Hospitality and leisure businesses were hit hard by the COVID-19 pandemic. However, by March 2024, hospitality and leisure employment had climbed back to its pre-pandemic level. In fact, industry workers today stand out as big winners when it comes to wage growth, according to ADP Research’s quarterly Today at Work report. According to the report’s wage data analysis, since November 2018, wages for hospitality and leisure industry new hires have jumped more than 38%, a gain second only to trade and transportation. By November 2023, the median wage for new hospitality and leisure hires was US$15 an hour. Interestingly, ADP Research also found that since December 2022, hospitality and leisure job-stayers have recorded larger year-over-year pay gains than industry new hires. Typically, people who quit their old jobs for something new enjoy bigger wage increases than workers who stick with their employers. However, in September 2024, year-over-year pay for job-stayers was up 4.6%, compared to 3.3% for job-changers, according to ADP Research. Why? ADP research found hotels, restaurants, and other employers were forced to work harder not only to acquire talent but retain it. As they raised wages for new hires, they also boosted pay for experienced employees. Hospitality and leisure was the only sector to claim double-digit annual pay gains for job-stayers between November 2021 and February 2023.
Most workers (70%) said they currently have the education and training they need to get ahead in their job or career, according to a new Pew Research Center survey. Only 30% said they need more education and training. The study found that regardless of whether workers said they need it, 51% said they have received training in the past 12 months, while a similar share (49%) said they have not. Among workers who say they need more education and training, 28% said learning on the job would be the best way for them to get it. About a quarter said completing a certificate program (24%) or getting more formal education (24%) would be the best way. Among workers who need training but didn’t get any in the last year, many point to time and resource constraints as major reasons for not doing so. More than four-in-ten (43%) said they couldn’t find the time, while 38% said they couldn’t afford it, and 28% said their employer wouldn’t cover the cost. Regarding income levels, 41% of workers with lower incomes and 43% of those with middle incomes who said they need but did not get training said they couldn’t afford it. Only 11% of upper-income workers said the same.
In 2024, employee engagement reached an 11-year low, employee satisfaction returned to a record low, and employees were seeking new jobs at the highest level since 2015, Gallup found. Why are workers feeling this way? Gallup found seven in 10 employees (73%) said their organization has experienced some level of disruptive change during the past year. The more disruption employees experienced, the more likely they are to feel burned out. Managers are reporting disruption from the restructuring of teams (55%) and additional job responsibilities for employees (69%), while nearly half (46%) report budget cuts. Most (56%) of employees report also noticing changes in customer expectations since the pandemic, with 71% of those employees attributing changes to more demanding customers or higher expectations for a better digital experience. The pandemic also caused many workers to reevaluate what they want from their career and employer. Work-life balance and better compensation packages became more significant to employees, along with expectations for remote work flexibility. Additionally, most leaders said they have very little confidence in their performance management systems, leaving organizations without a reliable way to clarify expectations, align teams, recognize achievements, and develop employees, Gallup found. Gallup suggested that employers should offer clarity of work expectations and reconnect employees to the company’s mission and purpose.
Unsurprisingly, building and grounds cleaning and maintenance occupations rank fourth among the professions with the lowest percentages of employees working fully remotely. An analysis of U.S. Bureau of Labor Statistics from October 2024 by digital mailbox provider iPostal1 found that building and grounds cleaning and maintenance professionals have 1.1% of the 5,597,000 employees working fully remotely, which equates to 60,000 people. The data also revealed that 150,000 employees in this field partially work from home. iPostal1 created a ranking based on the occupations with the highest and lowest percentages of employees working fully remotely. Overall, food preparations and serving related occupations have the lowest percentage of fully remote workers, with just 0.4% working from home. Of the total 7,702,000 people with this occupation, 27,000 work remotely and 80,000 work remotely and in-person. Construction and extraction occupations are second, with just 0.6% of employees working from home. With 8,431,000 employees in this occupation, 54,000 work fully out of office and 198,000 work some of their hours at home. Transportation and material moving occupations have the third lowest rate of remote workers, with just 0.9% (107,000) of its 11,734,000 employees working all their hours remotely, and 117,000 working some hours remotely. In total, 17,338,000 full-time employees in the U.S. work remotely, 19,893,000 work partially remotely, and 119,418,000 employees do not work from home at all.
A record 88 jurisdictions—23 states and 65 cities and counties—will raise their minimum wage floors by the end of 2025, according to the National Employment Law Project (NELP). In 70 of these jurisdictions (nine states and 61 cities and counties) wages will reach or exceed US$15 an hour for some or all employees; in 53 jurisdictions (two states and 51 cities and counties) the wage floor will reach or exceed $17 an hour. On Jan. 1, 21 states and 48 cities and counties will raise their minimum wages. Additionally, five states and 23 cities and counties will increase their minimum wages later in the new year. A growing number of states and localities are increasing their minimum wages to $15 an hour or above, USA Today reported. New York, California, Massachusetts, Washington, Maryland, New Jersey, and Connecticut are already there. On Jan. 1, Illinois, Delaware, and Rhode Island will increase their state minimums to $15. Oregon also will increase to $15 in July because of a cost-of-living rise. Other states are raising their minimums but are shy of $15. Missouri’s minimum will grow to $13.75 and Nebraska’s minimum to $13.50. Nebraska’s minimum wage will increase to $15 on Jan. 1, 2026. Additionally, Alaska, Florida, Hawaii, and Missouri will reach a $15 minimum by 2026 or 2027. In total, 16 states—Alaska, California, Connecticut, Delaware, Florida, Hawaii, Illinois, Maryland, Massachusetts, Missouri, Nebraska, New Jersey, New York, Rhode Island, Oregon and Washington—are on a path to a $15 (or higher) minimum wage, NELP reported. Additionally, California and New Jersey will raise their minimum wages for some healthcare workers, including janitorial work in California, to $18 and above. Regarding local governments, 47 localities will also hit or top $15 on Jan. 1, including more than four dozen in California, most of which will climb higher than $18. Burien, Washington—already subject to the state’s $16.28 minimum pay—will jump to $21.16 for employers with 500 or more workers in King County, making it the nation’s highest minimum wage. On the other hand, the federal minimum wage has been stagnant at $7.25 an hour since 2009. Nearly 30 states housing about 60% of the U.S. workforce have higher minimum wages than the federal limit.
A newly released survey shows Canadians are consistently drawn to employment that offers a sense of purpose and intrinsic rewards alongside traditional compensation. Among a survey of more than 1,500 Canadian adults, most (85%) felt employee wellbeing is a human right, according to First Onsite Property Restoration’s Workplace Values Index. Essentially the same number was recorded in a similar survey in 2023. Women are more likely to feel employee wellbeing is a human right than men (89% versus 82%). Meanwhile, three-quarters of Canadians (77%) would like to work in an industry where they are helping people, which is identical to the findings of the 2023 survey. Again, women are more likely to feel this way than men (81% versus 74%). “A few insights emerge from the year-over-year survey comparison,” said Leah Pearson, First Onsite Property Restoration director of talent acquisition. “The desire for helping people through their work remains strong among Canadians. It is becoming increasingly vital for HR and culture leaders to prioritize both the individual needs and overall wellbeing of employees.” The below table includes the questions included in the survey and a comparison to last year’s findings: “Once they join an organization, employees seek both external purpose and internal growth,” Pearson said. “They want to develop their skills, advance their careers, and feel valued. Organizations need to reach their employees where they feel appreciated—and support them as they evolve.” “It is one thing to attract the right candidates to an organization,” she added. “It is a completely different set of challenges to ensure their sense of wellbeing and purpose is being fulfilled.”
The U.S. Department of Labor (DOL) published a guide designed to educate employers about the benefits of using skills-first hiring practices and encourage them to use those practices to build a more qualified workforce. The Good Jobs Initiative’s Skills-First Hiring Starter Kit was announced at the White House’s Classroom to Career Summit, where President Biden and First Lady Jill Biden welcomed nearly 300 education and workforce leaders to announce new actions on workforce, career, and technical education. The Skills-First Hiring Starter Kit, developed in partnership with the U.S. Department of Commerce, is a short guide to hiring, promotion, and management built around worker skills, rather than relying on degree qualifications. “Skills-first hiring practices can be a way of helping workers get ahead through good jobs,” said Julie Su, the DOL’s acting secretary. “Our Starter Kit provides the blueprint for employers to take concrete steps to begin skills-first hiring and provide economic opportunity for workers who face barriers—not because they are not highly skilled—but because of where they attained those skills.” Skills-first hiring—also known as “skills-based hiring”—refers to the hiring or promotion of workers around demonstratable skills, knowledge, and abilities, regardless of how or where workers attained those skills. The department’s Good Jobs Principles promote skills-based hiring as a quality recruitment practice. While many employers have removed four-year degree requirements for salaried jobs, employers still struggle to implement skills-first hiring strategies after ending those requirements. The Starter Kit aims to give private employers more information on skills-based hiring so that they can successfully implement these practices in the workplace.
The U.S. Department of Labor (DOL) has obtained a judgment and order in federal court that recovers more than US$2.4 million in back wages and liquidated damages from Massachusetts and Pennsylvania healthcare staffing agencies that denied 341 employees overtime wages, including employees misclassified as independent contractors. Filed by the department’s regional Office of the Solicitor in Boston, the complaint names Malden, Massachusetts-based Gate Solution Systems, some of its officers, and managers, and joint employer Healthcare Services Group of Bensalem, Pennsylvania. It alleges that Gate Solution Systems hired the employees to provide cleaning, laundry, and dietary assistance services, under the supervision of Healthcare Services Group, at various healthcare facilities. The department’s Wage and Hour Division found that Gate Solution Systems Inc. misclassified housekeepers, laundry, and dietary workers as independent contractors. The employees in this case provided services at healthcare facilities in Maine, Massachusetts, New Hampshire, and Vermont. Employees were not paid the required overtime rate when they worked more than 40 hours in a workweek. “Misclassification of employees as independent contractors remains a serious concern for the Department of Labor,” said Jessica Looman, Wage and Hour administrator. “Preventing and combating misclassification is a priority for the Wage and Hour Division as it deprives workers of their rights to full wages, health and safety protections, unemployment insurance, workers’ compensation, and tax protections.”
The U.S. Department of Labor (DOL) proposed a rule that would phase out the issuance of certificates allowing employers to pay some workers with disabilities less than the federal minimum wage, currently $7.25 per hour. The rule proposes to eliminate certificates employers can apply for under the Fair Labor Standards Act that allow them to pay certain workers with disabilities subminimum wages. The department proposes to discontinue the issuance of new certificates and establish a three-year phase-out period for employers with existing certificates once a final rule becomes effective. “This proposal demonstrates the Biden-Harris administration’s dedication to good jobs for workers with disabilities,” said Julie Su, DOL acting secretary. “In the decades since Section 14(c) was included in the Fair Labor Standards Act, there have been significant legal and policy developments that have dramatically expanded employment opportunities and rights for individuals with disabilities. With this proposal, the department expects that many workers currently paid subminimum wages under Section 14(c) will move into jobs that pay full wages, which will improve their economic wellbeing and strengthen inclusion for people with disabilities in the workforce.” The proposed rule would do the following: Cease the department’s issuance of new Section 14(c) certificates starting on the effective date of a final rule. Institute a three-year period beginning on the effective date of a final rule for employers holding existing Section 14(c) certificates to cease paying subminimum wages to workers with disabilities. “One of the guiding principles of the American workplace is that a hard day’s work deserves a fair day’s pay, and this proposal ensures that principle includes workers with disabilities,” said Jessica Looman, Wage and Hour Division administrator. “Since the enactment of the Fair Labor Standards Act in 1938, opportunities and training have dramatically expanded to help people with disabilities obtain and maintain employment at or above the full federal minimum wage. Similarly, employers today have more resources and training available to recruit, hire, and retain workers with disabilities in employment at or above the full minimum wage, and this proposed rule aligns with that reality.” The DOL encourages interested parties to submit comments on the proposal once it is published in the Federal Register. All comments must be received by 11:59 p.m. EST on Jan. 17, 2025, for consideration in this rulemaking. Comments received after the comment period closes will not be considered. Learn more about the proposed rule and instructions for submitting comments.
A new study has revealed the best states in America for entrepreneurial success, with Oregon topping the list. Digital marketing site DesignRush analyzed data from the U.S. Bureau of Labor Statistics to find the change in the number of business establishments per state between September 2022 and September 2023. The states with the greatest percentage increase of businesses over the year determined the ranking. Oregon ranks top, with a 9.9% increase in business establishments over the course of the year. Oregon reported a total of 185,096 businesses in 2022 and 203,369 in 2023 for a net increase of 18,273. Coming in second place is Montana, with a 9.4% gain in businesses over the 12 months. The state had 61,185 businesses in 2022 and grew to 66,947 in 2023 for a net increase of 5,762. Third in the ranking is Michigan, with an 8.9% rise in businesses during the year. From 298,855 establishments in 2022, Michigan climbed to 325,467 in 2023 for a net increase of 26,612. Hawaii placed fourth, with an 8.6% increase in business establishments over the course of the year. Hawaii reported a total of 52,863 businesses in 2022 and 57,387 in 2023 for a net increase of 4,524. In a close fifth comes Tennessee, with an 8.0% gain in businesses over the 12-month period. The state had 204,873 businesses in 2022 and grew to 221,247 in 2023 for a net increase of 16,374. Idaho, South Carolina, Mississippi, North Carolina, and Arizona rounded out the top 10 states with the greatest increase in business establishments over the course of the year. Conversely, Virginia fell to the bottom of the ranking, with a 5% decrease in businesses over the 12-month period. The state had 332,311 establishments in 2022 and fell to 315,789 in 2023 for a net decrease of 16,522.
Fewer workers are dying from hazards in areas where the U.S. Department of Labor’s (DOL) Occupational Safety and Health Administration (OSHA) has focused its enforcement resources. Preliminary agency data show a decrease in fatalities the agency is mandated to investigate, including significant reductions in fatal injuries from trench collapses and falls, two of the leading causes of death among construction industry workers. “These numbers are promising evidence that stronger enforcement and collaboration with labor and management, driven by the Biden-Harris administration’s worker-centered approach, is saving lives,” said Douglas Parker OSHA, assistant secretary. “Most striking is the improvement in areas we have focused on with employers and unions. Our state program partners have also seen improvements.” In fiscal year 2024, federal OSHA investigated 826 worker deaths, an 11% reduction from 928 in the previous year. Excluding COVID-19-related deaths, this is the lowest number of worker fatalities OSHA has been mandated to investigate since FY 2017. OSHA’s National Emphasis Program on Falls, the leading cause of serious work-related injuries and fatalities in the construction industry, saw fatal falls investigated by federal OSHA drop from 234 to 189, a decrease of almost 20%. Preliminary data from state OSHA programs, pending validation by federal OSHA, indicates more than 15% fewer fatalities in state jurisdictions. Currently, federal OSHA covers about 60% of private-sector employees and approved state programs cover the remaining workers. “While fewer workers have died from the hazards OSHA investigates, we still lose more than 5,000 workers each year in largely preventable incidents,” Parker said. “While we’re proud of this progress, our work is far from over. Reducing worker deaths means embracing an approach that makes worker health and safety a core value in every workplace. Only then can we fully address all the causes and factors that lead to workers dying needlessly on the job.”
Taking an extended holiday soon? It’s a good idea to start planning now. A recent Harvard Business Review article suggested the ideal time to plan is four to six week ahead. Ideally, employees should find a colleague to act as a backup at least one month before. Once the backup employee is found that person should be provided with a detailed handover document, listing any current projects, pending tasks, and instructions. Setting up a meeting before your departure to discuss the document with your colleague is also key. Additionally, be sure to include your backup in any important meetings and emails leading up to your break so your colleague is clued in on all tasks. Lastly, it’s best to write a clear out-of-office message providing contact details for your backup. Looking for a quick guide for a stress-free break: Find a backup. Determine what needs to be done while you are away. Create a handover document for your backup. Meet with your backup to discuss the handover document. Include your backup in important emails and meetings. Write a clear out-of-office message. Happy holidays!
