Fears of Raising Minimum Wage are Unfounded

The State of California has fairly good employment laws but there are always more ways to help disadvantaged workers, such as a hike in the minimum wage, and that is exactly what some State Senators are proposing.

Fears of Min Wage

Our wage dispute attorneys know that many employees are woefully underpaid and are in favor of more employee rights. Unfortunately, when some suggest raising the minimum age there is often a lot of pushback about how businesses will be harmed.

Usually the argument is that an increase in minimum wage will hurt business owners, who will then cut more employees and put more employees in lower positions – this leads to higher unemployment which isn’t good for workers either.

This argument fails to take into account the idea that higher minimum wages means overall economic stimulation results and in turn helps businesses – not hurts them.

Supporters of a higher minimum wage feel strongly that the doom and gloom outlooks by opponents are gross exaggerations and unfounded. Often opposition to minimum wage increases stems from a fear of the unknown.

The same fears are always discussed by opponents of minimum wage increases but supporters say they have never truly been realized. In fact, supporters of the bill claim that California has experienced an overall economic benefit each time the minimum wage has been increased.

The most recent minimum wage hike being reviewed by California Legislators would raise the wage to $13 per hour by the year 2017.

Lawmakers have already approved a minimum wage hike to $10 per hour in the coming years. The new legislation, Senate Bill 935, builds on that law and would include a stepped increase to $13 per hour beginning with an increase to $11 in 2015.

The president recently indicated in his State of the Union address that he would like to increase the minimum wage for federal contractors to $10.10 per hour. This announcement does not affect a massive amount of individuals but keeps with the trend of increasing minimum wages across the country.

Congress is also considering setting the federal minimum wage amount to the same $10.10. The federal minimum wage is seen as a floor that no state can go below, however, states are always able to increase their own minimum wage to a higher amount than mandated by the federal government.

This is the way California would proceed if the $13 minimum wage hike were to go through.

Recent studies indicate that 67% of Americans are unhappy with the distribution of income in the United States. According to additional research about 81% of the income is earned by the top 1% of earners in the American workforce.

Costa Mesa employment lawsuits can be filed with assistance from the Nassiri Law Group, practicing in Los Angeles, Riverside, and Orange County. Call 714-937-2020.

Additional Resources:

Bill would push minimum wage to $13 an hour, Feb 4, 2014, By Allen Young.

More Blog Entries:

Family and Medical Insurance Leave Act – Paid FMLA Introduced, December 28, 2013, Los Angeles Employment Lawyer Blog

Bigger Judgments in Employee Bias Related Lawsuits, December 26, 2013, Los Angeles Employment Lawyer Blog