![]() Take a look at this chart, which breaks down the 3.6 million into bins from age 16 to 69: The median age of a minimum-wage worker in 2012, according to data from the Bureau of Labor Statistics, was 24. That's 4.7 percent of all hourly workers.ĭemographically speaking, minimum-wage workers tend to be younger than the average American with a job. The constant presence of minimum wage hikes on the political agenda has created a very extensive empirical economics literature that lets us say a great deal about the impact of small increases in incomes and employment.ģ.6 million Americans earn at or below the federal minimum wage, according to an annual report from the Bureau of Labor Statistics. Minimum wage increases are a politically popular means of helping low-income families that meet with fierce resistance from employers of low-skilled workers. The District of Columbia and 21 states have a minimum wage higher than the federal one. It has stood at $7.25 an hour since 2009. In the United States, 130 million workers are covered by the Fair Labor Standards Act, the 1938 law that established a national minimum wage. It may also require re-working of benefits packages and scheduling.Ī robust HR platform can help facilitate clearer discussions between C-level management and their employees.A minimum wage, in general, is a law that sets the lowest possible amount that work can pay. As any change would likely happen over a specified period of time, HR needs to equip itself with the tools to make that transition easy on employees, while maintaining strong sales figures and profits for the organization. Human resources professionals need to be prepared to transition their workplaces should the Raise the Wage Act pass. Younger workers are often eager to breeze through their roles to find their next job rather than having to endure a unstable game of catch-and-release, a higher minimum wage could help small business owners and start up companies keep employees on board longer. However, higher wages are known to decrease employee turnover. In some start up owner's eyes, this also decreases the number of positions open to recent graduates looking to get their feet wet at their first real job. Many don't know how they would afford to pay entry-level workers $15 per hour. Some small business owners are worried an increase in minimum wage will put them out of business. This 36 percent increase has had a big effect on the small-business sector, as the price of goods has increased in some areas and companies added service charges to some existing pricing. For example, The Guardian reported California increased its minimum wage from $9 to $12.25, effective in March. The change would also have a huge impact on employers, especially small-business owners. An increase in minimum wage would help these women support their families and complete their degrees. About 33 percent are mothers and 45 percent are non-white. Today, more than half of all workers earning minimum wage are women who have at least some college education. In particular, as American Progress pointed out, women would be among those most affected. More directly however, 38 million Americans would begin earning more than they do now. The entire country would be affected in one way or another should the minimum wage increase to $12. The recommendation from Democrats today is to reach $12 by 2020. This transition occurred over a three-year period. The last time Congress raised the minimum wage was in 2007 when it moved from $5.15 to its current level. Seattle pays the highest minimum wage in the nation: $15 per hour. Twenty-nine states pay workers more than the federally mandated minimum as of Jan. Some states, however, pay workers in minimum wage-earning positions more or less than this figure. Currently, the federal minimum wage is $7.25 per hour. More recently, this past April, Democrats suggested raising the federal minimum wage to $12 per hour, according to The Washington Post. If the government raises the federal minimum wage rise, human resources professionals would need to help their businesses change payroll for minimum wage-earning employees and transition to new methods of operation over time.Īs The White House website states, in President Barack Obama's 2014 State of the Union address, he asked Congress to raise the minimum wage to $10.10 an hour. over whether the minimum wage should be increased.
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