Naomi Soldon: Wisconsin Labor News

Naomi E Soldon serves as a Partner with Soldon McCoy, a law firm that specializes in representing organized labor. She frequently blogs on employment law and provides an update on Wisconsin workforce news.

Some changes in the workforce are happening right now. The increased demand for employees means that some employers will have to pay higher wages, while the labor market is shifting and causing an increase in costs. These shifts come alongside other recent developments like a rush of new residents and cost-of-living increases across Wisconsin. What does this all mean? Naomi E Soldon gives a rundown of three significant things recently occurring here on campus which show that there's been quite a bit of change going down lately around Madison.

1. Wisconsin to Allow 14-years-olds to Work Late

A bill that will allow 14 and 15-year-olds to work as late as 11 pm on certain days, has been approved by the Senate in Wisconsin. At present, the state follows federal employment laws under which no one under the age of 16 can start work before 7 a.m., or work past 7 p.m. Exceptions are made between June 1st and Labor Day. On these days, they can even stay until 9 pm.

According to the new bill, 14 and 15-year-olds will be able to stay at work until 9:30 pm on nights before a school day. Furthermore, if there is no school the next day, they can even work until 11 pm.

Naomi E Soldon indicates that this will help ease labor shortages and increase the workforce at sectors like hospitality by hiring teens who are more likely to show up for their job each day, than adults would be expected to do so.

Critics argue that the new bill will increase the exploitation of teenagers, as it would encourage business owners to push young people to work long hours.

The bill only applies to businesses with annual revenues less than $500,000. It must be approved by the state Assembly before becoming law.

2. Labor Shortages Force US Retailers to Compete for Workers

The growing labor shortage in the US, which has been on the rise for years now, prompted retailers across Wisconsin to compete against each other at an unprecedented level for workers. A figure that has risen sharply in recent months after coronavirus restrictions lifted across the country is 1 million unfilled positions- many of these are retail jobs. For example, Kroger is currently seeking 20 thousand workers, and Amazon is looking for as many as 125 thousand people to fill their seasonal workforce.

Naomi E Soldon notes that Amazon is enticing employees with up to $3,000 in sign-on bonuses. Dollar General has already given some of its drivers starting bonuses of $5,000. Macy’s and other retailers are offering benefits like educational subsidies and discounted gym memberships to attract younger workers.

Recruiters are making recruitment processes shorter and more streamlined, trying to get employees hired as quickly as possible. Walmart is a good example of this practice, with their recruiting process taking place within 24 hours in the case of many positions.

3. Wisconsin Labor Force Participation Rate Increases

The labor force participation rate in Wisconsin has increased, causing employment to grow by 5,000 jobs over the past month. Only 100 private-sector jobs have been lost since the last 30 days. These losses are on a small scale compared to overall gains and may be due to new high-skilled positions being created as part of an expansion at cheesemaker Agropur's $168 million facility which is set for completion in 2023.

The size of the labor force in the US grew by 4,000 over a month, which is much larger than usual. However, unemployment remained high at 3.9% and has been steadily increasing for months now due to economic sanctions put on Iran and other countries causing companies to lay off many workers. The pre-crisis level of unemployment in the US was about 3.5%.

Final Thoughts

In each of these stories, employers are faced with increasing challenges to build and maintain the workforce they need. The current labor supply shortage has caused increased wage pressures which means that many employers must fight harder to attract and retain talent in order to meet customer demand.