So, the MN small business owner with enough cash for two $7.25/hr. unskilled teenage workers at his shop gets told he now must pay $9.50/hr. He decides to get by with one $9.50/hr. unskilled teenage worker. How has the minimum wage hike helped the unemployed teen?
A MN small business is in the habit of hiring people at the $7.25 minimum wage. After 9 months of proven work and acquiring skills, the owner has enough cash to offer a raise to $8.50. After a year and a half, some workers get a further bump to $9.50, since their skill and output allows the boss to afford it. Everyone at the job understands that sound work and output, over time, bumps you up the levels. Now, MN tells the business owner that his lowest level unskilled workers must get what he used to pay his most experienced help. How should he address the situation if his payroll is held at the same level by the economy?