Re:Amazon raises minimum wage to $15 for all US employees
by fma on Tuesday October 02, 2018 @12:20PM
(#18123038)
Just a clarification, that "small shop" would have to have over $500,000 in sales in order to be required to abide by minimum wage laws.
"For most firms, a threshold of $500,000 in annual dollar volume of business applies to be covered (i.e., the Act does not cover enterprises with less than this amount of business)."
I'd also argue that definition of "small shop" $500k threshold should change between California and Alabama.
Re:Amazon raises minimum wage to $15 for all US employees
by jyounker on Tuesday October 02, 2018 @12:21PM
(#18123052)
If you lower the federal payroll taxes then won't companies correspondingly lower wages for new employees?
Re:Amazon raises minimum wage to $15 for all US employees
by dragonwriter on Tuesday October 02, 2018 @12:44PM
(#18123313)
Not if they are competing for employees; but, yes, if the labor market for particular forms of labor is a monopsony, you are stuck with the inverse of monopsony rents.
Of course, if that's a significant general problem rather than a narrow edge case, the entire idea of market economics is a sad joke.
Want to give low wage people an actual pay raise? Cut federal payroll taxes since those affect workers equally as they are percentage based.
A $10 wage in Alabama is far more valuable than a $15 wage in Sunnyvale. And conversely, a $15 minimum in Alabama would be more catastrophic to a business than the same minimum in Seattle.