New Analysis: The Fair Wage Act Would Benefit 175,000 Maryland Workers
New analysis from the Maryland Center on Economic Policy and the Economic Policy Institute shows that Gov. Wes Moore’s proposed minimum wage acceleration, the Fair Wage Act, will raise wages for about 175,000 Maryland workers and benefit about 126,000 children. The legislation speeds up the phase-in of Maryland’s $15 minimum wage to October 2023 and ties future wage increases to inflation.
“Many Maryland families are still struggling to pay rent and keep food on the table in the face of rapidly rising costs. Raising wages for the lowest-paid workers will have long-term benefits for children and their families by increasing economic security, and it will benefit our communities and local businesses through increased spending,” said Benjamin Orr, MDCEP President and CEO.
The Fair Wage Act would boost incomes by an average of $0.74 per hour, equivalent to just over $1,000 per year for a typical low-wage worker – a total of about $47 million during the final three months of 2023 for all workers who would get a raise, according to the analysis.
The report also includes detailed demographic breakdowns of the impact of the Fair Wage Act. A stronger minimum wage would benefit workers of every background, and would be especially meaningful for women and workers of color, who today are often held back by structural barriers built into our labor market.
In addition, the report analyzes the benefits of indexing wages to inflation. Without scheduled inflation adjustments, Maryland’s current wage law essentially bakes in gradually declining real wages over the long term, forcing workers to hope politicians will take action as they watch their standard of living decline. Under current law, the purchasing power of the minimum wage is likely to drop below its current value of $13.25 per hour by mid-2028. The indexing provisions of the Fair Wage Act would help Maryland family incomes keep pace with rising costs over time.
Find the report at http://mdeconomy.org/minimum-wage
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About the Maryland Center on Economic Policy
The Maryland Center on Economic Policy advances innovative policy ideas to foster broad prosperity and help our state be the standard-bearer for responsible public policy. We engage in research, analysis, strategic communications, public education, and grassroots alliances promoting robust debate and greater public awareness of the policy choices Maryland residents face together. mdeconomy.org
