In his State of the Union Address this month, President Obama called for a much- needed increase to the federal minimum wage. Almost four million American workers are paid at or below the minimum wage of $7.25 an hour for their work, adding up to about $15,000 per year, per person for a full-time, 40 hour per week job. This doesn’t come close to covering the cost of living for a single person, let alone a family.
In the food retail sector, unfortunately, raising the minimum wage might not make much of a difference to those employees that are most vulnerable. Grocery stores and other food retail outlets are already avoiding minimum wage and benefit requirements for many workers by keeping them in part-time jobs. Realistically, if a worker can’t get scheduled for 40 hours per week of work, then minimum wage requirements cease to be effective in ensuring an annual income floor. Read more