How Will a Higher Minimum Wage Affect Your Restaurant?
By Jenn Mar
If you follow the news, you’ve probably heard about the new minimum-wage increases in 20 states and 20 cities. At the start of this year, millions of American workers, including servers and cooks, saw a bump in pay due to the minimum-wage increases. It’s possible your restaurant is affected. If you’re not totally sure how the wage hikes will affect your business, we’ve created this primer to help you better understand the changes.
Background on the “Fight for $15” movement
If you want to understand what led to the new minimum-wage laws, it’s important to know about the “Fight for $15” movement. Seven years ago, a group of fast-food workers gathered in New York City holding signs with big block letters: “FIGHT FOR 15.” They had reached a breaking point, struggling to meet their basic needs with earnings as little as $7.25 an hour.
For the next three years they formed picket lines outside of restaurants like McDonald’s and Taco Bell, demanding a $15 minimum wage. While their demand seemed a tall order, the grass-roots movement didn’t fizzle out. Instead, the “Fight for $15” movement rippled out and pushed up the pay in some parts of the country.
What is the federal minimum wage?
As of January 1, 2019, the federal minimum wage is $7.25 an hour.
How many states are increasing the minimum wage in 2019?
Twenty states and 21 cities have increased the minimum wage this year (you can see a full list below; learn more about each state mandate here). As a result, over 5 million workers across the country will get a bump in base pay.
Are wage increases effective immediately?
The new state minimum wages were ushered in on January 1, 2019. But for cities such as New York and Seattle, which agreed to $15 per hour, the new wages will be pushed up in increments across several years, giving business owners enough time to transition. For example, New York City restaurants won’t be required to pay workers $15 per hour until at least 2021.
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