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Despite the fact that ABQ citizens have voted to raise the minimum wage, the Route 66 Malt Shop is not paying its employees the higher wage. There seems to be no teeth in the law, so basically nobody has to pay the minimum wage. The only option an employee has is to sue the employer--highly unlikely since a person making that low of a wage can't afford to hire an attorney.
I saw that and several other reports. Eric Szeman, the owner of the Route 66 Malt Shop said “Ok... The option is I'll get my keys right now I'll kick all the customers out and I'll lock the doors. That's the only other option we have,". He says his payroll went from about $3,600 every two weeks to about $6,000. That's a lot of malts to sell everyday, I estimate about $200 per day profit required... I think I read he has 16 employees. Szeman has only had the shop at that local for about two years. I have been there, I would hate to see it go.
It will be interesting to see what happens... Personally, I don't see minimum wage laws as being beneficial to small business owners.
i asked a waiter at Le Peep how much difference the new minimum wage made in his life and he said that it was almost inconsequential, after taxes, FICA, etc. are factored in. As a side note, I didn't notice an increase in prices once the change went into effect.
I know I would be willing to pay slightly higher prices in order for people to make a living wage.
Minimum wage represents 5% of all wages in the US. More than 50% are under the age of 25 which represents a lot of students, 69% of those are part time jobs. The value of those jobs are not the low wage, It is on the job training they provide. 70% of those that take minimum wage jobs get a raise within a year. IMHO, it is not meant to be a living wage but a start.
There seems to be no teeth in the law, so basically nobody has to pay the minimum wage. The only option an employee has is to sue the employer--highly unlikely since a person making that low of a wage can't afford to hire an attorney.
?? Legal fees are covered by the law + twice the amount owed in damages + interest, plus it is about as easy of a case as can possibly be conceived. Why do people continue to spout this drivel? What do you want to do, have the city sue on their behalf because they can't be bothered to go to a lawyer?
If you are actually concerned that some people are missing out on their wages why don't you help connect them to a lawyer?
The only real problem is that in case of a bankruptcy. Now they don't get their money and are out of a job. If what he says is true and his labor cost increased by $2400 every two weeks, then he will probably be at the neighborhood of $10K in back wages + $20K in damages + interest + lawyer fees, which will probably bankrupt him if he is already struggling.
?? Legal fees are covered by the law + twice the amount owed in damages + interest,
I do not doubt what you are saying, but where in the law that would apply here do you see "+ twice the amount owed in damages"? Is that a New Mexico law? I have seen punitive damages at 10 times damage in other locations.
?? Legal fees are covered by the law + twice the amount owed in damages + interest, plus it is about as easy of a case as can possibly be conceived. Why do people continue to spout this drivel? What do you want to do, have the city sue on their behalf because they can't be bothered to go to a lawyer?
If you are actually concerned that some people are missing out on their wages why don't you help connect them to a lawyer?
The only real problem is that in case of a bankruptcy. Now they don't get their money and are out of a job. If what he says is true and his labor cost increased by $2400 every two weeks, then he will probably be at the neighborhood of $10K in back wages + $20K in damages + interest + lawyer fees, which will probably bankrupt him if he is already struggling.
If you are going to have a law, it should mean something or be enforceable--otherwise don't propose the law. It is ridiculous to think that people working minimum wage jobs will be starting lawsuits willy-nilly. Our courts are already overloaded. Either there is a new minimum wage or there isn't.
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