President Barack Obama's proposal to increase the U.S. minimum wage by 24 percent faces long odds in Congress, where Republicans took aim at it minutes after the State of the Union address. That might not matter: beyond Capitol Hill, some states took action long ago.

Nineteen states and the District of Columbia already require employers to pay more than the $7.25 an hour required by federal law, according to the U.S. Labor Department. At least eight more, including New York and New Jersey, are considering legislation to join them. On Jan. 1, Washington state, home to the highest minimum wage in the nation, raised its floor to $9.19, more than the $9 an hour proposed by Obama.

The patchwork of laws has offered new insight into the effect of higher wages on jobs. Some economists are challenging the traditional precept that as the price of something goes up, demand goes down, at least when it comes to labor.

Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.

Your access to unlimited Treasury & Risk content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Thought leadership on regulatory changes, economic trends, corporate success stories, and tactical solutions for treasurers, CFOs, risk managers, controllers, and other finance professionals
  • Informative weekly newsletter featuring news, analysis, real-world case studies, and other critical content
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical coverage of the employee benefits and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.