486/yr
Handle animals for the purpose of investigations of mistreatment, or control of abandoned, dangerous, or unattended animals. Also known as Animal Warden; Dog Catcher; Humane Officer
Almost 90 percent of Animal Control Workers work for a municipal government. The rest work for civic associations like humane societies. There are no educational requirements beyond high school. Training is mostly on the job training.
The entry wage for the national market in the 10th percentile for Animal Control Workers is reported as $19,730 in 2012. The 25th percentile wage equals $25,090. The median wage is $31,680, the 75th percentile wage equals $39,920, and the 90th percentile wage is $50,730.
The wages of Animal Control Workers have not kept up with inflation for the last decade. For example, to have the buying power of the 2006 median wage of $27,910 in 2012, the Animal Control Workers wage would need to be $31,785.54. In stead it was $31,680, a -.33 percent increase in the real wage for those six years.
#39-2011 Animal Trainers - 11,170, 398/yr
Train animals for riding, harness, security, performance, or obedience, or assisting persons with disabilities. Accustom animals to human voice and contact; condition animals to respond to commands. Train animals according to prescribed standards for show or competition. May train animals to carry pack loads or work as part of a pack team. Also known as Dog Trainer; Horse Breaker; Lion Trainer
More than half of animal trainers are self-employed and most train dogs or horses. Agriculture, forestry and hunting also employ another 25 to 30 percent. Nine to ten percent train animals as paid employees of pet services companies or retail pet stores. Zoos, nature parks, historical sites, spectator sports employ another 5 percent. A high school education is adequate as formal education and the rest is on the job training from someone more experienced.
The entry wage for the national market in the 10th percentile for Animal Trainers is reported as $17,580 in 2012. The 25th percentile wage equals $19,860. The median wage is $25,270, the 75th percentile wage equals $36,560, and the 90th percentile wage is $49,840.
The wages of Animal Trainers have not kept up with inflation for the last decade. For example, to have the buying power of the 2006 median wage of $26,310 in 2012, the Animal Trainers wage would need to be $29,963.37. In stead it was $25,270, a -15.66 percent increase in the real wage for those six years.
#39-2021 Non-farm Animal Caretakers -- 150,140, 5,275/yr
Feed, water, groom, bathe, exercise, or otherwise care for pets and other nonfarm animals, such as dogs, cats, ornamental fish or birds, zoo animals, and mice. Work in settings such as kennels, animal shelters, zoos, circuses, and aquariums. May keep records of feedings, treatments, and animals received or discharged. May clean, disinfect, and repair cages, pens, or fish tanks. Also known as Dog Walker, Dog Groomer, Kennel Worker; Stable Attendant
The entry wage for the national market in the 10th percentile for Non-farm Animal Caretakers is reported as $16,490 in 2012. The 25th percentile wage equals $17,790. The median wage is $19,690, the 75th percentile wage equals $24,590, and the 90th percentile wage is $32,500.
The wages of Non-farm Animal Caretakers have not kept up with inflation for the last decade. For example, to have the buying power of the 2006 median wage of $18,140 in 2012, the Non-farm Animal Caretakers wage would need to be $20,658.89. In stead it was $19,690, a -4.69 percent increase in the real wage for those six years.
#45-2021 Animal Breeders– 1,460, -18/yr
Breed animals such as cattle, goats, horses, sheep, swine, poultry, dogs, cats, or pet birds. Select and breed animals according to their genealogy, characteristics, and offspring. May require knowledge of artificial insemination techniques and equipment use. May involve keeping records on heats, birth intervals, or pedigree. Also known as Artificial Inseminator; Chicken Fancier; Horse Breeder
Animal breeders are mostly self employed but many do work as salaried employees in agriculture. Less than one percent work in other industries. A high school education and prior experience with animals is enough training in many situations but more animal breeders use the science of genetics and statistics to evaluate breeding rates for good growth, meat, milk and egg production rates.
The entry wage for the national market in the 10th percentile for Animal Breeders is reported as $18,110 in 2012. The 25th percentile wage equals $24,650. The median wage is $34,250, the 75th percentile wage equals $49,460, and the 90th percentile wage is $59,340.
The wages of Animal Breeders have kept up with inflation for the last decade. For example, to have the buying power of the 2006 median wage of $27,090 in 2012, the Animal Breeders wage would need to be $30,851.67. In stead it was $34,250, an 11.02 percent increase in the real wage for those six years.
#45-2093 Farm workers– 29,570, -558/yr
Attend to live farm, ranch, or aqua-cultural animals that may include cattle, sheep, swine, goats, horses and other equines, poultry, finfish, shellfish, and bees. Attend to animals produced for animal products, such as meat, fur, skins, feathers, eggs, milk, and honey. Duties may include feeding, watering, herding, grazing, castrating, branding, de-beaking, weighing, catching, and loading animals. May maintain records on animals; examine animals to detect diseases and injuries; assist in birth deliveries; and administer medications, vaccinations, or insecticides as appropriate. May clean and maintain animal housing areas. Include workers who shear wool from sheep, and collect eggs in hatcheries. Also known as Horse Groomer; Beekeeper; Livestock Feeder
The entry wage for the national market in the 10th percentile for Farm workers is reported as $16,690 in 2012. The 25th percentile wage equals $18,430. The median wage is $22,060, the 75th percentile wage equals $28,210, and the 90th percentile wage is $35,790.
The wages of farm workers have kept up with inflation for the last decade. For example, to have the buying power of the 2006 median wage of $19,060 in 2012, the Farm workers wage would need to be $21,706.64. In stead it was $22,060, a 1.63 percent increase in the real wage for those six years.
Summary
Non-farm animal care taker has 34 percent of the 437.9 thousand jobs in the ten occupations. It also has the most new jobs over the last decade, but unfortunately the lowest median wage, which has not kept up with inflation since 2006. Only three of the ten occupations have a median wage over $50,000 – animal scientist, zoologist and wildlife biologist, veterinarian – and three more have median wages in the $30,000’s -- Veterinary Technologists and Technicians, Animal Control Workers, Animal Breeders can be considered career employment. Three have median wages in the $20,000’s – Veterinary Assistants & Laboratory Animal Caretakers, animal trainer, farm worker. Non-farm Animal Caretakers – has a median salary below $19,690.
Monday, December 23, 2013
Behind the Kitchen Door
Saru Jayaraman, Behind the Kitchen Door, (Ithaca, NY: Cornell University Press, 2012), 175 pages, $21.95
When I was a teenager at restaurants with my dad he usually paid with cash and waited for change before figuring a tip, which he would put down as we got up to leave or sometimes hand to the waitress.
I watched this process many times before I got curious enough to ask how much a tip should be. I was told in somber tones that the proper tip was 15 percent of the bill before taxes. Further instructions included several warnings. If you tip less you will be thought of as cheap or chintzy; if you tip more you might get laughed at as someone wanting to be a big shot.
I thought about that advice a number of times reading Behind the Kitchen Door, a short book of 175 pages and seven chapters entirely devoted to the trials and troubles of earning a living in today’s restaurant industry. Discussion includes as much about work in the dining room as work behind the kitchen door.
The author founded the Restaurant Opportunities Centers United in April 2002 and continues today as national director. The Centers advocate for restaurant workers organized within local affiliates in cities around the U.S. As a labor organizer she could be part Mother Jones and part Frances Perkins; the center sounds like a union by another name.
The book starts with the 250 people who lost their jobs in the restaurant at the top of the World Trade Center after 9/11. We meet some of the displaced and learn about their lives, their hopes and their struggles. Along the way we meet other people; I counted at least sixteen. Jayaraman tells their stories while filling in with some industry facts, figures and discussion until readers understand the restaurant industry and how it works by the end of the book, but also where it fails patrons and restaurant staff.
In Chapter two readers meet Diep, a Vietnamese immigrant, whose varied experiences gardening, working in restaurants and owning her own restaurant help introduce many of the issues and problems in the restaurant industry. Diep’s restaurant offers stark contrast to franchise restaurants, fast and slow. She worries about organic, locally grown produce and paying a living wage.
Remaining chapters cover specific topics like sick leave, income and discrimination. Most restaurant workers work when they are sick because few get sick leave and the National Restaurant Association lobbies against requiring it. Apparently Typhoid Mary from folklore tales worked at a restaurant so we get the picture here. In Chapter four, $2.13 – the Tipping Point, readers not familiar with the economics of restaurants learn about wages, the sub-minimum wages of tipped employees, and some of the abuses many have to cope with working in restaurants.
In 1996 and again in 2007 the restaurant industry lobbied Congress to leave the tipped minimum wage at $2.13 an hour. The Federal tipped minimum has remained at $2.13 an hour since 1991, which makes it only 29 percent of the present $7.25 an hour minimum wage.
Under federal rules in the Fair Labor Standards Act employers who pay a sub minimum wage must verify that tips are enough to bring an employee up to at least the minimum wage, a practice known as taking the tip credit. Taking the tip credit requires detailed recordkeeping because employers are required to verify that tips are enough to make up the difference of the minimum and sub minimum wage. If tips are not enough to equal the minimum wage then the employer is expected to make up the difference.
Here we learn first hand from Claudia how that can work. Her employer said “If you don’t make enough tips to make up the difference you have to report that you made up the money anyway.” Tax withholding based on $7.25 an hour when tips are little and the tipped minimum wage is $2.13 an hour can and does generate pay checks of zero.
Differences in table assignments in the dining room and individual work schedules can also cause wide disparities in earnings for the same job in the same restaurant, especially serving occupations. This makes equality of opportunity as big an issue for restaurant workers as in any other industry or profession.
Two more chapters report and describe personal experience with racial-ethnic and gender bias in restaurant work. Here the many people we meet give convincing details of differences in pay and opportunities based on the unfounded reluctance to have people of color and women in visible positions in the dining room.
The Bureau of Labor Statistics reports 11.55 million working in eighteen food preparation and serving occupations at a median wage of $9.10 in 2012. Their numbers are growing. Behind the Kitchen Door advocates for these workers. Its goals are modest as summed in a last chapter where she asks for those who dine out to vote with their fork and to expect restaurants that cut corners with their help to cut corners with the meals they serve to patrons. Jayaraman asks us to talk to restaurant workers and find out how they are treated and to “Always try to know from the workers if they will be getting all of their tips.” She asks for those who dine out to voice their political support for a higher minimum tipped wage and paid sick leave for restaurant workers.
The book is organized clearly and reads easily. Even though the book is short it dragged at times for me because Jayaraman described the lives of the people in her book in enormous detail, often describing families and life experiences unconnected to restaurant work. For some this may be an advantage and it does humanize the people in the book, but I wanted more examples with details about earnings, wage theft, tips, tip schemes and IRS involvement with tip abuses. In that way it is less of a labor book and more of an interview book than I would like, but despite these reservations it provides a good way for readers to know the workings of the restaurant industry and its problems.
When I was a teenager at restaurants with my dad he usually paid with cash and waited for change before figuring a tip, which he would put down as we got up to leave or sometimes hand to the waitress.
I watched this process many times before I got curious enough to ask how much a tip should be. I was told in somber tones that the proper tip was 15 percent of the bill before taxes. Further instructions included several warnings. If you tip less you will be thought of as cheap or chintzy; if you tip more you might get laughed at as someone wanting to be a big shot.
I thought about that advice a number of times reading Behind the Kitchen Door, a short book of 175 pages and seven chapters entirely devoted to the trials and troubles of earning a living in today’s restaurant industry. Discussion includes as much about work in the dining room as work behind the kitchen door.
The author founded the Restaurant Opportunities Centers United in April 2002 and continues today as national director. The Centers advocate for restaurant workers organized within local affiliates in cities around the U.S. As a labor organizer she could be part Mother Jones and part Frances Perkins; the center sounds like a union by another name.
The book starts with the 250 people who lost their jobs in the restaurant at the top of the World Trade Center after 9/11. We meet some of the displaced and learn about their lives, their hopes and their struggles. Along the way we meet other people; I counted at least sixteen. Jayaraman tells their stories while filling in with some industry facts, figures and discussion until readers understand the restaurant industry and how it works by the end of the book, but also where it fails patrons and restaurant staff.
In Chapter two readers meet Diep, a Vietnamese immigrant, whose varied experiences gardening, working in restaurants and owning her own restaurant help introduce many of the issues and problems in the restaurant industry. Diep’s restaurant offers stark contrast to franchise restaurants, fast and slow. She worries about organic, locally grown produce and paying a living wage.
Remaining chapters cover specific topics like sick leave, income and discrimination. Most restaurant workers work when they are sick because few get sick leave and the National Restaurant Association lobbies against requiring it. Apparently Typhoid Mary from folklore tales worked at a restaurant so we get the picture here. In Chapter four, $2.13 – the Tipping Point, readers not familiar with the economics of restaurants learn about wages, the sub-minimum wages of tipped employees, and some of the abuses many have to cope with working in restaurants.
In 1996 and again in 2007 the restaurant industry lobbied Congress to leave the tipped minimum wage at $2.13 an hour. The Federal tipped minimum has remained at $2.13 an hour since 1991, which makes it only 29 percent of the present $7.25 an hour minimum wage.
Under federal rules in the Fair Labor Standards Act employers who pay a sub minimum wage must verify that tips are enough to bring an employee up to at least the minimum wage, a practice known as taking the tip credit. Taking the tip credit requires detailed recordkeeping because employers are required to verify that tips are enough to make up the difference of the minimum and sub minimum wage. If tips are not enough to equal the minimum wage then the employer is expected to make up the difference.
Here we learn first hand from Claudia how that can work. Her employer said “If you don’t make enough tips to make up the difference you have to report that you made up the money anyway.” Tax withholding based on $7.25 an hour when tips are little and the tipped minimum wage is $2.13 an hour can and does generate pay checks of zero.
Differences in table assignments in the dining room and individual work schedules can also cause wide disparities in earnings for the same job in the same restaurant, especially serving occupations. This makes equality of opportunity as big an issue for restaurant workers as in any other industry or profession.
Two more chapters report and describe personal experience with racial-ethnic and gender bias in restaurant work. Here the many people we meet give convincing details of differences in pay and opportunities based on the unfounded reluctance to have people of color and women in visible positions in the dining room.
The Bureau of Labor Statistics reports 11.55 million working in eighteen food preparation and serving occupations at a median wage of $9.10 in 2012. Their numbers are growing. Behind the Kitchen Door advocates for these workers. Its goals are modest as summed in a last chapter where she asks for those who dine out to vote with their fork and to expect restaurants that cut corners with their help to cut corners with the meals they serve to patrons. Jayaraman asks us to talk to restaurant workers and find out how they are treated and to “Always try to know from the workers if they will be getting all of their tips.” She asks for those who dine out to voice their political support for a higher minimum tipped wage and paid sick leave for restaurant workers.
The book is organized clearly and reads easily. Even though the book is short it dragged at times for me because Jayaraman described the lives of the people in her book in enormous detail, often describing families and life experiences unconnected to restaurant work. For some this may be an advantage and it does humanize the people in the book, but I wanted more examples with details about earnings, wage theft, tips, tip schemes and IRS involvement with tip abuses. In that way it is less of a labor book and more of an interview book than I would like, but despite these reservations it provides a good way for readers to know the workings of the restaurant industry and its problems.
Saturday, December 14, 2013
Bankruptcy in Detroit – Do not be fooled
The media coverage for the Detroit bankruptcy promotes Governor Snyder’s plan to default on Detroit debt and pension contracts by repeating the debt total over and over. Detroit has debt of $18 billion, $18 billion, $18 billion. Repeating the amount helps dramatize the notion there is no choice except to yield to terms handed down by a Federal Bankruptcy judge after considering proposals from an appointed city manager.
The state legislature of Michigan has the authority to govern every square inch of the state that includes Detroit. All states define and delegate their authority to govern the cities in carefully written enabling legislation, and also for all other sub state units of government. State legislatures grant authority to tax, borrow and spend and they can change it or take it away, anytime they want.
When there is no hope that a private company will ever be able to pay creditors, companies can expect to be dissolved and disappear in a bankruptcy. The state of Michigan and the city of Detroit cannot disappear and the state always has taxing authority that assures it can raise revenue to pay its bills. Michigan is not bankrupt.
Bond holders have a written contract that includes the state’s full faith and credit or some other written guarantee of payment. Pension holders have contracts and state constitutional guarantees of payment. Even if the state legislature will not vote new taxes and the state treasurer cannot borrow from anyone, the legal obligation for the state to pay is delayed, not cut or eliminated; that is unless the governor is successful in having his state’s contracts and laws overruled by a Federal judge.
Michigan’s elected state officials could have intervened long ago or during the many years in between as the auto industry abandoned Detroit. They continue to have complete authority and ability to solve Detroit’s financial problems, however divisive that might be. Instead the governor and the state legislature are choosing to pass the buck. They want an un-elected Federal bankruptcy judge to intervene and set Michigan budget priorities for them.
America’s high school students always learn the United States Constitution makes the Federal government supreme within its jurisdiction but powers not delegated to the United States by the constitution, nor prohibited by it, are reserved to the states. Governor Snyder and Judge Rhodes assert federal bankruptcy law can be used to wipe out state constitutional protections for pension holders and to meddle in statewide finances. If Federal bankruptcy law takes precedence over something as basic as state financial contracts, then no independent powers are reserved for the states. It forces states to accept the same relationship to the Federal Congress that Detroit has to Michigan: a subordinate relationship.
There is no previous example of a Federal Judge willing to apply federal bankruptcy law to a state as I have read several times because no one else has had the nerve to do it. Professional integrity typically brings restraint, especially for judges who want us to think they are wise and intelligent. Judges with their own agenda have been around a long time, but the impression keeps growing that judges are appointed expecting to be a part of a national political agenda.
Detroit continues to disintegrate because the automobile industry left Detroit. Long ago from the 1940’s to the 1960’s when Walter Reuther was president of the United Auto Workers union he tried hard to have the auto industry and corporate America take responsibility for more than their profits. He wanted companies to care about and take responsibility for their communities and the people working for them.
There was broad national political support to bail out debt ridden General Motors and Chrysler, but I am not hearing even token political support to maintain the pensions of wage earners and working people, only excuses and a media campaign for a power grab by appointed judges to do the dirty work. Walter Reuther would be sick and so should you.
The state legislature of Michigan has the authority to govern every square inch of the state that includes Detroit. All states define and delegate their authority to govern the cities in carefully written enabling legislation, and also for all other sub state units of government. State legislatures grant authority to tax, borrow and spend and they can change it or take it away, anytime they want.
When there is no hope that a private company will ever be able to pay creditors, companies can expect to be dissolved and disappear in a bankruptcy. The state of Michigan and the city of Detroit cannot disappear and the state always has taxing authority that assures it can raise revenue to pay its bills. Michigan is not bankrupt.
Bond holders have a written contract that includes the state’s full faith and credit or some other written guarantee of payment. Pension holders have contracts and state constitutional guarantees of payment. Even if the state legislature will not vote new taxes and the state treasurer cannot borrow from anyone, the legal obligation for the state to pay is delayed, not cut or eliminated; that is unless the governor is successful in having his state’s contracts and laws overruled by a Federal judge.
Michigan’s elected state officials could have intervened long ago or during the many years in between as the auto industry abandoned Detroit. They continue to have complete authority and ability to solve Detroit’s financial problems, however divisive that might be. Instead the governor and the state legislature are choosing to pass the buck. They want an un-elected Federal bankruptcy judge to intervene and set Michigan budget priorities for them.
America’s high school students always learn the United States Constitution makes the Federal government supreme within its jurisdiction but powers not delegated to the United States by the constitution, nor prohibited by it, are reserved to the states. Governor Snyder and Judge Rhodes assert federal bankruptcy law can be used to wipe out state constitutional protections for pension holders and to meddle in statewide finances. If Federal bankruptcy law takes precedence over something as basic as state financial contracts, then no independent powers are reserved for the states. It forces states to accept the same relationship to the Federal Congress that Detroit has to Michigan: a subordinate relationship.
There is no previous example of a Federal Judge willing to apply federal bankruptcy law to a state as I have read several times because no one else has had the nerve to do it. Professional integrity typically brings restraint, especially for judges who want us to think they are wise and intelligent. Judges with their own agenda have been around a long time, but the impression keeps growing that judges are appointed expecting to be a part of a national political agenda.
Detroit continues to disintegrate because the automobile industry left Detroit. Long ago from the 1940’s to the 1960’s when Walter Reuther was president of the United Auto Workers union he tried hard to have the auto industry and corporate America take responsibility for more than their profits. He wanted companies to care about and take responsibility for their communities and the people working for them.
There was broad national political support to bail out debt ridden General Motors and Chrysler, but I am not hearing even token political support to maintain the pensions of wage earners and working people, only excuses and a media campaign for a power grab by appointed judges to do the dirty work. Walter Reuther would be sick and so should you.
Thursday, December 5, 2013
Earning tips at the Sub Minimum Wage
A recent article in the Washington Post [For low-wage workers, unprecedented anxiety, November 26, 2013] interviewed people with low wage jobs. It was not a surprise to find them anxious since today’s low wage jobs come and go and do not buy more than basic necessities anyway.
One of those interviewed had a new job working at an airport helping to get wheel chair passengers from the ticket counter through airport security, a special duty porter or sky cap. He thought he would be earning the federal minimum wage, $7.25 an hour, but learned on the first day of work his pay would be $5.25 an hour plus any tips he might receive.
The possibility of tips triggers a lesser known section of minimum wage rules in the Fair Labor Standards Act. Rules allow a sub minimum wage for tipped employees that date from 1966, when it was set at 50 percent of the minimum wage. However, Congress left the tipped minimum at $2.13 an hour when it raised the minimum wage in 1996 and again in 2007. The Federal tipped minimum has remained at $2.13 an hour since 1991, which makes it only 29 percent of the present $7.25 an hour minimum wage. Rules allow a sub minimum wage as low as $2.13 an hour for any employees in any occupation that customarily receives just $30.00 or more a month in tips.
Federal rules governing the Fair Labor Standards Act requires employers who pay a sub minimum wage to verify that tips are enough to bring an employee up to at least the minimum wage, a practice known as taking the tip credit. Taking the tip credit requires recordkeeping to verify that tips make up any difference of the minimum and sub minimum wage.
Notice a sub minimum wage relieves employers of the normal obligation to pay at least a minimum wage. A $7.25 an hour minimum wage is $1,160 a month at 40 hours a week and 4 weeks per month. At $2.13 an hour sub minimum wage for tipped employees is just $340.80 a month, which means a tipped employee needs $819.20 a month in tips to earn the minimum wage. At $5.25 an hour a sub minimum wage for an airport porter or sky cap is $840 a month, which means our sky cap will need $320 a month in tips to earn the minimum wage.
The Post reported the man’s take home pay at around $600 a month but tips were “not usually very much.” Since take home pay on $840 without tips is more than $600, the low pay before tips suggests one of the biggest problems for tipped employees: erratic and uncertain hours of work. Employers can layoff staff during slow periods in the day, or on slow days, to minimize their tip credit obligations.
Sub minimum rules are especially important at full service restaurants where tip sharing rules also apply. Without tip sharing, wages plus tips for waiters and waitresses will tend to be higher than wages and tips for a host or hostess or bartenders, bus staff and other staff with less access to customers. Wage gaps make it harder to get people to do the host and hostess job without paying higher wages as long as we expect people to prefer higher wage jobs to lower wage jobs.
With tip sharing waiters and waitresses pay part of their tips to equalize wages and tips for hosts, hostesses, bartenders and other staff. Tip sharing improves the economic situation of these other staff, but at the expense of waiters and waitresses and not the employer. Like the sub-minimum wage tip sharing saves wage costs for employers and makes it easier and cheaper to run a restaurant.
There are other exemptions to the minimum wage which are reported in the Department of Labor’s “Handy Reference Guide to the Fair Labor Standards Act.” The Department also publishes an annual report entitled “Characteristics of the Minimum Wage” which details the number of people working at or below the minimum wage. In 2006 there were 1.69 million working below the $5.15 an hour minimum wage. The minimum wage was raised to $7.25 an hour July 24, 2009. In 2010, 4.36 million worked at or below the higher minimum wage. As inflation cuts the buying power the number dropped until 3.55 million work at or below the minimum wage in 2012.
The 2012 report shows 4.7 percent of hourly paid wage earners are at or below the Federal minimum wage. The politicians could put a minimum on wages, but the sub-minimum wage along with a list of other exemptions assures the minimum will not be the minimum for the minimum wage.
One of those interviewed had a new job working at an airport helping to get wheel chair passengers from the ticket counter through airport security, a special duty porter or sky cap. He thought he would be earning the federal minimum wage, $7.25 an hour, but learned on the first day of work his pay would be $5.25 an hour plus any tips he might receive.
The possibility of tips triggers a lesser known section of minimum wage rules in the Fair Labor Standards Act. Rules allow a sub minimum wage for tipped employees that date from 1966, when it was set at 50 percent of the minimum wage. However, Congress left the tipped minimum at $2.13 an hour when it raised the minimum wage in 1996 and again in 2007. The Federal tipped minimum has remained at $2.13 an hour since 1991, which makes it only 29 percent of the present $7.25 an hour minimum wage. Rules allow a sub minimum wage as low as $2.13 an hour for any employees in any occupation that customarily receives just $30.00 or more a month in tips.
Federal rules governing the Fair Labor Standards Act requires employers who pay a sub minimum wage to verify that tips are enough to bring an employee up to at least the minimum wage, a practice known as taking the tip credit. Taking the tip credit requires recordkeeping to verify that tips make up any difference of the minimum and sub minimum wage.
Notice a sub minimum wage relieves employers of the normal obligation to pay at least a minimum wage. A $7.25 an hour minimum wage is $1,160 a month at 40 hours a week and 4 weeks per month. At $2.13 an hour sub minimum wage for tipped employees is just $340.80 a month, which means a tipped employee needs $819.20 a month in tips to earn the minimum wage. At $5.25 an hour a sub minimum wage for an airport porter or sky cap is $840 a month, which means our sky cap will need $320 a month in tips to earn the minimum wage.
The Post reported the man’s take home pay at around $600 a month but tips were “not usually very much.” Since take home pay on $840 without tips is more than $600, the low pay before tips suggests one of the biggest problems for tipped employees: erratic and uncertain hours of work. Employers can layoff staff during slow periods in the day, or on slow days, to minimize their tip credit obligations.
Sub minimum rules are especially important at full service restaurants where tip sharing rules also apply. Without tip sharing, wages plus tips for waiters and waitresses will tend to be higher than wages and tips for a host or hostess or bartenders, bus staff and other staff with less access to customers. Wage gaps make it harder to get people to do the host and hostess job without paying higher wages as long as we expect people to prefer higher wage jobs to lower wage jobs.
With tip sharing waiters and waitresses pay part of their tips to equalize wages and tips for hosts, hostesses, bartenders and other staff. Tip sharing improves the economic situation of these other staff, but at the expense of waiters and waitresses and not the employer. Like the sub-minimum wage tip sharing saves wage costs for employers and makes it easier and cheaper to run a restaurant.
There are other exemptions to the minimum wage which are reported in the Department of Labor’s “Handy Reference Guide to the Fair Labor Standards Act.” The Department also publishes an annual report entitled “Characteristics of the Minimum Wage” which details the number of people working at or below the minimum wage. In 2006 there were 1.69 million working below the $5.15 an hour minimum wage. The minimum wage was raised to $7.25 an hour July 24, 2009. In 2010, 4.36 million worked at or below the higher minimum wage. As inflation cuts the buying power the number dropped until 3.55 million work at or below the minimum wage in 2012.
The 2012 report shows 4.7 percent of hourly paid wage earners are at or below the Federal minimum wage. The politicians could put a minimum on wages, but the sub-minimum wage along with a list of other exemptions assures the minimum will not be the minimum for the minimum wage.
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