Question

In an effort to keep low-wage workers’ salaries commensurate with the cost of living, a number of states have amended their constitutions to allow the minimum wage to be adjusted with inflation. you are the accountant for delicious, inc., a company that owns a chain of 18 fast-food restaurants in a state which adjusts the minimum wage for inflation. each restaurant employs 35 workers, each averaging 20 hours per week at the current federal minimum wage, $7.25 per hour.

Answer 1

The subject of this question is Business and it discusses the concept of minimum wage and its adjustment with inflation.

Step-by-step explanation:

The subject of this question is Business .The discussion around minimum wage and its adjustment with inflation is a vital aspect of economic policy and business operations. States amending their constitutions to adjust the minimum wage with inflation is an attempt to provide a living wage which ensures that the income of low-wage workers keeps pace with the rising cost of living. The federal minimum wage in the U.S. has been set at $7.25 per hour, but since the purchasing power of this wage has declined over the years due to inflation, many local movements and some states have advocated for or implemented higher minimum wages.

In 2015, New York state responded to protests and campaigns by raising the minimum wage for fast-food employees to $15 per hour, to be phased in over time. Since then, various states and cities have increased their minimum wages as well. Adjustments to the minimum wage are an example of price floors in the labor market, where the government sets a minimum hourly rate below which employers cannot legally pay their employees. Despite the existence of a federal standard, the actual minimum wage varies across the country as local and state governments strive to ensure that wages reflect the living costs in their areas.