Virginians earning minimum wage should see more money in their paychecks after a 36-cent-per-hour increase took effect Thursday.
The minimum wage in the commonwealth went from $12.41 per hour to $12.77 per hour. It is adjusted annually based on a set formula for inflation.
The impact varies throughout the economically diverse state.
Most fast-food restaurants in Northern Virginia pay more or risk losing workers to neighboring D.C. and Maryland where the minimum wage is higher.
That’s not the case in other parts of the state, said Tim Saunders of Virginia Career Works Central Region.
“What we are seeing across the state, especially in your more rural areas, is some of your smaller businesses that employ employees in food service and accommodations, they’re really probably taking the biggest hit from this, because they pay workers mostly at that minimum wage right now,” Saunders said.
“Raising the minimum wage supports your local economy,” said Patti Nelson of the Service Employees International Union Virginia 512. “Because people have money, and they spend money, and they’re able to buy groceries, and they’re able to fix their cars. It supports the local economy.”
The union represents many public service employees and thousands of home care workers in Virginia. They advocate for collective bargaining – contracts that define wages, benefits, hours and working conditions.
“It’s index to inflation, which is a good thing, but what it gives us is an inflation-indexed poverty rate,” Nelson said of the minimum wage hike. “It continues to hold people in poverty.”
A letter with information about the minimum wage hike has been sent to every employer in Virginia.
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