By Lorie Konish
CNBC, July 7, 2022
Workers earning minimum wage are getting an income boost in some parts of the U.S., thanks to new higher minimum pay rates that went into effect in July.
Connecticut, Nevada, Oregon and Washington, D.C., all had new higher minimum wages as of July 1. Those increases come as the federal minimum wage stands at $7.25 per hour, unchanged since 2009.
President Joe Biden has advocated for raising the federal minimum wage to $15 per hour for all workers. In January, an executive order he signed that raised the minimum wage to $15 per hour for federal workers and contractors went into effect. ...
How higher wages may help businesses
While some argue higher minimum wages could place a burden on small businesses, the opposite is actually true, argues Holly Sklar, CEO of Business for a Fair Minimum Wage.
“If you’ve got a worker at one business, they’re customers at many other businesses,” Sklar said.
“It’s a really, really great way to spur consumer demand, to put money in the pockets for local customers for local businesses,” she said.
Paul Saginaw, co-owner of Saginaw’s Delicatessen in Las Vegas, said he is glad to see the minimum wage in Nevada go up, though he is already paying employees a higher rate of at least $14 per hour.
“I don’t think I’ve ever paid anybody minimum wage in my entire life,” said Saginaw, who also co-owns businesses in Ann Arbor, Michigan.
“If our employees have less financial stress, they’re going to stay in the job longer, they’re going to be more loyal,” Saginaw said. “Our turnover figures are much less than the industry.” ...
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