Gem State Wire

Few state policies are as contentious as the minimum wage. While California grapples with its own minimum wage complexities, Idaho remains unaffected due to certain measures it has implemented.

The minimum wage is primarily an entry-level salary for teens and young adults beginning their careers. According to the U.S. Bureau of Labor Statistics' 2023 report, "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."

Economist Jeffrey Dorfman notes that "minimum wage earners are not a uniformly poor and struggling group." Many are teenagers from middle-class families who share financial responsibilities within their households. David Neumark from the Federal Reserve Bank of San Francisco states that "... evidence simply does not provide a strong case for using minimum wages to reduce poverty."

In contrast, California's policymakers have enacted various minimum wage laws across different regions and industries. A new $25 per hour rate for low-paid healthcare workers was delayed due to budget issues. Earlier this year, fast-food workers saw their wages increase to $20 per hour, leading some businesses like Rubio’s Coastal Grill to close several locations due to rising costs.

West Hollywood set a high minimum-wage rate at $19.61 per hour for hotel workers only on July 1.

Idaho avoided such complexities by passing House Bill 463 in 2016, ensuring a uniform statewide minimum wage linked to the federal rate. This approach has led small-business owners in Idaho to offer compensation well above the minimum wage.

The Idaho Department of Labor reported record highs in compensation: "Idaho’s average wage for all occupations was $26.75 per hour in 2023 ... an increase of 8.3%, or $2.06 per hour, from the year prior."

Suzanne Budge serves as Idaho state director for the National Federation of Independent Business (NFIB) and is president and founder of SBS Associates, LLC.