Back in January, workers in Portland, Maine were ecstatic to learn that their hourly wage jumped from $7.50 to $10.10. This is the first city the minimum wage raise is implemented in while other cities in Maine are still at the usual rate. All over the United States, cities are slowly raising their minimum wages up to $15 an hour.
They call this a national experiment in how labor markets operate as well as studying how companies respond to rising payroll costs, according to CS Monitor. The analytical report explains that Portland's $10.10 hourly wage hasn't killed any jobs but some restaurants in the area have cut hours in the work force - most likely to compensate for the expense. Looking closely, many employees already earn above the minimum rate and received tips.
Judy Dyer, a supervisor at a breakfast joint, noted that none of the staff has quit or complained as of yet. "We're not feeling it yet. But it's coming here." Starting wages at her workplace are at $9 an hour.
John Conzelman, a salad bar owner had to raise prices in March to reflect rising costs. However, he's already been paying above the minimum. "I think $10.10 is fine. It puts more cash in everyone's pockets, which they spend. What goes around comes around," he says.
These two are feeling positive compared to owner Colleen Kelley who isn't excited about paying teens $10 an hour to make milkshakes at her restaurant.
Experts agree that young workers are vulnerable under higher minimum wages. One study estimated that a 10% rise in the wage floor led to a 1% or more drop in teen employment.
Whatever the case, the salary increase is already in effect and it will slowly trickle outwards to other cities and states.
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