President Obama Announces Plans to Increase Minimum Wage Nationwide

In his State of the Union address, President Obama plans to unilaterally increase the minimum wage from $7.25 an hour to $10.10, a substantial amount.  This increase is widely viewed as necessary to push families above the federal poverty line. In a country as wealthy as the United States, a citizen working one job at minimum wage does not make enough to live on and President Obama feels that should change.

The state of Maryland, ahead of any federal change, has decided to increase their minimum wage to the $10.10 that Obama proposed.  They are waiting for Gov. O’Malley (D) to sign this into law following the final vote by the Maryland House of Delegates.  Connecticut was the first state to pass the legislation and will increase the minimum wage by Jan. 1, 2017 while Maryland will be ready by July 1, 2018.  An immediate jump in wages won’t happen because businesses need time to adjust for the change. However, wages will be increasing incrementally until they reach the full proposal in 2018.

Critics say that raising the minimum wage will result in fewer jobs and an increase in prices for goods and services as well as make businesses less likely to consider relocating in states that have raised their minimum wage.  Supporters have a different view and see the wage increase as a tool to help those in poverty move ahead and be able to provide for themselves.  Obama hopes that Maryland’s action will prompt Congress to act on raising the minimum wage at the national level.

If you are experiencing issues regarding minimum wage, contact Henrichsen Siegel, P.L.L.C. to discuss whether you are being paid fairly.

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