Minimum Wage in Florida essay

MinimumWage in Florida

Theissue of the minimum wage has been one of the most debated areas inthe US. This is based on the fact that, minimum wage significantlyaffects various sectors of the economy, especially as far as thewelfare of employees is concerned. Minimum wage refers to the amountof money that an employee should be paid per hour, and the fixedminimums are legal stipulations, failure to which legal hurdles maynot be evitable (Manitoba1).This paper will candidly elaborate why raising the wage bill from thecurrent $8.05 to $15 an hour in the State of Florida will not haveany significance both in the short and long-run.

TheFlorida Minimum Wage Act, enacted on May 2005, offer the policieswhich concern minimum wage. Important to note, it is not alllabourers who receive the minimum wage, but rather only those who areclearly spelt out in the policies, and more particularly in theFederal Fair Labour Standards Act.Theprovision is clearly written down in section twenty four, article tenof the state constitution.

Anemployer who fails to implement the stipulations of the policies putin place is legally responsible for their deeds and can be sued in acourt of law. Again, it is worth noting that minimum wage is notfixed and may change from time to time, based on various parametersas outlined in the policies existing in the particular state(Belman and Wolfson, 3).This explains why different levels of minimum wage may be inexistence in the various states within the United States of America(Quinton,1).

InFlorida, the adjustments in the minimum wage are made in every year.In as much as it has kept increasing, the dynamic nature of inflationis unpredictable and as such, it would be a possibility that areduction can be witnessed. The adjustments are normally based on theconsumer price index, and which is mainly affected by the economicsituation and the inflation levels. In this year, the amount ofminimum wage has not changed as there has been insignificant changeof the inflation rate, and thus, an automatic increase has not beentriggered. However, over the years, the amount has been steadilygoing up. At the moment, the rate is still at 8.05 dollars per everyhour worked.

Inthe US, the laws are coherent and at no single time should they beconflicting. Every state has its own laws whereas the federal lawsrun across all the states. Harmonization I regards to the minimumwage laws has been made, and boundaries clearly marked. When theamount stipulated by the federal states as the minimum wage goesbeyond that which is stipulated by the state laws, then thestipulation of the federal laws stands. However, when the statestipulates an amount that is higher than the provision of the statelaws, it automatically supersedes the federal laws. In other words,the highest amount stipulated, whether by federal or by the statelaws stands and supersedes the one with less amount.

Increasingthe minimum wage is not always the best solution towards minimizingpoverty or even improving the financial muscles of the employees(Sabia, 312 ).Just like the popular English jargon states, it is quite wrong tojudge any move by its intentions but should rather be judged by theyields and both the long term and short term outcomes. Just like ithappens in the economy, a period of recession and high inflationrates cannot be resolved by producing more currency for a currently.Instead, it is likely to make the situation even worse, increasingthe inflation rate by multiple folds. In equal measures, the minimumwage may be increased, just like in the case of the state of Floridawho proposed on increasing the minimum wage to 15 dollars per hour,but the outcome may turn out to be very different from theintentions. Rising the amount translates to increasing the amount ofmoney that is in circulation within an economy. As a result, the costof commodities may go higher, whereas the rate of inflation may beaffected to the negative. When the circulation of money is higher,the inflation rate goes higher and as a result the cost of livingalso increases(Wolf,1). In this sense, the increase in the amount of minimum wage may notnecessarily translate to the intended objective.

Whilethe move may be aimed at reducing the level of poverty, it may turnout to reduce the employments. This can happen in two main waysfirst, the cost of production increases. When the minimum wage isincreased, the employers incur more expenses to pay them. The cost ofproduction per unit rises, and therefore minimizes the sales. Thedecrease in sales will absolutely lead to lower profits and mayprompt some of the employees to be relieved off their duties.Secondly,the increased cost of production due to the increase in the paymentsmade to the personnel may also prompt the employees to opt forsubstitution. For instance, some tasks can be automated throughcomputer systems and technology. This step will lead to loss of jobs(Perkins1).

Inlong term, the increase in the amount of minimum wage may lead toloss of many jobs. The workforce reduction will on the other handreduce the revenue of the state and eventually the national outputwill be less. With the reduction of the employment vacancies, theeconomy may be adversely affected, with more cases of poverty beingrealized. However, it is not all the employees who will be laid offand therefore, those who will remain will have an economic advantages they will be earning more. Unfortunately, this does not save thesituation as their gains will be less than the losses that will bemade through loss of jobs. Therefore, there is no need to raiseminimum wage in the State of Florida.


Belman,D L and P Wolfson. “The Effect Of Legislated Minimum Wage IncreasesOn Emplyment and Hours: A Dynamic Analysis.” Labour24.1(2010): 1-25.

Manitoba.What is Minimum Wage?. 2016. Web. Available at,minimum-wage,factsheet.html

Perkins,Olivera. $12vs. $15 minimum-wage debate continues between economists, experts, Web.

Sabia, J J. “Identifying Minimum Wage Effects In State Panels: EvidenceFrom The Current Population Survey.” IdustrialRelations48.2 (2009): 311-328.

Quinton,Sophie. States Battle Cities Over Minimum Wage. Huffingtonpost.

Wolf,Connor D. The $15 Minimum Wage Battle Spreads To Florida. TheDaily Caller.