Some consider the minimum wage, established by the fair labor standards act in 1938, as a necessity, while others think it is a detrimental piece of legislation the minimum wage requires employers to pay all employees at least the specified amount based on the current version of the law, which tends to occasionally. Minimum wage: definition of minimum wage: the smallest amount of money that employers are legally allowed to pay someone who works for them the question of fixing a minimum wage for the workers by a competent authority is gaining importance in every industrial country the government or the trade union of a. Today, millions of working people struggle to cover the cost of housing, food, health care, childcare and other basic necessities for themselves and their families a worker who is paid the minimum wage of $725/hour, or any wage below a living wage, cannot possibly afford basic necessities without assistance this creates. Last week, ontario premier kathleen wynne announced that her government would see to a $15 minimum wage by 2019, up from its current $1140 economic experts armine yalnizyan and dan kelly debate whether this is good or bad news for ontario the following has been edited and condensed. Minimum wage laws help protect the lower and middle classes against poverty, but they can act as a deterrent against creating new jobs for some potential employers business owners will hire.
While state and federal laws regulate safety conditions, minimum wage, abuse, unpaid work and other employment situations for hourly employees, these employees can be dismissed without cause regardless of their length of employment the reverse is also true: your employees can quit their jobs without giving notice,. Is the minimum wage too high too low should you raise your entry-level employees' wages beyond the federal/state minimums in 2009, the us congress passed the fair labor standards act, which established a $725 minimum hourly payment for non-tipped employees workers who receive tips must receive. Among the disadvantages of increasing the minimum wage is the probable consequence of businesses increasing prices, thus fueling inflation opponents of an increase argue that raising the minimum wage would likely result in wages and salaries increasing across the board, thereby substantially.
When the united states first set a minimum wage through the fair labor standards act of 1938, the hourly rate sat at 25 cents prior to that, during the great depression, people facing up to a 25 percent unemployment were desperate for work, so employers could take advantage and pay very little. Advantages higher tax revenue less need for beneift top ups fairer more equal distribution of income reduced poverty disadvantages workers are more expensive, unemployment up other workers will demand pay increases = inflation young workers will loose out as firms will prefer older workers. A summary of the pros and cons of raising the minimum wage, the differences between federal and state rates, and initiatives to increase the minimum wage.
A substantial minimum wage rise right now would be a very hollow victory if it meant that businesses couldn't remain competitive and collapsed. In recent months, politicians have urged the low pay commission (lpc) to consider a significant increase in the national minimum wage (nmw) in february the lpc recommended an increase of 3 per cent for october 2014, from £631 to £650, which was accepted by the government this is a substantially smaller.
Advantages any negative impacts (whatever they may be) of the minimum wage are limited by the inflation rate ie it is only increasing by the rate of inflation it increases automatically, not waiting on legislative action it increases often, so negative effects are spread out disadvantages it increases often. With ontario and alberta set to raise their minimum wages to $15 an hour, the unintended consequences of this kind of fast and sizable increase may hurt low- income families. Explaining disadvantages of minimum wages - potential unemployment, inflation , uncompetitive firms quote by milton friedman diagrams and also evaluation of whether minimum wages are also bad. South africa has decided that there should be a national minimum wage and that that wage should be r 3,500 a month that's a little under $250 us a month and the problem with this is that it's a very bad decision--and the reason it's a bad decision is that this wage is simply much too high yes, $250 a.
In general definition, minimum wage is the minimum amount of compensation that laborers must receive under the law and is regarded as the lowest wage employers. Some advantages are that it provides employees a minimum income to be able to pay bills and meet basic needs it prevents companies from taking advantage of the labor market, and it makes sure companies share their wealth with the employees who assisted in generating it some disadvantages are.
The current minimum wage is $725 as of late, president obama has advocated for gradually raising the minimum wage to about $10 an hour recently, the congressional budget office reported, that both sides of the debate held some merit, as there are benefits and some drawbacks to raising the. The uk's national minimum wage sets the minimum hourly wage rate that is allowable by law a national minimum wage has been law in the uk since 1999, when the adult hourly rate was set at £360. A statutory minimum wage was recently introduced in germany, bringing the number of oecd countries with some form of national minimum wage to 26 out of 34 oecd 2015 employment outlook possible disadvantages of a minimum wage although all political parties are now committed to keeping the minimum wage,. A minimum wage is the lowest remuneration that employers can legally pay their workers equivalently, it is the price floor below which workers may not sell their labor although minimum wage laws are in effect in many jurisdictions, differences of opinion exist about the benefits and drawbacks of a minimum wage.