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Employers support minimum wage increases, survey finds

September 25, 2014

Most employers, 62 percent, think the minimum wage in their state should be increased, according to a new CareerBuilder survey released today. This includes 58 percent of company senior leaders.

While most employers would like to see a hike in their state, 48 percent said a fair minimum wage should be set between $10 and $14 per hour. Only 7 percent said a minimum wage of $15 per hour or more would be fair; 9 percent don’t think there should be a set minimum wage.

The survey found 27 percent of employers are hiring minimum wage workers in 2014, including 51 percent of retailers and 58 percent of leisure and hospitality firms. And employers currently hiring minimum wage workers are more likely to support a minimum wage increase than those who are not by an 11-point margin: 70 percent compared to 59 percent.

Responses to the question, “What is a fair minimum wage?” include:

  • $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

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

The survey was conducted online by Harris Poll on behalf of CareerBuilder from May 13 to June 6, 2014. It included a representative sample of 2,188 hiring and human resource managers.