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Sweatshops Expanded, Overtime Attacked, and State Minimum Wage Laws UnderminedThis is as low as it goes, as the GOP fights to expand sub-minimum wage sweatshops across the country. Pennsylvania's Rick Santorum is leading
the charge for a GOP bill that would ostensibly raise the minimum wage by $1.10 per hour, but in reality would cut wages for millions of American workers and expand unregulated sweatshops across the country.
As this
Economic Policy Institute analysis
details, the bill is a trojan horse for assaulting workers rights.
Licensing Sweatshops: While a $1.10 per hour minimum wage increase by itself would help 1.8 million workers, Santorum includes a poison bill exempting any business with revenues of $1 million or less from regulation -- raising the exemption from the current $500,000 level.
The upshot: while 1.2 million workers could qualify for a minimum wage increase, another 6.8 million workers, who work in companies with revenues between $500,000 and $1,000,000 per year, would lose their current minimum wage protection.
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But here's a kicker from a GOP supposedly dedicated to states rights. Santorum's bill would ban states from requiring employers to pay tipped workers with a guaranteed wage. Employers could pay tipped workers nothing and force them to live off tips, while states would be preempted from creating a higher wage standard for tipped workers. . . Essentially, those workers could be hired for zero dollars and told they had to live only off tips, however little those were.
The attack on the tip credit is bad enough, but the precedent of the federal government creating a MAXIMUM standard for wage regulation and restricting the right of states to create a higher standard is even more dangerous.