There has been much discussion lately regarding raising the minimum wage in many states and the federal minimum wage (President Obama, when in office, stated that he would like the federal minimum wage increased to $9 per hour but we have not seen any movement toward that goal, another proposal to gradually increase the federal minimum wage to $10.10 over the next few years has been discussed). California’s minimum wage is currently at $13.00 an hour (for businesses with 26 or more employees), having just increased on January 1st, 2020. It is proposed to be $15 by 2022. The Federal minimum wage is $7.25. Congress has not voted to increase the federal minimum wage in nearly a decade. (Please see the link: http://www.dir.ca.gov/IWC/MinimumWageHistory.htm
for a historical look at California’s minimum wage). Additionally, San Francisco currently has a $15.59 minimum wage and Seattle has a $16.39 minimum wage for companies that have more than 500 employers and $15.75 minimum wage for companies that have fewer than 500 employees.
- Do you think the minimum wage should be increased in California, as is proposed? Why or why not? Remember, many firms must give everyone raises when minimum wage increases to keep all their workers happy.
- In your opinion, what was the original purpose of the minimum wage? Was it meant to be a living wage?
- Now please look at the minimum wage rate of all states (Please see link: https://www.thebalancecareers.com/2018-19-federal-state-minimum-wage-rates-2061043
). Pick one state and explain why the minimum wage in that state surprises you. Please note that states such as Alabama, that do not have a minimum wage, must pay the majority of their workers the federal minimum wage. There are only select groups of workers who make lower than the federal minimum. Where Federal and state law have different minimum wage rates, the higher standard applies. Please remember to respond to 1 of your classmates’ postings.
