Florida’s Vote for $15 Wage Expected to Inspire Other States
Delaware and other states to pursue higher minimum wage next year.
Dec 01, 2020 | 2 min read
TALLAHASSEE, Fla.—Last month, more than 60% of Florida voters approved a $15 per hour minimum wage that will go into effect in increments through 2026. Now, the measure’s success has encouraged proponents in some Republican-controlled states to revive efforts to get wage increases on their ballots.
As NACS Daily reported in November, Florida’s current minimum wage is $8.56 an hour, and other states—Maryland, New Jersey, Illinois and Connecticut—are also in the process of raising their minimum wage to $15.
According to the Wall Street Journal, Florida’s approved wage hike is notable due of the state’s conservative leanings and its large tourist industry, which employs many low-wage workers. More than half of all U.S. states have approved minimum wage increases since 2014, but $15 is a big jump from the $7.25 per hour federal wage that’s been in effect since 2009. Most of the other seven states that have set a path to a $15 minimum wage are Democratic strongholds, such as California, Illinois and New Jersey. In Delaware and other states with Democrat-led legislatures, advocates plan to pursue $15 minimum-wage bills next year.
Proponents say that boosting the minimum to $15 would help eliminate poverty and narrow income inequality. Opponents point to studies showing that increasing the minimum wage can cost jobs, depending on how much it is increased when compared with a state’s prevailing wage level, cost of living and labor demand. That could be a concern for both voters and lawmakers at a time when the pandemic has put millions out of work, especially in states where most restaurant and retail workers earn less than $15 an hour.
“A sharp increase in labor costs for many small businesses, particularly those in rural areas, could be devastating,” said Matthew Haller, senior vice president of government relations, International Franchise Association. “Especially during the pandemic, when they are already stretched and without customers coming in the door.”
Through October, the U.S. job market recovered 12.1 million of the 22 million jobs lost in March and April when the pandemic forced widespread shutdowns. The severe job losses were in hospitality and foodservice. According to the nonpartisan Congressional Budget Office, raising the national minimum wage to $15 an hour would eliminate 1.3 million jobs but would lift the same number of people out of poverty.
Labor costs Florida
