The United States, the world’s largest economy, contributing almost 16% of global GDP in 2020. With a population of over 330 million, the US is also home to a large number of world-class talent and leading businesses seeking to live out the ‘American Dream’. Yet, in stark contrast to much of the developed world, the US significantly falls behind and often ranks as one of the worst countries when it comes to protecting the rights of its workers. Below are several ways that depict how little protection employees in the states have.
- No guaranteed paid leave: The United States is the only developed nation in the world that does not guarantee any form of paid vacation to its workforce. Furthermore, its 10 public holidays are also not guaranteed to be paid according to the US Department of Labour. Due to this policy, only three in four companies give out paid vacation with an average of 10 days after one year of service. This is in stark contrast to European or other nations that have legally mandated paid vacation and public holiday days.
- No guaranteed paid parental leave: Again, the US is the only developed nation that does not guarantee any form of paid parental leave and is just one of eight UN member states (alongside Papua New Guinea and Suriname) that does not guarantee maternal leave. Though there is a federally mandated law that gives parents 12 weeks of family leave to care for a new child, companies are not required to pay for the time off.
- Lowest minimum wage relative to median wage: When adjust for inflation the current minimum wage of US$ 7.25 per hour is worth less than it was in 1968. The rate—unchanged since 2009, means that the real minimum wage for US workers stands at less than $15,000 per year, lower than that of all countries except for South Korea (when adjusted for Purchasing Power Parity).
- No severance pay: Unlike most other countries, employment in many US states is considered ‘at will’. This means that workplaces are free to terminate employees without notice (so long as it is not discriminatory) and do not have to provide them with any form of severance payment. As such, any severance pay is a matter of agreement between an employer and employee (or their representative).
Paul Arkwright
Publisher
