Former Yellen Adviser Proposes Sweeping Reform of Fed System
A former aide to Federal Reserve Chair Janet Yellen has broken ranks with his former employer and issued a blueprint for a sweeping reform of the U.S. central bank, including regular government...
A former aide to Federal Reserve Chair Janet Yellen has broken ranks with his former employer and issued a blueprint for a sweeping reform of the U.S. central bank, including regular government audits and shorter term limits for policy makers.
Dartmouth College professor Andrew Levin targeted four areas of change for the Federal Reserve system: make the Fed a fully public institution; ensure the process of picking regional Fed presidents is transparent; set seven-year term limits for regional presidents and Board governors; and make the entire Fed subject to external review.
The proposals were taken up by the union-backed activist group Fed Up, which promoted them Monday in a conference call with journalists, and come during an election year where the central bank has been a campaign topic.
“There is one key principle in this document which is the Fed needs to become a public institution,” Levin said. “Pragmatic, reasonable Fed reform should be able to be passed by the Congress, by both parties. That is my hope.”
The Dartmouth professor worked two decades at the Fed, and was a special adviser from 2010 to 2012 to former chairman Ben S. Bernanke, and Yellen when she was vice chair, according to his biography page at the university.
Legislative Plans
Republicans in the U.S. Senate and the House of Representatives last year proposed legislation that included reforms of the central bank, though none has become law. Fed spokeswoman Michelle Smith declined to comment.
As recently as February, Yellen said that while the Fed might be structured differently if it were created today, she believed it still worked well and wasn’t “broken.”
“Of course the structure could be something different and it’s up to Congress to decide that -- I certainly respect that,” she said at a Senate hearing. “I simply mean to say I don’t think it’s broken the way it is.”
The Fed system, which sets interest rates for the U.S. economy, is made up of a Board of Governors in Washington and 12 regional Fed banks. It was created by an act of Congress, yet private banks hold stock in the regional Fed institutions as a result of the way the capital structure was set up when the Fed was born more than a century ago.
“The Federal Reserve is the only central bank that I know of that isn’t a fully public central bank,” Levin said in an interview.
Levin said the 12 regional banks should become fully public entities, meaning they have to somehow eliminate or repurchase the stock they have issued to private member banks. He also proposed banning anyone affiliated with financial institutions overseen by the Fed from serving as a regional Fed director.
Three Classes
Each regional Fed has a nine-member board of directors which includes three Class A directors who represent private member banks, three Class B directors picked by the private banks to represent the public -- typically local business people -- and three Class C directors chosen to represent the public by the Fed board in Washington.
The presence of financial interests on Fed boards has been a long-standing source of criticism. Currently, for example, James Gorman, chairman and chief executive of Morgan Stanley, sits on the New York Fed Board as a Class A director.
Prior the passage of the Dodd-Frank financial reform act in 2010, Class A directors also helped pick the 12 regional Fed bank presidents, subject to the approval of the board in Washington. That potential conflict of interest, with bankers appointing their own supervisors, was limited by Dodd-Frank, which restricted the selection process to Class B and Class C directors.
Levin said the current system of picking Fed presidents, which is led by regional board directors, is too secretive. He recommended the reserve bank boards accept nominations from the public, publish a list of eligible nominees, and then engage in a “selection process that involves genuine public participation.”
The Dartmouth professor also said that the entire Fed system should be subject to “external reviews” and disclosure requirements “just like every other key public agency.”
“The Government Accountability Office should produce a regular annual review of all aspects of the Fed’s policies, procedures, management, and operations,” Levin wrote in his proposal. The Fed has strenuously objected to calls by Republican lawmakers that monetary policy decisions be subject to GAO audit. In the interview, Levin said the GAO should focus on the management and operations of the Fed system, “not so much on monetary policy.”
“Part of the financial crisis was due to mismanagement in the division of supervision at the Fed,” Levin said in an interview. GAO reviews would provide assurance to the public and Congress that the “Fed is a well-managed organization,” he said.
By Craig Torres
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At Rally Outside Jamie Dimon's Home, Immigrant Rights Advocates Demand #BackersOfHate Stop Bankrolling For-Profit Prisons
At Rally Outside Jamie Dimon's Home, Immigrant Rights Advocates Demand #BackersOfHate Stop Bankrolling For-Profit Prisons
"Jamie Dimon, in the past two years, 22 people have died in detention centers that you finance," said Ana Maria Archila of the Center for Popular Democracy. "JPMorgan Chase has to divest from...
"Jamie Dimon, in the past two years, 22 people have died in detention centers that you finance," said Ana Maria Archila of the Center for Popular Democracy. "JPMorgan Chase has to divest from private prisons and detention centers. You can no longer say you aren't aware of this issue!"
Read the full article here.
Why a group of Commerce City teachers spent a day asking parents how they could do their jobs better
Why a group of Commerce City teachers spent a day asking parents how they could do their jobs better
COMMERCE CITY — On a recent Saturday morning, about a dozen teachers from the Adams 14 School District walked through a trailer park asking parents how they could do their jobs better.
...
COMMERCE CITY — On a recent Saturday morning, about a dozen teachers from the Adams 14 School District walked through a trailer park asking parents how they could do their jobs better.
Christina Zavala, a parent of three students, had a list. At the top: stop the rampant bullying and pay more attention to her son, who has a learning disability.
“In my experience,” she said, “it doesn’t really feel like the teachers care.”
The cadre of teachers hope what they heard — good or bad — can help reshape their schools to better meet the needs of the mostly poor and Latino families that call Commerce City home. The teachers are advocating for a “community school model,” which in part calls for more partnerships with nonprofit groups to help curb the effects of poverty on the classroom.
“The only way we can make a difference with the families in our district is if we get involved,” said Barb McDowell, the Adams 14 teachers union president. “There are a lot of disenfranchised people. We’re not talking to the community.”
Relations between the Commerce City community and the 7,000-student school district have long been strained. Voters consistently have rejected pleas to increase local taxes to repair or replace aging schools and support educational programs. And in 2014, the U.S. Department of Education found the district had discriminated against Hispanic students and teachers.
The district’s response included more culturally responsive training for teachers and the creation of a committee of students to regularly talk about race issues.
Facing state sanctions for chronic poor performance on state English and math tests, the Adams 14 school district, just north of Denver, is overhauling many of its schools. The teachers union believes this provides an opening to put into practice some of the elements of the community school model. Schools are still finalizing their innovation plans, which are expected to be made public later this fall.
Teachers across Colorado are engaged in similar work. It’s all part of a statewide campaign organized by the Colorado Education Association, the state’s largest teachers union, called “The Schools Our Kids Deserve.”
The community school model can be traced back to the 1880s. Modern-day community schools have popped up in Chicago, Baltimore and Lincoln, Neb. Perhaps the most famous community school model is the Harlem Children’s Zone in New York City.
In Colorado, the Edgewater Collective in Jefferson County and Blocks of Hope in neighboring Westminster Public Schools are two efforts to create something like a community school.
While supporters of the community schools model have long said that no two community schools should look the same because the needs of communities vary, there is a growing effort to identify common themes that apply everywhere, said Reuben Jacobson, deputy director for the Coalition of Community Schools.
The Colorado teachers union, working with the Alliance to Reclaim our Schools and the Center For Popular Democracy, has created its own list which includes strong and proven curriculum, community support services, and positive discipline practices.
Community engagement, like the work the teachers in Adams 14 are doing, is also a must.
Trish Ramsey, a teacher at Adams City Middle School, put it simply: “This is the first step to rebuild trust.”
By Nicholas Garcia
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Report: Language access isn’t great
Capitol Confidential – August 7, 2013, by Jimmy Vielkind - Several immigrant advocacy groups released a report this week saying it’s still difficult to get access to government services in...
Capitol Confidential – August 7, 2013, by Jimmy Vielkind - Several immigrant advocacy groups released a report this week saying it’s still difficult to get access to government services in languages other than English, nearly two years after Gov. Andrew Cuomo decreed that written and oral interpretation would be available the state’s six most-spoken foreign languages.
Cuomo signed an executive order that took effect last October mandating state officials to offer language assistance for speakers of Spanish, French, Italian, French Creole, Russian and Chinese. But the order’s scope was necessarily limited to state agencies, even though state-funded services like food stamps, driver’s licenses and unemployment benefits are administered by New York City or other counties.
The groups — including Make the Road New York, the Center for Popular Democracy and the Center for the Elimination of Minority Health Disparities at the University at Albany — visited government offices and surveyed people with limited English proficiency to develop a measure of compliance. Overall, they found that less than half the people who needed language assistance were able to receive it.
According to Nisha Agarwal, deputy director of the Center for Popular Democracy, the survey found 63 percent of citizens using state-operated facilities that are explicitly covered by the order were not successful in their quest to gain language assistance.
“The governor’s team has been very engaged on implementation, and we’re sympathetic to the challenges of getting an entire state apparatus to change,” said Agarwal. “That said, the results are by no means satisfactory, and we were quite disappointed that the state took the position that county-run agencies for state services were not within the ambit of the order. We feel it’s a pretty big gap.”
A Cuomo spokesman did not immediately return a request for comment.
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Report Calling for More Oversight to Prevent Charter School Fraud Draws Rebuke
LA Times - March 23, 2015, by Zahira Torres - California lawmakers must strengthen financial oversight of charter schools to stem cases of fraud and mismanagement that have already cost taxpayers...
LA Times - March 23, 2015, by Zahira Torres - California lawmakers must strengthen financial oversight of charter schools to stem cases of fraud and mismanagement that have already cost taxpayers $81 million, according to a new report from several advocacy groups.
The report by the Center for Popular Democracy, the Alliance of Californians for Community Empowerment Institute and Public Advocates Inc., said state and local leaders rely too heavily on self-reporting through whistleblowers or audits paid for by charter school operators. Local leaders also lack the staff and training to monitor charter schools and identify fraud, according to the report.
But the California Charter Schools Assn. offered a swift rebuke of the report in a two-page statement that said the authors offered dated examples of fraud and did little to prove that systemic problems exist.
The report pointed to cases that revealed $81 million in misused funds at charter schools over the last two decades, but said those do not reflect the true cost to taxpayers because weak financial controls allow fraud and mismanagement to go undetected.
Last year, the Los Angeles County Board of Education revoked the charter for Wisdom Academy of Young Scientists after auditors found that administrators funneled $2.6 million to the former director, her family and close associates.
“Given the rapid and continuing expansion of the charter school industry and the tremendous investment of public dollars, California must act now to reform its oversight system," the report said. "Without reform, California stands to lose millions of dollars as a result of charter school fraud, waste and mismanagement.”
The report said more focus must be placed on the state's 1,000-plus charter schools which received $3 billion in public funding last year.
Charter schools are publicly-funded but privately managed.
The California Charter Schools Assn. released a two-page statement Tuesday questioning the accuracy of the report and the authors' intentions. The group said it agreed that public dollars should be used appropriately, but argued that the report offered few examples of fraud.
In those cases, charter schools closed or made large-scale changes that helped prevent fraud in the future, according to the association.
"While we don't presume to understand the motives behind this report, we do know that California is a state where the charter school sector, authorizers and legislators have come together to put into place real solutions," the group said in the statement.
Recommendations in the report include mandating audits that would be specifically geared toward preventing fraud; requiring charter schools to set up internal risk management programs that would conduct annual fraud risk assessments; ranking charter audits by level of fraud risk and denying requests for new charter schools that do not commit to fraud controls.
The report did not study oversight policies or make recommendations for traditional public schools.
"To assume that there is greater risk at charter schools than school districts, particularly in light of all the real time oversight on financial reports, is simply unfounded," the charter school association said in its statement.
Kyle Serrette, director of education at the Center for Popular Democracy, said many public school systems employ internal auditors and have developed policies to help prevent fraud. But he said public schools should face the same scrutiny.
“There is no proactive system to monitor for fraud, waste and abuse,” Serrette said about the charter schools studied in the report. “California set up a system that prosecutes fraud rather than prevents it.”
He added, "We want to be able to detect the sheep from the sheep in wolves' clothing.”
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More Cities Should Do What States and Federal Government Aren't on Minimum Wage
Early this month, New York City Mayor Bill de Blasio announced a guaranteed $15 minimum wage for all city government employees by the end of 2018. This is a big win for over 50,000 workers across...
Early this month, New York City Mayor Bill de Blasio announced a guaranteed $15 minimum wage for all city government employees by the end of 2018. This is a big win for over 50,000 workers across the city struggling to provide for their families, including those directly on the payroll and tens of thousands working at non-profits that contract with the city.
Unlike in Seattle and Los Angeles, where city officials are empowered to raise the minimum wage for the entire workforce in their cities, Mayor de Blasio is unable to unilaterally raise wages for all New York City workers. That power lies with Gov. Andrew Cuomo and the state legislature. The governor's efforts to lift the minimum wage to $15 are being hampered by a Republican-controlled state Senate.
De Blasio's decision to raise wages for city employees is a crucial independent step towards a more equitable city - and should be seen as an inspiration for cities around the nation. It also reflects the power and momentum of a groundbreaking worker-led countrywide movement demanding higher wages.
Even as state and federal administrations drag their feet on the inevitable question of a decent minimum wage for working families in the United States, de Blasio's gutsy move shows cities can and should take matters into their own hands.
The mayor's minimum wage raise closely follows his announcement last month giving six weeks paid parental leave, and up to 12 weeks when combined with existing leave, to the city's 20,000 non-unionized employees. The mayor has now moved to negotiate the same benefits with municipal unions. Again, New York City private sector workers must look to Albany or Washington, D.C. to move on paid family leave for all.
Mayor de Blasio's recent actions support his goal of lifting 800,000 New Yorkers out of poverty over ten years. More than 20 percent of the city's population lives in poverty, a huge swath of a city commonly associated with extraordinary wealth.
The last couple of years have seen unparalleled momentum from workers themselves - from New York City to Los Angeles and Chicago - calling for livable wages, resulting in minimum wage raises for fast food workers and other groups.
Workers are not waiting patiently on government officials – they are organizing in an unprecedented way. Progressive mayors like de Blasio are responding with sound policy, while less responsive officials are being put on notice. Cities like Los Angeles, New York City, and Chicago are paving the way, showing that it is possible to act independently of state and federal governments.
In addition, laws raising the minimum wage to more than the pitiful federal standard of $7.25 an hour have passed in a number of states. There are now campaigns to raise the floor and standards for workers being led in 14 states and four cities. This momentum is building into a crescendo that will have deep implications for the 2016 presidential election.
Nearly half of our country's workers earn less than $15 an hour and 43 million are forced to work or place their jobs at risk when sick or faced with a critical care-giving need. Now is the time for cities to listen to their workers and override state and federal passivity to allow millions of hard-working Americans to provide for their families.
*** JoEllen Chernow is minimum wage and paid sick days campaign director at Center for Popular Democracy. On Twitter @popdemoc.
Source: Gotham Gazette
Protesters On Hunger Strike For 17 Days Ask Education Department To Help
Two Chicago protesters who have been fasting for 17 days over the future of a local high school traveled to Washington D.C. this week to take their fight to the national stage.
...
Two Chicago protesters who have been fasting for 17 days over the future of a local high school traveled to Washington D.C. this week to take their fight to the national stage.
The protesters, joined by civil rights leaders and the presidents of the nation's two largest teachers unions, held a press conference on Wednesday and delivered a letter to Secretary of Education Arne Duncan, asking him to take action so city officials will make a decision about Chicago's Dyett High School, which closed in June due to low enrollment rates and test scores.
Twelve protesters have been participating in a hunger strike since Aug. 17 in an attempt to convince the Chicago Board of Education to reopen the school as an open-enrollment public school with a focus on science, which they say will best serve the needs of the community. The board is weighing various plans to reopen the school, but protesters say this process has been slow and inconsistent, and worry that the board will ultimately allow the school to remain closed.
Since the start of the hunger strike, four protesters have had to receive medical attention, according to the Chicago Sun-Times. Last week, a group of medical professionals asked Chicago Mayor Rahm Emanuel to intervene, calling the situation "a health emergency."
Only two of the protesters made the trip to Washington. The letter they delivered to Duncan on Wednesday asks him to "act swiftly to avert the further harm." An excerpt from the letter states:
"One of the challenges facing African American parents and students in Chicago is the lack of response and accountability from elected and appointed officials. Affluent neighborhoods receive selective enrollment and well-resourced schools. However, communities comprised of predominantly low-income and working families have to contend with under-resourced schools and privatization models that undermine the integrity of the community. We compel you to act on behalf of the residents of Bronzeville who have been rendered voiceless in this process."
At Wednesday's press conference, protesters Jitu Brown and April Stogner were joined by American Federation of Teachers President Randi Weingarten, National Education Association President Lily Eskelsen García, Advancement Project Co-Director Judith Browne Dianis, Schott Foundation President John Jackson, Coalition for Community Schools Director Martin Blank, and members of the Alliance for Educational Justice and the Center for Popular Democracy.
"Sometimes you have to put your own health on the line to get the attention of the world," said García.
The protesters want the Board of Education to choose their proposal for the school's future, which would reopen the school as the Dyett Global Leadership and Green Technology High School.
"We’re going to do whatever is necessary to keep this school and have an open enrollment school in our community,” said Stogner, a protester who has three grandchildren. “I’m hungry. But I’m not really hungry for food -- I’m hungry for justice. I’m hungry for justice for my grandbabies, for all the kids in my community."
“We live in a city where we are not valued as black and brown people,” she added.
Earlier this week, protesters met with Emanuel and officials from Chicago Public Schools to discuss the strike, but the meeting did not lead to any resolution.
"The mayor appreciates there are strong feelings about Dyett, and he understands there is a desire for a quick resolution about its future, however what's most important is the right decision," said a statement from the mayor's office. "CPS is engaged in a thorough review of Dyett, and while they are closer to a decision, they continue to weigh all the factors at play in an effort to achieve the best outcome possible -- one that will ensure a strong Bronzeville and a strong future for our children."
A spokesperson for Duncan said Department of Education leaders plan to meet with the protesters to hear their concerns.
“We respect the efforts of this group and worked to accommodate their plans to hold a press conference outside our building," said Department of Education press secretary Dorie Nolt in a statement. "Senior leaders at the Department will meet with representatives of the group today to hear more about their concerns. While this is squarely a local issue, we always welcome the opportunity to engage with concerned students, parents, educators and community members.”
Source: Huffington Post
City Governments Spend More For Policing Than Social Services
City Governments Spend More For Policing Than Social Services
Watch a discussion about how governments spend more money on policing than they do on social services.
...
Watch a discussion about how governments spend more money on policing than they do on social services.
Watch the video here.
Bushwick Residents Rally at City Hall to Decry Deadlock on Immigration Reform
Bushwick Residents Rally at City Hall to Decry Deadlock on Immigration Reform
“Today we suffer, in November we vote,” dozens of protesters chanted in front of City Hall this afternoon. Some 40 people gathered to express dismay over yesterday’s Supreme Court deadlock over...
“Today we suffer, in November we vote,” dozens of protesters chanted in front of City Hall this afternoon. Some 40 people gathered to express dismay over yesterday’s Supreme Court deadlock over President Obama’s immigration plan, which would have given undocumented immigrants protection from deportation and the possibility to work in the United States. The rally was organized by the Bushwick chapter of Make the Road New York, a non-profit dedicated to representing the city’s Latino and immigrant communities.
President Obama’s executive action would have shielded over 5 million from deportation by introducing The Deferred Action for Parents of Americans and Lawful Permanent Residents (DAPA), which would have allowed the undocumented parents of American-born children to apply for work permits, and expanding the Deferred Action for Childhood Arrivals (DACA), which would have protected those who arrived in the U.S. before the age of 16 and stayed at least five years. For many participating in today’s rally, these measures would have been key to achieving a more secure legal status in the country. Many of those protesting were beneficiaries of DACA, and had hoped for the passing of DAPA to reunite families or keep them together.
Catalina Benitez, an immigrant from Mexico and a member of Make the Road, has been in the United States for over 20 years. She was attending the rally with her two-year-old son, Daniel, and said the Supreme Court’s deadlock came as a “great disappointment” to many.
“We were hoping that we’d be given more options.” Benitez said in Spanish of Obama’s plan, and the limbo that’s left in the wake of the Supreme Court’s 4-4 tie. Benitez’s son, as well as her five-year-old daughter, have benefitted from DACA, but the aborted expansion of the plan has many families worried about their future.
Benitez, who lives in Williamsburg, isn’t eligible to vote in the upcoming presidential election, but she hopes that the rally will raise awareness and encourage people who can vote to support immigrant rights. “The citizens who can vote should vote for Hillary Clinton,” she said.
Petra Luna, a Bushwick volunteer who helps Make the Road with press statements, event organizations, and community outreach, expressed a similar disappointment in the SCOTUS deadlock. “Immigrants are a significant community in this country,” she said in Spanish. “We’ve helped raise the economy, and we have a life here.”
Luna said that Make the Road organized this rally to show U.S. politicians that they want their voice to be heard. “We want the deportations to stop, and we want to incentivize people to vote in November,” she emphasized. “We are all hoping for an opportunity, and we want to encourage those people who do have the vote to represent us.”
Other organizations present at the rally were the New York Civil Liberties Union, the Minkwon Center for Community Action, the New York Working Families Party, United We Dream, and the Center for Popular Democracy, to name a few. Individuals would periodically get in front of the crowd with a megaphone and speak of their frustrations with the gridlocked immigration reform.
“I’m angry, I’m fed up with the system,” Jung Rae Jang, a DACA beneficiary with the Minkwon Center, told the crowd. “We need to get the immigrant community to come together against this.”
Daniel Altschuler, the press representative for Make the Road, said that the majority of those in attendance at the rally today were from Bushwick, but immigrants living in Staten Island and Jackson Heights, Queens, were also well-represented. According to the organization’s website, over 35 percent of households in Bushwick are made up of foreign-born immigrants, three quarters of whom are from Latin America. A significant number of those immigrants are undocumented.
Luna expressed hope that, come November, people will decide to vote in favor of supporting immigrant communities. “We’re all going to the same heaven,” she reflected. But in the meantime, she said she’ll keep fighting to represent immigrant rights, and hopes people with electoral power in this country will do the same.
“I’m willing to give this everything I’ve got,” she said resolutely.
By LUISA ROLLENHAGEN
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Gov. Cuomo Signs New Legislation Making it Easier for Workers and the State Labor Department to Fight Wage Theft
New York Daily News - January 4, 2014, by Albor Ruiz - It feels good to be able to write about something positive for New York workers in my first column of 2015. After all, measures that benefit...
New York Daily News - January 4, 2014, by Albor Ruiz - It feels good to be able to write about something positive for New York workers in my first column of 2015. After all, measures that benefit them and rein in abuses by their bosses are as rare as snow in August.
It took a long time but on Monday Gov. Cuomo gave a last-minute Christmas gift to hundreds of thousands of low-wage laborers across the state by signing legislation making it easier for workers and the state Department of Labor to fight wage theft, which in New York has been an epidemic for many years.
“I am tired of waiting,” said Marcos Lino, who filed a complaint with the Department of Labor in 2008 after enduring four years of being shortchanged by his boss in a small Flushing grocery store. Six years have passed and his case is still unresolved.
Hopefully now Lino — and thousands more who, like him, have waited far too long to recover what is rightfully theirs — will finally get some justice.
“The groundbreaking legislation signed today will protect both workers from abuse, and law-abiding businesses from being undercut by employers who turn a profit by breaking the law,” said Andrew Friedman, co-executive director of the Center for Popular Democracy.
It should also help reduce the backlog at the Department of Labor.
The legislation, sponsored by Bronx Democratic Leader and now Assembly Labor chair Carl Heastie and state Sen. Diane Savino, improves on the landmark Wage Theft Prevention Act (WTPA), also sponsored by them and signed in 2010 by then-Gov. Paterson. The WTPA strengthened penalties for wage theft and protections for workers who report it.
“Mugging employees out of pay not only hurts families, it hurts communities. It makes honest employers less competitive,” Savino said when the WTPA was signed into law . “Businesses that are good citizens and pay their employees exactly what is owed them and on time, as is required by law, should not be at a disadvantage to companies that are illegally withholding wages from their workers.”
The New York Coalition to End Wage Theft supports the new legislation, which also has the backing of labor, community and religious groups, and law-abiding employers. It improves on retaliation protection for workers, transparency provisions to help advocates and workers identify cases of wage theft and helps facilitate wage theft policing.
But as Deborah Axt, co-executive director of Make The Road New York, warns, the new law is no panacea.
“Much remains to be done,” she said, “to eliminate the scourge of wage theft that still victimizes working families and responsible businesses alike.”
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