WASHINGTON – The D.C. Council approved unanimously to raise the city’s minimum wage to $15 per hour, and Mayor Muriel Bowser announced she will sign the measure, the Washington Post reports. The increase will occur over four years.
Washington, D.C.’s support of the higher minimum wage comes rather quickly after California and New York both agreed to raise their state minimum wage to $15 per hour by 2022. Connecticut, New Jersey and Massachusetts are also debating similar moves.
The nation’s largest income gap between the highest earners and the lowest ones happens in the District, according to a recent analyzation of federal data. “When I see how much it costs to live in Washington, D.C.—and that cost is only going up—we know that it takes more money for every household to be able to afford to live,” said Bowser. “There are families working day in and day out, sometimes two or three jobs but barely making ends meet.”
However, opponents pointed out that the large wage hike (DC’s current minimum wage is $10.50 per hour) could lead to layoffs, hour reduction or more automation at businesses. “D.C. is only a few square miles. It will be relatively easy for businesses to relocate,” said James Sherk with the Heritage Foundation. “People can stay in hotels in Arlington, they can go out to dinner in Alexandria. .?.?. There could be a migration of jobs from the District.”
Meanwhile, economists said they can’t predict what a higher starting wage would do for the workers and businesses. “The bottom line is, we don’t know what impact this is going to have because we don’t have data on changes of this magnitude, this rapidly over time,” said Michael Lynn, a Cornell University professor who studies minimum wage and the impact increases have. “The question is how tolerant and resilient businesses will be, and my fear is that this is dangerously fast.”
Minimum wage is just one of many labor issues affecting the convenience industry in the coming months and years. The April issue cover story, “Labor Pains,” takes a look at the six labor issues retailers should be watching.