RAISE Act Lifts Pay Cap on Millions of American Workers
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. Many unionized companies would offer merit raises if the RAISE Act were passed. Restoring workers’ freedom to contract for higher wages, and the higher earnings themselves, would create wealth and supply a much-needed boost to the economy. Congress should lift the pay cap on union members now.