How New York’s bike lane laws can help workers – and employers – in Australia

Australia’s international borders have reopened, and temporary migrant workers are returning to low-paid jobs in restaurants, shops and farms. These industries have been at the forefront of the wage theft scandal, so solving this problem is urgent.

The Albanian government, which is now planning reforms to tackle the problem of employers illegally underpaying workers, can learn from New York’s new plan to prevent vehicles from illegally closing bike lanes.

A cyclist on a bike lane in Melbourne.attributed to him:Joe Armau

The proposed New York law would encourage citizens to report vehicles illegally blocking bike lanes, bus lanes, footpaths or pedestrian crossings near schools. In exchange for providing evidence of the violation, the concerned citizen will receive 25 percent of the $175 fine.

There is sound logic behind the proposal because it prioritizes implementation to achieve the goal of increasing compliance with laws. This follows contemporary research indicating that potential offenders are less likely to break the law if they perceive a higher risk of arrest. If every bystander were a commissioned parking inspector, drivers were less likely to risk parking in a bike lane.

In contrast, the magnitude of the potential penalty makes much less difference in behavior. My new research, which interviews many employers about how and why they comply with or break wage laws, finds that most employers are unaware of the potential penalties. They also have little fear of being caught underpaying their workers, so many have not invested enough in compliance.

For a long time, Australia’s main policy response has been to increase the maximum penalties applicable only to the worst kinds of wage theft. Employers and their representatives ran a successful campaign to frame the case as being limited to a small handful of “rotten apples,” for which heavy fines would have to be imposed. They argue that the majority of “good” employers should not be penalized for honest pay mistakes caused by our complex wage laws. Instead, they demanded simpler laws, greater flexibility, and an increased supply of temporary migrant workers for low-wage jobs.

Fruit pickers are among the poorly paid workers.attributed to him:Justin McManus

We cannot expect employers to change their behavior if they are unaware of the penalties and are afraid of getting caught.

The Fair Work Ombudsman is under-resourced, with fewer than 200 inspectors funded to monitor millions of Australian workplaces. Unions have little presence in industries where wage theft is most common. This is unlikely to change while unions’ rights to enter workplaces and inspect payroll records are severely restricted.

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Originally published at Melbourne News Vine