Recessions and depressions have historically caused a shift in dynamics between employers and workers. Milton Friedman, Nobel winning economist and one of the most influential economic minds of the twentieth century said “ Only a crisis-actual or perceived-produces real change. When the crisis occurs, the actions that are taken depend on the ideas that are laying around.” This can be positive change (workers’ rights/unions, equitable pay and working conditions) or negative changes (gig economy/labor law violations/removal of pensions and benefits).

A recent Forbes** article caught my eye because it’s applicable to me personally as well as millions of Americans:

More than 1 in 4 workers do not set aside any savings each month.
Nearly 3 in 4 workers say they are in debt - and more than half think they always will be.
More than half of minimum wage workers say they have to work more than one job to make ends meet.
28% of workers making $50,000-$99,999 usually or always live paycheck to paycheck and 70% are in debt.
The survey also found that 32% of the nearly 3,500 full-time workers surveyed use a budget and only 56% save $100 or less a month.

The number one paradigm confronted in business consulting:

“I want to pay my employees but I can't afford it, so I asked them to work for free to help keep the business afloat. That way we'll all have jobs still, something something, the greater good."

Answer:

More likely than not your employees have already volunteered their time….a lot; and probably family members, friends, and parents. That's what business loans are for, specifically the PPE. If we continue to devalue our labor force it will not recover. Your business plan and budget should include 3-5 years of operating costs, including wages. That’s why a business plan and budgets are crucial to long term success and should be re-evaluated and updated regularly to reflect an ever-changing economic environment. Free markets are a bitch, but that’s capitalism.

Furthermore, I would like to state that putting the success or failure of your business on employees, who do not share in the profits, is emotionally manipulative and not appropriate. If you want or need that arrangement, then pony up and make them an investor!

I am both an employee and an employer so I’d like to think I see both sides of the argument, it is as complex as people. These labor law abuses are not new or caused by the pandemic, it just happens to be the excuse used right now. Know your rights, advocate for yourself and those around you. Reference material and contact information for the US Labor department is included below.

So just a reminder to other owners/operators to not reach for the low hanging fruit so to speak:

No one customer can make or break your business if they can...you're already in trouble.

No one employee can make or break your business.

It's a business, no one but the owner(s) is personally invested nor should they be.

Stop seeing actions as either a personal favor or a personal slight. It's only personal to you, it's a job to everyone else.

Asking people to work for free or donate their time is illegal*.

Everyone has the right to a living wage and equal treatment.

Standing up for yourself and your rights is not easy, you owe your employees the respect and honor of being heard.

This is just the bare minimum of legal behavior, human decency, and professional respect. We all have the chance to do better. For me, that means taking a break from my beloved profession because I cannot provide the type of coaching aligned with my pedagogy. See the bigger picture, get over yourself, invest in people, not things.