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RAISE Act Lifts Pay Cap on Millions of American Workers

Abstract: Federal law allows unions to impose wage restrictions on nearly 8 million American middle-class workers. Union contracts set both a wage floor and a wage ceiling barring unionized employers from offering pay raises as reward for exceptional work without negotiating with the union. No matter how hard most union members work, they cannot earn higher wages than specified by their contracts. The RAISE Act would lift the “seniority ceiling” on workers’ wages by allowing employers to pay individual workers more than the union contract specifies. ....

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RAISE Act Lifts Pay Cap on 8 Million American Workers

Federal law caps the wages of over 8 million middle class workers. Union contracts set both a wage floor and a wage ceiling unionized employers may not give productive workers pay raises outside the collectively bargained contract. Unions usually insist on seniority-based pay and rarely allow employers to reward hard-working individuals. No matter how hard most union members work, they cannot earn higher wages than specified by their contracts. ....

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