Thoughts & Opinions

by

Eva Del Rio

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$10/hr by next September:  How employers should prepare for min wage hike

Minimum wage hike

Q: Before the election -although you weren’t expecting it to pass- you wrote that you supported the amendment to increase the minimum wage to $15 by 2027.  Now that it has passed, how do you think employers should prepare?

A: I was very surprised the amendment passed because I knew it would require not just more yes-votes than no-votes, but it would require at least 60% yes-votes. That was a tall order in a very red state. During a pandemic. On a ballot that warned with CAPPED LETTERS that –if passed- the amendment might endanger state governments services. I expected about 45% support, but it got over 60%.

Like I wrote, the amendment wasn’t perfect. I wish the increase went up only up to about $12/hr, and I don’t like the one-size-fix for all areas (rural/metro) of the state.

But that’s what you get when legislators fail to legislate. Voters do it.

Now that the legislature is stuck with a new law, I’d expect them to start with their “implementation” and “interpretation” games, just like they did with the classroom-size amendment and the ex-felons right-to -vote amendments. I expect they’ll file lawsuits to carve out exceptions for certain businesses and industries, and try to delay in other ways.

Assuming that those attempts are futile, Florida businesses have almost a year to prepare for the first step taking effect September 2021, which brings the minimum wage up to $10.00 an hour.

There have been studies in other cities and states where these laws have taken effect that found the impact on business is never as bad as it was first feared.

But, although most large companies are already paying $10.00 an hour, smaller businesses will undoubtedly find this increase difficult. But they are not alone. They will find support and best practices from local business groups, industry groups and of course the local chamber of commerce.

One hopeful note: By the time the new law takes effect next year, I believe the worst of the pandemic will be behind us. The vaccine will be in wide distribution by summer and by September we’ll have lots of pent-up demand for goods and services. I expect restaurants, hotels and businesses will be packed so there will be plenty of jobs and money flowing through the economy and everyone’s pockets.

Fingers crossed.

 

©Copyright Eva Del Rio. Send questions to Eva@evadelrio.com

 

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