As you have seen from module 2, minimum wage rates have not increased in over a decade. As of 2019, the federal government will not offer contracts to companies who pay lower than $10.60/hour. Minimum wage rates are bound to increase in the near future and my question is how should a bump in minimum wage affect those who making more than minimum wage. Suppose the minimum wage does increase to $10.60 (from $7.25) – which is over a 45% increase in wages. Should all employee's receive a wage boost?

For example, someone started working two years ago at 7.25 and through raises now earns $9.50/hour. Should this employee only go to $10.60 like someone who just started yesterday? If someone started at $9/hour two years ago and now earns $10.90 through merit raises, should they be left out of the increase in wages altogether? This employee used to be more valued - $3.65/hr (10.90-7.25) than a new employee. Are they only $0.30 more valued now? Should they get a 45% raise (up to $15.81)? Would you lose these more experienced workers if you don't up their pay?

What about the 20 year manager making $50,000/year and the lowest person at the company got a raise thus reducing the gap of “seniority/job experience” value ?

All in all, should only the least experienced be the only benefices? On the flip side, should everyone get a 45% wage boost thus only accomplishing a 45% inflation! Don’t forget, no one wants to be left out and feel unappreciated.

In addition to your rationalization for the above question, as the owner of your local McDonalds franchise, state how you would adjust the pay of the following employees if new $10.60 an hour minimum wage law was enacted. Explain your rationale to each of the employees:

Abbey -1 year experience started at $8, now making $8.90/ hour
Barney -2 years experience started at $7.80, now making $9.50/hour
Joe - 5 years experience started at $7.50, now making $11.10/hour
Susan - 5 years experience as manager started at $9, now making $15/hour