Minimum Wage Hikes Signed Into Law
Legislation was signed earlier this week to raise minimum wage to $15 an hour in multiple states. California was the first state to commit to a bump from the current minimum of $10.50 to $15 by the year 2022. According to Associated Press reporting, the increase will boost the wages of about 6.5 million state residents, equaling roughly 43 percent of the workforce.
Workers in New York will also see a minimum wage hike, although it won’t be state-wide initially. The changes will begin in New York City this year. Workers employed by businesses with more than 10 employees will see a minimum wage raise to $11 at the end of 2016, and an additional $2 each of the next two years. For smaller companies, minimum wage will increase to $10.50 this year, with an additional $1.50 for each of the next three years.
Wage increases outside New York City will be slower, but all in the state will benefit from the second addition to the law - an improved family leave provision. According to reports, when fully implemented, the new family leave policy will make workers eligible for 12 weeks of paid leave when caring for an infant, a family member with a serious health condition or to relieve family pressures when someone is called to active military service.
While the minimum wage hike would help workers, officials warn that the new law could put thousands of small businesses at risk, with devastating impacts to their bottom line. The result might be to replace workers with technology, or shut their doors entirely.
Reports also indicate that wage increases will impact more than just businesses. To cover the higher pay for government employees, a legislative analysis estimates that taxpayers will be responsible for an additional $3.6 billion a year.
Disclaimer: Please note that Facebook comments are posted through Facebook and cannot be approved, edited or declined by CleanLink.com. The opinions expressed in Facebook comments do not necessarily reflect those of CleanLink.com or its staff. To find out more about Facebook commenting please read the Conversation Guidelines.