The Argument Against a $15 Minimum Wage
There’s been much debate across the nation in recent months over increasing the minimum wage to $15. Perhaps no other industry would be more affected by such legislation than retail. In particular, Wal-Mart has often been used by proponents of the legislation as the poster child for a higher wage floor. But is that fair? This column from CNBC argues it’s not, dispelling three common justifications on why retailers can afford to pay all of their store associates $15 per hour.
Total Retail’s Take: Associate Content Editor Taylor Knight tackled this issue in an April article, highlighting a few key issues that still need to be answered. Will higher wages for workers force retailers to downsize staff? Will it cause them to raise prices? Does increased compensation lead to happier employees, which in turn will improve their performance and make them less likely to leave? California and New York are the first states to increase the minimum wage to $15 per hour, and they figure to be the testing grounds for measuring the impact higher wages have on retailers’ bottom lines.
Joe Keenan is the executive editor of Total Retail. Joe has more than 10 years experience covering the retail industry, and enjoys profiling innovative companies and people in the space.