Despite only 141,000 workers nationwide earning the federal minimum hourly rate in 2022, efforts to raise it face hurdles, with 20 states still adhering to the $7.25 benchmark.
Utah, restaurateur Ken Rose highlights the increasing irrelevance of his state minimum wage, stuck at $7.25 for over a decade
Rose, the owner of Tiburon Fine Dining, stresses that the state minimum wage hasn’t kept pace with economic shifts, making $15 or $17 an hour more realistic. While some argue that market forces should dictate state minimum wages, Yannet Lathrop of the National Employment Law Project emphasizes that leaving it to employers can lead to unpredictable fluctuations. She contends that a substantial increase, like $17 an hour, could benefit millions currently earning above $7.25 but below $15 or $17. Currently, 22% of US workers earn less than $17 an hour, with 12% below $15, according to the Economic Policy Institute‘s Low-Wage Workforce Tracker.
Rose’s experience in the food industry echoes a nationwide trend, with tight labor markets forcing employers to exceed minimums to attract staff
Yet, as state minimum wage growth slows and unemployment creeps up, experts caution that a federal state minimum wage adjustment is crucial to safeguard recent pay gains. In a divided political landscape, attempts to raise the federal-state minimum wage have faltered, with the most recent proposal aiming for $17 by 2028. Meanwhile, various states grapple with the economic realities of an outdated federal standard, as businesses and workers alike advocate for a more reflective and competitive state minimum wage floor.
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