Laundromats could potentially be impacted by the changes that are being made to minimum wage laws in states across the U.S., as well as any increase that is made to the federal minimum wage.
Many lawmakers are planning on incorporating a push for higher wages into the platforms they use for this year’s midterm elections, according to The Washington Post. The major drive for doing so that they will lean on is an interest in reducing income inequality. Such a move could prove successful, at least according to the results of a Washington Post-ABC News survey indicating that many would be more likely to vote for a candidate who supports such initiatives.
They are not alone in their desire to bolster this minimum hourly rate that people are paid, as President Barack Obama noted in this State of the Union Address that he had plans to issue an executive order that would obligate certain federal employees to be paid a higher minimum wage.
State minimum wage hikes
Individuals and entrepreneurs who are involved in the laundry industry might benefit from knowing that at the start of this year, 13 separate states experienced minimum wage hikes, according to Planet Laundry. These gains could be experienced in many other areas, as data provided by the National Employment Law Project has indicated that 11 other states, and also Washington, D.C., are considering bolstering this rate of compensation in 2014.
The fact that such a move is being considered in these areas could easily result in boosts in the minimum wage, as Jack Temple, analyst for NELP, has said that more than 50 percent of those states where such initiatives are being considered have a high chance of giving a wage hike the green light, the media outlet reported.
Laundromats could encounter difficulties
These self-service laundry locations could easily run into challenges as a result of states bolstering the minimum amount that can be paid to workers. Such a situation could compel these facilities to either increase their prices or reduce the marginal profit that they are creating. Entrepreneurs who are running these facilities could potentially find it difficult to charge more in the current environment.
People who are in this situation might benefit from proactively assessing the different scenarios that could exist, depending on what the minimum wage policies end up being.