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2017 Minimum wage trends

We have all heard at one point or another that the minimum wage for employees with increase exceedingly in the near future. The questions are though, how much will the minimum wage increase next year and where will the increase happen first? To be an operator in this industry we know the importance of running a lean shift and the importance of planning not only our schedules, but the price of food, drinks and in some instances administrative fee’s.

National news suggests that the future of the federal minimum wage of $7.25 per hour remains uncertain and restaurant operates must prepare to increase their staffs pay once the new year hits. Certain states have already reported a hike in their minimum wages to $15 per hour starting promptly on January 1st, 2017. The $15 per hour rate has already rolled out in states such as New York and California.

The rate of $15 per hour of course seems high and as operators we question why are we paying all of our employees such a high hourly minimum wage, especially those who are tipped? The answer, wages will be based off of non-tipped employees. This means a tipped hourly employee will see an increase in pay, but it will not be as high as those not tipped.

Now, we do understand that any sort of wage increase is hard to take at first take some number crunching to figure out. But, it is possible and it will help your employees live a better life. All increases are based of the the price to live the state in which you operate in. If you are in a state with exceeding costs, chances are you will be paying your employees more. If you are in a state where the cost of living is low, you an expect a lower increase.

We have seen certain establishments increase their pay rates prior to the state mandates and the reaction have been mixed reviews. Obviously employees greatly appreciate it, you may have a lump in your throat the first time you pay everyone and the businesses around you may hate you. This is because, other local businesses may then feel the pressure to pay their employees the same way. It is important to know that if you think it is right, DO IT. Paying your employees what they are worth is absolutely a necessity and if done before the mandate chances are they will respect you and work even harder.

2016-12-24 00:00:00
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