There are many people in Maryland who are celebrating the recent announcement that the minimum wage in this state will be increasing. Others, however, may not be as optimistic about this news. Many of the people who fall into the latter category are small business owners who are fearful that the increase will have a negative impact on their bottom line.
However, no matter what side of the argument a person falls on, the fact is that Gov. Martin O’Malley has approved the increase of the minimum wage to $10.10 per hour. The wage will increase gradually and should be in place by July 1, 2018.
Businesses of any size are likely to be affected by the increase, but some argue that the small businesses are the ones who will feel the most impact. Higher hourly wages may not have an enormous impact on a huge company that pulls in billions of dollars a year; but for smaller companies that struggle to make a profit, the fear is that owners will have to raise costs or fire employees to meet the new wage responsibilities.
However, the increased wages are expected to have a dramatic and positive impact on employees who earn minimum wage. Currently, these workers are finding it almost impossible to live on $7.25 an hour (the current minimum wage) which is a serious concern. By increasing the state minimum wage, these workers will be able to enjoy a better living and hopefully have money to spend or save at the end of the day.
The new law will go into effect in phases. Employers must be sure that they are in compliance with the wage increases as the changes happen in order to avoid legal consequences. Lawsuits citing wage disputes can end up being quite costly, especially if they go to trial. Business owners may be wise to speak with an attorney to make sure they are in compliance with federal and state wage laws and explore their legal options if they are not.
Source: The Baltimore Sun, “O’Malley signs Maryland minimum-wage increase into law,” Michael Dresser