Increase in Fed Minimum Wage

Well, it looks like Ray will finally get a raise. Anybody else affected?

The current rate of $5.15 will go to $7.25 over the next two years.

In Oregon, minimum wage is $7.80 so it wont have much impact on most employers here. Most jobs pay more anyways as there is a great demand for service labor. Housekeepers, for example, are starting at $11.50.
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Comments

  • 34 Comments sorted by Votes Date Added
  • I don't think it will hurt us too bad in this area. We have a labor shortage and even the convenience stores and fast food places are paying $7.50 and up to start.
  • Exactly. The market will determine the fair price.

    The irony of course is that this will hurt the lowest wage earners as employers cut positions to deal with the increase in labor positions.

    I think the biggest negative impact is on younger workers who are unskilled. Those jobs will be cut first.

    To me, the minimum wage has always been just that: a MINIMUM. I dont know where the idea got started that a family of four should be able to get by on the minimum wage.

    Its a starter wage for unskilled workers and high turnover service jobs.
  • Rather than a Federal Minimum Wage, I think, if the government has to mandate something, it should be a Federal Living Wage. Personally, I believe as corporations, we have a moral obligation to provide our employees a living wage.
  • JOANNIE: You must not be working in this world with a P & L strapped around your neck; payroll is a P & L item of interest up and down the "management chain of authority".

    A retail manager system of controls is 1st and formost the payroll expense. This item is either controlled and within budget or the management team will not last for long. Shrinkage is the next item and it is directly effected by the payroll dollars spent. When "eyeballs" are not covering the retail store/floor, guess what happens, shrinkage just immediately jumps.

    It is a matter for the strongest managers to cut shrinkage and payroll at the same time. What happens next is the management chain are tasked to spend more time on the floor because their salary/hours worked is an EXEMPT FLSA item.

    Oh I am so glad not to be in the retail "world of work". This minimum wage is going to cause this company to start a higher wage rate or suffer the entrance of the most unskilled worker that can not get a job any where else. We started Jan 1 2005 at $7.00 an hour and we will slowly raise that number as we see the local trend coming up to our standard.

    PORK
  • Pork1,

    A girl can dream, can't she? We are very P & L focused. We are a trucking company with 70% of our employees drivers who are paid a commission of the freight they haul, 14% are diesel mechanics, obviously a position well above minimum wage, & 5% are hourly admin employees. Our starting rate for admin has been $7.50 to $8.00 an hour for the last 4-5 years, and at that we are about 20% below the area market for like positions.
  • Pork makes a good point. Once the minimum goes up, employers have to bump up their starting rates to attract the better workers.

    Of course, these senators will continue paying their Brazilian housekeepers and nannies under the table so they wont be affected.
  • The increased minimum wage will force employers to up their starting wage if around $7-8.00/hr. Then avoid wage compression of present employees, they may have to look at wage adjustments for lots of employees.
  • Such a cynical remark from the Kumbaya king!
  • There is no evidence that this will cause anyone to cut jobs.

    More right-wing mumbo jumbo.
  • Are you being sarcastic? Hard to tell.
  • [font color="3366cc"]
    >
    >To me, the minimum wage has always been just
    >that: a MINIMUM. I dont know where the idea got
    >started that a family of four should be able to
    >get by on the minimum wage.
    >
    >Its a starter wage for unskilled workers and high turnover service jobs. [/font]

    I'd be impressed if someone could raise a family of four on $7.50 an hour.

    It's hard enough to support *one* person on the current federal minimum wage, which would explain the impetus for the increase. Since when are unskilled laborers not meant to be able to support themselves? Or a family?

    It's not by any means a new concept that there should be some relation between a minimum wage and the ability to get by on that wage. Since the current real value of the minimum wage is the lowest it's been in over 50 years, I don't see why an increase is especially surprising or unreasonable.

    Although I don't care to get into a debate on the economics, reasonable minds do differ with respect to how severe the "job loss factor" is, despite what common sense may seem to dictate (and also regarding the amount that any job loss is offset by the benefits of increased minimum wage).
  • Well, unless I am incorrect, we are dealing with a shortage of qualified workers at the same time. So perhaps, any loss of jobs would be offset by that.


  • Once it goes above $6.85 it'll affect 22 of our part-time 10 hour per week employees. These aren't people whose entire family lives off the paycheck. It'll also play havoc with our salary schedule. As a non-profit and dependent upon shrinking state funds, it could potentially affect service, something a lot of people don't think about in libraries.
  • Kathy, would you foresee cutting a position?
  • No, if we have to cut back we'd do it somewhere else. We've been cutting back on personnel through attrition the last 5 years due to decreased funding. Our goal was 10% but we've been hovering at 7.5% because service suffers once we go above that.
  • Does anyone know when this goes into effect?
  • The best I can tell is that the overall increase is going to happen over two years with the first increase to $5.85 sixty days after the bill is enacted. I am not positive about that.

    Don't worry though. You will start recieving plenty of e-mails and faxes from companys telling you to buy their compliance posters RIGHT NOW or face jail, beatings, and chinese water torture.
  • Posters are okay, but they can't stand up to our new and improved drama kits!
  • I've already received a call telling me we have to have the posters displayed by July 2007. I've been looking online to see when this goes into effect but haven't found anything. Has the President even signed it yet? According to the person who called me about the posters the President did sign the bill.
  • I just read about it the other day and am trying to remember what was said. If I remember right, the bill has been signed into law and will go into effect on 7/1/07.

    Our lowest paid worker makes at least twice the current minimum, so I didn't pay too much attention to details. I just wanted to know when I had to have a new poster up. July 1st.

    Didn't we get an alert from this site? There should be more info around here somewhere.

    Nae
  • Ok, I have more info.

    Law passed on May 24th, signed by Bush the next day (attached to the controversial bill for funding of our troops in Iraq).

    Wage increase in 3 phases, each 70 cents.

    Phase 1 is 60 days from time Bush signs law.

    Phase 2 one year later.

    Phase 3 after one more year.


    I am glad to say I work for a place that believes in a living wage, so none of this affects any of our employees.


    Nae
  • But you'll still get to buy new posters each year for three years!! Surprisingly we've only received three emails, three snailmails, and five phone calls so far to order new posters. And from experience, those OFCCP auditors ALWAYS look first for those current posters; if they're out of date, you've failed the audit and on the bus to Leavenworth in chains!! Maybe they send you to Gitmo now........


  • So are you saying that covering the $5.15 with "white-out" and writing in the new Federal minimum won't pass?
  • That's fine as long as you are using special G.Neil white out. :)
  • As I did with the Ohio wage poster when it changed: I printed out a new one, laminated it and taped it over the old poster. I will do the same with the federal wage. Type the new wages, laminate the strip and tape it over the old rates. I will not buy all new posters. They're way too expensive.
  • It just so happens that I received TWO new catalogs from G.Neil yesterday. I will check them for their official white out...
    I would hate to have to pay their postage bill each month.
  • I usually break out the Labelmaker. I'd rather buy outrageously overpriced label cartridges than G. Neil posters.
  • It was my understanding that the minimum wage bill was tied to the immigration bill which is now faltering. That won't affect the minimum wage raise though will it? That's a done deal, right?


  • I thought the minimum wage was tied to the Iraqi war funding?
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