As they are prone to do, corporate economists lead many to believe that an increase in the federal minimum wage leads to trouble, such as a reduction in employees on payroll, reduced hours for remaining employees, increased prices for consumers, and potential fallout leading to business closures. Contrary to this position, there are interesting data points that paint a different picture— one containing positive outcomes. In 2019 the Congressional Budget Office projected that a $15 an hour federal minimum wage would increase the pay for 17 million people or more, across industries, while potentially eliminating the jobs for 1.3 million workers. The federal minimum wage has remained at $7.25 since 2009.
The incoming administration has made it clear that increasing the minimum wage is a priority— working towards a federal minimum wage increase to $15 AND the elimination of the tipped minimum wage (which stands at a minimum of $2.13 per hour). I previously wrote about the forthcoming “Tip-Pool” rule set to take effect later this month which will allow restaurant owners to take tipped employees’ tips to pay “back of house” workers, such as cooks and dishwashers.
State-Level Case Study
The state of Florida is one such case study that seems to indicate that an increase in the minimum wage is a good idea. Florida residents…
