HARRISBURG, Pa. - The pluses and minuses of payday lending are playing out in Harrisburg.

The state House Consumer Affairs Committee has advanced legislation that would legalize what some call "predatory" payday lending. Supporters say allowing lenders to charge annual interest rates as high as 369 percent for a two-week loan will help create jobs. However, a new report from the Keystone Research Center shows otherwise, says labor economist Dr. Mark Price.

"Payday lending, when you have an expansion of it, it certainly creates some jobs on the side of the payday lending operation. But it also destroys other jobs in the economy, because consumers are paying these excessive fees, which end up crowding out other spending in the local community."

While payday loans are born from the desperation of people needing money between paychecks, Price says those who don't qualify for them are better off in the long term than those who do.

"There are consumers that payday lenders actually do turn down and are unwilling to make them a short-term, $300 loan. If they don't get a loan, they're less likely to file for bankruptcy than people that the lenders actually do choose to make a loan to."

Lender fees such as those being considered by state lawmakers are what can turn a relatively small loan into an insurmountable mountain of debt, Price says.

"They end up having to take out another loan, and another loan and another loan - and each time, they're racking up these enormous fees, putting those households in worse shape financially."

Payday lending hits rural sections of the state hardest, Price says, areas that often have limited economic opportunities for residents to repay their debts. He notes that a higher concentration of these lenders is typical in rural communities, which he calls "a perfect landscape" for them.

The report is online at keystoneresearch.org.


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Minnesota legislators adopted a lot of major policies in this year's session, including actions to support workers in many different fields. State employees are cheering the provisions.

A new statewide paid-leave program is among the highlights as Democrats pushed through a range of proposals with their majorities.

The Minnesota Association of Professional Employees, which represents 15,000 state workers, was a key supporter of the paid-leave plan. Its president, Megan Dayton, said there were other victories, too. Collectively, she said, she feels they'll establish a new era for the state's workforce.

"It's a historic investment," she said. "It's also a breath of fresh air with programs and policies that, in my opinion, echo the spirit of FDR's New Deal."

According to MAPE, pension changes are a big win for its members, including a one-time 2.5% cost-of-living adjustment for retirees. Advocates were also able to secure back pay for state workers in the event of a future government shutdown.

Republicans and some business groups have criticized some of the plans, namely the paid-leave program, set to begin in 2026. The National Federation of Independent Business in Minnesota described it as "complex employment regulations and severe penalties that will create more headaches for Main Street."

However, Dayton said whether it's paid leave or the other policies signed into law, Minnesota is in a better position to attract workers, including state government.

"Recruitment and retention is a really difficult piece of the workforce for everybody right now," she said, "and we think that many of the provisions made through this legislative session will contribute to making the state of Minnesota an employer of choice."

As for other workplace changes, the Legislature broadened protections for nursing mothers and pregnant employees. That includes allowing for a pregnant worker to take longer restroom, food and water breaks as an accommodation without being required to provide documentation.

Lawmakers guaranteed more than $760 million in their budget to boost wages and benefits for home care service providers.

That means Washington state caregivers will get wage increases of at least 10%. Veronica Tausili is a caregiver for her mother who traveled Olympia with her union - the Service Employees International Union 775 - to push for the wage increases.

She said experienced at-home caregivers will earn more than $25 an hour by the end of their contract and, importantly, caregiver wages will start at $21 an hour - helping recruit and retain them.

"We've lost so many caregivers because of the fact that they can't afford to stay in that position and not get paid," said Tausili. "So this is going to help us with the hiring process and getting people in because we're in dire need of caregivers right now."

The budget funding covers health-care coverage for caregivers' children as well. The Washington state budget also includes a rate increase for nursing homes of nearly $300 million over the next two years.

Tausili said this is critical for addressing understaffing in nursing homes.

Tausili quit her job to take care of her mom when she found out her mom had stage four cancer, which she survived - but Tausili continues to take care of her around the clock.

While some might see this kind of care as a burden, Tausili disagreed.

"This is my life as a caregiver and I love the fact that I can be there with her through everything," said Tausili. "I can say I was with her and I held her hand through everything."

Tausili praised state Rep. Cyndy Jacobsen - R- Puyallup - whom Tausili met with during the session, for her work on this issue. Gov. Jay Inslee signed the budget last week.




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More than one hundred workers at Coca-Cola plants in Logan and Charleston have returned to work after going on a days-long strike.

Ken Hall - the president of Teamsters Local 175 - said workers have a list of grievances against the company, including using supervisors doing union members' work and failing to pay employees for work performed.

Hall said the workers decided they didn't want to inconvenience the customers who rely on them, and remain optimistic - despite little movement from a company whose gross profit totaled nearly $600 million in the fourth quarter of 2022.

"They company just made another 23% profit in the first quarter," said Hall. "They're paying their CEO about $13 million as of last year, which is a significant increase for him. And yet they want to cut West Virginia workers out of their jobs and out of their pay."

In previously released statements, Coca-Cola Consolidated says it has provided the union a fair and competitive contract offer and remains committed to working with them on an equitable resolution.

Hall added that the local businesses that depend on receiving products from drivers are dismayed at the labor dispute.

"You see customers saying we don't want any deliveries that don't come from our drivers," said Hall. "They are fed up with the behavior protocol."

Coca-Cola also recently entered into an agreement with the gas station Sheetz to directly ship products from warehouses to Sheetz convenience stores.

Hall said the move bypasses the company's drivers, who were paid commissions for delivering those products.





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