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


Readers might have seen some of the testimony in the House Education and Labor Committee yesterday (note, the YouTube link to the hearing itself is available on demand...all 7 + hours of it) in regard to the Raise the Wage Act of 2019 which seeks to raise the federal hourly minimum wage rate to $15/hour by 2024.  Between that hearing, New Jersey raising hourly wage rates in the state, and a recent report suggesting that a hike in the federal hourly minimum wage rate could impact nearly 40 million workers in the country, I think it is appropriate to focus on those two developments this week.

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


New Jersey Becomes Fourth State to Boost Hourly Minimum Wage Rate to $15/Hour

A few weeks ago, I noted that Democrats in New Jersey were on the verge of implementing a $15/hour minimum wage hike for most workers in the state.  It did not take long.  On Monday, New Jersey Governor Phil Murphy signed legislation into law which will phase in the $15/hour wage hike over the next five years.  With the signing of this significant piece of legislation, New Jersey now joins California, Massachusetts, New York, & the District of Columbia in raising hourly minimum wage rates to $15/hour.  It is worth noting that Republicans in the state, who have long fought against an hourly minimum wage hike, cautioned that raising the hourly wage rate in the state to $15/hour could lead employers to move toward automation or laying off workers to offset rising labor costs.  For the time being though, this is a major victory for hourly workers and minimum wage advocates.


Study: Raising the Federal Hourly Minimum Wage Rate to $15/Hour Could Impact Nearly 40 Million Workers

On Tuesday, The Economic Policy Institute issued a study in which it noted that if Congress were to hike the federal hourly minimum wage rate to $15/hour by 2024, nearly 40 million workers in the country could be impacted.  As the study reports, over the phase in period for the wage hike, the rising wage floor is predicted to generate $120 billion in additional wages, an impact that would be realized not only by these hourly workers but also their families and communities.  For those looking for a nuanced breakdown of the potential impact this wage hike might have, this study is well worth reviewing.

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