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These are the worst U.S. states for workers, according to Oxfam

August 30, 2024
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When it comes to ensuring adequate pay and strong job protections for workers, some U.S. states do much better than others, a recent analysis concludes. 

Oxfam, a coalition of anti-poverty organizations, sought to assess the best and worst states for workers based on local wages, policies like paid leave and the right to form a union. 

“The policy landscape is critical for supporting low-wage workers and working families, and each of these three dimensions is critical in and of itself,” Kaitlyn Henderson, a senior researcher at Oxfam and author of the report, told CBS MoneyWatch. 

Along with looking at states’ minimum wages, Oxfam also examined policies around tipping and support for unemployed workers, with Henderson noting that “it is critical to think about what happens when you lose job through no fault of own.”

The availability of paid leave at work is also essential — that remains especially true for women, who tend to serve as households’ primary caregiver. Meanwhile, employees benefit from working in states that make it easier to unionize, Oxfam found, including by narrowing the gender wage gap and drawing attention to unsafe workplaces. 

“There is a lot of connective tissue between states with robust labor landscapes and the well-being of residents, and better overall outcomes,” Henderson said.  

Best states for workers

The top five states in Oxfam’s ranking have historically been worker friendly, Henderson noted. They include:

  1. Washington, D.C.
  2. California
  3. Oregon
  4. New York
  5. Washington

“These states have consistently been in the top five,” she said. “They are regularly passing new pieces of legislation. They are setting the standard and creating model for what legislation can look like at the state and federal level.”

Worst states for workers

Oxfam has rated North Carolina as the “worst state” for workers for three straight years, with the group pointing to its low minimum wage of $7.25 (also the federal baseline), lack of paid leave and “right-to-work” laws that hinder labor organizing. Other low-ranked states include Mississippi, Georgia, Alabama and South Carolina.

Oxfam’s index aims to highlight that “labor policies don’t exist in vacuums, but have a much larger impact on workers themselves and communities,” Henderson said. 

“The ability to move and relocate is a privilege,” she added. “This isn’t a suggestion to move — instead it’s meant to encourage policymakers to take seriously what it means to have, or not have, policies when it comes to the well-being of residents.” 

Ideally, federal law would set a standard for all workers in order to narrow what Henderson called “widening geographic inequality” among workers in the U.S. 

Megan Cerullo

Megan Cerullo is a New York-based reporter for CBS MoneyWatch covering small business, workplace, health care, consumer spending and personal finance topics. She regularly appears on CBS News 24/7 to discuss her reporting.

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