ups Seattle employees will be getting a nice bump in pay..

upschuck

Well-Known Member
If any businesses do leave. New businesses will pop up and replace them. So job losses aren't going to occur.

So you are saying that there would be a net increase in jobs because of a higher pay rate, since UPS jobs would just move to suburbs. I don't think so. I know that I have never seen any empty buildings in big cities.
 

BigUnionGuy

Got the T-Shirt
104hppw.png
 

Box Ox

Well-Known Member
What I meant to say in my above post was businesses may leave, but that Does Not mean their will be job losses.

If any businesses do leave. New businesses will pop up and replace them. So job losses aren't going to occur.

I'm not so sure businesses will be scrambling to move into city limits when the wage floor is $15/hr and double that would only be considered decent relative to what fast food workers are pulling in.
 

joeboodog

good people drink good beer
What bothers me about the whole minimum wage argument is that it is a straw man. If you oppose it then you are a heartless bastid. If you are for it then you are a brainless communist. What we should focus on is not minimum wage jobs but the lack of decent manufacturing jobs that have been shipped overseas. We used to make things in this country. The politicians on both sides have sold us down the river with their policies.
 

HBGPreloader

Well-Known Member
Marijuana use is restricted by DOT and federal law for drivers which trumps a state law. Min wage is a state issue with no over riding federal law so UPS would be requited to comply. States can have higher than the federal min wage, just can't be less.
Actually, you're wrong.
At least 5 states have a minimum wage that is less than the federal $7.25 per hour or no minimum wage at all...
http://www.usatoday.com/story/money/personalfinance/2014/05/09/states-lowest-minimum-wages/8870565/
http://www.dol.gov/whd/minwage/america.htm
 

oldngray

nowhere special
Actually, you're wrong.
At least 5 states have a minimum wage that is less than the federal $7.25 per hour or no minimum wage at all...
http://www.usatoday.com/story/money/personalfinance/2014/05/09/states-lowest-minimum-wages/8870565/
http://www.dol.gov/whd/minwage/america.htm

From your link:
By federal law, states may establish their own minimum wage levels; however, if the state minimum is different from the federal minimum, the higher wage rate applies.
 

BrownBrokeDown

Well-Known Member
I'm pretty sure if you looked at the 5 states with a lower minimum wage than the national one, the laws implenting those minimum wages was from before the national wage was increased
 

HBGPreloader

Well-Known Member
Yes I understand the political diatribe quite well. I'm neither Republican or Democrat.

Businesses that have many locations in a specific city, such as seattle, definitely will start to reconsider the cost and benefit of staying or leaving.

What I meant to say in my above post was businesses may leave, but that Does Not mean their will be job losses.

If any businesses do leave. New businesses will pop up and replace them. So job losses aren't going to occur.

I have a degree in economics and finance. My beliefs are not politically based.

As a small business owner, I would strongly disagree.

It's not a question of if jobs are lost in the city, it's how few will remain after the law is fully enacted?

The restaurant and convenience industry, that depend on low wage employees, will see either enact significant price increases or go out of business. Other industries will leave town and new ones will not move into the city to replace them.

For me to cover the cost of a minimum wage ($7.25/hr) employee and still make a profit, I need to charge my clients' ~$65 per hour for this employee's time. At $15 per hour, and all other things being equal, that cost rises ~$76 - about an $11 increase.

While $11 may not result in much of a price increase when you split it over a 100 burgers, packs of gum, widgets or whatever, it rises exponentially when you start talking about a larger group of employees. With 5 employees, that rate would increase by 2/3 and with 10 employees, it would need to nearly double.

So, fast food and convenience aside, any other business within the city is essentially stuck with 2 choices - leave town or go out of business because businesses outside of the city limits will still be competition. However, these businesses won't have to play by the same rules.
 

HBGPreloader

Well-Known Member
From your link:
By federal law, states may establish their own minimum wage levels; however, if the state minimum is different from the federal minimum, the higher wage rate applies.
Check out the footnote on the DOL site...
"Like the Federal wage and hour law, State law often exempts particular occupations or industries from the minimum labor standard generally applied to covered employment. Particular exemptions are not identified in this table. Users are encouraged to consult the laws of particular States in determining whether the State's minimum wage applies to a particular employment. This information often may be found at the websites maintained by State labor departments..."
 

oldngray

nowhere special
Check out the footnote on the DOL site...
"Like the Federal wage and hour law, State law often exempts particular occupations or industries from the minimum labor standard generally applied to covered employment. Particular exemptions are not identified in this table. Users are encouraged to consult the laws of particular States in determining whether the State's minimum wage applies to a particular employment. This information often may be found at the websites maintained by State labor departments..."

Exemptions are usually places that add tips to the wage where it is assumed the total would add up to at least the default min wage. Also prison work is exempt from the min wage.
 

Johnny Paycheck

Speak softly and carry a big stick.
I like hearing what other people nick name their shady parts of town. We have an area called Trent Wood, and it was renamed to Trash Wood.


Sent using BrownCafe App
I grew up in and frequently visit friends in an area of Kansas City called Wyandotte that people call "Crimedotte" or just "the 'dotte."
 

BrownBrokeDown

Well-Known Member
As a small business owner, I would strongly disagree.

It's not a question of if jobs are lost in the city, it's how few will remain after the law is fully enacted?

The restaurant and convenience industry, that depend on low wage employees, will see either enact significant price increases or go out of business. Other industries will leave town and new ones will not move into the city to replace them.

For me to cover the cost of a minimum wage ($7.25/hr) employee and still make a profit, I need to charge my clients' ~$65 per hour for this employee's time. At $15 per hour, and all other things being equal, that cost rises ~$76 - about an $11 increase.

While $11 may not result in much of a price increase when you split it over a 100 burgers, packs of gum, widgets or whatever, it rises exponentially when you start talking about a larger group of employees. With 5 employees, that rate would increase by 2/3 and with 10 employees, it would need to nearly double.

So, fast food and convenience aside, any other business within the city is essentially stuck with 2 choices - leave town or go out of business because businesses outside of the city limits will still be competition. However, these businesses won't have to play by the same rules.

I'm going to call bull:censored2:, and I can back it up.

In the area where I work at there is a Mcdonalds. 2 main streets north, and then 2 main streets west of there is another Mcdonalds that charges roughly $0.40 less per combo meal. The more expensive one is just as busy as the cheaper one.

By your numbers, 6 employees (my wife is in fast food, and from what she has told me 6 sounds about right for 100 burgers depending on the chain/restaurant [some burgers take more time than others]), with you needing to make an additional $11 per hour more per imployee ($66) divided by the 100 burgers (we'll say combos here) that would be a $0.66 increase per combo. Family of 4, that would be a $2.64 increase. It is liable to cost you more in gas to drive to the suburbs for those burgers. It would not noticeably damage business.
 

BrownBrokeDown

Well-Known Member
Call it whatever you want. I really don't care.
One thing for sure though, Seattle will find out one way or another.

Nice rebuttal.

Numbers don't lie. Gas is about $3.70/gallon here, how bad is it in Seattle right now? $4.00? $4.50?

The public's general laziness when it comes to passing up a little extra work/time to save a few pennies don't lie as well. In general people just say "whatever, it's not worth the time/effort to save a few pennies".
 

BrownBrokeDown

Well-Known Member
Think about it another way also.

Family of 4 pays an extra $10 per week to eat out 2-3 times at fast food joints.

Those workers at those joints increasing from $7.25 to $15 per week on a 40 hour week is an extra $310 pretax. Betcha those fast food employees start eating out a little bit more, buying a few small luxeries, which would increase the economy.

Now the only problem is if the employers use this as an excuse to not only increase the price to cover the additional wages, but increase it even more to increase their profits as well.
 
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