The Fair Labor Standards Act of 1938 established the federal minimum wage initiative, and the initial minimum wage of 25 cents per hour came to fruition. A discussion on laws will provide an appreciation of today’s standards and requirements. The federal minimum wage is a controversial topic within the human resource field attracting attention from all over. While minimum wage employees would appreciate this increase, companies may have a hardship with the implementation. Therefore, companies must utilize strategic planning to incorporate a higher future minimum wage and in some situation, a job analysis may need to be accomplished to produce solutions. Brodsky provides possible solutions to his business due to the impact of minimum wage
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This section will reveal some negative characteristics concerning this substantial wage increase. Coy (2015) talks about regional economic differences within each state and areas within the same state as a reason not to support a $15 per hour increase. In areas such as California, New York, and Washington D.C. have higher salaries, housing costs, and food cost compared to Texas. Housing is the first-hand knowledge because during a move from Colorado to Texas there were many individuals moving from California to Universal City or just buying houses to rent. One example that Coy (2015) provided was concerning Puerto Rico seeing a 155 percent increase with a $15 per hour wage. If one of the U. S. territories is hurting to pay $7.25 imagine the impact the $15 increase have on them. Another example is in California, which shows Silicon Valley is making $28 per hour and Visalia-Porterville has less than a $14 per hour wage. There is a drastic difference between two counties in California and they are San Benito and Santa Clara and approximately 100 miles apart depending on the route. This bestows an essential reason for employers to increase the minimum wage, but should it be across the board or up to each
This section will reveal some negative characteristics concerning this substantial wage increase. Coy (2015) talks about regional economic differences within each state and areas within the same state as a reason not to support a $15 per hour increase. In areas such as California, New York, and Washington D.C. have higher salaries, housing costs, and food cost compared to Texas. Housing is the first-hand knowledge because during a move from Colorado to Texas there were many individuals moving from California to Universal City or just buying houses to rent. One example that Coy (2015) provided was concerning Puerto Rico seeing a 155 percent increase with a $15 per hour wage. If one of the U. S. territories is hurting to pay $7.25 imagine the impact the $15 increase have on them. Another example is in California, which shows Silicon Valley is making $28 per hour and Visalia-Porterville has less than a $14 per hour wage. There is a drastic difference between two counties in California and they are San Benito and Santa Clara and approximately 100 miles apart depending on the route. This bestows an essential reason for employers to increase the minimum wage, but should it be across the board or up to each