These States Are Raising The Minimum Wage In 2016

13 states to raise minimum wage in 2016

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Labor leaders, workers and activists attend a rally for a $15 minimum hourly wage on July 22, 2015, in New York City.

If you are among the United States’ lowest earners, you could be ringing in the new year with a raise, depending on where you live.

Fourteen cities and counties in seven states — Washington, Oregon, New York, Pennsylvania, Massachusetts, California and Montana — agreed to increase the minimum wage to $15 in 2015, according to a report by the National Employment Law Project, a national advocacy organization for employment rights of lower-wage workers.

These increases will take place over the course of several years, giving local businesses time to adjust to the hike.

While not all states will be adjusting rates to the $15 mark, 13 states — Alaska, Arkansas, California, Connecticut, Hawaii, Maryland, Massachusetts, Michigan, Nebraska, New York, Rhode Island, Vermont and West Virginia — will increase minimum wages in 2016.

These wage increases range from a 35 cents an hour in states like Michigan to a dollar in California, Massachusetts and Nebraska.

We’ve seen incredible momentum this past year in the fight to raise wages to a level that will make a meaningful difference to America’s workers and their families,” Christine Owens, executive director of the National Employment Law Project, said in a statement.

Here is the full list of states that will increase its minimum wage in 2016:

  • Alaska: $8.75 to $9.75
  • Arkansas: $7.50 to $8
  • California: $9 to $10
  • Connecticut: $9.15 to $9.60
  • Hawaii: $7.75 to $8.50
  • Maryland: $8 to $8.75
  • Massachusetts: $9 to $10
  • Michigan: $8.15 to $8.50
  • Nebraska: $8 to $9
  • New York: $8.25 to $9
  • Rhode Island: $9 to $9.60
  • Vermont: $9.15 to $9.60
  • West Virginia: $8 to $8.75

Additionally, 10 states — Arizona, Colorado, Florida, Missouri, Montana, New Jersey, Ohio, Oregon, South Dakota and Washington — will see small hikes to minimum wage due to cost-of-living increases.

Speaking from a business point of view, one of the things that we do regarding our organizations is understanding the political environments involving every market we do business in. And one of the largest expenses a business has in their balance sheets is labor. All businesses are different depending on how they deal with their labor related expenditures, however when it comes to expenses related to labor, most businesses has to make the necessary choices that will benefit their bottom line in the long term. But the most importance to any business is to remain profitable at all times. Businesses exist to make money. Period.

With all that being said, the minimum wage is part of the expenses that a lot of companies has to absorb. And one of the key things on this article that I want to point out is the following…

These increases will take place over the course of several years, giving local businesses time to adjust to the hike

This is key for any business to get clear with, because the law is giving companies and businesses time to respond to this “mandatory” wage law in their balance sheets.

Remember what I said earlier; businesses exist to make money.

I see two things happening; consolidation and liquidation.

Consolidation:
So the states are requiring these companies to raise the minimum wage regardless of size. The only way these wages will be able to be paid is within organizations with massive networks and sophisticated systems that can absorb the massive increase cost of these minimum wage increases in the short term. Major corporations also plan ahead with their balance sheets, six months to even years ahead, on how they can offset, if not hedge, against these wage increases.
And let’s be honest, MOST of these workers are more focused on getting a higher pay without producing a greater return for the company itself, thus increasing the price of the product in order to justify the wage increase. Then that’s where the market comes in. IF, and that’s a big if, the market feels paying a few dollars more for the same product to pay the employees more, if the market believes the product their buying is giving them more value than the price itself, then yes the minimum wage increase is justified.
This is where the consolidation comes; for right now, it’s not a federal mandate so it’s totally up to the individual states. For that, corporations will have to make decisions regarding these laws passed by these states (ironically, most of the politicians and supporters of these mandates never ran a business of their own) and either lay off some employees to justify the wage increase, or just relocate to a lower cost state.
Liquidation: I’m seeing this happen to a lot of small to medium size businesses. The higher cost will over flood the balance sheet of these businesses and therefore will have to liquidate what’s left of their businesses and close down. But with this action comes a lot of layoffs. Some of the employees who will be laid off will unfortunately be in the crossfire who’s looking to advance their career in that business.

What I see In The Long Term;

I see this as a bigger agenda than what it is. I see this as a massive transfer of resources where big corporations are pushing for this behind closed doors to push small businesses out of the way. Just like ObamaCare, most major healthcare companies are making bank with this healthcare “mandate”, and other companies are consolidating their labor pool. This was called the “job killer” of the century. Because of the massive cost of these mandates, plus the demand of increasing labor cost, I see more small businesses shutting their doors, while larger corporations merging with one another to offset their overall labor cost. Then, out of nowhere, massive downsizing.
If You’re A Small Business Owner, Click HERE To Find Out Why You Will Close Your Business Soon
My recommendation to all the entry level workers who aren’t apart of this movement is this;
1. Build up your skills to a point where the company wants you to be part of their corporate team.
2. Start your own business (brick-n-mortar, online or both)
It’s about to get ugly for those who are adamant about demanding a hire pay without gaining extra skills that will enhance their career , and companies right now are looking for their replacement.

Even at these retailers

So all in all, there’s a huge debate about “living wage” and not having the federal government get involve with regulating wages. It’s getting even more serious as the time goes.
Believe it or not, there IS a Solution For Both Sides
So let’s see both sides of the arguments here.
On one side, the fight is for a “living wage”, or an increase in wages for entry level workers. The fight is even calling for the state and federal government to step in to force corporations to raise the minimum wage to at least $15/hr.
On the other, basic mathematics comes to play. Those who say $15/hr is unfeasible looks at the equation of supply and demand. They see if the market is willing to pay extra for the same product to justify the increased wages. If not, the market doesn’t buy, and the business lose money. Therefore, the business either cut workers, or close for business altogether.
So the question for you is this; when labor cost goes up, so does the cost of goods. Would YOU be willing to pay an extra few books for that coffee, for that burger, that lunch, or that snack to justify the increased wages?
Another factor that some people on both sides of the argument usually look over is the affect of the income tax regarding the increased wages.
Ever heard that term ‘the more you make, the more they take?’ It’s referencing to the federal and state income tax. So even with the $15 minimum wage, you’re still getting less of that in take home pay, and only getting pennies of every dollar back during tax season.
In other words, the “FightFor15” crowd is ACTUALLY begging for two things;
-for me to pay more taxes to the government.
-to be laid off as quickly as possible because technology has replaced me.
Small businesses are begging;
-I can’t afford to pay up to $15 minimum wage for each employee.
-I’ve had enough, I’d have to layoff some employees, sale the business*, or shutdown.
Big corporations are saying;
-we’re looking to invest in new technology to replace these workers, thus increase profitability.
-Then use that profit to buy out all the small businesses looking to sale*, and lay those workers off too.
(*only small businesses that are properly structured in corporations and/or LLCs)
You see the trend here? Could it all be happening by design?

Good news. There IS A Solution For All Parties…

So with the “FightFor15” on one hand, and “Increase Your Skills” on the other, there is a way that both can get what they want WITHOUT interference with government. All it takes is two easy steps. However, the first one could be a little tricky.

What if the entry level workers COULD get their $15/hr wage (or more) WITHOUT hurting any company’s bottom line, and without raising the prices of their products?

What if you could have all of that, and lower the cost of labor across the board?

What if as a business you wouldn’t have to worry about paying payroll taxes anymore?

What if as an employee you would get every last dime of that $15/hr?

What if the old saying ‘the more you make, the more they take’ became just that…an OLD saying?

It can happen.

There’s something brewing right now that could actually allow both sides to compromise and come to a common ground with each other. And the best thing? Government will have NO say so over it. Anymore!

Wouldn’t you like to know what that is? Check it out here and see if this idea is the best possibly solution for every single working family, small medium and large business, savers, investors, and retirees.

So what’s your thoughts on this? With the system we currently have now, is the $15 minimum wage justifiable?

Would you pay a few extra bucks to justify the wage increase?

Let us know what you think below…

 

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