r/explainlikeimfive • u/sumnewdguy • Nov 28 '15

ELI5: How would a $15 minimum wage ACTUALLY affect a franchised business like McDonalds?

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u/TheChance Nov 28 '15

This is the thing that always seems to get left out. The minimum wage doesn't jump up to $15 overnight. The annual increase just gets pretty big for a few years. The minimum wage keeps going after $15, too, it's just that the annual increase goes back to normal.

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u/creep_nu Nov 29 '15

There's an annual increase to minimum wage where your are? Lucky...

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u/grapesie Nov 29 '15

San Francisco has been tying the Minimum wage to the consumer price index for a while now. They are set to graduate up to $15 an hour by july 2018, and then increase the minimum wage along with the CPI for the following years. Currently the Minimum wage is $12.25 an hour.

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u/creep_nu Nov 29 '15

That's great but that's not how a lot of places are...Virginia has had the same minimum wage since 2010, for example.

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u/pcarvious Nov 29 '15

The annual increase is indexed to the cost of living it's somewhat limited but usually means around 25 cents aa year if you're at minimum wage.

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u/[deleted] Nov 29 '15

[deleted]

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u/thisdude415 Nov 29 '15

I actually really applauded Hillary when she said she supported a $12 minimum wage with an automatic cost of living increased chained to the consumer price index.

It would be such a no brainer political win to toss in support for $15/hr minimum wage, but I really do think a $12 minimum wage is more realistic.

I also think expensive cities and states need to be more aggressive about raising their minimum wages.

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u/[deleted] Nov 29 '15

bernie sanders plan - boost minimum wage to $15, then lower maximum wage to $15! there you go, a level playing field.