Will a Minimum Wage Increase Affect You If You Earn More Than Minimum Wage? - The Full Guide
Salaries are one of the main factors you look into when looking for a job. While many people enjoy work, they wouldn’t do so without a paycheck. Many people don’t have a choice but to look for a job that will pay the bills and any other living expenses they incur. So minimum wage is a discussion that matters to many people. But you may be wondering if raising the minimum wage will affect you and how you’re paid? For many lawmakers, this became a concern when deciding whether they should raise the minimum wage. This article will tell you why the minimum wage matters, how much it is, and how this will affect you.
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Why Does the Minimum Wage Matter?
You may not think that minimum wage matters if you’re earning above it, but that isn’t the case. Everyone is experiencing a rise in living costs, affecting all sides of businesses. If an employee works too many hours, there is a chance they can become overworked and sick. Once employees become overworked, companies will struggle and find that many people will be looking for higher salaries. Most people will pay more attention to the wage when finding a job because of how much they need to pay to live.
While you may not think the minimum wage matters to you, it does matter for many businesses in America and many other workers. If you’re earning above the minimum wage, you can always find out the minimum wage and see how much this will affect your living area. After all, the minimum wage does vary across the country.
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How Do I Find Out The Minimum Wage?
The minimum wage is different depending on the state you live in. The best way to find out about your minimum wage is by looking at the Department of Labor. On their site, they show you just what the minimum wage is for each state. The Fair Labor Standards Act covers the federal minimum wage and goes from $7.25 per hour. Many states have passed minimum wage increases as $7.25 has been criticized for being too low for a living wage. However, there are higher minimum wages in some states, such as New York, having a minimum wage of $13.20 and $15 for those working in Long Island, Westchester, and New York City. $15 is the highest that minimum wage can be, with that actually being the amount requested by those fighting for the Raise the Wage Act.
While $7.25 is the lowest wage given by the Fair Labor Standards Act, the federal minimum wage for tipped employees is $2.13 per hour. They account for this by combining this amount with the number of tips they receive at work. By noting these, it’s no surprise that the conversation for raising the minimum wage continues.
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Will There Be a Rise in Minimum Wage?
There will always be a conversation about the minimum wage rising as the cost of living increases. Many people have argued that people can’t pay their bills, so in 2019 there was a vote to raise the minimum wage to $15 per hour. However, that’s all that happened.
While they voted in the United States House of Representatives to raise the minimum wage, this was never actually completed. Ultimately, lawmakers were hesitant to implement this bill as they feared that there would be millions of job losses.
Despite garnering so much support, they’ve never put their plans to put the Raise the Wage Act in motion. All anyone can do is hope that future administrations implement this act as the cost of living increases steadily each year.
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If Minimum Wage Rises, Will Anyone Earning Above Minimum Wage Have a Pay Rise Too?
While raising the minimum wage does require business owners to raise the hourly minimum wage for their employees, this doesn’t mean that you will get one too. Employers could give you a pay increase if they want to recognize your different skill levels. They won’t want you to feel like you’re being paid the same amount as someone working an entry-level position. So, they will most likely recognize that.
They may also want to improve morale, so they won’t want you to feel like you mean less than someone on minimum wage. However, they will still want minimum wage workers to earn a living wage. Increasing your salaries will boost employee morale, and it’s likely that all employees will want to stay with their employers.
Because of these economics, lawmakers were concerned that there would be millions in job losses. However, this doesn’t appear to be the case. Over half of small businesses supported a rise in the minimum wage to help their employees improve their living conditions. Ultimately, there are a lot of companies that will thrive by improving the minimum wage because they will be able to keep employee morale up, and everyone will be able to afford the cost of living in the United States.
While many lawmakers fear that raising the minimum wage will incur many job losses, this may not actually be so. Many small businesses have already voiced their support for improving the national minimum wage for their employees. While it is not guaranteed that those earning above the minimum wage will gain more from the rising minimum wage, this does not mean that it won’t happen.
It is up to your employer to decide if they would like to increase their employees' wages, earning above the minimum wage. While it is not confirmed, many employers would likely do this to improve their workers' morale and establish a more positive work environment.
Ultimately, it will be a long time until it is decided that the minimum wage will increase. Until the Raise the Wage Act is officially passed, it will remain in limbo for now. However, many states have already begun working to raise the minimum wage in their area. For now, you can consider how raising the minimum wage can affect you and watch what happens.
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