Do anyone know if the minimum wage increase have an affect on salary emplyees?

Question

Do anyone know if the minimum wage increase have an affect on salary emplyees?

Answer 1

I would imagine that if your base salary didn't meet an average annual salary based on minimum wage, you might see a bump. That said, I don't think anyone who works that close to minimum wage could be qualified as an exempt employee. If they are, it's possible a labor violation is taking place, as employers can't just classify everyone as exempt that they want.

Answer 2

The belief is that over time if minimum wage is increased that it will eventually bump up the salary wages too because they will eventually ask for more money. Basically it is if they are getting a raise (although it is not a raise it is seen by others as such), I want one too.

What Judy is talking about is a term called salary non-exempt. People don't automatically get paid overtime if they are salary people. Only people who are usually in supervisor position that requires them to be there when others are working might get it. It is an incentive to not cut out early or keep employees from working because you don't get paid extra if they want you to work more.

Answer 3

my guess would be no.  being on salary means you are not hourly - minimum wage increases only affect hourly people who are being paid the minimum

Answer 4

None at all, it is only hourly.  The only affect may be that companies cut salaries to compensate for the higher wage.

Answer 5

Whether salaried or hourly, you still have to be paid at least minimum wage for the hours you work.  

And what many people don't realize is that many salaried workers must be paid overtime at time and a half for hours worked over their normal hours - this doesn't apply to supervisors, and to many highly paid professionals.  Salaried doesn't mean exempt.

Answer 6

As long as your salary exceeds the new minimum wage it will have no effect at all on it.  Since most salaries are based upon an hourly equivalent rate well in excess of minimum wage it's not likely that many will be affected.

The only affected persons will be hourly employees who were making less than the new minimum wage.

While it's possible that some companies could attempt to reduce salaries to make up for the added cost, a more likely scenario would be the release of one or more minimum wage employees to cover the added expense.  Given the high turnover at minimum wage jobs, most of this would probably be through attrition as opposed to an outright layoff.

Strangely, the doom and gloom often predicted when minimum wage increases are proposed never comes to fruition.  The truly embarrassing thing is that in 1967, you could support a family of 4 on the minimum wage of $1.40 per hour.  It was little more than basic existence, but it was doable in most of the country.  If minimum wage kept up with inflation, it would be close to $14.00 per hour now. At that level, a family of 4 could subsist.  We could discard the Earned Income Credit, the Child Tax Credit, the Additional Child Tax Credit and probably a few others as well.  

What has actually happened is that business has successfully transferred the burden of supporting employees at the bottom end of the wage scale to the taxpayers who fund those credits that are little more than welfare for the working poor.  One of those things that make you go, "Hmmm..."