Category Archives: minimum wage

MYOB: Restaurant workers tell A-listers to shove it after call for higher wages

sarah jessica parker and reese witherspoon

Super-wealthy SJWs not wanted…

Stick to worrying about your agents fighting for your own MASSIVE salaries.

From NY Post: Sarah Jessica Parker, Reese Witherspoon, Natalie Portman and more than a dozen other A-listers were told to shove it by 500 restaurant workers in New York who signed an open letter to the actresses.

The missive is a response to a letter that the Hollywood elites sent to Gov. Cuomo asking him to raise the minimum wage for tipped workers.

“You’ve been misled that we earn less than minimum wage and that we’re somehow helpless victims of sexual harassment,” the restaurants’ workers said in their letter, which was organized by Maggie Raczynski, an Outback Steakhouse bartender in Clifton Park, NY. “Thank you for your concern. But we don’t need your help and we’re not asking to be saved,” they wrote.

Cuomo is considering raising the minimum wage for tipped workers, which is as much as $8.65 in the city for restaurant workers, to be equal to the regular minimum wage, which is rising to $15 by 2020.

“The cost of food is going to go up and the number of servers is going to go down,” Raczynski told The Post.

DCG

Washington state representative: “Facts will never drive anybody to make a decision”

pramila jayapal

Dan Rather would approve this message.

Pramila Jayapal is a progressive US representative from Washington’s 7th congressional district. She was born in India and is a “civil rights activist,” a big fan of the $15 minimum wage and supports free community college.

According to Seattle Capital Hill Seattle Blog, the congresswoman was at a town hall at a local high school to discuss “gun-access policy reform.”

From their blog:

“Our prime responsibility is to take care of each other. It’s not to money or greed so let’s make sure we incorporate love and generosity through non-violence,” Jayapal told the young march leaders Saturday.

In a closed-door session before the meeting, Jayapal discussed communication in activism with the student leaders. “Facts will never drive anybody to make a decision, but you need to have them. Never lead with the facts. They’ll believe your heart but not the facts,” said Jayapal.”

h/t MyNorthwest

DCG

List of companies giving pay raises & bonuses because of new tax law; Democrat governors file lawsuit to block

The AP’s Paul Wiseman reports that on December 26, 2017, President Trump signed the GOP’s tax bill into law. By slashing the corporate tax rate to 21% from 35%, one of the highest among advanced economies, the new law distributes benefits across a range of American industries, from construction to health care. It also applies a low one-time tax to the profits that corporations have long kept overseas to avoid paying taxes under the current higher rate.

According to an analysis by the University of Pennsylvania’s Penn Wharton Budget Model:

  • The biggest tax savings from 2018 through 2027 go to manufacturers ($261.5 billion).
  • Next are insurance and finance companies ($249.4 billion).
  • Retailers will save $171.4 billion. Matthew Shay, CEO of the National Retail Federation, says the new law will help retailers accelerate investment in e-commerce and mobile technology, as well as induce foreign-owned retailers to shift investment dollars into the United States.

The new tax plan has already brought fruit in companies giving raises to their employees (see below), as well as plans to increase their U.S. investments. As WND puts it:

“Before the ink was even dry on President Trump’s signature on the Republican tax-cut bill, corporate America was not only toasting it, praising it and celebrating it, but handing out money to employees like Santa Claus.”

The Wall St. Journal reports:

“Just weeks after the federal government adopted the biggest tax overhaul in three decades, the effects are rippling through corner offices and boardrooms, with companies large and small dusting off once-shelved plans, re-evaluating existing projects and exploring new investment in factories and equipment.”

But the Demonrat governors of Connecticut, New Jersey and New York said they will file a lawsuit to block the tax overhaul. California, also a “blue” state, may join the lawsuit.

The AP reports that on Friday, Jan. 26, 2018, governors Andrew Cuomo of New York, Dannel Malloy of Connecticut and Phil Murphy of New Jersey announced  that they’re talking to governors of other states to form a multi-state coalition in a lawsuit to block Trump’s tax reform because the new tax law caps a deduction for state and local taxes at $10,000 — and Connecticut, New York, New Jersey, California all exact high state taxes. This means that in the past, before the Trump-GOP tax reform, the federal government effectively had been subsidizing residents of those states by allowing them to write off their state taxes.

Cuomo, a potential 2020 White House contender, had announced his intention to fight the tax overhaul earlier this month. Murphy said he expects the suit to be filed within weeks. Malloy said no decision has been made on where the action will be filed.

Below is a list, in alphabetical order, of the companies — large and small — that have announced wage increases, bonuses, investments and charity donations because of the Trump-GOP new tax law. Many of them specifically credited the new tax law:

(1) AAON is giving $1,000 bonus checks to 2,000 employees. CEO Norman Asbiornson said it was a result of the new tax law and a “direct recognition” of his employees’ importance.

(2) AccuWeather distributed year-end bonuses to about 500 employees.

(3) Aflac is increasing its 401(k) match from 50% to 100% on the first 4% of compensation plus a one-time $500 contribution to every employee’s 401(k). It also plans $250 million increase in U.S. investment.

(4) American Airlines will give $1,000 bonuses to its nearly 128,000 employees except officers.

(5) Americacollect announced $300-$500 bonuses for 250 employees.

(6) American Savings Bank, the third-largest bank in Hawaii, said it will award $1,000 bonuses to nearly all of its employees, as well increase its starting wage from $12.21 to to $15.25 an hour.

(7) Aquesta Financial Holdings in Cornelius, N.C., will raise hourly pay to $15 and give $1,000 bonuses to all of it workers.

(8) Associated Bank in Wisconsin boosted its minimum hourly wage to $15 and paying workers a $500 bonus.

(9) AT&T will expand its bonus program to an additional 200,000 staffers getting $1,000 apiece.

(10) Bank of Hawaii, the state’s second-largest bank, will give $1,000 cash bonuses to 2,074 employees, or 95% of its workforce. The bonuses affect all employees below the senior vice president level. The bank also will increase its minimum wage from $12 to $15 an hour.

(11) Bank of the Ozarks announced bonuses of up to $1,200 for 2,300 workers.

(12) BB&T plans $1,200 bonuses for 27,000 employees, a boost in the base wage from $12 to $15 per hour, and charitable donations of $100 million.

(13) Boeing announced a gift of $300 million in investment in its employee-related charitable program “to support our heroes, our homes and our future.”

(14) Canary LLC will hire new employees and purchase more equipment.

(15) Central Pacific Bank said each of its 850 employees will get $1,000 bonuses, and its wage will rise from $12 to $15.25.

(16) Citizens Financial Group will give $1,000 bonuses to 12,500 employees, and $10 million donations to charities.

(17) Comcast NBC Universal, citing the new tax law and the FCC’s elimination of “net neutrality” of government regulation of the Internet, announced $1,000 bonuses to more than 100,000 non-executive employees, as well as plans to spend more than $50 billion in the next five years on infrastructure investments which will create thousands of new direct and indirect jobs.

(18) Comerica Bank is raising wages to $15 per hour and giving bonuses of $1,000 to 4,500 non-officer employees.

(19) Commerce Bank is giving $1,000 bonuses for fulltime workers, $250 for part-timers, to a total of 3,450; as well as $25 million donations to charities.

(20) Community Trust Bancorp has $1,000 bonuses for full time employees and $500 for those who are part-time.

(21) Copperleaf Assisted Living has bonuses of $200-$600 for 175 employees.

(22) Dayton T. Brown Inc. is delivering $400 bonuses for each of the 210 employees

(23) Delaware Supermarkets Inc. announced $150 extra bonuses to 1,000 non-management personnel.

(24) Express Employment Professionals announced bonuses of $2,000 to more than 200 non-executive employees.

(25) FedEx announced it will give wage increases and bonuses, make a voluntary $1.5 billion contribution to the company’s pension plan, and reinvest and modernize. Compensation will be increased by more than $200 million, with about two-thirds going to hourly workers. The rest of the money will fund increases in performance-based incentive plans for salaried personnel. The company will also invest $1.5 billion to expand its FedEx Express facility in Indianapolis over the next seven years. Later this year it will announce plans to modernize its Memphis hub.

(26) Fifth Third Bancorp increased its minimum wage to $15, and a a bonus of $1,000 to 13,000 employees.

(27) First Hawaiian Bank, the state’s largest bank, will give out $1,500 cash bonuses to 2,264 employees or all but 11 members of its senior management team, as well as increase its minimum wage from $12.75 to $15 an hour for 613 employees.

(28) First Horizon National Corp. announced 4,000 workers are getting $1,000 bonuses.

(29) Gate City Bank gave $1,000 bonuses to 538 non-management personnel, as well as $500,000 in additional charitable giving.

(30) Home Depot, with over 400,000 Americans on its payroll as of 2017, announced “a new one-time cash bonus for U.S. hourly associates of up to $1,000 in the fourth quarter of fiscal 2017.” Craig Menear, the chairman, CEO and president of Home Depot, said in a statement: “We are pleased to be able to provide this additional reward to our associates for continuing to deliver outstanding customer service. This incremental investment in our associates was made possible by the new tax reform bill.”

(31) INB Bank is giving $500 bonuses to 200 employees, and raising base wages to $15.

(32) Kansas City Southern, the Missouri-based transportation holding company with railroad investments in the U.S., Mexico and Panama, said it would immediately give a one-time $1,000 bonus to non-executive employees of its subsidiaries in the U.S. and Mexico.

(33) Kroger CEO W. Rodney McMullen said the new tax law would influence his company “to continue to invest in our business, which will grow jobs.”

(34) Melaleuca Inc., the Idaho health-care and home-products company, is providing its 2,000 employees $100 bonuses for every year they worked for the company. The company has 147 employees who have worked for the company for 20 years or more.

(35) National Bank Holdings Corporation has $1,000 bonuses for employees making up to $50,000.

(36) Nationwide Insurance is giving 29,000 workers $1,000 bonuses.

(37) Navient announced a $1,000 bonus to most of its 6,700 workers.

(38) Nelnet announced $1,000 bonuses for 4,100 employees.

(39) OceanFirst Financial Corp. increased its base wage to $15 per hour.

(40) Ohnward Bancshares handed out $1,000 bonuses for all 260 employees.

(41) Pinnacle Bank had $1,000 bonuses for 1,007 employees.

(42) PNC Financial Services will give $1,000 bonus to about 47,500 workers.

(43) Royal Hawaiian Heritage Jewelry plans to open up three more shops – in Honolulu, in Kauai and Maui in addition to its existing three shops.

(44) Rush Enterprises of Texas is giving each of its 6,600 employees a $1,000 bonus – a total of $6.6 million. CFO Steven Keller said: “You’ve got a choice – we could’ve kept it and stuffed it in the company bank account or coffers, or we can share it with the people.”

(45) Sinclair Broadcast Group gave $1,000 bonuses to 9,000 employees.

(46) Southwest Airlines gave $1,000 bonuses to 55,000 employees, provided $5 million additional charitable donations.

(47) Starbucks, citing the GOP’s tax reform bill, Starbucks announced it will give pay raises and stock grants to its 150,000 employees, most of whom work as baristas or shop managers. Starbucks will also the tax break for some pro-family measures: All employees will soon be able to earn paid sick time off, and parental leave benefits will include all non-birth parents.

(48) TCF Financial Corporation gave $1,000 bonuses to all full time employees.

(49) The Flood Insurance Agency had $1,000 bonuses for 17 full time employees.

(50) Territorial Savings Bank had $1,000 bonuses to 247 employees.

(51) Turning Point Brands, Inc. had $1,000 bonuses for 107 employees.

(52) Unity Bank will give a $750 bonus to all 200 non-executive employees.

(53) U.S. Bancorp, the parent company of U.S. Bank, announced a $1,000 bonus for nearly 60,000 employees. The bank also plans to increase its minimum wage for all hourly employees to $15 per hour, make “enhancements” to its employees’ health-care options, make an “additional investment in strategic projects centered on the customer experience” and make a one-time $150 million contribution to the U.S. Bank Foundation, the bank’s charitable arm.

(54) U.S. Bank of America employees making up to $150,000 per year in total compensation – about 145,000 teammates – will receive a one-time bonus of $1,000.

(55) Walmart is increasing the minimum hourly wage for its U.S. employees to $11 and handing out bonuses of up to $1,000, crediting President Trump’s tax cut. Walmart is the nation’s largest private employer, with more than 1 million U.S. hourly employees.

(56) Washington Federal in Seattle will increase wages for most of its workers by 5% and adding 25 people to its information-technology staff.

(57) Wells Fargo raised the minimum wage to $15, beginning January 1, 2018.

~Eowyn

Red Robin eliminates all busboys because of minimum wage hike

A mark of irrationality is the refusal to conform one’s belief and behavior according to compelling evidence.

I’m reminded of my faux-socialist friend erstwhile Stephanie’s immortal words, uttered in a fit of frustration when I proffered evidence contrary to her stance:

“I’ve made up my mind! Don’t confuse me with facts!”

Democrats champion mandatory minimum-wage hikes in the name of “social justice” and the well being of minimum-wage workers, against the market forces of supply and demand. In so doing, they ignore that pesky thing — empirical evidence that minimum-wage hikes actually hurt minimum-wage workers because employers inevitably resort to cost-cutting measures by firing those same minimum-wage workers.

The latest example is the casual-dining Red Robin chain restaurants.

The New York Post reports that as minimum wage hikes hit across the country this year, restaurant busboys, hoping for a bigger paycheck, are instead losing their jobs as chains look to cut costs.

One chain axing jobs is Colorado-based Red Robin, located mostly in Western states where the minimum wage has risen more quickly.

On Jan. 8, 2018, Red Robin announced it hopes to save about $8 million this year by eliminating busboys at each of its 570 restaurants. Citing labor cost (i.e., minimal wage) increases, Red Robin’s chief financial officer Guy Constant told attendees at the ICR retail conference in New York, “We need to do that to address the labor increases we’ve seen.”

Remaining staff are expected to pick up the slack once the busboys are eliminated. Restaurant consultant John Gordon points out that while costs will definitely be pared, the problem with slashing busboy jobs is that it cuts into customer service.

Michael Saltsman, director of the Employment Policies Institute (EPI), told FOX Business:

“I read that as minimum wage. Somebody like Red Robin, which has a lot of exposure in western states [where the minimum wage is rising faster] … this is sort of a burger and beer chain. If they can’t pass those increases off in higher prices … they have to find a way to do more with less. I think the loss, as the minimum wage goes up … [is the] hollowing out of entry-level opportunities.”

851Franchise.com editor-in-chief Nick Powills observed:

“From a business standpoint, [Red Robin made a] very smart move. From an employee standpoint, you just cut out $8 million worth of labor. The interesting thing about the minimum wage hike is that those that made the decisions to do it, did it on behalf of the employee … when intentions are good, and you can’t appease everybody, someone is going to eventually be on the short [end of the] stick.”

Last year, Red Robin already eliminated “expediters” — restaurant employees who take the food from the cooks and place it on plates for the servers — resulting in a cost savings of nearly $10 million.

According to the Daily Wire, a study conducted by EPI, analyzing employment trends from 1990 through 2017, found that each 10% increase in the minimum wage in California has resulted in a corresponding 2% decline in employment for affected employees. The impact was larger, 5%, for lower-paid workers.”

See also:

~Eowyn

LA Times asks, “Why is liberal California the poverty capital of America?

nancy pelosi tweet

Demorats own this.

Doesn’t take an econ major in junior high to solve this riddle.

Kerry Jackson at the LA Timeswrote this op-ed piece: Guess which state has the highest poverty rate in the country? Not Mississippi, New Mexico, or West Virginia, but California, where nearly one out of five residents is poor. That’s according to the Census Bureau’s Supplemental Poverty Measure, which factors in the cost of housing, food, utilities and clothing, and which includes noncash government assistance as a form of income.

Given robust job growth and the prosperity generated by several industries, it’s worth asking why California has fallen behind, especially when the state’s per-capita GDP increased approximately twice as much as the U.S. average over the five years ending in 2016 (12.5%, compared with 6.27%).

It’s not as though California policymakers have neglected to wage war on poverty. Sacramento and local governments have spent massive amounts in the cause. Several state and municipal benefit programs overlap with one another; in some cases, individuals with incomes 200% above the poverty line receive benefits. California state and local governments spent nearly $958 billion from 1992 through 2015 on public welfare programs, including cash-assistance payments, vendor payments and “other public welfare,” according to the Census Bureau. California, with 12% of the American population, is home today to about one in three of the nation’s welfare recipients.

The generous spending, then, has not only failed to decrease poverty; it actually seems to have made it worse.

In the late 1980s and early 1990s, some states — principally Wisconsin, Michigan, and Virginia — initiated welfare reform, as did the federal government under President Clinton and a Republican Congress. Tied together by a common thread of strong work requirements, these overhauls were a big success: Welfare rolls plummeted and millions of former aid recipients entered the labor force.

The state and local bureaucracies that implement California’s antipoverty programs, however, resisted pro-work reforms. In fact, California recipients of state aid receive a disproportionately large share of it in no-strings-attached cash disbursements. It’s as though welfare reform passed California by, leaving a dependency trap in place. Immigrants are falling into it: 55% of immigrant families in the state get some kind of means-tested benefits, compared with just 30% of natives.

Self-interest in the social-services community may be at fault. As economist William A. Niskanen explained back in 1971, public agencies seek to maximize their budgets, through which they acquire increased power, status, comfort and security. To keep growing its budget, and hence its power, a welfare bureaucracy has an incentive to expand its “customer” base. With 883,000 full-time-equivalent state and local employees in 2014, California has an enormous bureaucracy. Many work in social services, and many would lose their jobs if the typical welfare client were to move off the welfare rolls.

Further contributing to the poverty problem is California’s housing crisis. More than four in 10 households spent more than 30% of their income on housing in 2015. A shortage of available units has driven prices ever higher, far above income increases. And that shortage is a direct outgrowth of misguided policies.

“Counties and local governments have imposed restrictive land-use regulations that drove up the price of land and dwellings,” explains analyst Wendell Cox. “Middle-income households have been forced to accept lower standards of living while the less fortunate have been driven into poverty by the high cost of housing.” The California Environmental Quality Act, passed in 1971, is one example; it can add $1 million to the cost of completing a housing development, says Todd Williams, an Oakland attorney who chairs the Wendel Rosen Black & Dean land-use group. CEQA costs have been known to shut down entire homebuilding projects. CEQA reform would help increase housing supply, but there’s no real movement to change the law.

Extensive environmental regulations aimed at reducing carbon dioxide emissions make energy more expensive, also hurting the poor. By some estimates, California energy costs are as much as 50% higher than the national average. Jonathan A. Lesser of Continental Economics, author of a 2015 Manhattan Institute study, “Less Carbon, Higher Prices,” found that “in 2012, nearly 1 million California households faced … energy expenditures exceeding 10% of household income. In certain California counties, the rate of energy poverty was as high as 15% of all households.” A Pacific Research Institute study by Wayne Winegarden found that the rate could exceed 17% of median income in some areas.

Looking to help poor and low-income residents, California lawmakers recently passed a measure raising the minimum wage from $10 an hour to $15 an hour by 2022 — but a higher minimum wage will do nothing for the 60% of Californians who live in poverty and don’t have jobs. And research indicates that it could cause many who do have jobs to lose them. A Harvard University study found evidence that “higher minimum wages increase overall exit rates for restaurants” in the Bay Area, where more than a dozen cities and counties, including San Francisco, have changed their minimum-wage ordinances in the last five years. “Estimates suggest that a one-dollar increase in the minimum wage leads to a 14% increase in the likelihood of exit for a 3.5-star restaurant (which is the median rating),” the report says. These restaurants are a significant source of employment for low-skilled and entry-level workers.

Apparently content with futile poverty policies, Sacramento lawmakers can turn their attention to what historian Victor Davis Hanson aptly describes as a fixation on “remaking the world.” The political class wants to build a costly and needless high-speed rail system; talks of secession from a United States presided over by Donald Trump; hired former attorney general Eric H. Holder Jr. to “resist” Trump’s agenda; enacted the first state-level cap-and-trade regime; established California as a “sanctuary state” for illegal immigrants; banned plastic bags, threatening the jobs of thousands of workers involved in their manufacture; and is consumed by its dedication to “California values.” All this only reinforces the rest of America’s perception of an out-of-touch Left Coast, to the disservice of millions of Californians whose values are more traditional, including many of the state’s poor residents.

With a permanent majority in the state Senate and the Assembly, a prolonged dominance in the executive branch and a weak opposition, California Democrats have long been free to indulge blue-state ideology while paying little or no political price. The state’s poverty problem is unlikely to improve while policymakers remain unwilling to unleash the engines of economic prosperity that drove California to its golden years.

h/t PJ Media

DCG

Pelosi: Wage increases and bonuses from tax reform are “crumbs” and “so pathetic”

Please continue to let this woman continue to be the representative of your party, demorats!

h/t Twitchy

DCG

Liberal logic: After passing new soda tax, Seattle to spend $500K to study the effect on businesses

government solve all problems

Shoot first, then aim.

All Seattle proggies had to do was look at what happened in Philadelphia after they passed a soda tax (layoffs and plunging sales).

In June, the Seattle City Council approved a new soda tax that goes into effect on January 1. Proggie councilmember Tim Burgess said this: “The scientific evidence is incontrovertible … sugar-sweetened beverage consumption leads to negative health outcomes. Communities of color and young people are disproportionately targeted by the beverage industry’s advertising and marketing campaigns. Black children and teens see twice as many ads for soda and other sweetened beverages compared to white children and other teens.”

The new soda tax places a .0175 per ounce fee on sweetened beverages. The tax is paid for by distributors but you know they will pass the cost onto the customer.

The city estimates it will raise more than $23 million from the tax in 2018, which it intends to put toward reducing the academic achievement gap between white and minority students, as well as expand access to healthy food.

Jason Rantz at MyNorthwest.com reports that the city of Seattle is reportedly spending $500,000 to fund a UW study to look into the impacts of the soda tax on, in part, businesses, because the business community has stated this is bad for them.

Don’t be surprised if after spending a half million taxpayer dollars, the city undermines the study, such as they did with a minimum wage study earlier this year, to cover the true effects of this new tax.

That’s liberal logic for ‘ya!

DCG