Minimum wage?

Question

Being the minimum wage is scheduled to increase. How does that apply to individuals already established with a company for over a year? Do they get an increase in pay or is it simply for newcomers?

Answer 1

You're beginning to dawn on the reasons why even Having a minimum wage is morally wrong.

Here are some good arguments to oppose any minimum wage increases.

1. Every employer that pays any employees minimum wage will increase their prices over time to recoup the extra money they are paying out as a result of Min. wage increases.

(They Have to. Companies don't "create" profit out of whole cloth... they must have money left over after production costs, wages, and other business expenses in order to remain in business. If any cost increases, so do prices...)

2. established employees have no guarantee that "above minimum" wages will be adjusted upwards in the same amount as the min. wage. Some employers might, most won't. This means established employees are getting a de-facto pay CUT. (see info about prices, above...)

3. Raising minimum wages helps no person escape poverty. (see prices, above...) If raising the min. wage by a dollar an hour would help, the why not raise it ten dollars, or a hundred dollars?

Simply put, prices would very quickly rise to match the increase, and poor people would be poor still, (and paying $20.00 for a loaf of bread, instead of $1.99.)

You can't legislate poverty away. The money could be much better spent providing education and training programs to help minimum wage workers graduate into jobs with more pay, better security and more responsibility.

Answer 2

In some states the minimum wage law is different based upon the size of the business (i.e. under 10 employees, etc.) or the industry (i.e. restaurants can include tips as part of the hourly wage, etc.) so it is possible the law could have no effect for you.

For a more exact answer I would need to know:
1. what state you work in
2. what industry you work in
3. how many people does the company employ

For a general answer:
If the minimum wage increase applies to the company you are working for all employees (new and existing) must be paid the new minimum wage if they are currently making less than that. If you are already making the same as or more than the new minimum wage you are not entitled to a raise.

Answer 3

They don't understand economics. They believe that simply passing a law increases the standard of living for the poor. When it does the opposite. When you increase the minimum wage all you should expect are a decrease in hours and increase in price and people will lose real income. If the minimum wage was repealed- it would be logical to expect at least starting pay would drop however this would lead to lower prices and unemployment.

Answer 4

Do you mean the employees that are there are already getting as much or better than the new minimum wage is, and will their pay increase anyway?

The answer to that is no. Well I mean the employer may want to for their own reasons, but he/she doesn't have to.

But, if the employees that have been there for a year are still getting minimum wage then yes, they will get the increase.

Answer 5

From what I understand the only reason the company would have to increase your pay is if your pay is below the new minimum wage.

You would think that the company would like to show there appreciation buy giving you an increase but that rarely ever happens.

Answer 6

I read in the paper today that only about four states are increasing the minimum wage. Everytime the wages go up the other employees usually get the same amount.

Answer 7

If you are making minimum wage now and it goes up, your pay will rise to the new minimum. But if you currently make more than the current minimum wage your pay won't rise.

Answer 8

Congress is currently *considering* raising the minimum wage by $1.50, from $5.15 to $6.65 per hour in three installments. Congress last enacted legislation in 1996, increasing the minimum wage by 90 cents from 1996-1997.

A few states have increased their minimum wages. To check the effective dates and the minimum wage for each state, look at this chart showing all 50 states wages for 2005/2006/2007:
http://www.epinet.org/issueguides/minwage/table5.pdf

If your state increased the minimum wage, and you were making the minimum wage, your wages will be increased. If you were making more than the new minimum state wage, hopefully your employer will be smart, and will increase your wages so you will be making more than a brand new employee!

Why do we need a minimum wage increase?
A minimum wage increase of $2.10 by 2008 would raise the wages of 14.9 million workers. A minimum wage increase is needed to restore the minimum wage to historic levels. The inflation-adjusted value of the minimum wage is 30% lower in 2006 than it was in 1979. In addition, comparing the wages of minimum wage workers to average hourly wages, we find that the wages of minimum wage workers have not kept up with the wages of other workers. The minimum wage is 31% of the average hourly wage of American workers, the lowest level since 1947.

FYI: Congress has not increased the minimum wage in almost nine years—the second-longest stretch of government inaction since the minimum wage was enacted in 1938. Since the min wage is not adjusted for inflation, when Congress does not increase the minimum wage, the minimum wage continues to lose value.

Is every worker covered by the minimum wage?
The minimum wage law (the Fair Labor Standards Act) applies to employees of companies with revenues of at least $500,000 a year. It also applies to employees of smaller firms if the employees are engaged in interstate commerce or in the production of goods for commerce. Also covered are employees of federal, state, or local government agencies, hospitals, and schools. The law generally applies to domestic workers.

The FLSA contains a number of exemptions from the minimum wage that may apply to some workers. The law establishes a youth sub-minimum wage of $4.25 that employers can pay employees under 20 years of age during their first 90 consecutive calendar days of employment with an employer. Certain full-time students, student learners, apprentices, and workers with disabilities may be paid less than the minimum wage under special certificates issued by the Department of Labor. More information on other exempt workers is available from the Department of Labor, Wage, and Hour Division http://www.dol.gov./esa/minwage/q-a.htm.

Does the minimum wage cause job loss?
A 1998 EPI study failed to find any systematic, significant job loss associated with the 1996-97 minimum wage increase. In fact, following the most recent increase in the minimum wage in 1996-97, the low-wage labor market performed better than it had in decades (e.g., lower unemployment rates, increased average hourly wages, increased family income, decreased poverty rates). Studies of the 1990-91 federal minimum wage increase, as well as to studies by David Card and Alan Krueger of several state minimum wage increases, also found no measurable negative impact on employment. Finally, a recent Fiscal Policy Institute (FPI) study of state minimum wages found no evidence of negative employment effects on small businesses.

New economic models that look specifically at low-wage labor markets help explain why there is little evidence of job loss associated with minimum wage increases. These models recognize that employers may be able to absorb some of the costs of a wage increase through higher productivity, lower recruiting and training costs, decreased absenteeism, and increased worker morale.

Good luck!

Answer 9

Your pay will gow up aswell. Being that you been there for over a year you should get a raise on top of that increase.

Answer 10

It is more likely that only those earning minimum wage will be affected.