Minimum Wage Increase

President Obama will announce the increase of federal minimum wage during his State of the Union address tonight.  This is great news – everyone deserves a little more in their pockets.  However, this does not mean that every person in the United States that makes less than $10.10 (the new federal minimum) will get an increase.  The new policy only applies to federal employees or those that work on contracts supported by federal funds.  Minimum wage employees of private companies and corporations will not benefit from the increase.  Each state set its own minimum wage limit and with the new federal standard, most states will more likely adopt an increase to meet the federal rate. Effective January 1, 2014 New York new minimum wage is $8 per hour increased from $7.25 per hour.

Minimum wage

Critics will argue that higher wages means less profit. Or higher wages will cause employers to lay off employees or it will send jobs overseas where labor is cheaper. Yes, those are genuine arguments; however, everyone deserves to feed their families and have a livable wage.  There are and will always be two sides to an argument but one must understand that every employee is entitle to a livable wage.

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