Free Market Vs. Lawmakers On Minimum Wage

by | Mar 22, 2023 | Labor Relations Ink, Legal, Politics, States

One of the more sobering realizations about the minimum wage battles is that unions are essentially working against workers, some of whom ultimately realize that the rising base wages could hurt them. Voices continue to add to that chorus.

A recent Baltimore Sun op-ed made the blazing case for a two-tiered minimum wage that would allow more flexibility for small business owners and allow the free market to set wages. In the process, the author argues that a $15 minimum wage makes little sense for small business owners who provide first jobs for high schoolers.

California remains an early indicator for such battles. The state currently faces a 2024 ballot measure, the Living Wage Act of 2022, which could boost the minimum wage to $18 in the state, past the current statewide wage of $15.50. This bill also bumps up against the on-hold effort to raise the fast-food minimum wage to $22 per hour and the push to raise the healthcare worker minimum wage to $25.

In New York City, Mayor Eric Adams recently dialed back a plan that would have granted a $ 24 per hour minimum wage for food delivery drivers who work for apps including Uber, DoorDash, and Grubhub. Those drivers are still on track to reach the $20.00 per hour mark by 2025.

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