{"id":3267,"date":"2021-01-18T12:07:17","date_gmt":"2021-01-18T18:07:17","guid":{"rendered":"https:\/\/www.employco.com\/blog\/?p=3267"},"modified":"2021-02-02T12:21:34","modified_gmt":"2021-02-02T18:21:34","slug":"what-raising-the-minimum-wage-could-mean-for-the-hospitality-industry","status":"publish","type":"post","link":"https:\/\/www.employco.com\/blog\/2021\/01\/18\/what-raising-the-minimum-wage-could-mean-for-the-hospitality-industry\/","title":{"rendered":"What Raising the Minimum Wage Could Mean for the Hospitality Industry"},"content":{"rendered":"<p><em>Employment trends expert explains why increasing the min. wage could have a negative impact on workers\u00a0<\/em><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignleft size-medium\" src=\"https:\/\/www.employco.com\/images\/blog\/Blog_MinWage.jpg\" alt=\"Minimum Wage\" width=\"300\" height=\"280\" \/>With Inauguration Day upon us, many people are looking ahead at the first steps President-elect Joe Biden plans to take when he gets into office. One of his first major proposals (which Biden introduced last Thursday in his $1.9 trillion relief package) will be to increase the federal minimum wage from $7.25 to $15.<\/p>\n<p>However, this proposal to dramatically increase the minimum wage is receiving pushback from critics who say this could spell the end for struggling small businesses who are already struggling to stay afloat during the COVID-19 pandemic.<\/p>\n<p>\u201cAsking small business owners to begin paying their employees $15 an hour will be a hardship that could break many companies,\u201d says employment trends expert Rob Wilson, President of Employco USA, an employment solutions firm with locations across the country.<\/p>\n<p>Wilson says that the minimum wage hike will also lead to more job loss as business owners continue to invest in automation over workers.<\/p>\n<p><!--more--><\/p>\n<p>\u201cAs machines become cheaper to build, and artificial intelligence technology becomes more comprehensive and affordable, many industries are going to become robot-centric,\u201d says Wilson. \u201cPlaces like Panera and Wendy\u2019s are using kiosks and self-service tablets to simplify the customer experience and to make ordering even faster. The same is true for sit-down restaurants like Chili\u2019s and Olive Garden. While many people enjoy the convenience of using a computer versus waiting for a server, it\u2019s causing a great deal of concern for low-level employees and people who don\u2019t have access to continuing education and job training.\u201d<\/p>\n<p>Wilson cautions that battles over minimum wage could increase the application of artificial intelligence in some industries, especially as it relates to entry-level, unskilled work.<\/p>\n<p>\u201cFindings show that fast-food workers could be at serious risk of losing their jobs to robots in the next several years. One study found that each new robot added per 1,000 workers causes wages to drop in the surrounding area by around 0.25 and 0.5 percent,\u201d says Wilson. \u201cWe can clearly see that in specific industries, the impact of automation can not only impact job numbers, but also a worker\u2019s wages.\u201d<\/p>\n<p>And, says Wilson, the coronavirus pandemic has only highlighted the fact that humans just can\u2019t compete with robots when it comes to sick days and healthcare.<\/p>\n<p>\u201cNow more than ever, A.I. is preferable to human contact, as human contact can be very high-risk. Customers would rather interact with a kiosk than a real-life employee,\u201d says Wilson. \u201cNot to mention, if one of your workers gets sick with COVID-19, they must quarantine along with any other coworkers they possibly interacted with, and you will have to carefully clean and sanitize your workplace. But with A.I. technology, you can reduce or cut out human interaction entirely.<\/p>\n<p>Hence, says Wilson, we should tread carefully when it comes to blanket increases of the minimum wage, especially by such a dramatic amount.<\/p>\n<p>\u201cRaising the minimum wage can essentially de-incentivize business owners to hire and maintain staff, as they may opt to turn to A.I.,\u201d says Wilson.<\/p>\n<p>For more on this topic, please contact Rob Wilson at\u00a0<a href=\"mailto:rwilson@thewilsoncompanies.com\">rwilson@thewilsoncompanies.com<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Employment trends expert explains why increasing the min. wage could have a negative impact on workers\u00a0 With Inauguration Day upon us, many people are looking ahead at the first steps President-elect Joe Biden plans to take when he gets into&hellip;  <\/p>\n<p class=\"more-link\"><a href=\"https:\/\/www.employco.com\/blog\/2021\/01\/18\/what-raising-the-minimum-wage-could-mean-for-the-hospitality-industry\/\">Continue reading <span class=\"meta-nav\">&rarr;<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[5,17,11],"tags":[],"class_list":["post-3267","post","type-post","status-publish","format-standard","hentry","category-employee-benefits","category-jobs","category-payroll-administration"],"featured_image_src":null,"author_info":{"display_name":"Employco USA","author_link":"https:\/\/www.employco.com\/blog\/author\/employcousa\/"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.2 - 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In addition to\u2026","rel":"","context":"In &quot;Human Resources&quot;","block_context":{"text":"Human Resources","link":"https:\/\/www.employco.com\/blog\/category\/human-resources\/"},"img":{"alt_text":"Election 2020","src":"https:\/\/i0.wp.com\/www.employco.com\/images\/blog\/Blog_Presidential-Election-2020.jpg?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":3271,"url":"https:\/\/www.employco.com\/blog\/2021\/02\/11\/hr-newsletter-expected-employment-changes-under-president-biden\/","url_meta":{"origin":3267,"position":1},"title":"HR Newsletter: Expected Employment Changes Under President Biden","author":"Employco USA","date":"February 11, 2021","format":false,"excerpt":"Each presidential transition brings changes to the human resources landscape and we expect that to continue under President Joe Biden. With any legislative change\u2014regardless of intent or outcome\u2014employers must adapt quickly or risk penalties. This can mean redrafting internal policies, recategorizing workers, changing organizational priorities, rewriting employee handbooks and any\u2026","rel":"","context":"In &quot;HR Newsletter&quot;","block_context":{"text":"HR Newsletter","link":"https:\/\/www.employco.com\/blog\/category\/employco-in-the-news\/hr-newsletter\/"},"img":{"alt_text":"Employment Changes","src":"https:\/\/i0.wp.com\/www.employco.com\/images\/newsletter\/HR\/Blog\/February2021_EmploymentChangesBiden.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.employco.com\/images\/newsletter\/HR\/Blog\/February2021_EmploymentChangesBiden.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.employco.com\/images\/newsletter\/HR\/Blog\/February2021_EmploymentChangesBiden.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.employco.com\/images\/newsletter\/HR\/Blog\/February2021_EmploymentChangesBiden.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.employco.com\/images\/newsletter\/HR\/Blog\/February2021_EmploymentChangesBiden.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":235,"url":"https:\/\/www.employco.com\/blog\/2017\/02\/17\/why-president-donald-trump-will-raise-the-minimum-wage\/","url_meta":{"origin":3267,"position":2},"title":"Why President Donald Trump Will Raise the Minimum Wage","author":"Employco USA","date":"February 17, 2017","format":false,"excerpt":"Employment trends expert explains why Pres. Trump will certainly raise the minimum wage Not many people expect that President Trump will raise the minimum wage. In fact, during the primaries, he famously declared that American wages were already \u201ctoo high.\u201d However, he later declared that he believes the issue should\u2026","rel":"","context":"In &quot;Human Resources&quot;","block_context":{"text":"Human Resources","link":"https:\/\/www.employco.com\/blog\/category\/human-resources\/"},"img":{"alt_text":"Raise Minimum Wage","src":"https:\/\/i0.wp.com\/www.employco.com\/images\/blog\/Blog_MinWage-Raise.jpg?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":4019,"url":"https:\/\/www.employco.com\/blog\/2022\/06\/14\/hr-newsletter-minimum-wage-changes-july-1st\/","url_meta":{"origin":3267,"position":3},"title":"HR Newsletter: Minimum Wage Changes \u2013 July 1st","author":"Employco USA","date":"June 14, 2022","format":false,"excerpt":"Several state and local governments have set the minimum wage to increase effective July 1, 2022 (click the image for the full report):","rel":"","context":"In &quot;HR Newsletter&quot;","block_context":{"text":"HR Newsletter","link":"https:\/\/www.employco.com\/blog\/category\/employco-in-the-news\/hr-newsletter\/"},"img":{"alt_text":"HR Newsletter: Minimum Wage Changes \u2013 July 1st","src":"https:\/\/i0.wp.com\/www.employco.com\/images\/newsletter\/HR\/November2021_Minimum-Wage-Updates.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.employco.com\/images\/newsletter\/HR\/November2021_Minimum-Wage-Updates.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.employco.com\/images\/newsletter\/HR\/November2021_Minimum-Wage-Updates.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.employco.com\/images\/newsletter\/HR\/November2021_Minimum-Wage-Updates.png?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.employco.com\/images\/newsletter\/HR\/November2021_Minimum-Wage-Updates.png?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":250,"url":"https:\/\/www.employco.com\/blog\/2017\/01\/10\/20-states-to-see-minimum-wage-hike-in-2017-but-what-does-that-mean-for-companies\/","url_meta":{"origin":3267,"position":4},"title":"20 States to See Minimum Wage Hike in 2017: But What Does That Mean for Companies?","author":"Employco USA","date":"January 10, 2017","format":false,"excerpt":"Employment expert says wage increases could be problematic Over 20 states are going to implement an increase in minimum wage in 2017. Estimates say that this means over 4.4 million workers will be looking at a raise, but critics fear it will come at a severe cost for businesses. 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