The Domino Effect of a $15 Minimum Wage

02/05/2021

In its analysis of the Biden administration’s proposed hike to the federal minimum wage, OMA Connections Partner Fisher Phillips writes that “employers should start planning now for at least some increase, whether to $15 per hour or some other (hopefully more reasonable) rate.” The firm adds: “Keep in mind that an increase in the minimum wage rate to $15 would also increase the overtime premium rate for hours worked over 40 to a staggering $22.50 per hour (currently $10.875 per hour). Moreover, an increase to the minimum wage rate is likely to put upward pressure on wage rates for other jobs.” Finally, at $15 per hour, “an employee who works 40 hours per week would earn $600. This is just $84 less than the current minimum salary threshold for exempt employees, which would likely prompt regulatory increases of that rate as well.” 2/2/2021

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