Currently, the topic of minimum wage incites considerable debate and differing opinions across the United States. While California faces challenges with its minimum wage adjustments, Idaho is now often referenced for its clear stance on wage policies, given its legislations passed in 2016.
The U.S. Bureau of Labor Statistics’ 2023 report outlines core characteristics of minimum wage earners: “Minimum wage workers tend to be young. Although workers under age 25 represented one-fifth of hourly paid workers, they made up 44 percent of those paid the federal minimum wage or less. Among employed teenagers (ages 16 to 19) paid by the hour, 3 percent earned the minimum wage or less, compared with just under 1 percent of workers age 25 and older.”
Economist Jeffrey Dorfman commented on this demographic, stating, “minimum wage earners are not a uniformly poor and struggling group,” and many are not solely responsible for their family’s financial burdens. Furthermore, David Neumark adds from the Federal Reserve Bank of San Francisco that, “… evidence simply does not provide a strong case for using minimum wages to reduce poverty.”
California’s recent wage adjustments include an increase for the lowest-paid health-care workers and fast-food workers, leading to business closures like Rubio’s Coastal Grill, as highlighted by a Los Angeles Times headline. The policy allows for varying minimum wages, demonstrated by West Hollywood’s rate of $19.61 an hour for hotel workers.
In contrast, Idaho chose a different path, avoiding the complications of differing regional and occupational wage rates. House Bill 463, enacted in 2016, ensured minimum wages across Idaho are consistent and tied to the federal rate. The bill emphasized that the Idaho Legislature would decide and apply the minimum wage uniformly.
Recent data suggests Idaho has recorded high compensation rates. The Idaho Department of Labor reported an average wage of $26.75 per hour for all occupations in 2023, marking an 8.3% increase from the previous year. This reflects higher offerings by small business owners to attract and retain employees.
Idaho’s approach stands in contrast to California’s, reinforcing the idea that market forces play a critical role in wage determination.
Suzanne Budge, with a long-standing tenure as Idaho state director for the National Federation of Independent Business, also brings forth her perspective, drawing from her experience in governmental affairs in Idaho.
