Wage Gaps and Outcomes in Apprenticeship Programs

The Effects of Gender, Race, and Region

By Daniella Zessoules and Olugbenga Ajilore
Posted on December 12, 2018, 12:01 am

Policymakers frequently approach the question of developing the workforce to meet the needs of the 21st century. Despite today’s historically low unemployment rates, wages for typical workers have barely budged for decades. While productivity has increased, gains have largely trickled to the richest Americans, exasperating persisting income inequality and painting an ominous picture of middle-class living standards. Furthermore, gaps in both wealth and income by race and gender have caused disproportionate labor market penalties for certain groups. Wage gaps and growing income inequality along racial lines have persisted despite higher educational attainment. For example, earning a bachelor’s degree or higher has not proven to reduce either the black-white or the Latinx-white wage gap. Meanwhile, employers are spending less on worker training than they used to. And too often, the training that they do provide is firm-specific, meaning that those skills do not translate well to other firms.

Registered Apprenticeship programs, which have bipartisan support, aim to address this issue by connecting Americans to decent-paying jobs as electricians, carpenters, and dental assistants, among others. The program, which the U.S. Department of Labor (DOL) administers through the Workforce Innovation and Opportunity Act, aims to help businesses develop highly skilled employees through hands-on customized training for a variety of occupations. The DOL asserts that the average hourly wage for a journeyperson who completes an apprenticeship is $23.94, equivalent to an annual salary of $49,795.

Investments in the workforce of tomorrow are necessary both to ensure pathways to relevant economic opportunities as well as to bridge economic disparities along racial and gender lines-including racial wealth and pay gaps-that continue to plague families across the country. Unfortunately, data on Registered Apprenticeship programs identify prominent economic disparities among women and people of color-many of whom face low enrollment rates within such programs and are concentrated in lower-paying occupations.

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Changes To State Highway Funding Rules Passed During Lame-Duck Session

Transportation Experts Say Measure Aims To Allow DOT To Avoid Federal Wage Requirements On Some Highway Projects

Thursday, December 6, 2018, 5:25am
By Rich Kremer

Legislation passed during the Legislature’s lame-duck session could change how Wisconsin pays for major highway projects. Transportation insiders say the tweaks are meant, by lawmakers, to be a way for the state to avoid federal wage requirements.

The first bill approved by lawmakers during this week’s extraordinary session makes changes to how the Wisconsin Department of Transportation funds highway megaprojects, like those in southeastern Wisconsin and other major state highway projects throughout the state, by requiring at least 70 percent of the project be funded with federal dollars.

Under current law, the DOT uses a combination of federal and state dollars, but for megaprojects and other major highway improvements there isn’t a set minimum for federal funds.

Former DOT Secretary Mark Gottlieb said that change is significant because federal funds carry with them federal requirements that contractors be paid wages set by the U.S. Department of Labor.

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Worcester to guard against wage theft in future tax deals for private development

By Nick Kotsopoulos
Telegram & Gazette Staff
Updated Dec 9, 2018 at 8:05 PM

WORCESTER – The city will include provisions against wage theft in future tax increment financing agreements for private development projects, City Manager Edward M. Augustus Jr. has informed the City Council.

The action is in response to a call by several councilors to strengthen the city’s current wage theft ordinance, where appropriate, to include stipulations for building permits.

While it has been determined that the city cannot legally impose such conditions on building permits, it can put them in tax deals for private projects.

“The goal is to secure compliance and eliminate the use of wage theft tactics by entities doing business with the city,” Mr. Augustus wrote in a report that goes before the City Council Tuesday night.

In 2016, the City Council approved a wage-theft ordinance that prohibits the city from awarding contracts to companies that have been found guilty of not complying with federal and state wage laws, including failing to pay their employees, and failing to pay prevailing wage, minimum wage and overtime.

Other types of wage theft include denial of legal benefits such as industrial accident and health insurance, improper classification of employees and violations involving payment of taxes, unemployment compensation, Social Security and income tax withholding.

Under the Worcester ordinance, successful bidders for city contracts have to provide a certification of compliance regarding payment of wages to employees.

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