Across United State of America, the New Year means another pay bump for minimum wage and for Arkansas, the minimum wage is set to increase this coming Sunday.
It is indeed a good news for workers but at the same time business owners have to figure out how to pay it, as it is a more hefty increase than it was before. For January 2017, employees will enjoy a $1 an hour pay raise, reported 5News.
Arkansas Department of Labor's public relation office Rosalyn Miller said that the wage will raise by 50 cents each January 1. According to her, the new minimum wage for the state will be $8.50 per hour.
"That means anyone with four or more employees will need to pay employees $8.50," described Miller, who also said that locals don't have to travel to seek for higher wage. The raise has the potential to improve the standard of living as people who works multiple jobs will be able to have more time and money to spend in the community.
Arkansas Labor department oversees thousands of workers and employers statewide. Meanwhile, the minimum wage hike is does create an inefficiency in the economy says State Economic Forecaster Dr Michael Pakko. He describes that every $1 involve is coming from somewhere else through variety of different sources.
"It could be lower wages for other workers, it could be higher prices for consumers, lower profits for the business owners and shareholders, but the point is the money doesn't grow on trees," explained Pakko, according to THV11.
Arkansas minimum wage rose from $6.25 in 2014 to $8.50 this year, which would make the state more appealing to workers, he added. Pakko also said that the new wage is higher than the federal minimum wage of $7.50.
While it is indeed a great news overall, this does not apply to everyone as it will not affect servers who make tips - they will still make $2.63 an hour.
