Reimagining labor benefits, protections & standards enforcement to fit our future workforce
A summary of the Illinois Future of Work’s fifth task force meeting
Written by Hannah Gregor, University of Chicago
A healthy economy in Illinois allows both workers and businesses to thrive together. Labor benefits, protections, and standards enforcement go hand in hand with productive, loyal workforces; together, they lead to greater employee and employer satisfaction. Unfortunately, companies practicing low-road labor practices, exploiting and endangering employees to limit costs, are undercutting law-abiding, upstanding businesses. The Future of Work Task Force’s latest meeting considered how government, employers, and community organizations could work towards an economy where corrupt business practices are diminished, benefiting employees and employers in Illinois.
On January 31st, 2022, the Illinois Future of Work Task Force met for the fifth time over WebEx to discuss the challenges and opportunities in labor benefits, standards, and enforcement. The task force, created by Governor Pritzker and led by Senator Ram Villivalam, Senator Donald DeWitte, and Leader Marcus Evans, is exploring ways to make the state’s workforce more inclusive and resilient. The task force’s charge is broad: to consider and produce a set of evidence-based policy recommendations that help the state create equitable, long-term economic growth; and to ensure all Illinoisans share in that success.
Professor Nik Theodore at the University of Illinois at Chicago presented findings from a series of studies with UCLA, Cornell, and Rutgers that document labor and workplace violations. The study covered 1,140 workers in Cook County, about 31% of the overall frontline workforce. Dr. Theordore impressed upon the task force the bleak findings and urgency for solutions. The surveys found wage violations were rampant, 25% of workers were paid below the minimum wage, and 76% were not paid for overtime. Of the Workers who experienced injuries on the job and complained to their employer, 43% faced illegal retaliation. The violations occurred disproportionately for workers of color, women, and undocumented workers. However, the greatest indicator of workplace violations was by industry. The biggest violators were construction, domestic work, restaurants, trucking, temporary staffing agencies, janitorial services, and warehousing. Dr. Theodore stressed that these cost-cutting procedures often undercut businesses with quality labor practices. When looking for solutions, he urged the task force to consider the implications of a fissured workplace and focus on updating labor standards laws as well as effective enforcement models.
While damaging labor standards violations are occurring in Illinois, the state has not been stagnant on these issues. Jane Flanagan, Deputy General Counsel and Deputy Chief Compliance Officer at Illinois Office of the Governor shared the current legislation protecting workers in Illinois. The Fair Labor Standards Act governs the basic protections afforded to workers federally, including regulation around overtime, child labor, and employer record keeping. Furthermore, Illinois has its own set of labor protections such as a minimum wage, the right to one day of rest a week, protections for temporary or contracted workers, among others. Municipalities also have local ordinances, such as the Fair Work Week Ordinance and Domestic Labor Rights in Chicago. Governing agencies in Illinois covering enforcement are the Illinois Department of Labor and local offices such as the new Chicago Office of Labor Standards. Enforcement occurs concurrently outside of legislation through collective bargaining and competitive labor markets. However, as Professor Theodore’s presentation suggests, legislation has not been enough to protect workers and law-abiding businesses. Later in the meeting, the task force heard from a solutions brainstorm to address these issues.
To kick off the Solutions Brainstorm Panel, Scott Weiner, Co-owner of the Fifty/50 Restaurant Group, shared his experience as a restaurant owner and the importance of providing quality benefits to employees to create and maintain a dedicated workforce for his establishments. Dr. Susan Lambert, professor at the University of Chicago, reflected Weiner’s remarks in her presentation regarding employee schedules. Namely, Dr. Lambert’s 2018 study of the retail establishment The Gap, found that when the business increased schedule stability for their employees (when and how much they worked weekly) they saw a 5.1% increase in productivity, improving effort, reducing tardiness, and increasing goal completion. Both Scott Weiner and Dr. Lambert made strong cases that increased support and stability for their workers created more robust businesses.
Next, Terri Gerstein, Director of the State and Local Enforcement Project at the Harvard Law School Labor and Worklife Program, spoke to many solutions of current enforcement pitfalls. Gerstein explained that businesses violate labor standards for two reasons: 1) the likelihood of being caught; or, 2) the severity of the punishment. In formulating solutions, she argued, legislation and enforcement ought to center these realities. Gerstein suggested some ways of heightening the repercussions of violations: increasing certain wage theft cases from misdemeanors to felonies and using the publicity of business violations. To address the likelihood of being caught, Gerstein advocated for strategic enforcement where government agencies are more proactive in enforcing labor standards. Strategic enforcement includes having agencies investigate industries with high rates of violations, shifting away from the complaint-based model used currently. Increasing accessibility of government agencies to workers, through unions, community workers centers, and updated technology empowers employees to have more collective power when taking on big corporations. Finally, Gerstein recommended labor advisory councils for state enforcement agencies to increase worker voice in enforcement.
Chasse Rehwinkel, Illinois Acting Banking Director, concluded the Brainstorms Solution Panel. Rehwinkel’s presentation explored wealth inequality for minority communities in Illinois as a direct consequence of lack of access to capital and banking institutions. He urged the task force to consider solutions to target underbanked populations both at a state and federal level and expand access to lending opportunities for marginalized communities.
The 5th Future of Work Task Force meeting centered on improving using legislation, enforcement, and business policies to create a robust workforce. A group discussion on a good job quality framework gave members a chance to share their perspectives on what defines a quality job, including categories such as wages, benefits, and meaning. Illinois’ future of work will require collaboration between businesses, employers, communities, and government to create a supported, stable, and highly motivated workforce.
ABOUT THE TASK FORCE
The Illinois Future of Work Task Force was created by the Illinois Future of Work Act (Public Act 102–407) to be proactive and plan for the future of work while simultaneously addressing the state of work today. It consists of members that represent business, labor, education, and the environment, as well as members of the General Assembly and leadership from state executive agencies. The task force is co-chaired by Senator Villivalam, Senator DeWitte, and Leader Evans. Economic Security for Illinois supports the logistics and management of the task force in partnership with Illinois Department of Commerce and Economic Opportunity. The University of Chicago’s Inclusive Economy Lab, University of Chicago’s Crown Family School of Social Work, Policy, and Practice, and Metropolitan Planning Council as academic partners supporting the task force in the production of the final report and monthly meetings.
