Posted on 05/24/2015 8:57:52 PM PDT by 2ndDivisionVet
The Los Angeles City Council this week voted to raise the minimum wage to $15 an hour. But the effective cost for employers likely will spike to nearly $20, at least for full-time workers.
Once all the nonwage costs are added, including payroll taxes, paid sick leave and the big one — ObamaCare's employer mandate — minimum compensation for a full-time worker could rise as high as $19.28 an hour by 2020, an IBD analysis finds. That would amount to a jump of $10.67, or 124%, since June 2014.
Seemingly absent from the minimum-wage debate has been the reality that at $15 an hour, many workers will no longer qualify for Medicaid. Even single parents with two children who worked 40 hours a week would earn more than Medicaid's cutoff (if inflation stays at 2%).
In effect, the L.A. City Council is asking employers to lift their low-wage workers to the middle class and give them health insurance.
Here's how L.A. employers will see their cost of a full-time minimum-wage worker rise by $10.67 an hour from June 2014 to 2020.
Wages And Taxes: Including the $1-an-hour increase last July, wages and payroll taxes will rise $7.54 an hour.
Sick Leave: Three days of paid sick leave that take effect in June will add 19 cents to the hourly wage.
ObamaCare mandate: Employers with at least 50 full-time equivalent workers could face an ObamaCare penalty equivalent to $2.94 an hour in wages for each full-time employee who receives a subsidy to buy health coverage via the state exchange....
(Excerpt) Read more at news.investors.com ...
this will result in less workers on the shifts in the short term and many more robots doing the jobs of humans in the long term.
Sounds like a plan to help pay off the national debt. With all these workers making middle class wages they will be paying middle class taxes!
Who would want to do business in LA now, where you basically have to pay double for low-skilled workers (not including the other wacky only-in-California nonsense that is mandated in that state)?
Enjoy automation and the unemployment line, Angelinos.
In & Out will have to charge $15 for a basic burger.
We all know minimum wage hikes increases unemployment, but if liberals keep raising the minimum wage, eventually more people will become tax payers moving out of the democrat base.
Just exactly the result the libs want.
This will just lead to more illegals working under the table and still getting government benefits.
If liberals really loved poor people they would raise the minimum wage to $30 per hour - that way everyone could enjoy the good life.
$20 an hour for showing up.... plus the bribes to get them moving..
should raise the price of TACOS...
In N Out pays $10.50 an hour to start. But you are expected to work hard the whole time you are at work. I don’t think many of the people who are demanding $15 an hour other places would be able to cut the grade there. Most go on to higher paying jobs. People who are willing to work hard tend to do well also at higher skilled jobs. I think cooks might work their way up to $15 per hour but they guy I knew got a job at ~40k when he graduated from college.
So the cost of the mandate can’t be taken from the salary?
In-n-Out will be welcome to expand into the NW PA market... I would even fund the pilot franchise. There is no serious competition as far as hamburger chains here.
You couldn’t go half wit at IN N Out as it’s an open area and everyone can see the guys at the back unlike mCd’s or BK. There are no dividers especially here in Hollywood.
I went to an In and Out recently and their great double burgers were $3.60, cheaper than the other fast fooders who pay less to their workers.
The stupid is getting really thick in that state. They will be bankrupt on every level from eemployee’s wages to welfare programs to illegals sucking up even more of their resources at this rate...
They need to learn that you can’t appease the unappeasable. The cycle will be never ending because that’s just the way it is with the unreasonable and illogical low IQ / info bunch.
I didn’t see anyone mention the unions. Aren’t their contracts pegged to the minimum wage? Will this cause wage increases beyond minimum wage workers?
Yeah I think the unions get a higher rate based on the minimum wage,...so everything else will go up.
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