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| *Ostroff, Fair and Company>>>Other - Business & Finance |
Is another minimum wage hike in store federally soon? |
how will this affect small business? Fair Minimum Wage Act of 2007 was signed into law on May 25, 2007. It's a gradual increase from $5.15 to $7.25 per hour. $5.85 starting July 24, 2007 $6.55 starting July 24, 2008 $7.25 starting July 24, 2009 It also includes $4.8 billion dollars worth of tax breaks for small businesses to offset the costs of paying their workers more. Depends on your viewpoint if it's good or bad. As a worker, try living on minimum wage. As a small business wages are an issue. Hopefully, the tax breaks will do as planned and offset the cost for small businesses. States also have minimum wage laws. In Washington, our minimum wage is higher than the final federal wage. Our basic minimum wage is $7.93, it also adjusts for inflation for certain fields. Source(s): http://www.dol.gov/esa/whd/ http://en.wikipedia.org/wiki/fair_minimu... Assuming you are in the USA, it's not likely for a time.The last one occurred back in February per the attached: http://media.www.bgnews.com/media/storag... If one did occur, the effect on small businesses would have both benefits and detriments. Benefits would include an increased wage attractiveness to potential employees. Detriments could include the fact that increased wages are also attractive to new hires at bigger companies with better benefit packages. The more obvious detriment is increased labor cost to any company, including payroll tax increases. This results in lower net profit for any company, which COULD result in higher prices for goods or services provided. One has to weigh fairness to employees against fairness to business costs. It's a bit of a vicious circle, but it was and is the job of the Fair Labor Standards Act and monitoring body to try to find a balance between the two. |
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