Newsnewsminimumwagehike

Wed Apr 6, 2016, 07:30 PM

Here's an issue certain to arise with a minimum wage hike.

The minimum wage increases from $8.50 to $15 per hour. This equals $6.50, or 43% increase.

A worker that started a month age making $8.50 now makes $15 per hour.

A worker that started 5 years ago at $7 busted their butt for 5 years to increase their pay to $13 per hour.

Does their pay go to $15 the same as the one month employee, or should they be raised to $19.50, or using the percentage increase, go to $18.59.

What about the employee making $15 after working for 5 years. Does he stay at $15 like the one month employee or does he raise to $21.50.

What about the manager making $40 per hour. Does he stay at $40 or go to $46.50, or go to $57.20 using the percentage.

Or do owners simply fire all full time employees and hire all part timers.

I'll guarantee you business owners are asking these questions.

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Arrow 21 replies Author Time Post
Reply Here's an issue certain to arise with a minimum wage hike. (Original post)
Paradigm Apr 2016 OP
goodwords Apr 2016 #1
House of Roberts Apr 2016 #2
Tarzan Apr 2016 #3
outside Apr 2016 #15
Paradigm Apr 2016 #4
Badsamm Apr 2016 #5
foia Apr 2016 #9
Thorson Apr 2016 #6
rahtruelies Apr 2016 #7
Cave Dweller Apr 2016 #8
ToBeIgnoredIsWinning Apr 2016 #14
Argentina Apr 2016 #16
.30M1 Apr 2016 #17
Ax Crazy Apr 2016 #20
OneLoudVoice Apr 2016 #19
Fine Kettle Of Fish Apr 2016 #10
Big Kahunna Apr 2016 #11
Baba Lives Apr 2016 #12
BluRose Apr 2016 #13
oldenuff35 Apr 2016 #18
screenstar Apr 2016 #21

Response to Paradigm (Original post)

Wed Apr 6, 2016, 07:32 PM

1. No matter....it's the "moral" thing to do!! Maybe they can eat and pay rent with their morality!!

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Response to Paradigm (Original post)

Wed Apr 6, 2016, 07:36 PM

2. When has minimum wage ever gone up the full increase immediately?

It always goes up gradually over several years, right?

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Response to House of Roberts (Reply #2)

Wed Apr 6, 2016, 07:40 PM

3. The one in California

will take until 2022 to be fully phased in. One year later for businesses employing less than 25 people. And minimum wage there is already $10. So most of the premises in the OP won't be happening.

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Response to Tarzan (Reply #3)

Thu Apr 7, 2016, 02:53 PM

15. I work in California

and this conversation is going on right now where I work. People who have worked here for years and are making $12-$15 and hour are looking for a good bump in pay because of $15 an hour MW law.

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Response to House of Roberts (Reply #2)

Wed Apr 6, 2016, 07:40 PM

4. Perhaps. So all employees wages should increase equally gradually, regardless of current amount.

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Response to House of Roberts (Reply #2)

Wed Apr 6, 2016, 07:47 PM

5. Didnt answer question. Even if it over a decade,

Does everybody get the same pay increase or only a certain segment of our society?


What if we just give white men a raise? You cool with that too?


Why does one group get something and everybody else gets zilch?

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Response to House of Roberts (Reply #2)

Wed Apr 6, 2016, 08:50 PM

9. It's a good thing that these higher wages get phased in slowly

As it will give business owners and their suppliers more time to come up with automated solutions to eliminate the jobs which don't warrant a $15/hr wage.

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Response to Paradigm (Original post)

Wed Apr 6, 2016, 08:27 PM

6. No the wages don't go up for those making above minimum wage. Also, raising minimum wage causes

inflated prices of everything else so it's a no-win situation.

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Response to Paradigm (Original post)

Wed Apr 6, 2016, 08:34 PM

7. ya'll are making this far more complicated than reality requires.

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Response to rahtruelies (Reply #7)

Wed Apr 6, 2016, 08:36 PM

8. Reality should

say that government does not set the price for labor.

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Response to rahtruelies (Reply #7)

Thu Apr 7, 2016, 02:44 PM

14. Agreed. As an employer I'd just fire some staff to offset costs and move on

This is simple business.

As a business owner, I will never let the government steal my profits with a stupid move like this.

I know basic math so here's what I will do:

If i have 10 employees making 10,000$ per year my total wages are $100k.

If tomorrow the government says i need to pay them $15,000 a year my wages would jump to $150k.

What would I do? I'd do the math to determine that with their new wages, I need to fire 3.3 people on my staff, reducing my wages back to the same $100k per year.

Since I'm now forced to pay my workers 33% more money, I'm immediately expecting them to perform 33% more duties to offset the staff i've been forced by the government to fire. If they dont like it I know 3 people without a job who would be happy to come back to work and replace them.

Welcome to how the real world works.

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Response to ToBeIgnoredIsWinning (Reply #14)

Thu Apr 7, 2016, 06:33 PM

16. That's what's wrong with the capitalist system.

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Response to Argentina (Reply #16)

Fri Apr 8, 2016, 02:56 PM

17. Sure beats the Communist system.






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Response to Argentina (Reply #16)

Sat Apr 9, 2016, 01:41 AM

20. What is the problem, again?

That looks incredibly rational and fair as far as I can tell.

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Response to ToBeIgnoredIsWinning (Reply #14)

Fri Apr 8, 2016, 06:04 PM

19. Lol

If you were a smart and efficient lil capitolist, you would have already fired the three and demanded more work from the remaining ones already so you could pocket the difference. Then when this happened you would overtax your already overtaxed employees, thus leading to a,serious reduction in quality control, and your company would then go under as someone else willing to work with a more modest profit level produced a better product and took all your clients.

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Response to Paradigm (Original post)

Wed Apr 6, 2016, 09:50 PM

10. For me, the answers were easy

 

although I realize that's not going to be the case for all business owners.

My shop is tiny - only three employees. And there's no room here for unskilled/min wage - I need everybody to have industry specific skills and knowledge. My people already make better money than they would in any other small sign shop. I've got a good team and I want them to stay!

If they were to pose this question to me, my answer would be: "The minimum wage has never been a factor in what you are paid, and it ain't gonna be now."

But nobody's asking.

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Response to Paradigm (Original post)

Thu Apr 7, 2016, 05:58 AM

11. Although not an issue for me yet, if forced to increase wages as described above

I would have to seriously look at out sourcing, out of country much of what we do in house.

Before doing that I would first consider reducing hours and benefits to cover the increased wage mandate.

It's a shame as I have always felt good that I provided an excellent benefits program to all my employees,

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Response to Paradigm (Original post)

Thu Apr 7, 2016, 06:27 AM

12. No, other wages will not increase proportionally

It's referred to as wage compression, and its going to be a bitch when existing employees who didn't get a raise start lashing out at the newbies.

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Response to Paradigm (Original post)

Thu Apr 7, 2016, 02:29 PM

13. I got caught in that trap during the last raise

I started at 6.15 and 3 years later after being named employee of the quarter (twice) I made 7.25/hr. OK goes up to 7.29 so the next person hired made as much as me. There was nothing to do other than look for a new job and start over - again. The next job paid that 7.29 min AND gave me $1/hr extra for experience, I came out ahead in the long run. OK is always near the last to do anything, I expect it might be another 10 years before we see the min wage raised again.

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Response to Paradigm (Original post)

Fri Apr 8, 2016, 03:23 PM

18. I think many fast food owners are headed to trade shows to look at automated equipment.

I would be.

The left has no concept of what it takes to fun a successful and profitable business. If you are in a depressed area and simply raise the prices you customers will not be able to afford the higher costs and will quit walking in the front door.

Without that money in the till you have to let workers go and sooner or later close the doors and walk away.

The only question that is important in this mix is, "what will the market bear"? If the market will not bear the increased prices you have to figure out how to produce your products cheaper or take your money out of that business before the going broke process suckes it dry.

The left wingers can't have a discussion on these facts. They have to assume things that are not true to even have a comment that sounds rational.

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Response to Paradigm (Original post)

Sat Apr 9, 2016, 02:09 AM

21. All this is really about

is jacking up the skim the taxpayers have to fork over to Democratic-Socialist government employee unions.
Government employee wages and benefits are tied to the minimum wage and must be hundreds or thousands percentage points above the private-sector minimum wage, or else racism.

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