The pandemic has shattered illusions of security that existed for many American workers. This traumatic moment has revealed critical weaknesses in the structure of work: the link between health insurance and employment; increasing numbers of workers employed in precarious freelance positions and the “gig” economy; limited flexibility that forces so many of us to choose between working while sick or injured or taking a painful hit to our paychecks.

Building a more resilient economy here in Maine will involve proactive measures that double down on current stop-gap efforts to protect American workers. State attorneys general (AGs) will have an important role to play in these robust worker protections and enforcement. Such efforts can supplement state labor departments, themselves facing severe challenges associated with high and prolonged unemployment.

Fortunately, there are actionable steps that can be taken right here in Maine, and our attorney general has a track record of looking out for workers.

A recent report by the Economic Policy Institute (EPI) highlights many ways that state AGs have driven robust worker protections. These include combatting wage theft, protecting “gig” workers, pushing back against exploitative employment contracts, and acting as an advocate for workers at the federal level. Advocacy, protection and enforcement such as this align with the most critical needs emerging from the pandemic.

Wage theft is far more likely during economic downturn, according to a recent study from the Center for Innovation in Worker Organization. Focusing on minimum wage violations, CIWO found that for every percentage point increase in the state unemployment rate, there was a nearly one percent increase in minimum wage violations. In periods of crisis, this represents huge numbers of workers having their wages stolen. It should be noted that there were disparate impacts on workers of color, with Latinx workers 84% more likely and Black workers 41% more likely to experience violations.

Robust action by state AGs can deter such theft. One method is the establishment of dedicated “worker’s rights units” as we’ve seen in eight states and the District of Columbia. As EPI’s report notes, dedicated units protect worker’s rights in ways that are “continuous, proactive, strategic, and in-depth.” Such units can start with just one staffer and end up serving as revenue generators for states as employers stealing wages or misclassifying their employees are simultaneously evading unemployment and state taxes. Such action from the AG’s office would also ease the burden on the few Labor Department investigators.

COVID-19 has had a complex impact on the “gig” economy. Even in those sectors experiencing booms due to COVID, increased competition may be driving individual pay and opportunities down. Throughout, risks for workers are enormous, as such employment frequently lacks traditional benefits and protections. As a recent report on COVID-19 by Fairwork stated, “it is workers who bear the risk of losing their jobs; it is workers who bear the risk and serious potential consequences of infection and loss of income, while simultaneously providing essential services for societies in lockdown.”

Across the country, state AGs have been at the forefront of fights to protect workers against increasingly powerful corporations that drive the “gig economy.” In July 2019, 18 state AGs (including Maine’s Aaron Frey) called upon the Federal Trade Commission to stop the use of non-compete agreements for those in the gig economy. More recently, AGs in California, Massachusetts and elsewhere initiated litigation to compel giants like Uber and Lyft to recognize drivers as employees rather than independent contractors.

Not all employment contracts are created equal. Sadly, but unsurprisingly, some unscrupulous employers use these contracts to silence worker concerns and push them out of the light of day. Recent research has estimated that over half of Maine workers are bound by “forced arbitration” agreements that relegate their workplace concerns to third-party arbiters rather than the courts, with as few as 2.5% of grievance cases resulting in an award to the employee. Last legislative session, Senate President Troy Jackson introduced legislation (L.D. 1693) that sought to remedy this issue; the Legislature and Attorney General would be wise to urgently reconsider that proposal.

As new policies, such as Maine’s earned paid leave policy, come into force, and as new federal measures are implemented, state AGs will be essential to enforcement as well as public outreach. More generally, state AGs can continue to serve as advocates for the interests of workers at the federal level.

The COVID-19 pandemic has challenged Maine’s workforce in unprecedented ways. Fortunately, we live in a state where leaders are stepping up, and where immediate steps can be taken to provide further support to workers and demonstrate our values as Mainers.

Rob Glover is an associate professor of Political Science and Honors at the University of Maine. He is co-leader of the Maine chapter of the national Scholars Strategy Network, which brings together scholars across the country to address public challenges and their policy implications. Members’ columns appear here monthly.

 

 

 

 

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