What is the minimum salary you must pay in different states

In the national debate over what is a fair minimum wage, some states are being generous with ballot initiatives, while others are still holding rates well below the federal standard of $7,25 an hour. Where and what “minimum wage” are people willing to pay in the USA?

Фото: Depositphotos

The differences between regions of the country can be striking. For example, the highest wages in the country are paid not even in the state, but in the District of Columbia - here a worker receives at least $12,50 an hour, writes The Daily Mail.

Washington State follows closely behind with a minimum wage of $11,50, although it's worth noting that Seattle adopted a plan in 2014 that would gradually raise the minimum wage - and now averages $15,45; 15; $14 or $11,50 per hour depending on company size and other factors such as health insurance or employee tips.

Other cities, including San Francisco, Chicago and Oakland, also set the minimum wage, which is already higher than the states and the District of Columbia offer.

The states of California and Massachusetts ranked third with a minimum wage of 11 dollars, followed by Oregon (10,75 dollars), Arizona and Vermont (10,50 dollars each) and New York (10,40 US dollars).

Colorado offers a minimum wage of $10,20, followed by Maryland, Rhode Island and Hawaii, all of which offer minimum wages as low as $10,10.

At the lower end of the spectrum, Georgia and Wyoming have the least generous minimum wage in the country, barely reaching $5,15, although businesses in those states are required to pay the federal minimum wage of $7,25.

Another 20 states offer a federal minimum wage. Five states—Alabama, Louisiana, Mississippi, South Carolina, and Tennessee—have no minimum wage at all and therefore default to federal data. Another 12 states have a minimum wage, which ranges between $7,50 and $9,25.

More than half (58%) of Americans said they supported raising the federal minimum wage to 15 dollars an hour, while 41% opposed such an increase, according to a survey by the Pew Research Center in 2016.

However, registered voters were narrowly divided on the issue: 52% favored increasing the minimum wage and 46% opposed. The rest abstained.

Proponents of higher minimum wages argue that employees need to pay enough to survive in difficult times when inflation has significantly surpassed wage increases. They are also confident that a higher minimum wage will actually help the economy.

According to the Economic Policy Institute, in 1968, a full-time minimum wage worker earned $20 a year (in 600 dollars), while a worker earning the federal minimum wage in 2017 earned only $2017.

“When you put money in the pocket of a low-wage worker, he spends it,” said Jonathan Shleifer, executive director of the Fairness Project in Washington, D.C. “It’s very different from putting money in the CEO’s pocket. (Instead) it’s money spent on haircuts, groceries and medical care that they save.”

Meanwhile, opponents say that forcing enterprises to unnatural wage increases for low-skilled employees will destroy enterprises and lead to layoffs. All this will only hurt the workers, as companies will struggle to survive, increasing costs due to unreasonably high wages, and will get rid of unnecessary workers.

“This is a tax on consumers—they're the ones paying minimum wage to workers,” said Bill Dunkelberg, chief economist at the National Federation of Independent Business. “Every dollar a worker makes has to come out of someone’s pocket.”

“If a worker doesn’t add $15 an hour to your company’s cost, the employer can’t afford to hire him,” he added.

Фото: Depositphotos

Two states—Arkansas and Missouri—will put the minimum wage question before voters this fall. In Arkansas, the proposal would encourage a gradual increase from $8,50 to $11 an hour in 2021, while Missouri voters would consider a gradual increase from the current $7,85 to $12 by 2023.

Five states—Arizona, Colorado, Maine, South Dakota and Washington—considered initiatives to increase the minimum wage in 2016. The increase was approved by all except South Dakota, where voters rejected the proposed increase.

People on both sides of the issue agree that in America it is impossible to support a family for the minimum wage.

“A family of four cannot live on the minimum wage in New York, but the minimum wage is not designed to support people,” Dunkelberg said.

Minimum wage workers, he said, are most often those just starting out in the workforce; these are often young people who do not yet have a college degree and need to build work experience before moving on to higher-paying opportunities.

Shleifer noted that a single mother working full-time under the current federal minimum wage will be able to earn 15 thousand dollars a year.

“A person working full-time should be able to pay rent and put food on the table without worrying about going bankrupt,” he said.

The minimum wage debate reignited earlier this month when Amazon announced it would raise its minimum wage for all US workers to $15 an hour after criticism for low pay. The change will go into effect on November 1 and will affect approximately 250 full-time and part-time workers, as well as 100 seasonal employees.

Amazon plans to compensate for the change, in part, by giving up bonuses and premiums for stocks for hourly workers.

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