Increasing minimum wage would boost local economy
May 30, 2014
Since January, California became one of the states with a higher minimum-wage, offering employees $8 an hour. But as of July 1, the minimum wage will be raised to $9 an hour.
Then on Jan. 1, 2016, California plans to raise the minimum-wage even higher, to $10 an hour. The federal minimum wage is $7.25 for nonexempt employees. States, however, can have their own minimum-wage laws. Employers under both the state and federal laws must follow the highest paying wage.
Twenty states, including Texas, have minimum-wage rates equal to the federal standards. Four states have lower rates, the lowest being $5.15 in Georgia and Wyoming. Five states, like Alabama, have no minimum-wage laws and 21 states have higher rates.
Employees who are outside salespersons, relatives and apprentices regularly contracted under the State Division of Apprenticeship Standards are exempt from the California minimum-wage law.
Other exceptions include mentally and/or physically disabled persons and nonprofit organizations, who are able to pay less than the legal minimum wage with a special license by the Division of Labor Standards Enforcement (DLSE).
The federal law states that employers can pay an employee under the age of 20 a lower wage for a limited period of 90 calendar days, not only work days. California law does not distinguish wage differences in adults and minors.
Instead, it states that for learners, regardless of age, their first 160 days of employment in an occupation which they’ve had no similar or previous experience in will be paid 85% of the minimum-wage rounded to the nearest nickel.
An employee cannot ask for less pay under any form of agreement. Tips are not to be considered as part of minimum-wage pay. If an employee does not receive the proper minimum-wage, they can file a wage claim with the DLSE and/or file a suit against the employer.
Under California law, counties have authority to set their own minimum-wage standards. Despite already having a higher minimum-wage rate than the federal standard, some California cities are adopting even higher minimum-wage standards, up to $15 an hour. Cities pushing for the higher standard are San Francisco, San Jose and San Diego.
“I’d be a lot happier (with $15) because I’d be able to save up more money for college,” freshman Leandra Bell said.
This is a major problem for youths beginning to move out of their parents’ homes and becoming independent in Los Angeles.
“I think it will most likely affect (the economy) positively because there will be more money coming in than going out.” Bell said. “I feel they think people will take advantage of it and it won’t give the economy a boost. It would make me want to move out, but I know I won’t be able to afford it.”
Representative Barbara Lee, D-California wants the state’s minimum wage to be even higher than $15. She wants it to be $26 an hour and believes that it will not affect small businesses negatively.
Last year, a study by the Economic Roundtable, a non-profit, public benefit corporation that conducts economic, social and environmental research, found that for Los Angeles, a $15 city-wide minimum-wage would improve the economy by boosting sales with an increase of local purchasing and would create almost 65,000 jobs county wide.