How States Can Lead the Way for Workers: A State Playbook – The Century Foundation

Report on State-Level Policies for Advancing Worker Well-Being and Sustainable Development Goals

Introduction

This report outlines a series of state-level policy recommendations designed to address economic precarity among workers in the United States. Current challenges, including wage stagnation, rising living costs, and eroding labor protections, present significant obstacles to achieving the United Nations Sustainable Development Goals (SDGs). This analysis reframes these challenges and proposed solutions through the lens of the SDGs, with a particular focus on SDG 8 (Decent Work and Economic Growth), SDG 10 (Reduced Inequalities), SDG 1 (No Poverty), SDG 3 (Good Health and Well-Being), and SDG 5 (Gender Equality). The report provides actionable strategies for state policymakers to foster inclusive and sustainable economic growth by strengthening worker protections, enhancing job quality, and building worker power. The policy recommendations are organized into five key areas for state action.

1. Putting more money in workers’ pockets
2. Creating good jobs for all
3. Enhancing responsibility for workers’ well-being
4. Supporting healthier workers and care
5. Building worker power over corporate power

1. Advancing Economic Security and Fair Compensation

1.1 Creating Wage Boards for Vulnerable Workers

To address low wages and poor job quality, which are significant barriers to SDG 1 (No Poverty) and SDG 8 (Decent Work), states can establish wage boards. These boards bring together representatives from labor, employers, and government to set minimum standards for pay, benefits, and working conditions within specific industries.

• Objective: Boost pay and job quality for low- and middle-income workers, particularly in sectors with high rates of exploitation where union representation is low.
• Alignment with SDGs: This policy directly supports SDG 8 by promoting fair wages and decent working conditions. It also contributes to SDG 10 (Reduced Inequalities) by targeting sectors with a high concentration of vulnerable workers.
• State Examples: States including Colorado, Nevada, Minnesota, California, and New York have implemented wage boards in sectors such as home care, nursing home care, fast food, and agriculture.

1.2 Phasing Out Discriminatory Subminimum Wages

The practice of paying subminimum wages, particularly to workers with disabilities under 14(c) certificates, is a direct contradiction to the principles of inclusive employment outlined in the SDGs. Eliminating this practice is a critical step toward achieving SDG 10 (Reduced Inequalities).

• Objective: Guarantee all workers, including those with disabilities, tipped workers, and youth workers, receive the full minimum wage.
• Alignment with SDGs: This policy is fundamental to achieving SDG 10 by ending discriminatory pay practices. It also supports SDG 8 by ensuring fair and equal remuneration for work of equal value and contributes to SDG 1 by lifting workers out of poverty.
• Case Study: Colorado: Colorado’s bipartisan legislation successfully phased out 14(c) certificates ahead of schedule by pairing the phase-out with resources to help workers transition to competitive integrated employment (CIE), aligning with best practices for an equitable transition.

1.3 Strengthening Enforcement of Labor Standards

Effective enforcement of labor laws is essential for ensuring that policy goals translate into tangible benefits for workers. This aligns with SDG 16 (Peace, Justice and Strong Institutions), which calls for effective and accountable institutions at all levels.

• Objective: Deter wage theft and other labor violations through stronger penalties and innovative enforcement mechanisms.
• Alignment with SDGs: Robust enforcement underpins SDG 8 by making decent work a reality. It supports SDG 16 by strengthening the rule of law and ensuring access to justice for all workers.
• Recommended Policies:
  1. Mandatory Treble Damages: Requiring employers to pay three times the amount of unpaid wages owed, as implemented in states like Massachusetts and New Mexico.
  2. Wage Liens: Allowing workers to place a legal claim on an employer’s property to recover stolen wages, a tool used effectively in Wisconsin and Washington.

1.4 Making Progress toward Equal Pay

Persistent pay gaps based on gender, race, and other characteristics undermine economic security and exacerbate inequality. Closing these gaps is a direct target of SDG 5 (Gender Equality) and SDG 10 (Reduced Inequalities).

• Objective: Eliminate pay disparities through comprehensive equal pay legislation that goes beyond federal standards.
• Alignment with SDGs: This policy directly advances SDG 5 and SDG 10. By increasing earnings for disadvantaged groups, it also contributes to SDG 1.
• Recommended Policies:
  • Broaden protections beyond gender to include all protected classes.
  • Adopt standards for “substantially similar” or “comparable” work.
  • Ban the use of salary history in hiring and pay-setting.
  • Mandate pay transparency, requiring employers to disclose wage ranges.

2. Creating Good Jobs and Equitable Workforce Development

2.1 Expanding High-Road Training Partnerships

State investments in workforce development should be directed toward high-road training partnerships that promote job quality, equity, and worker voice. This approach aligns with SDG 4 (Quality Education) and SDG 8 (Decent Work) by creating pathways to skilled, well-compensated employment.

• Objective: Scale high-quality sectoral training programs, such as registered apprenticeships, that lead to family-sustaining jobs and address industry needs.
• Alignment with SDGs: These partnerships advance SDG 4 by providing inclusive and equitable quality education and lifelong learning opportunities. They are crucial for SDG 8 by promoting productive employment and for SDG 10 by targeting underserved communities.
• Case Study: California: The state’s High Road Training Partnerships (HRTP) initiative invests state funds in regional partnerships that prioritize job quality and equity. The Hospitality Training Academy (HTA) is a successful example, moving participants into jobs with living wages and benefits.

2.2 Leveraging Public Dollars to Create Good Jobs

States can use their procurement and investment power to attach strong labor standards to public projects, ensuring that public funds contribute to the creation of good jobs and community wealth, in line with SDG 8 and SDG 11 (Sustainable Cities and Communities).

• Objective: Use tools like Community Benefits Agreements (CBAs), Workforce Equity Agreements (WEAs), and Project Labor Agreements (PLAs) to set high standards for wages, benefits, training, and local hiring on publicly funded projects.
• Alignment with SDGs: This strategy directly supports SDG 8 by using public policy to promote decent work. It also advances SDG 10 through equitable hiring targets and SDG 11 by ensuring development projects benefit local communities.

2.3 Boosting Supportive Services

Access to supportive services like child care, transportation, and housing is a prerequisite for many workers to participate in training and maintain employment. Providing these services is essential for an inclusive workforce and contributes to multiple SDGs.

• Objective: Ensure workers have access to robust supportive services that address barriers to employment and career advancement.
• Alignment with SDGs: Supportive services are critical for achieving SDG 8 by enabling full and productive employment. They also support SDG 1 (No Poverty), SDG 5 (Gender Equality) by addressing the caregiving burden that disproportionately falls on women, and SDG 10 by helping disadvantaged workers overcome barriers.
• State Example: New Mexico’s universal free child care initiative is a landmark policy that supports the state’s workforce and advances these SDG targets.

3. Enhancing Corporate Responsibility for Worker Well-Being

3.1 Strengthening “Hot Goods” Protections

States can adopt “hot goods” provisions to prevent the sale or shipment of goods produced in violation of labor laws, including minimum wage, overtime, and child labor standards. This holds corporations accountable across their supply chains, aligning with SDG 8 and SDG 12 (Responsible Consumption and Production).

• Objective: Increase accountability for labor violations by making it illegal to transport or sell goods produced through exploitation.
• Alignment with SDGs: This policy directly targets exploitative labor practices, a key component of SDG 8. It also promotes sustainable and ethical production patterns, contributing to SDG 12.

3.2 Holding Corporate Power in Check through Joint Employer Standards

The fissuring of the workplace through subcontracting and franchising models often allows lead companies to evade responsibility for labor violations. Strengthening joint employer liability ensures that all entities controlling working conditions are held accountable.

• Objective: Use the joint employer doctrine to hold lead employers accountable for labor law violations committed by their subcontractors or franchisees.
• Alignment with SDGs: This policy strengthens institutional frameworks for protecting labor rights, supporting SDG 16 (Peace, Justice and Strong Institutions). It is also crucial for upholding the principles of SDG 8 in modern, complex employment structures.

3.3 Taxing Wealth and Corporate Profits to Serve Workers

To address rising inequality and fund critical public investments, states can implement progressive tax policies. This approach directly targets SDG 10 (Reduced Inequalities) by ensuring that the highest earners and most profitable corporations contribute their fair share.

• Objective: Create dedicated revenue streams from taxes on high incomes or corporate profits to fund pro-worker policies such as workforce training, supportive services, and labor law enforcement.
• Alignment with SDGs: This is a primary tool for achieving SDG 10. The revenue generated can be used to fund programs that advance a wide range of other goals, including SDG 1, SDG 3, SDG 4, and SDG 8.
• Case Study: Washington: The state’s Workforce Education Investment Act placed a surcharge on large technology companies to fund higher education and apprenticeship programs, demonstrating a direct link between corporate success and investment in the state’s workforce.

4. Supporting Healthier Workers and the Care Economy

4.1 Combating Harmful Child Labor

The recent surge in illegal child labor violations requires urgent state action. Protecting children from hazardous and exploitative work is a fundamental global priority, codified in SDG Target 8.7.

• Objective: Prevent, deter, and penalize illegal child labor through stronger state laws, increased penalties, and enhanced enforcement.
• Alignment with SDGs: This policy directly addresses SDG Target 8.7, which calls for the immediate and effective measures to eradicate forced labor, end modern slavery and human trafficking and secure the prohibition and elimination of the worst forms of child labor. It also supports SDG 3 (Good Health and Well-Being) by protecting children’s health and safety.

4.2 Modernizing Health and Safety Protections

Workers face a combination of longstanding and emerging workplace hazards, from industrial accidents to extreme heat and AI-driven work intensification. Modernizing protections is essential for ensuring SDG 3 and SDG 8.

• Objective: Update and strengthen occupational safety and health standards to protect workers from new and growing risks.
• Alignment with SDGs: This is a core component of SDG 8, which calls for safe and secure working environments for all workers. It is also fundamental to achieving SDG 3 by preventing work-related injuries, illnesses, and deaths.
• Case Study: Minnesota: The state’s Warehouse Worker Protection Act addresses AI-driven work intensification by requiring transparency in production quotas, protecting workers from unsafe paces of work and ensuring they can take necessary breaks.

4.3 Enhancing Job Quality for Care Workers

The care workforce, which is critical to public health and economic productivity, is characterized by low pay and poor working conditions. Improving job quality in this sector is vital for SDG 3, SDG 5, and SDG 8.

• Objective: Improve job quality and address staffing shortages in the care sector through policies like minimum staffing standards in nursing homes.
• Alignment with SDGs: Strengthening the care sector supports SDG 3 by improving the quality of care. As the workforce is predominantly female, improving their job quality is a key strategy for SDG 5 (Gender Equality). It also advances SDG 8 by transforming low-quality jobs into decent work.

4.4 Ensuring Schedules Are Fair and Predictable

Unstable and unpredictable work schedules undermine workers’ economic security and well-being. Fair workweek laws provide stability that benefits workers, their families, and the broader economy.

• Objective: Grant workers the right to advance notice of schedules, predictability pay for last-minute changes, and the right to rest between shifts.
• Alignment with SDGs: Predictable scheduling contributes to SDG 8 by improving working conditions and to SDG 3 (Good Health and Well-Being) by reducing stress and allowing for better work-life balance. It also supports SDG 1 by providing workers with more stable incomes.

5. Building Worker Power to Counter Corporate Influence

5.1 Ensuring All Workers Have a Voice on the Job

The right to organize and bargain collectively is a cornerstone of SDG 8. States can protect and expand this right, particularly for workers excluded from federal labor law.

• Objective: Extend collective bargaining rights to all workers, including public sector, agricultural, domestic, and care workers, and remove barriers like “right-to-work” laws.
• Alignment with SDGs: Protecting freedom of association and collective bargaining is an explicit target of SDG 8. It is also a powerful tool for achieving SDG 10 (Reduced Inequalities) by giving workers the power to negotiate for fairer wages and working conditions.
• Case Study: Connecticut: The state granted collective bargaining rights to state-funded personal care attendants and family child care providers, leading to significant improvements in their wages and benefits.

5.2 Establishing “Just Cause” Protections against Unfair Firings

At-will employment leaves workers vulnerable to arbitrary dismissal, undermining job security. Establishing “just cause” protections provides a crucial foundation for stable employment and worker rights.

• Objective: Protect workers from unjust termination by requiring employers to provide a good reason for dismissal.
• Alignment with SDGs: Job security is a key element of SDG 8 (Decent Work). Just cause protections also strengthen workers’ ability to advocate for their rights without fear of retaliation, supporting SDG 16 (Peace, Justice and Strong Institutions).

5.3 Freeing Workers from Harmful Noncompete Agreements

Noncompete agreements suppress wages and limit worker mobility, hindering economic dynamism and contributing to inequality. Banning these agreements promotes a more competitive and equitable labor market.

• Objective: Ban or severely restrict the use of noncompete agreements to increase worker mobility, bargaining power, and wages.
• Alignment with SDGs: By promoting labor market fluidity and preventing wage suppression, banning noncompetes supports SDG 8‘s goal of full and productive employment. It also helps reduce income disparities, contributing to SDG 10.

5.4 Giving Workers a Voice in Workplace AI

As artificial intelligence reshapes the workplace, ensuring workers have a voice in its deployment is critical to harnessing its benefits while mitigating its risks. This is a modern frontier for achieving SDG 8.

• Objective: Ensure workers and their representatives have a seat at the table in decisions regarding the adoption and use of AI and other workplace technologies.
• Alignment with SDGs: This policy promotes a human-centered approach to technology, which is essential for ensuring that technological progress supports the goals of SDG 8 (Decent Work). It involves protecting workers from harmful surveillance and ensuring that automated systems do not lead to discriminatory or unfair outcomes, thereby supporting SDG 10.

Analysis of Sustainable Development Goals in the Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

The article discusses a wide range of issues related to workers’ rights, economic well-being, and social equity, which directly connect to several Sustainable Development Goals (SDGs). The primary focus is on improving labor conditions, reducing inequality, and ensuring safe and fair employment for all. The following SDGs are addressed:

• SDG 1: No Poverty – The article highlights that current wages are insufficient for many workers to afford basic necessities like rent, leading to economic insecurity. It discusses poverty-level minimum wages and the high poverty rates among tipped workers and workers with disabilities, directly linking low pay to poverty.
• SDG 5: Gender Equality – The article explicitly addresses the gender pay gap, noting that women earn less than men and that this gap has widened. It also points out the even starker pay disadvantages faced by women of color and LGBTQ+ workers, advocating for policies like equal pay laws to combat this discrimination.
• SDG 8: Decent Work and Economic Growth – This is the most central SDG to the article. It covers nearly every aspect of decent work, including fair wages (minimum wage, wage boards), job security (“just cause” protections), safe working environments (OSHA, protections from heat and AI-driven quotas), the right to organize (unions, collective bargaining), and the elimination of exploitative practices like child labor and discriminatory subminimum wages.
• SDG 10: Reduced Inequalities – The article focuses heavily on reducing various forms of inequality. It addresses the widening gap between CEO and worker pay, the discriminatory subminimum wage for workers with disabilities, and pay disparities based on gender, race, and sexual orientation. Policies like progressive taxation (“taxing the rich”) and phasing out discriminatory wage carve-outs are presented as solutions.
• SDG 16: Peace, Justice and Strong Institutions – The article emphasizes the need for strong institutions and legal frameworks to protect workers. It discusses the underfunding and understaffing of federal enforcement agencies like the Department of Labor and the NLRB, and advocates for strengthening state-level enforcement through measures like mandatory treble damages, wage liens, and state labor relations boards to ensure workers have access to justice.

2. What specific targets under those SDGs can be identified based on the article’s content?

Based on the issues and policy solutions discussed, several specific SDG targets can be identified:

1. Under SDG 1 (No Poverty):
   • Target 1.2: Reduce at least by half the proportion of men, women and children of all ages living in poverty. The article’s call to raise the minimum wage, which it describes as a “poverty-level wage,” and eliminate subminimum wages for tipped workers who face high poverty rates, directly supports this target.
2. Under SDG 5 (Gender Equality):
   • Target 5.1: End all forms of discrimination against all women and girls everywhere. The push for stronger equal pay laws that cover not just gender but also race, sexual orientation, and other protected classes is a direct effort to end economic discrimination.
3. Under SDG 8 (Decent Work and Economic Growth):
   • Target 8.5: Achieve full and productive employment and decent work for all women and men, including for young people and persons with disabilities, and equal pay for work of equal value. This is addressed through proposals to phase out the subminimum wage for workers with disabilities, ensure equal pay for “comparable work,” and create “good jobs for all.”
   • Target 8.7: Take immediate and effective measures to… secure the prohibition and elimination of the worst forms of child labour. The section “Combating Harmful Child Labor” directly addresses this by discussing the surge in violations and proposing stronger state laws, increased penalties, and “hot goods” provisions to fight it.
   • Target 8.8: Protect labour rights and promote safe and secure working environments for all workers. This target is central to the article, which advocates for strengthening enforcement of wage and safety laws, establishing “just cause” protections against unfair firing, ensuring fair and predictable schedules, modernizing health and safety protections against new risks like extreme heat and AI-driven quotas, and protecting the right to unionize.
4. Under SDG 10 (Reduced Inequalities):
   • Target 10.1: Progressively achieve and sustain income growth of the bottom 40 per cent of the population at a rate higher than the national average. Policies like creating wage boards to boost pay for low- and middle-earning workers and raising the minimum wage are designed to achieve this.
   • Target 10.2: Empower and promote the social, economic and political inclusion of all, irrespective of… disability, race, sex, etc. The article’s focus on eliminating the discriminatory subminimum wage for disabled workers and closing pay gaps for women and workers of color directly aligns with this target.
   • Target 10.4: Adopt policies, especially fiscal, wage and social protection policies, and progressively achieve greater equality. The article explicitly recommends wage policies (wage boards, minimum wage) and fiscal policies (a dedicated tax on high-income residents and corporations) to reduce economic inequality.
5. Under SDG 16 (Peace, Justice and Strong Institutions):
   • Target 16.3: Promote the rule of law… and ensure equal access to justice for all. The discussion on strengthening enforcement of labor laws through tools like wage liens, mandatory treble damages, and private rights of action is about ensuring workers have effective legal recourse and access to justice when their rights are violated.
   • Target 16.6: Develop effective, accountable and transparent institutions at all levels. The article highlights the ineffectiveness of under-resourced federal agencies (DOL, OSHA, NLRB) and proposes strengthening state-level institutions and enforcement capacity to make them more effective and accountable in protecting workers.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

Yes, the article mentions numerous quantitative and qualitative indicators that can be used to measure progress.

• Wage and Income Indicators:
  • CEO-to-worker pay ratio: The article cites this ratio (281:1 and 290:1) as a key indicator of inequality. A reduction in this ratio would indicate progress.
  • Wage levels and minimum wage: The federal minimum wage ($7.25/hour) and the proportion of workers earning below certain thresholds (e.g., $15 or $20 per hour) are used as indicators of low pay. Progress would be measured by increases in these wage floors.
  • Pay Gaps: The gender pay gap (81 cents on the dollar) and pay gaps for Black women (76 cents) and Hispanic women (66 cents) are specific metrics. Closing these gaps would be a measure of success.
  • Poverty Rates: The article mentions that disabled workers are “twice as likely to live in poverty” and tipped workers have poverty rates “nearly three times that of nontipped workers.” Reductions in these specific poverty rates would be a key indicator.
• Labor Rights and Working Conditions Indicators:
  • Union density/representation rate: The article cites the low private-sector union representation rate (5.9%) as a problem. An increase in this rate would indicate progress in worker power.
  • Workplace injuries and fatalities: The number of annual workplace fatalities (nearly 5,300) and nonfatal injuries/illnesses (2.6 million) are direct indicators of workplace safety. A decrease would signify improvement.
  • Child labor violations: The article notes a “nearly 90 percent increase” in violations. Tracking the number of violations and the penalties assessed would measure the effectiveness of enforcement.
  • Enforcement capacity: The ratio of federal investigators to workers (one for every 80,000 workers) is used as an indicator of weak enforcement. Increasing the number of investigators and the average penalty amounts for violations would show progress.
  • Prevalence of noncompete agreements: The estimate that nearly one in five workers is covered by a noncompete agreement is an indicator. A reduction in this number would measure progress in freeing workers from these restrictions.
• Policy Adoption Indicators (Implied):
  • The article implies that progress can be measured by tracking the number of states that adopt the recommended policies, such as:
    • Phasing out 14(c) subminimum wages (17 states have already acted).
    • Establishing wage boards (currently in at least six states).
    • Enacting “just cause” employment laws.
    • Passing fair workweek/predictive scheduling laws (only Oregon has a statewide law).
    • Banning noncompete agreements (only four states have a full ban).

4. SDGs, Targets, and Indicators Summary Table

Source: tcf.org