Fight for $20: New Minimum Wage Push
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The Fight for $15 has seemingly evolved into the Fight for $20.
It has already been more than a decade since hundreds of fast food workers in New York walked off the job, asking for a $15 minimum wage and other improved labor conditions. Since then, of course, the minimum wage movement has expanded. And lawmakers have responded.
Since the Fight for $15 started in 2012, dozens of jurisdictions have passed new minimum wage laws. Many of these are at the city level, where several rates have long since passed the $15 threshold.
Meanwhile, with inflation still a concern and little movement on a federal rate increase, some are pushing for a Fight for $20, as evidenced by bills under consideration in New York, Massachusetts and elsewhere.
Fight for $20 Minimum Wage
As way of background, at the same time as calls for a $20 minimum wage have increased, three states at the beginning of 2023 hit or passed previous hallmark number of $15:
Elsewhere, several other states have scheduled increases to reach a $15 minimum wage in the coming years. Plus, several cities are beyond that figure, including many in California, along with Seattle, which has the highest standard minimum wage in 2023 of $18.69.
In the wake of these increases, however, activists have launched efforts to push for a minimum wage of $20 or higher. In places like New York State and Massachusetts, lobbyists and other progressive groups are asking legislators to rethink existing minimum wage policy.
At the same time, others say tying minimum wage increases to the applicable Consumer Price Index is a more palatable way to raise wages for workers.
“Indexing is definitely a really good policy to make sure that workers’ paychecks are not as impacted by what we’re going through right now,” in terms of inflation, the National Employment Law Project’s Yannet Lathrop told Politico.
Indexing is already a fairly common practice. States with indexed rates (in addition to those already heading toward a $15 minimum wage) in place include:
Still, these gradual increases, even with high inflation figures, aren’t enough, some labor advocates argue, which has helped spur the idea that the Fight for $15 should become the Fight for $20 for minimum wage earners in the U.S.
As the media has picked up such stories in recent weeks, it could be a harbinger of how lawmakers approach minimum wage laws moving forward.
Minimum Wage in the U.S.
Employers that operate across the country already know of the challenges of managing minimum wage rates.
From industry-specific rates and tipped wages, indexing and more, the complexities of minimum wage continue to grow. Add in ballot measures and other groups lobbying for a Fight for $20, and the difficulties for employers to track and apply minimum wage rates will likely be the norm in the future.
Meanwhile, these laws can be more complicated than simply knowing the rates. Cook County, Ill., allows cities to opt in or out of its ordinance. And Oregon minimum wage applies its rate based on county (but not entirely).
Plus, employers can’t always rely on regular timeframes for minimum wage increases. A handful of jurisdictions do not update on July 1 or Jan. 1 each year. Some recent examples include:
These and other facets of minimum wage laws keep employers on their toes.
Conclusion
Should the Fight for $20 gain footing, as the previous Fight for $15 did, large employers would be wise to keep an eye on jurisdictions where they have locations, especially in more progressive areas.
California, New York and the coasts of the U.S. are generally the beginning of employment law trends. How these jurisdictions approach minimum wage could lead to more laws and compliance concerns in the months and years ahead.
On the other side of the coin, it is worth noting that several states still follow the federal minimum wage, which hasn’t increased in more than a decade. As of April 2023, they are:
At the same time, some of these states have explored new rates. Notably, Pennsylvania has renewed a push for a new minimum wage rate. Even still, it’s incumbent upon employers to monitor and track minimum wage rates, especially in light of the new Fight for $20.
This Employment Law News article is intended for market awareness only, it is not to be used for legal advice or counsel.
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Director of Marketing & Communications at Austin Area Chamber of Commerce
1yGreat info. Thanks!