Local Restaurants Can’t Keep Up with Minimum Wage Hikes, Inflation

local restaurant

Minimum wage hikes in many states around the country and sky-high inflation are crushing independent restaurants that don’t want to raise prices on their customers, according to the Wall Street Journal.

In January, 22 states raised their minimum wage for hourly workers, according to the WSJ. Around 59 percent of small business owners said that higher labor costs were the biggest source of inflation in January, requiring price hikes to maintain current revenue levels.

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Virginia Democrats Narrowly Pass $15 Minimum Wage Bill Despite Objection by Gov. Youngkin

15 Hour Minimum Wage

Democrats in the Virginia General Assembly narrowly passed legislation that will raise the commonwealth’s minimum wage to $15 per hour by 2026. Their votes came despite Governor Glenn Youngkin previously suggesting such legislation was unnecessary.

HB 1 previously passed the Virginia House of Delegates on February 2 in a partisan vote with 51 in favor and 49 against. In the Virginia Senate, the bill’s counterpart, SB 1, also passed along partisan lines, with 21 votes in favor and 19 votes against.

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Commentary: An Economic Bill of Rights for the 21st Century

Manual Labor

Beginning April 1, the minimum wage for employees working in California’s fast food chains and health care industries will rise to $20 per hour and, in some cases, up to $23 per hour. Many employers managing independent restaurants, retail, and other industries will have to match the higher hourly rate to retain employees. And for hourly employees whose wages are indexed to the minimum wage, mostly in California’s unionized public sector, wages will rise proportionately.

There is no national consensus on the impact of minimum-wage laws. It is part of a much larger debate over what constitutes an optimal economic environment to enable, quoting from Franklin Delano Roosevelt, “economic security and independence.”

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Pennsylvania House Democrats Pass Minimum Wage Hike, Republicans Fear Job Loss

Pennsylvania’s House of Representatives this week passed legislation raising the state minimum wage to $15 per hour by 2026 and permanently indexing it to inflation going forward. 

Currently, the Keystone State mandates $7.25 in minimum hourly pay for most workers. If the bill passes the state Senate it will receive the supportive Democratic Governor Josh Shapiro’s signature and become law. The measure, sponsored by Representative Jason Dawkins (D-Philadelphia) will move the low-end wage to $11 per hour next January and $13 per hour the following January before bringing it to $15 the year after that. 

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Pennsylvania House Republicans Fear Minimum Wage Bill Will Cost Jobs, Fail to Amend It

As Democrats proceeded with Pennsylvania minimum wage hike legislation on Wednesday, Republican state representatives tried and failed to amend the measure to mitigate job losses. 

The bill supported by the Democrats’ one-seat House of Representatives majority would increase the Keystone State’s minimum wage from $7.25 per hour to $15 per hour by 2026. The wage floor would thenceforth permanently rise according to inflation. 

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$15-an-Hour Minimum Wage Bill Being Drafted in Pennsylvania House

A new bill to raise the minimum wage to $15 per hour is emerging in the Pennsylvania House of Representatives. 

Sponsored by Representative Patty Kim (D-Harrisburg), the bill as described in a memorandum appears similar to legislation Senator Dan Laughlin (R-Erie) is spearheading in his chamber. It contrasts with a more radical measure authored by Representative Chris Rabb (D-Philadelphia) that would hike the wage floor to $16.50 in July 2025 and gradually increase it to $21 by mid-2028. The Rabb bill would also apply the state minimum wage to prisoners, vastly boosting their pay. 

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Pennsylvania Democrats Want Prisoners Included In Minimum Wage Hike

A Pennsylvania state correctional-facility inmate can expect to earn between $0.23 and $0.50 per hour  at his prison job — not counting free room and board. Sixteen Pennsylvania House Democrats now want the state government that feeds and shelters these prisoners to pay them $21 an hour for their work. 

Led by Representative Chris Rabb (D-Philadelphia), these lawmakers are spearheading legislation to dramatically increase the state minimum wage and apply the new rate to prisoners. 

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Republican State Senator Proposes $15 Pennsylvania Minimum Wage Bill

Pennsylvania’s state Senate Republican Policy chair on Friday said he’s sponsoring legislation gradually raising the commonwealth’s minimum hourly wage to $15 and thence indexing it to inflation.

Senator Dan Laughlin (R-Erie), one of his chamber’s most moderate Republicans representing one of its most electorally competitive districts, said in a statement that he carefully mulled the issue before announcing his measure. The Keystone State’s pay floor rose to $7.25 per hour in 2008, matching the federal minimum wage, and the senator insisted now is the time for an increase, observing that 30 states now set their floors higher. 

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While Pennsylvania Labor Secretary Pushes Minimum Wage Hike, Few Workers Make Only $7.25 an Hour

Pennsylvania Department of Labor & Industry (L&I) officials testified before state senators Tuesday, requesting an increase in the department’s budget as well as a hike in the commonwealth’s minimum wage. 

Governor Josh Shapiro’s Fiscal Year 2023-24 spending proposal envisions an 11.4-percent rise in L&I’s allocation to $89.8 million. The agency’s acting secretary Nancy Walker also asked lawmakers to consider backing the governor’s goal to raise the Keystone State’s legal wage floor to $15 per hour. 

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Shapiro’s Planned Spending Increase Alarms Pennsylvania Budget Hawks

Pennsylvania Josh Shapiro asked the state General Assembly members on Tuesday to support his requested $45.9 billion budget, which would increase spending by approximately 4 percent over current outlays. 

The governor insisted he based his plan for Fiscal Year 2023-24 on “conservative” revenue estimates. And he did include some provisions appealing to anti-taxers and free-marketers including nixing the state cell-phone tax, a move he estimates would save Pennsylvanians $124 million annually. 

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Evers Budget Hurts Wisconsin Job Creators, Middle Class, Think Tank Says

The nonprofit Institute for Reforming Government (IRG) on Friday issued a comprehensive analysis of Democratic Wisconsin Governor Tony Evers’s 2023-25 state budget and bemoaned the proposal’s likely impact on job creators and the middle class.

Evers’s spending plan totals $104 billion, $16 billion more than the budget on which the Badger State now operates. If enacted, the new proposal would be the first state budget exceeding $100 billion. It includes massive spending increases in such areas as public education, childcare assistance, “affordable housing” and broadband expansion. Republican lawmakers, who object to the extent of the spending hikes and the governor’s refusal to devote more of the state’s $7.1 billion surplus to tax cuts, promised last week to thoroughly rewrite the plan. 

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Washington Lawmaker Introduces Proposal to Pay Prisoners Minimum Wage

A Washington legislator who served time behind bars contends it is time for the state to stop saving millions on the backs of inmates who are paid pennies for work in prison jobs.

“This is an evolution of slavery,” Rep. Tarra Simmons, D-Bremerton, told reporters. She is proposing that inmates be paid minimum wage when they work in the kitchen or produce furniture or other goods.

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More than Half of States Poised to Raise Minimum Wage in 2023 as $15 an Hour Gains Traction

Four states will have a $15-an-hour minimum wage by New Year’s Day, while 27 states are poised to raise the minimum wage in 2023.

Some states are enacting the wage change after Jan. 1, so by the end of 2023 there will be six states that are set to have minimum wages at or above $15 an hour. They are California, Connecticut, Massachusetts, New York, Oregon, and Washington, according to a report last week from the National Employment Law Project.

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Virginia Minimum Wage Set to Increase on January 1

Virginia’s minimum wage is set to increase from $11 to $12 per hour Jan. 1, a rise that comes after an attempt by Republican lawmakers to halt the minimum wage increase failed earlier this year. 

The increase comes as a result of 2020 law that outlined incremental wage increases starting in 2021. The law specified that employers must pay $12 an hour starting Jan. 1 and paves the way for $15 an hour in future years, but that’s dependent on future action by the General Assembly. 

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The Plan to Raise the Minimum Wage in Ohio Takes Step Forward

Supporters of a higher minimum wage in Ohio haven’t waited long to move forward with a proposed constitutional amendment that was rejected two weeks ago.

The group pushing to put the question before voters must clear the Ohio Ballot Board, which will decide if it contains just a single constitutional amendment or multiple amendments. The board will meet Nov. 7 to consider the proposal, according to Secretary of State Frank LaRose.

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Shelby County Mayor Calls for $15 Minimum Wage

Amid historic inflation that has eaten away at Americans’ paychecks, the mayor of Shelby County is calling for Tennessee’s General Assembly to pass a law increasing the minimum wage. 

“Today, Shelby County Mayor Lee Harris released his administration’s recommendations for the upcoming session of the Tennessee General Assembly,” said a release from Harris’s office. “Mayor Harris’ priorities center around legislative actions that support youth and families, increase public safety, improve access to healthcare, and strengthen our democracy. One of Mayor Harris’ top legislative priorities is the adoption of a state-wide minimum wage of at least $15.”

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AG Yost Rejects Proposal to Raise Ohio’s Minimum Wage

A citizen group trying to use a constitutional amendment to raise Ohio’s minimum wage eventually to $15 doesn’t need to start over but it does need to make changes to its plan if it hopes to eventually get it on the ballot.

Attorney General Dave Yost rejected the group’s proposal, calling it misleading to a potential signer. He also said it had numerous omissions.

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Pennsylvania Progressives Propose Forcing Landlords to Accept Housing Vouchers

Two liberal Pennsylvania lawmakers on Friday proposed a law to force all landlords to accept housing vouchers.

In a memorandum describing their legislation, state Senators Katie Muth (D-Royersford) and Carolyn Comitta (D-West Chester) insisted that America’s current “public housing crisis” demands such a measure. They cited data from the National Low Income Housing Coalition indicating that a Pennsylvanian earning the state’s minimum wage of $7.25 per hour in 2022 would need to work 94 hours weekly to pay for a one-bedroom rental or 115 hours to afford a two-bedroom apartment. A resident working 40 hours a week would, they asserted, need to earn $20.90 hourly (almost three times the state minimum wage) to pay for a typical two-bedroom apartment. 

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California Democrats Pass Bill That Could Pay Fast Food Workers Up to $22 an Hour

Democratic legislators in California passed a bill on Monday that will create an unelected state-run board to impose minimum wage and working conditions standards on the state’s fast food restaurants.

The bill, known as A.B. 257, will establish a ten-member council, made up of state officials as well as worker and employer representatives, to set employees’ wages, hours and working conditions for California’s entire fast food industry. The bill stipulates that the council has the authority to issue health, safety and anti-discrimination regulations as well as set an industrywide minimum wage of up to $22 per hour, according to the bill’s text.

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Connecticut Minimum Wage Not a Guarantee to End Poverty

Employees in Connecticut are now earning a minimum wage of $14, and one industry expert says the wage isn’t enough to support a family.

Connecticut increased its minimum wage on July 1 for the fourth time since 2019. Fred Carstensen, director of the Connecticut Center for Economic Analysis at the University of Connecticut, said many of the jobs available are lower-wage jobs that don’t offer benefits such as health care.

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Commentary: Debunking the Myth That Minimum Wage Laws Are ‘Progressive’

The minimum wage is a sort of litmus test. And not only for economists. For social justice advocates, too.

Forget, for a moment, the economics of it. In essence, minimum wage legislation imposes compulsory unemployment on the poor, the unskilled, racial minorities, the young, the physically and even more so the mentally handicapped—the very people all men of good will most want to help. Before the advent of this law, the unemployment rate for white middle-aged people and black teens was just about the same. Now, the latter are unemployed at quadruple the rate of the former.

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U.S. Appeals Court Pauses $15 an Hour Minimum Wage Mandate for Outdoor Recreation Companies

A federal appeals court on Thursday halted a mandate from the Biden administration that required an hourly minimum wage of $15 for outdoor recreation companies operating on public land.

The U.S. Court of Appeals for the Tenth Circuit in Denver granted an injunction in a lawsuit filed by the Pacific Legal Foundation against the Biden administration on behalf of outdoor recreational groups that have contracts with the U.S. government or operate on federal land.

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Texas, Louisiana, Mississippi Sue Biden over Minimum Wage Hike for Federal Contractors

Texas Attorney General Ken Paxton sued the Biden administration again Thursday, this time for requiring federal contractors to pay a $15 an hour minimum wage. It’s the 21st lawsuit the attorney general has filed against the administration. Joining him are the attorneys general from Louisiana and Mississippi.

“The president has no authority to overrule Congress, which has sole authority to set the minimum wage and which already rejected a minimum wage increase,” Paxton argues.

Their lawsuit follows one filed last December by the Pacific Legal Foundation on behalf of outdoor adventure guides, Arkansas Valley Adventures (AVA), ​​a licensed river outfitter regulated by the Colorado Division of Parks and Wildlife, and the Colorado River Outfitters Association (CROA). The CROA, a nonprofit trade association, represents more than 150 independent operators who primarily conduct business on federal lands using special use permits through Forest Service or Bureau of Land Management.

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Virginia House of Delegates Passes Bills to Freeze Minimum Wage at $11 an Hour and Include Health Benefits in Legal Definition of Wage

RICHMOND, Virginia – The Republican-controlled House of Delegates passed two bills addressing the minimum wage, including a repeal of increases passed by Democrats in previous sessions. Delegate Nick Freitas (R-Culpeper) and Delegate Sally Hudson (D-Charlottesville) debated about the need for minimum wage increases on the House floor Monday.

“I have it on good theological guidance that nothing in this bill is going to cause you to be cast into eternal darkness and gnashing of teeth,” Freitas said, defending his HB 320 against a claim that eliminating minimum wage increases harms “the least among us,” a reference to Jesus’ teaching in the Bible.

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Youngkin, Senator Dunnavant, and Delegate Willett Stop in Henrico for Small Business Round Table

HENRICO, Virginia – Governor-elect Glenn Youngkin met with the Asian Chamber of Commerce for a round table with Senator Siobhan Dunnavant (R-Henrico) and Delegate Rodney Willett (D-Henrico). Youngkin told those in attendance that he planned to bring 400,000 new jobs and 10,000 new startups to Virginia.

“So, in order to do that, we in fact recognize that we have to put a lot of the ingredients together, just like we’re cooking a meal,” Youngkin said. “And one of those ingredients is, in fact, the recognition that there are some inhibitions in starting small businesses. So one of the things I want to hear from you are the challenges that you all feel and hear when you start your businesses.”

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Judge Rules Against Arizona in Minimum Wage Lawsuit

A county judge says Arizona cannot extract the additional cost of doing state business in a city that increased its minimum wage, making it more expensive to operate there.

Maricopa County Superior Court Judge James Smith sided with the city of Flagstaff about whether a provision in the 2019 Arizona budget allowed the state to fine the city for the difference in doing state business at a higher minimum wage compared with the state minimum hourly rate.

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Democrats Planning to Recruit ‘Millions’ for New Civilian Climate Corps

A group of Democrats is pushing for the creation of a Civilian Climate Corps that could employ “millions” of young people at a minimum of $15 per hour as a way to tackle climate change.

“I was proud to stand alongside Congresswoman Ocasio-Cortez this year as we reintroduced the Green New Deal and also brought forward our new Civilian Conservation Corps because that legislation is a pathway to new jobs in our country, union jobs for young people,” Sen. Ed Markey (D-Mass.) said during a news conference focused on including the Civilian Climate Corps in the filibuster-proof budget reconciliation bill the Democrats are drafting.

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Commentary: Minimum Wage Hikes Led to Lower Worker Compensation, New Research Shows

Opponents of minimum wage laws tend to focus their criticism on one particular adverse consequence: by artificially raising the price of labor, they reduce employment, particularly for the most vulnerable in society.

“Minimum wage laws tragically generate unemployment, especially so among the poorest and least skilled or educated workers,” economist Murray Rothbard wrote in 1978. “Because a minimum wage, of course, does not guarantee any worker’s employment; it only prohibits, by force of law, anyone from being hired at the wage which would pay his employer to hire him.

Though some economists, such as Paul Krugman, reject Rothbard’s claim, a recent study found the overwhelming body of academic research supports the idea that minimum wage laws increase unemployment.

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Commentary: Raising the Minimum Wage Is Not the Answer

Joe Biden

If Joe Biden gets his way, the federal minimum wage will soon more than double, from the current $7.25 to $15 per hour. To quote our commander in chief, “if you work for less than $15 an hour and work 40 hours a week, you’re living in poverty.”

To rehash the minimum wage debate would be redundant. Anyone with business experience should see what’s going to happen. Many small independent businesses, retail stores, and restaurants that pay minimum wage will go under.

Meanwhile, major corporate chains will automate, shedding workers and raising prices, consolidating their grip on every market sector where they’re active. Unionized government workers will automatically get raises because their wages are indexed to the minimum wage—putting even more pressure on government budgets and taxpayers. People in the private sector who have spent decades learning a skill—and as a result can command wages upwards of $25 or $30 an hour—will become justifiably disgruntled, because they will no longer be making much more than minimum wage. The underground economy will explode.

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Virginia’s Minimum Wage Increases to $9.25 an Hour May 1

Virginia’s minimum wage is going up to $9.25 an hour on May 1. The change is the result of 2020 legislation, part of several pro-worker changes initiated by the Democrat-controlled General Assembly in 2020 and 2021. Advocates say the change will boost the economy by enabling more people to pay rent and spend money in Virginia businesses. But opponents say the increase violates free-market principles and will harm employers who have to increase their hourly compensation while dealing with a COVID-19 economy.

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Analysis: Maximum Facts About the Minimum Wage

At 2:00 AM on Saturday, February 27, Democrats in the U.S. House of Representatives voted to pass a “COVID relief and economic support“ bill at a cost to taxpayers of $1.9 trillion. The next Saturday, Senate Democrats passed a very similar bill, and President Biden stated he will sign it. This will be the sixth “COVID relief” law and swell the tab for such legislation to a total of $5.3 trillion. The combined cost of these laws to every household in the United States will be an average of $41,036.

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Commentary: Job Creation, Not a $15 Minimum Wage, Will Reduce Poverty

Though the Senate parliamentarian rejected their efforts to include a $15-an-hour minimum wage in President Biden’s so-called COVID-19 relief bill, Senate Democrats are scrambling for a way to include it. Their efforts demonstrate the importance of this issue for the progressive left. But should they succeed, would such a measure truly help struggling Americans as promised?

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Costco Raises Minimum Wage to $16, But Won’t Advocate for All Businesses to Follow

Costco will raise its company-wide minimum wage to $16 per hour, a one-dollar increase that raises its wages higher than its fellow big-box retailers, the company’s CEO said during a congressional hearing Thursday.

Costco plans to raise its minimum wage from $15 to $16 because it is committed to paying workers “very competitive retail wages,” CEO Craig Jelinek said during a Senate Budget Committee hearing Thursday. Jelinek stopped short of advocating in favor of a federal minimum wage overhaul, instead saying he was solely focused on Costco.

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Ohio Sen. Portman Offers Minimum Wage Increase, Legal Worker Verification Plan in U.S. Senate

With plans to include a $15 minimum wage in President Joe Biden administration’s COVID-19 recovery proposal quashed by rules procedures, U.S. Sen. Rob Portman, R-Ohio, has introduced his own wage hike.

Portman’s legislation calls for a more modest minimum wage increase to $10 an hour over the next four years and ties it to inflation every two years. It also ties the minimum wage to his recently introduced E-Verify Act legislation that helps ensure the increase goes only to legal workers.

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Nation’s Top Small Business Group Doubles Down in Minimum Wage Fight

The leading advocacy organization for small businesses in the U.S. is focusing its legislative efforts on defeating a proposal to increase the federal minimum wage to $15 per hour.

The minimum wage is the biggest issue the National Federation of Independent Businesses (NFIB) has lobbied on recently, the group told the Daily Caller News Foundation. After a series of pandemic-related victories on Capitol Hill, capped off by the December stimulus package that included $284.5 billion for small businesses, NFIB decided to lobby Congress to “do no harm.”

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CBO: $15 Minimum Wage Would Lead to 1.4 Million Lost Jobs, Impacting Young, Less Educated the Most

Unemployment line

A $15 minimum wage would result in 1.4 million jobs lost and disproportionately hurt younger workers and those with less education, a new Congressional Budget Office report says.

President Joe Biden, U.S. Sen. Bernie Sanders and other Democrats have proposed raising the federal minimum wage to $15 an hour by 2025, more than double the current federal minimum of $7.25 an hour.

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Virginia House Removes Farm Employee Minimum Wage Exemption

On Tuesday, the House of Delegates passed Delegate Jeion Ward’s (D-Hampton) HB1786, a bill that would remove an exemption that allows farmers to pay farm employees less than Virginia’s minimum wage.

Currently, the Code of Virginia states, “‘Employee’ includes any individual employed by an employer. ‘Employee’ includes a home care provider. ‘Employee’ does not include the following: 1. Any person employed as a farm laborer or farm employee.”

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Commentary: A One-Size-Fits-All Federal Minimum Wage Makes Zero Sense

President Joe Biden’s new $1.9 trillion COVID-19 relief proposal includes a surprising provision: raising the federal minimum wage to $15.

The fight for a higher minimum wage is not new, although it has been intensified by current events. The idea, more specifically, is to provide a “living wage.” Proponents argue that, currently, minimum wage workers cannot afford basic living expenses. But even if one assumes for the sake of argument that this is true and sets aside the fact that small businesses are already on the brink of collapse, it’s impossible to determine one suitable “living wage” for all parts of a vast and diverse country like the United States.

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University of Memphis to Raise Minimum Wage to $15 by June

The University of Memphis (UofM) will raise its minimum wage from $13 to $15 an hour, starting June 5. 

In a copy of the email obtained by The Tennessee Star, university faculty and staff were informed by President Dr. David Rudd on Tuesday that the raise was a culmination of adjustments done over the past year. Rudd shared that some of they’d implemented a hiring freeze, reduction in operational costs, and forms of attrition.

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Minimum Wage Hikes Set for 2021 Imperil Businesses Struggling Amid COVID Shutdowns

More than 80 states and local municipalities are slated to see minimum wage hikes in 2021, even as business owners continue to struggle during the coronavirus pandemic.

The Employment Policies Institute, a non-profit based in Washington, D.C., that studies how public policy impacts employment growth, released a comprehensive list of the minimum wage increases that will go into effect next year and in subsequent years.

“Minimum wage increases are demonstrated to cause job losses even in times of economic health,” said Michael Saltsman, EPI’s managing director. “These states and local areas are increasing the cost of labor as businesses are dealing with forced closures or a drastic drop in revenue. Employers and employees will pay the price for these misguided good intentions.”

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Georgia’s Ossoff Says Feds Should Ensure Illegal Immigrants Aren’t Paid ‘Less Than Minimum Wage’

Democratic Georgia Senate candidate Jon Ossoff in a Monday campaign video called on federal immigration authorities to ensure illegal aliens aren’t being paid “less than minimum wage.”

“In Georgia’s agricultural sector, the campesinos (farm workers) who work in the fields, enduring some of the most brutal conditions of labor anywhere in this country to keep America fed, paid less than the minimum wage, [are] often subject to abuse by employers,” Ossoff told a group of supporters on the video call.

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