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ARTICLE · 22 MAY 2014

Time To Plan Ahead For A Minimum Wage Increase

Fisher Phillips LLP
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Raising the minimum wage will increase workers' earnings—a good thing—but it also will increase employers' labor costs.

United StatesEmployment and HR
Melody Rayl
Melody Rayl
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In his January State of the Union address, President Obama announced that he was issuing an executive order to raise the minimum wage to $10.10 per hour for employees who work under new federal service contracts. At the same time, he called on Congress to raise the federal minimum wage for all workers from $7.25 to $10.10 an hour.

And then lots of small business owners' alarms started going off.

Raising the minimum wage will increase workers' earnings—a good thing—but it also will increase employers' labor costs. Some pundits have warned that any bump in minimum wage levels will lead to job losses because employers, especially small business owners, will have to reduce staff to manage the higher costs.

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