States have role to play in war on poverty

If the war on poverty has ended, as the Trump administration recently declared, there’s a huge swath of workers who haven’t heard the news.

They live in fear that a layoff or medical problem will push them into a financial crisis. They struggle with slow wage growth that barely keeps pace with the cost of living. Inflation hit 2.9 percent for the 12 months ending in June as costs for gasoline, housing, and food kept growing. At the same time, wages rose by less than 3 percent, hardly making up for increased costs for those items.

The federal government has made it clear it won’t help, so state governments need to step up. Some already have. Attorneys general in 11 states announced this month that after an investigation, seven fast-food chains agreed to drop their “no-poaching” practices— arrangements where they agree not to hire workers from other franchises of the same company. That practice can, for example, keep employees from one McDonald’s restaurant from getting a job at another one to raise their pay, get a better schedule, or find employment closer to home. No-poaching effectively knocks workers off a career ladder. The seven companies are Arby’s, McDonald’s, Jimmy John’s, Buffalo Wild Wings, Carl’s Jr., Auntie Anne’s, and Cinnabon.

Those attorneys general should keep up the fight and go after the rest of the fast-food and retail chains with no-poaching policies so that workers can leverage their skills for better pay. Consumers can show their support for the seven fast-food chains that have dropped their no-poaching agreements, as well as companies which have voluntarily raised employee wages, by patronizing those businesses.

But there’s even more to do for workers, starting with raising the minimum wage. States can also change overtime rules to help salaried workers, most of whom aren’t eligible for overtime pay.