OUR THOUGHTS ON:

Minimum Wages Are On the Rise

Retail

By Jonathan Cardiello

Effective October 1, 2018, Delaware will enact a 50-cent increase in its minimum wage, bringing it to a new high of $8.75 per hour. Shortly thereafter and throughout 2019, adjustments will be made to minimum wage levels in 22 states and districts, including Alaska, Arizona, California, Colorado, Delaware (additional adjustment in 2019), the District of Columbia, Florida, Maine, Massachusetts, Michigan, Minnesota, Missouri, Montana, Nevada, New Jersey, New York, Ohio, Oregon, Rhode Island, South Dakota, Vermont and Washington.

In an effort to increase the minimum wage, some states have passed legislation to enact adjustments on an annual basis based on the consumer price index or similar metric. Other states have passed fixed increases to attain a specific wage over time. Most notably, California, D.C., Massachusetts, and New York will reach a $15 minimum wage by 2023.

There has been a lot of debate surrounding the federal minimum wage law in recent years as the issue has taken a spot at the center of the nation’s political discussion. Regardless of whether the nation believes that the market should determine wages or that the national minimum should be raised, the reality of current state legislation is that the minimum wage will continue to increase across the country. As such, retailers can expect to see increases in one of their most significant expenses over the next five years.

For more on how these legislative actions can affect your business, contact us at contactSD@schneiderdowns.com

You’ve heard our thoughts… We’d like to hear yours

The Schneider Downs Our Thoughts On blog exists to create a dialogue on issues that are important to organizations and individuals. While we enjoy sharing our ideas and insights, we’re especially interested in what you may have to say. If you have a question or a comment about this article – or any article from the Our Thoughts On blog – we hope you’ll share it with us. After all, a dialogue is an exchange of ideas, and we’d like to hear from you. Email us at contactSD@schneiderdowns.com.

Material discussed is meant for informational purposes only, and it is not to be construed as investment, tax, or legal advice. Please note that individual situations can vary. Therefore, this information should be relied upon when coordinated with individual professional advice.

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