6.8 Million People Got a Raise Yesterday. Were You One?

by Evil HR Lady on January 2, 2020

Twenty-one states had minimum wage increases go into effect yesterday–and Delaware had one go into effect in October. Overall, an estimated 6.8 million people will see their paychecks increase anywhere from $0.10 an hour (Florida) to $1.50 an hour (New Mexico and Washington). 

The federal minimum wage stays put at $7.25, but states are free to create their own minimum wage–whichever is higher (federal or state) is the legal lower limit for salaries. Twenty-one states use the federal minimum wage, but the rest have higher minimum wages.

Several states regularly adjust the minimum wage to account for inflation. Others are in the middle of a plan to reach a higher rate–usually $15 an hour.

To keep reading, click here: 6.8 Million People Got a Raise Yesterday. Were You One?

{ 3 comments… read them below or add one }

Professor Ronny January 2, 2020 at 4:37 pm

Article has a major mistake. It states:

In 2018 only 0.05 percent of hourly workers earned the federal minimum wage.

This is incorrect and way too small. According to the study you referenced:

Together, these 1.7 million workers with wages at or below the federal minimum made up 2.1 percent of all hourly paid workers.

2.1 percent is much larger than 0.05 percent.

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Cajun2core January 2, 2020 at 6:12 pm

I wonder how many people got raises due to the change in the overtime law.

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MariaRose January 2, 2020 at 8:59 pm

It is very altruistic to want to pay people a fair living wage but what is forgotten is that labor costs highly effect the cost of running a business. The first most important thing is to generate enough money to pay your employees without hurting the company’s ability to maintain status long term. What has happened in the push to raise the minimum wage small businesses are being forced to lower staffing costs to afford the wage ( in those geographic areas who have mandated the higher rate over the federal minimum). As most of these specific areas also have higher cost of living, a higher minimum wage makes partial sense. But the result to the workers is less scheduled hours to compensate the increased hourly wage, plus any employees that leave are not replaced.
Minimum wage jobs are notorious for being low skilled jobs which means that the job is most likely to require doing both physical activity and minimum thought process. If labor costs affect the business’s ability to continue, then the end result is to longer maintain operations.
Workers need to be a contributing factor to the business—no one gets paid to just show up at the job.
Okay laws are in place determining how to pay the employees but the company decides how many employees they will need and how much work is expected. I live in one of the states that is in the process of making $15/ hour mandatory minimum across the state. One city (NYC) has already been $15/ hour and the result is drastic cuts in hours for the employees which equals less earnings and more labor costs to the business. What is needed is a happy medium.

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