Date: May 17, 2016
It doesn’t seem long ago when the security industry was concerned about the $10 per hour threshold for NYC, Washington, DC and CA service providers. Now the new threshold is becoming $15. In CA, the current $10 per hr. will rise to $15 by 2022. In NYC the increase minimum will be $11 this 12/31, rising to $13 on 12/31/17, and then a $2 leap to $15 on 12/31/2018. However, pay in Nassau, Suffolk, and Westchester Counties will be less. And other parts of the state lesser still, reaching $12.50 by 12/31/2020.
Other states like CT and MA are considering staged increase $15 minimum. The CA and NY rates may not reach the full $15, outside of major cities, especially if economic circumstances deteriorate. While private sector union membership is about 6.7% of the workforce, public sentiment for higher pay is viewed by some as a civil rights issue, even as increased minimums result in lost jobs. Protests about increasing the minimum wage have been raised in 150 US cities since 2012.
Research suggests that raising the minimum wage reduces jobs 5% to 10%. But those most affected have minimum skills, without appreciable training or vetting. Security personnel who are screened by criminal databases, selected for interpersonal skills, and trained are not subject to the lowest hourly wage. As the industry shows value to the customer base, the risk from significant reduction in staff declines.
This article was originally published by SECURITY LETTER™. April, 2016. New York, NY, Vol. XLVI, No. 4, Part I. Reprinted by permission of SECURITY LETTER™.