Mid-Year Minimum Wage Hikes Strike Again
18 States and Localities will raise wages on July 1st
Publication Date: June 2018
Topics: Minimum Wage
Washington D.C. – Today, The Employment Policies Institute (EPI) is highlighting the 18 minimum wage increases set to take place on July 1, 2018. These increases include two states, the District of Columbia, and 15 other localities that will pose a threat to job opportunities and businesses across the nation. You can view the full list of increase in the below table.
California alone has ten increases. EPI recently released a study by economists from Miami and Trinity Universities which found that when California’s statewide $15 minimum wage is fully phased-in in 2022, roughly 400,000 jobs will be lost. Additionally, researchers at Harvard Business School and Mathematica Policy Research looked at San Francisco’s $15 minimum wage law and found restaurant closures associated with the increase in labor costs.
Minimum wage hikes lead to consequences such as business closures, lost job opportunities, or reduced hours. EPI has been chronicling the consequences of dramatic minimum wage increases at Facesof15.com. The site now includes over 100 stories of job loss, reduced hours, and other consequences as a direct result of minimum wage increases.
One of the unintended results of minimum wage hikes is the reduction in teen employment opportunities. Read EPI’s recent op-ed explaining the role of a rising minimum wage in declining teen labor force participation.
EPI’s managing director, Michael Saltsman, released the following statement.
“Business owners and employees will face a bummer summer thanks to the consequences of new wage mandates. Empirical evidence shows that wage hikes reduce workplace opportunities, either by reducing the number of jobs or by forcing businesses to close.”