When California minimum wages increases, will other wages too?

Question

Now that the CA minimum wage has gone up to 7.50 does that mean my wage will go up too? I am at 8.50 an hour right now but if the minimum goes up, is my employer required to raise the rest of us up accordingly too? How does that work? It was a dollar increase right?

Answer 1

Ideally, they should.

However, what will happen in reality is at least one of the following:

1.) inflation will go up (the value of the dollar will drop so the buying power of a minimum wage earner will stay the same as it is now) The wage don't really matter, the spending power provided by that wage does.

or

2.) unemployment will go up (the rate of inflation and the unemployment rate are inversely related) To raise the buying power of a minimum wage earner, the unemployment rate has to go up to compensate.

Why? Because a business is not going to simply raise wages without covering the cost by raising prices (of goods sold) or by cutting costs of production (as in the number of employees)

Sucks, but that's economic reality for you.

Answer 2

It depends.

Are you a skilled worker?

Two major effects of minimum wage increases (not the only two, mind you):
1) More companies cut back on unskilled labor(minimum wage earners) and automate their previous job responsibilities....or...

2) Companies will heap more responsibilities onto the shoulders of their more skilled workers (again at the expense of minimum wage earners).

If you are a skilled worker, you may see your wages rise, assuming you are not employed at a company that chooses to automate.

But to answer your question, no. Your employer is not required to raise your wages. You are one of among many groups that are harmed by minimum wage hikes.

Answer 3

No, if you make over minimum wage your employer is not required to raise your wage.

Answer 4

ermm just a guess but maybe only if u are on minimun wage?

doesnt say everybody's?

Answer 5

i sure hope so