Employers
Employers are affected
greatly by the raise in minimum wage. Every employer in Montgomery County must
pay an additional $1.15 per hour to every worker being paid minimum wage. There
are many potential problems employers can face by this. Two major ones are the
decision to have a more limited number of workers and the decision to raise
prices. Since companies and businesses will be paying workers more, they
may have to cut back on the number of people they hire. Also, these companies
and businesses will be spending more of their profit on their employees, thus
forcing them to decide to raise their prices.
Finding jobs with local businesses may actually be more difficult. Because of the increase of minimum wage, employees may be more selective in hiring new employees. Businesses may even decide to cut back on the number of employees they currently have by firing a few individuals. The outcome of employers negatively affects their employees and potential future employees. Not only could some employers not hire men and women or even fire their employees, employers could withhold raises they would have given otherwise. Employers may view the raise in minimum wage as a pay raise and not give any other raises. Deserving employees would be cheated because of the employer’s decisions. These employees might then leave their employers’ business. The raise in minimum wage has left employers to make decisions that could affect workers’ lives, including teenagers and workers that face discrimination. However, in some cases, when minimum wage has risen there has not been a decrease in job opportunities. Since this is the first raise in the minimum wage Montgomery County has had in a while, the results will be evaluated over the coming year.
The hiring and firing scandals may be avoided if companies and businesses raise their prices. Employers of small businesses in particular may decide to raise their prices. I work at a family owned cupcake shop. There is some retail sold in the shop, however most of the sales are pastry related. Because my boss has to pay some of the employees more, even though they previously received more than $7.25, she has decided to raise the price of the cupcakes by $.25 a cupcake. This does not include tax. Customers will probably complain to my employer. Other employers may face similar issues when raising prices. Customers may even decide to boycott a business that raises prices. Employers have a tough decision in deciding to raise their store prices because of their increase in pay prices. This is not a negative effect from the raising of minimum wage. Since most small business owners pay their employees over minimum wage, their profits will increase more.
Small business owners are the employers most plagued by this increase in minimum wage. There may not be any firings done, however employers may not be able to hire new employees. The only way to continue their profit margins is for these small business owners to increase their prices.
Finding jobs with local businesses may actually be more difficult. Because of the increase of minimum wage, employees may be more selective in hiring new employees. Businesses may even decide to cut back on the number of employees they currently have by firing a few individuals. The outcome of employers negatively affects their employees and potential future employees. Not only could some employers not hire men and women or even fire their employees, employers could withhold raises they would have given otherwise. Employers may view the raise in minimum wage as a pay raise and not give any other raises. Deserving employees would be cheated because of the employer’s decisions. These employees might then leave their employers’ business. The raise in minimum wage has left employers to make decisions that could affect workers’ lives, including teenagers and workers that face discrimination. However, in some cases, when minimum wage has risen there has not been a decrease in job opportunities. Since this is the first raise in the minimum wage Montgomery County has had in a while, the results will be evaluated over the coming year.
The hiring and firing scandals may be avoided if companies and businesses raise their prices. Employers of small businesses in particular may decide to raise their prices. I work at a family owned cupcake shop. There is some retail sold in the shop, however most of the sales are pastry related. Because my boss has to pay some of the employees more, even though they previously received more than $7.25, she has decided to raise the price of the cupcakes by $.25 a cupcake. This does not include tax. Customers will probably complain to my employer. Other employers may face similar issues when raising prices. Customers may even decide to boycott a business that raises prices. Employers have a tough decision in deciding to raise their store prices because of their increase in pay prices. This is not a negative effect from the raising of minimum wage. Since most small business owners pay their employees over minimum wage, their profits will increase more.
Small business owners are the employers most plagued by this increase in minimum wage. There may not be any firings done, however employers may not be able to hire new employees. The only way to continue their profit margins is for these small business owners to increase their prices.