October 21, 2016
The debate over whether to raise Maine’s minimum wage by 60 percent (and raise its tipped minimum wage by over 200 percent) is a study in contrasts. On the one side, advocates for the extreme wage increase have been powered by five- … Continue reading
October 11, 2016
In the pantheon of PAC names, “Mainers for Fair Wages” must rank among the least offensive in American electoral history. However, their benign name hides that which their campaign finance disclosure forms reveal: “Mainers for Fair Wages” is fueled by … Continue reading
September 9, 2016
Over Labor Day weekend, calls for an increase in the minimum wage reached a fever pitch. Labor Secretary Thomas Perez joined with labor groups in an attempt to shame politicians that do not support a federal wage hike. Our latest ad, … Continue reading
About the Minimum Wage
The minimum wage is the minimum hourly wage an employer can pay an employee for work. Currently, the federal minimum wage is $7.25 an hour (part of the Fair Labor Standards Act) and some states and cities have raised their minimum wage even higher than that. California and Massachusetts currently have the highest state minimum wages in the country at $10 per hour, and Emeryville, CA, currently has the highest city minimum wage at $14.44 an hour.
Employees that earn the minimum wage tend to be young, and work in businesses that keep a few cents of each sales dollar after expenses. When the minimum wage goes up, these employers are forced to either pass costs on to consumers in the form of higher prices, or cut costs elsewhere–leading to less full-service and more customer self-service. As a result, fewer hours and jobs are available for less-skilled and less-experienced employees.
Minimum wage increases do not help reduce poverty. Award winning research looked at states that raised their minimum wage between 2003 and 2007 and found no evidence to suggest these higher minimum wages reduced poverty rates. While the few employees who earn a wage increase might benefit from a wage hike, those that lose their job are noticeably worse off.
Employees who start at the minimum wage aren’t stuck there. Research found that the majority of employees who start at the minimum wage, move to a higher wage in their first year on the job.