We Celebrate Labor Day, but do we support it?

September 2, 2014 by Kathleen Algire-Fedarcyk in Blog, Budget and Tax, Economic Opportunity

On Monday much of the American public relaxed and enjoyed a day off for their hard work and economic contributions, celebrating the 120th Labor Day. A legal holiday since 1894, Labor Day is dedicated to American workers and their social and economic achievements. Yet as we attended cookouts and gatherings we asked ourselves, do we still value and support the Maryland worker?

Here are three issues that, if addressed, would support Maryland workers:

Maryland recently raised the minimum wage from $7.25/hour to $10.10/hour, which will occur over the next four years. Lawmakers and advocates understood the necessity of raising the state’s minimum wage to keep pace with inflation and the importance of a livable wage. The raise does not cover all hourly workers in Maryland though. Not only were tipped workers left out of the legislation, again, but as we reported, they will continue to receive their sub-minimum wage of $3.63. As previously reported, tipped workers are twice as likely to be poor as other workers. Total wages for tipped workers are reportedly 40 percent less than hourly workers. Out of the five states that raised their state minimum wage this past legislative session, Maryland was the only state not to raise the sub-minimum wage for tipped workers. On January 1, 2015 an estimated 60,000 Marylanders will be left out of the new $8.00/hour wage.

More than 700,000 Marylanders cannot legally take a sick day. During the 2014 legislative session House Bill 968 and Senate Bill 753 failed to move out of committee. These twin pieces of legislation would have required employers with more than 10 employees to allow workers to earn a certain number of sick days throughout the year. Taking time off to care for yourself or your family is critical for Maryland’s workforce, especially women and low-wage workers. Nationally, nearly one in four workers reported job loss or being threatened with job loss for taking time off due to illness. If Maryland workers were guaranteed paid sick leave, they would no longer suffer lost wages or worse, job loss, due to an illness and would actually save an estimated $64 million by not delaying or forgoing care. As stated in our testimony in support of the bills, earned sick leave also benefits Maryland’s economy, improves public health, and comes with no net cost to employers.

We should also support workers while they build their skills. Unfortunately, for most Maryland workers furthering their education means taking on a crippling student debt burden, Maryland has the highest level of student debt, $28,330 per borrower, of any state. Furthermore, graduating students are entering a job market where wages are less than they were a year ago, increasing the proportion of their income used to pay back their loans. For many, investments like homes and retirement funds may now be out of reach. Maryland needs to invest more in public education and making higher education less burdensome for our future workers.

As the legislative session for 2015 approaches it is crucial that we make our priorities for an equitable Maryland known. While we hope you enjoyed your Monday off, remember that to truly honor the Maryland workforce we need to work together to pass legislation that supports our workers and economy.