Why shouldn’t things be largely absurd, futile, and transitory? They are so, and we are so, and they and we go very well together. George Santayana, 1863 – 1952
There’s a federal minimum wage and there’s a state minimum wage. There’s a tip credit which you may use against these minimum wages in many states, but not all of them. And depending on the administration and the current majority in Congress and in the states, there are pushes to expand or slow these rates of pay.
There are good many arguments for having a higher minimum wage as well as good many arguments for abolishing the minimum wage. We’ll leave that discussion for another day. But it is important to be aware of upcoming changes. In Colorado, voters approved a minimum wage based on the increase in the cost of living that changes each January 1. At the very least, employers should plan for the impact this could have on their finances.
I had a question asked of me recently regarding how much should this new employee be paid. I answered, “The minimum wage,” pause for effect, “that the employee will perceive as an more than fair.” It can’t always be like that, but an employee who gives you the maximum deserves more than the minimum.
Very few employers have their wages dictated by the minimum wage directly. The impact comes from a general rising of the floor with a sinking feeling by the employee above minimum wage that they’re not making much more than minimum wage and by golly it’s time for a raise.
Governtment intervention is a wild creature – there are some wages that would be lower if minimum wage law wasn’t present, but there are a lot of bureaucrats spawned in our system just to enforce this kind of legislation.
May your revenues grow at least as much as your wages much increase,
Sincerely,
Bryan Dear
