Fast Facts: RAISE Act

The RAISE Act (Rewarding Achievement and Incentivizing Successful Employees Act)

No governing agenda would be complete without addressing hardworking Americans’ need for more take homepay. That is especially important today, as the Great Recession, as well as rapidly advancing technology, has resulted in serious, continuing challenges for American workers.

While many conditions are beyond the government’s (or anyone’s) control, the fact is the government today artificially inflates the problems facing working Americans with misguided rules, regulations, and policies that make it harder than necessary for workers to thrive.

The RAISE Act would address one of these barriers. Currently, federal labor law supports union efforts to create wage ceilings on union members. As a result, unionized workplaces are often not allowed to give productive employees pay raises without re-opening negotiations with union bosses. This means that no matter how hard an employee works, he or she faces unnecessary barriers to getting a raise, even when his or her employer would like to reward that hard work with a raise. And this is not a simple matter of contract law between two private parties – this is an artificial concept explicitly supported by federal law.

The RAISE Act would fix this flaw in federal statute. It would allow employers to give their employees raises even if their union contract discourages it. Workers who work hard and provide value to their employers should be able to receive a raise; and the government should stop standing in their way.

Key Heritage Research

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