Skip to main content

What I've Been Reading This Week: Minimum Wage Edition


Before the next few weeks get very, very busy, I was able to spend most of the week in the office to catch up.  I read several articles that dealt with minimum wage issues from around the country.  Perhaps the most interesting article dealt with the impact that Seattle is experiencing after raising the minimum wage rate in the city to $15/hour.  Although this is just one study, it serves as a warning that a $15/hour minimum wage rate might not be the economic boon that some have suggested.

As always, below are a few articles that caught my eye this week.



A Closer Look at the Impact of Seattle's $15/Hour Minimum Wage Hike

The New York Post has taken a look at the impact that Seattle's implementation of a $15/hour minimum wage rate has had on employment in the city.  As the article notes, unemployment rates have gone up in the city with a loss of 10,000 jobs in just three months, over the past September, October, and November.  However, employment rates have gone up outside the city limits with an increase of 57,000 jobs.  Perhaps it is still too early to determine the impact that a $15/hour minimum wage rate will have on a broader scale...but this study lends itself to the argument that this type of minimum wage increase is in fact a job killer.


A $15/Hour Minimum Wage Rate in New York Could Be Catastrophic for Jobs

Tim Worstall over at Forbes has a well thought out take on the impact that a $15/hour minimum wage rate could have on jobs in the state.  According to a report cited by Worstall, while a $15/hour minimum wage rate would increase pay for nearly 3.2 million workers in the state by 2021, it would result in a decrease in nearly 65,000 jobs.  For minimum wage "wonks" who enjoy pouring through reports and crunching the numbers, this article is right up your ally.


Massive Amounts Have Been Spent to Advocate for $15/Hour Wage Rate in New York

As Jimmy Vielkind writes, a labor backed coalition that is working to help New York Governor Andrew Cuomo raise the minimum wage rate in the state to $15/hour has spent $1.72 million this year alone on the effort.  The article notes that much of this money has gone towards advertisements, town halls, rallies, and the infamous RV tour that the Governor went on earlier this year.  With the issue starting to become a focal point of the legislature in Albany, look for these types of groups to increase funding to raise support for the issue.  The only question is whether it will actually make a difference...and whether any groups that oppose an increase in the minimum wage fund an effort to stop it.

Comments

Post a Comment

Popular posts from this blog

NLRB: Discussion Among Employees About Tip Pooling is Protected Concerted Activity

  This Advice Memorandum from the National Labor Relations Board’s Associate General Counsel, Jayme Sophir, addressed whether employees which discussed and complained about tip pooling at work constituted protected concerted activity. In relevant part, an employer in New York operated a chain of steakhouses.  While tip pooling was in place at these steakhouses, some of the employees objected to it on the grounds that it was not transparent and improperly divided tips among the workers.  Employees were told not to complain or talk to each other about the tip pool and were told that doing so would endanger their jobs.  Despite the employer later attempting to provide some clarity as to how the tips were being divided, rancor still existed among some employees.  At one point, the employees were told by a general manager that some employees that had been talking about the tip pool were “cleared out” and the employer would continue to do so. In the Advice Memorandum,...
Post a Comment
Read more

Breaking: Labor Secretary Rumored to Be Leaving Administration

A few hours ago, word leaked out that Labor Secretary Marty Walsh (“Walsh”) is in the midst of negotiations to head up the NHL Players Union and leave his position at the Labor Department. Walsh, who has served as the sole Labor Secretary under President Biden, has taken part in a labor renaissance of sorts as support for organized labor has increased during his term as Labor Secretary (although the number of workers that have joined a union over the past two years has not grown as mush as some expected.)  He has also overseen the ongoing negotiations with rail workers over a new contract, although that matter is still on shaky ground and playing out as we speak. As for who might step into the vacant Labor Secretary role, there are already rumblings that President Biden should nominate Deputy Labor Secretary Julie Su (a strong labor advocate) or even a progressive like Senator Bernie Sanders.  Until Walsh officially gives his notice, however, I would expect some/many potential...
Post a Comment
Read more

New Jersey Governor Chris Christie Vetoes Minimum Wage Hike

A few months ago, readers might remember that I pointed out that the New Jersey Legislature had voted to approve a minimum wage hike in the state .  Under the approved legislation, the minimum wage rate would rise to $10.10/hour in the next year and at least $15/hour over the next five.  (The current minimum wage rate in the state is $8.38/hour).  In that article, I had noted that the bill was then going to go before Governor Chris Christie for his approval or veto. As I had suggested previously, I thought that the Governor would likely veto the bill based upon his prior actions and comments on similar legislation.  Well, a few days ago, Governor Christie did just that and vetoed the bill on the grounds that it "would trigger an escalation of wages that will make doing business in New Jersey unfathomable."  Pointing to the increase in hourly minimum wage rates, the Governor referred to the bill as a "really radical increase."  (It is interesting to c...
Post a Comment
Read more