From The Editor | June 23, 2016

Are Your Ready To Double Your Wages?

Matt Pillar

By Matt Pillar, senior executive editor, Innovative Retail Technologies

Double Retail Wages

It’s commonly held that the maintenance of a retail workforce consumes a double digit percentage of total revenue—in some cases north of 20 percent. In foodservice and hospitality segments that figure can climb to 30 percent.

It’s a massive line item that, for many U.S. retailers, is getting bigger fast. Several new state and municipal laws have raised the minimum wage significantly from the federal standard of $7.25 per hour that’s been in place since 2009. Rallying behind ongoing union efforts and the influence of the Bernie Sanders campaign’s call for a “living wage” of $15.00 per hour, legislators across the country are taking action:

  • In 2014, initiatives to raise the minimum wage in Alaska, Arkansas, Nebraska and South Dakota were successful.
  • In California, a $15.00 minimum wage law was enacted in April of 2016 after a popular minimum wage initiative qualified for the November election. That law goes into effect by 2022 for large employers and 2023 for small employers.
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