KEY POINTSDelaware’s minimum pay rate may increase to $15 per hour by 2025 once a new law is signed by Gov. John Carney.The state is the latest to join the push for a higher pay, even as efforts to change the federal minimum wage have stalled in Congress.While Delaware’s move isn’t expected to accelerate the trend toward a higher national rate, some small business owners say it’s a positive change.
When Kristen Deptula and her husband bought the Canalside Inn in Rehoboth Beach, Delaware, in October 2019, they had no idea the coming summer season at the shore town would mostly be a bust due to Covid-19.The innkeepers were able to access federal funding through the Paycheck Protection Program to help keep them going.Deptula also credits another decision — paying their staff a $15 per hour minimum wage — with helping the business transition through the pandemic.That wage is well above the $9.25 per hour currently mandated by the state. But Deptula, a Washington state native, had seen the higher rate succeed in Seattle.
Deptula also credits another decision — paying their staff a $15 per hour minimum wage — with helping the business transition through the pandemic.That wage is well above the $9.25 per hour currently mandated by the state. But Deptula, a Washington state native, had seen the higher rate succeed in Seattle.More from Personal Finance:Early end to extra benefits not driving job searches, data suggestsHow returning to work in retirement will impact future financesStates end jobless benefits for some 400,000 people“It was just something I thought was a good practice,” Deptula said.Now, Delaware is poised to gradually move toward a $15 per hour state minimum wage by 2025 once Gov. John Carney signs a bill passed by the state’s legislature earlier this month.The move comes as a push to raise the federal minimum wage to $15 per hour, from $7.25, hit a roadblock when it was not included in the final American Rescue Plan Act. It was, however, approved by the House of Representatives.Meanwhile, other states have increased their minimum wages. Florida is in the process of gradually going to a $15 per hour minimum wage by 2026 after voters approved a ballot measure last November.
Currently, 22 states have higher minimum wages than Delaware.Yet it remains to be seen whether the Diamond State’s expected move to boost that rate could help prompt changes on the federal level.“I don’t think the Delaware vote changes the dynamic a ton,” said Michael Saltsman, managing director at the Employment Policies Institute.‘Vital tool’ for recoveryStill, groups like Business for a Fair Minimum Wage, a network of business organizations, owners and executives, applaud the Delaware decision.
When the cost of living increases, it makes it so that people cannot even afford the basics, said Alissa Barron-Menza, vice president at Business for a Fair Minimum Wage. The bottom line: Businesses need customers who can afford their products and services, she said.Making ends meet on just $9.25 per hour in Delaware can be tough, according to the Massachusetts Institute of Technology’s living wage calculator. It shows that an individual worker in that state with no children must earn at least $15.32 per hour to make a living wage to cover all of their basic necessities.
News source :- CNBC