More Money....More Problems

On April 4 of this year, major legislation was signed into effect in New York. Minimum wage has been raised to an all-time high of $15 per hour. Groups like the Fight for $15 are very pleased with these results. They have gone across the nation to voice their concerns of workers in various industries not making enough money to support themselves or their families.
Rather than seeing the new minimum wage right away, there are scheduled increases to happen over the next several years. Throughout the entire state, there are different schedules to take place depending on location and business size. It may be a bit confusing at first but check out the chart below to see when these changes are to happen.

 *Photo Courtesy of The New York TImes

Now let’s not forget, while a change like this is a step in the right direction for employees either currently in the workforce or those who will enter soon, it also creates issues for employers you should be aware of. Not all big and small companies are equipped for a change like this. Paying higher wages will cause budgets to be adjusted and certain cuts are bound to happen.
Some quick fix solutions could include some employers decreasing their staff or increasing prices for products and services just to make ends meet. Everyday there is new technology emerging that is made to help employers with their simple and automated tasks that can end up replacing existing staff. For example, certain McDonalds around the city have started to use the cashier kiosks instead of an actual person to take your order. Also, if you’ve walk into a Chase bank lately you have probably noticed the lack out bank tellers and the increased number of the new state of the art ATM’s.
If the minimum wage rise causes more issues to an employer than expected, a drastic solution can be the company moving to a different state where there is no minimum wage increase. In addition, certain departments can even become outsourced causing people to lose jobs.
Having you ready for the upcoming years will be essential for your growth. In 2018, the starting pay for ENTRY level positions will begin at $15 an hour. What we may consider an entry level positon now may not exist in the future. Employers will begin to soon raise the qualifications needed for these new “entry” level positions. Higher learning and experience will be key when employers are considering hiring staff.

Stay connected for more news, updates, tips and tricks for your transition