A minimum wage is the lowest lawful remuneration that an employer can pay their workers. It is the rate below which an employee might not sell their labour. The concept of minimum wage was formulated back in 1948 with a motive to protect workers against unduly low wages. However, over time, its importance considerably increased as the concept was expanded taking multiple things into account.
Currently, the counter-wide minimum wage rate of the US is $7.25 per hour. But, some states have their own minimum wages, codified either in a state statute or in the state’s constitution.
Before going into the depth to know why the minimum wage is important, let me remind you a fact that is if your employer is harassing you with your minimum wage or is purposely creating fuss to restrain your rights, make sure you reach out to workers comp attorney in Oconomowoc to guidance and assistance.
Let’s dive in!
Being able to earn an amount that fills in one’s basic needs boosts the zest to work harder.
This indeed has nothing directly connected to productivity rather has a psychological impact on a person. A pay that helps you cover the cost of living helps you maintain morale. Which as a result motivates one to work harder, increasing their productivity.
Reduces Income Inequality
When each employee is paid based on the minimum wage decided by the company or the nationally prevailing one, it helps to reduce income inequality.
It is even more effective when a high minimum wage is paid to the employees. This is so because the workers are relieved that they aren’t paid less than the others despite putting in an equal amount of effort.
But at times, companies might not pay accordingly despite the governing rule. In such a scenario make sure you reach out to a workers comp attorney in Oconomowoc for fair treatment.
Spurs Economic Growth
Paying minimum wage is important because it spurs economic growth. When a person can earn, it indirectly attests that they can spend as well. This adds to the market demand which ultimately increases business revenue, supporting economic growth.
Facilitate Education and Self-Improvement
The minimum wage ensures a definite source of money generation that can be invested in education and self-improvement. This not only helps the workers to increase their productivity but also improves the attractiveness of the country’s labour pool. Moreover, a more educated workforce promotes innovation and also the germination of the number of small businesses.
Stimulates Worker Retention
The minimum wage laws even benefit individual businesses. Hence the workers are less likely to switch to other high-paying jobs which not only reduces the company’s turnover but also the employee retention costs.
Researches even show that paying minimum wages even helps with employment generation. While businesses either raise this rate or reduce the working hour to tackle the labour costs. This benefits both employees as well as the business.
However, just remember a fact that if you aren’t being fairly treated when it comes to availing the benefits of minimum wage, contact a workers comp attorney in Oconomowoc today for help.