A number of cities have a minimal wage of at the very least $15 an hour, and a number of states have legal guidelines that can increase their minimal wage to at the very least that stage within the coming years. There’s to date little proof on how a $15 minimal wage impacts employment in lower-cost areas of such states.
Two years in the past, the Home of Representatives handed a invoice to boost the federal minimal wage to $15 an hour by 2025, however the laws has confronted lengthy odds within the Senate. Mr. Biden sought to include such a measure in his $1.9 trillion pandemic aid bundle in order that it might move on a easy majority vote, however the Senate parliamentarian dominated that it couldn’t be included.
Mr. Biden’s govt order can even get rid of the so-called tipped minimal wage for federal contractors, which at present permits employers to pay tipped employees $7.65 an hour so long as their suggestions put them over the common minimal wage. Underneath the brand new minimal, all employees have to be paid at the very least $15 an hour.
The order will technically start a rule-making course of that’s anticipated to conclude by early subsequent yr. The wage shall be included into new contracts and current contracts as they’re prolonged.