Could Raising the Minimum Wage Affect My Business?

Minimum wage and your businessMuch controversy has surrounded the recent push by many states to raise minimum wage levels to match an increase in the price of living across the country. People either think it will greatly increase the quality of life for entry-level workers, or create too much strain on businesses that rely on low-skilled labor. A recent article cited that over 60 restaurants in the San Francisco area have closed since last September, following minimum wage increases. In New Jersey, the minimum wage is $8.44, and Governor Chris Christie struck down an agreement to raise the minimum wage to $15, by 2021.

3 Ways Raising the Minimum Wage Could Change Your Business

  • Employee loyalty: An employee getting paid more of a livable wage is most likely going to give you better performance and be more inclined to try to retain their job for a longer time. This could help the quality of services they are providing to you and your customers.
  • Employee quality: The quality of applicants can be expected to increase when raising the starting wage for them. People with more qualifications and accomplishments may want to join your team.
  • Loss or gains of workers: One of the main arguments against minimum wage is that large numbers of jobs will be lost because companies won’t be able to afford all of their employees. This could be a chance to decide if higher skilled employees may be able to do the jobs of multiple people, and if there are new technologies or process changes that could replace some of the employees’ duties that would need to be cut. However, In Arizona, a recent wage increase has been linked to a higher number of applicants in the service industry.

Many people believe that the happy medium is probably in between the federal minimum wage and proposed wages of $15/hr. However, if you are a business owner struggling to meet wage demands, there are many options you have when deciding what to pay employees and how they are categorized. Temporary and contract labor can be a way for employers to save money and increase the number of workers.

New Jersey employment lawyers at Garland & Mason, L.L.C. have case experience determining if employment practices are in accordance with state and federal laws.

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