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


Readers might have seen that the 116th United States Congress was sworn in yesterday.  While we could spend all morning talking about the upcoming legislative agenda or what Nancy Pelosi will do now that she has become Speaker of the House again, perhaps that discussion is better served by watching C-SPAN.  On the topic of developments to start the year, there have been a range of hourly minimum wage increases across the country.  Given these hourly minimum wage hikes, I think it is appropriate to take a look at the impact these minimum wage hikes have had as well as consider whether other minimum wage hikes could be on the horizon.

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


A Closer Look at Hourly Minimum Wage Hikes in 2019

US News & World Report published an article recently that noted that hourly workers in 20 states and 24 cities and counties across the country will see a minimum wage increase this year.  The article does a good job differentiating between the minimum wage increases approved by state legislatures compared to those approved by voters at the polls.  For those looking for a concise overview of how these minimum wage hikes came about, this article is worth a read.


California Employers Grapple With How to Manage Minimum Wage Increase

With an hourly minimum wage rate of $12 in California, some employers in the state are struggling to find ways to offset the rising labor costs.  As NBC San Diego reports, some employers in the state are considering raising prices (again), introducing automation, adding a surcharge, or finding ways to increase operational efficiency (such as some restaurants eliminating wait staff and instead switching to counter service).  However, with the hourly minimum wage rate set to increase again over the next three years, there appears to be little in the way of a respite for employers in the state.  While this article does not provide a clear cut “solution” for employers in the state as to how to manage the rising labor costs, it does shine a light on the struggles that some employers are now facing.



Given that Pennsylvania’s hourly wage rate has been tied to the Federal hourly wage rate ($7.25/hour) for nearly a decade and the fact that so many other states have raised their hourly wage rates lately has left hourly workers in the state clamoring for a wage hike.  Readers might recall that during Governor Tom Wolf’s last campaign, he advocated for a $12/hour wage rate.  While there has been little progress so far, many Democrats in the state believe that this could be the year that a minimum wage increase takes hold.  The first thing to keep an eye on?  Governor Wolf could roll out a minimum wage hike as part of his annual budget address next month.  Stay tuned.



Recently elected Wisconsin Governor Tony Evers has given strong signals that he intends to take steps to increase the state’s hourly minimum wage rate.  Similar to Pennsylvania, hourly workers in Wisconsin currently make $7.25/hour.  The Wisconsin State Journal reports that Evers has stated “there will be a clear pathway found in the budget to get to” an increase.  (This is in reference to the Governor’s budget which will be released next month.  The governor’s budget traditionally sets the tone in the state and kick starts the debate in the state’s next two year spending plan.).  For those hoping for a minimum wage increase, these comments are a welcome change from former Governor Scott Walker, who did not make an hourly minimum wage increase a priority during his terms.

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