New minimum wage structure

Here is a potential new minimum wage structure:

Tiered Minimum Wage Structure

• Tier 1: Entry-Level (ages 16-19, or those with less than 6 months of work experience)
  • $12.00 per hour
• Tier 2: Developing Skills (ages 20-24, or those with 6 months to 2 years of work experience)
  • $13.50 per hour
• Tier 3: Skilled Worker (ages 25-34, or those with 2-5 years of work experience)
  • $15.00 per hour
• Tier 4: Experienced Worker (ages 35-49, or those with 5-10 years of work experience)
  • $16.50 per hour
• Tier 5: Senior Worker (ages 50+, or those with 10+ years of work experience)
  • $18.00 per hour

Additional Provisions

• Training Wage: For workers under the age of 20, the minimum wage would be $10.50 per hour for the first 6 months of employment, with a gradual increase to the Tier 1 rate over the next 6 months.
• Apprenticeship Wage: For workers in apprenticeship programs, the minimum wage would be $12.50 per hour, with a gradual increase to the Tier 2 rate over the course of the apprenticeship.
• Tipped Workers: Tipped workers would be entitled to a minimum wage of $8.00 per hour, with the option to earn up to an additional $4.00 per hour in tips.
• Small Business Exemption: Small businesses with fewer than 50 employees would be exempt from the new minimum wage structure for the first 2 years, with a gradual phase-in over the next 2 years.

Rationale

This tiered minimum wage structure aims to recognize the value of different levels of work experience and skills, while also providing a gradual increase in wages for workers as they gain more experience and develop their skills. The training wage and apprenticeship wage provisions aim to provide a supportive environment for young workers and those entering the workforce for the first time. The tipped workers provision aims to ensure that tipped workers are not exploited and are able to earn a living wage. The small business exemption provision aims to provide a transition period for small businesses to adjust to the new minimum wage structure.

Potential Benefits

• Encourages businesses to invest in training and development programs for their employees
• Recognizes the value of different levels of work experience and skills
• Provides a gradual increase in wages for workers as they gain more experience and develop their skills
• Supports the development of a more skilled and productive workforce
• Helps to reduce income inequality and poverty

Potential Challenges

• May be difficult for small businesses to absorb the increased costs of the new minimum wage structure
• May lead to job losses or reduced hours for some workers
• May require significant changes to business operations and staffing levels
• May be difficult to implement and enforce the new minimum wage structure, particularly for tipped workers and small businesses.