What does an Increase in Minimum Wage Mean for Employers and Employees?
In less than two weeks the federal minimum wage will be increasing from $6.55 to $7.25. This additional 70 cents an hour is going to hurt the retail and restaurant industry — and industry that has already been hit hard by the current recession. These industries are almost entirely made up of minimum wage employees and an increase such as this might result in additional layoffs and/or companies closing their doors. This increase in pay for low wage workers will both hurt and help them. Obviously a higher hourly wage is a benefit but since many of these workers are on some form of public assistance this rate increase could jeopardize their eligibility for these programs. Full story: “Higher Minimum Wage Coming Soon,” Yahoo Finance.
