Should the minimum wage be increased for Rhode Island food service jobs?

Posted on December 8, 2014

Some people think the minimum wage should be hiked up for Rhode Island food service jobs, among other jobs, according to a Careerbuilder survey.

The survey found that a strong majority of employers (62 percent) think the minimum wage in their state should be increased, including 58 percent of company senior leaders.

While most employers would like to see a hike in their state, only 7 percent think a minimum wage of $15 per hour or more would be fair. Nine percent don’t think there should be a set minimum wage. Nearly half (48 percent) think a fair minimum wage should be set between $10 and $14 per hour.

• $7.25 per hour (current federal minimum): 8 percent
• $8.00 or $9.00 per hour: 29 percent
• $10.00 per hour: 29 percent
• $11.00-$14.00 per hour: 19 percent
• $15.00 or more per hour: 7 percent
• No set minimum wage: 9 percent

Among employers who want an increase in their state, improving the standard of living of workers led all business-related reasons for their support. A majority say a higher minimum wage helps the economy and helps them retain employees.

• It can improve the standard of living: 74 percent
• It can have a positive effect on employee retention: 58 percent
• It can help bolster economy: 55 percent
• It can increase consumer spending: 53 percent
• Employees may be more productive/deliver higher quality work: 48 percent
• It can afford workers the opportunity to pursue more training or education: 39 percent

Employers who do not support a minimum wage increase in their state cite several reasons related to negative effects it may have on their business.

• It can cause employers to hire less people: 66 percent
• It can cause issues for small businesses struggling to get by: 65 percent
• It can cause hikes in prices to offset labor costs: 62 percent
• It can mean potential layoffs: 50 percent
• It can lead to increased use of automation as a replacement for workers: 32 percent
• Wages for higher-level workers may suffer and create retention issues: 29 percent