Nearly a decade since the last increase of Minimum Wage
Here’s what you need to understand
The last minimum wage was raised in 2007. A time when the US economy was on the verge of economic recession. It generated a lot of reactions internally, politically and economically. As politicians, analysts and media scramble around to speculate on the viability of Washington’s choice in increasing the minimum wage. Especially on its short, medium and long term effects on labor market. For most companies,the decision to increase the minimum wage from $5.15 to $7.25 was a huge burden. With some analysts like Jeffrey Clemens and Michael Wither blaming the wage increase responsible for a substantial portion of the employment decline that happened back then.
A Time for another adjustment of Minimum Wage?
Back to 2018, supporters of the increases say it will help millions of working class Americans. On the other hand, opponents fear increased unemployment and jobs displaced by automation. Nevertheless, we need to take note that now the US economy in 2018 is in a totally different condition. Economy is currently booming, unemployment rate even fell to a record low of 3,7%. These positive indicators are followed by big corporates like Amazon who have increased their minimum wage to $15 . Thereby prompting many other big retailers from Walmart to Costco to increase their minimum wage as well. It seems that in our near future. The chances of increase in the Federal’s minimum wage is unavoidable.
Labor Laws and Minimum Wage
As SMBs and companies are bracing for the expected increase in minimum wage. It is important for companies to understand the laws and its significance. As they hold heavy consequences and penalties for those who do not follow it. To gain a brief understanding of the terms & what should be followed. We suggest you to understand the Fair Labor Standards Act on Minimum Wage which are set by the United States department of labor.
No one is perfect, and so are companies. Let’s take a look at some mis actions that companies did. Some main examples include; 1. Failing to take pay on overtime 2. Disregarding the minimum wage set by country states. Other examples are; failing to compensate workers on travel hours made for the purpose of work, etc. As employers, it is easy to make unintentional mistakes. Especially when the job nature itself requires a lot of travel and unexpected degrees of changes. This is why, be it intentional or unintentional. It’s easy for companies to end up in a Fair Labor Standards Act lawsuits.Some companies have ended up paying up for settlements . Some prominent examples are:
- Fed Ex have violated Fair Labor Standards Act, ending up in settlements of $240 million.
- JP Morgan agrees to pay $16.7 million settlement in overtime lawsuits.
- Prudential reached a $12.5 million settlement in Employment action class lawsuit.
Follow the Minimum Wage rules and stay safe
Though violations might sometimes happen due to accident nor lack of information. Labor wages and current minimum wages information must always be noted & implemented. And these requires HR managers & Employers to take a pro-active approach in educating themselves. Be it through online, or finding a HR consultant who is able to help them out. Thereby saving millions of dollars that might occur due to lawsuits. This is why Albam is here to help you.
Why make a guess when you can be sure? Be it from calculating your employees’ working hours, payroll settlement to even settling legal disputes that might rises due to overtime & other factors. Our Albam mobile application provides cutting edge features. Features that are tailored for the needs of SMBs from Time Attendance management to customizable work schedules. What’s even greater is that the solution even came in with an optional Albam device that is provided for FREE*(Shipping costs excluded. Try it for yourself now, what’s there to wait?
Albam is an all in one Human Resource solution system that allows you to manage every aspect of your staffing needs. From attendance to automated payroll. Backed by cutting-edge cloud computing system, clock in anywhere and anytime to access, personalize and download your data.
Join more than 40,000 corporates that have trusted Albam in more than 20 countries worldwide now. Time attendance & Payroll management has never been this easier.