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The law affects some of the biggest restaurant chains — McDonald's, Pizza Hut, KFC, Subway, Starbucks — and local franchisees have raised alarms about the increase in labor costs. Black or African American women and white women have the highest rate of employees earning at or below federal minimum wage, at 1.8% of hourly workers. The least likely of all genders and races to make the minimum or below are white minimum wages men, at 0.7%. The federal minimum wage is $7.25 per hour for employees who are covered and nonexempt. States and cities can establish their own minimum wages, and many have mandated more than double the federal minimum. Other states have requirements below $7.25, which are only applicable to employees who can’t earn the federal minimum because they’re not covered under the Fair Labor Standards Act.

California fast-food workers to see a $20 minimum wage

While 2.9% of hourly workers ages 16 to 24 earn $7.25 an hour or less, 1.1% of hourly workers ages 25 to 34 earn the minimum wage. Less than 1% of hourly workers older than 35 years old earn the minimum wage. The minimum wage for employees who receive tips is $2.13 per hour.

The debate moderator asked Rep. Lee about the impact on small businesses. She responded that she previously owned a small business, and therefore knows that her minimum wage proposal wouldn’t harm small businesses. However, Rep. Lee started her business in 1987 when California’s minimum wage was $3.35 (or $9.35 in today’s dollars). California’s minimum wage environment in 1987 was very different from today’s. University of San Diego economics professor Alan Gin said there might be some price increases, but overall, workers will be better off. The Service Employees International Union (SEIU) called it a culmination of 10 years of work.

Pay Equity: What It Is And Why It’s Important

The amount of tips plus the $2.13 must reach at least $7.25 per hour. In an April 2021 Pew Research Center poll, more than six in 10 respondents (62%) said they support raising the minimum wage to $15 an hour. Most – but not all – employees are paid according to federal regulations. According to the Department of Labor (DOL), the minimum wage for tipped employees is $2.13 per hour in direct wages. Washington has the highest minimum wage of any state in the country. The Golden State follows with a minimum wage rate of $15.50 per hour.