VIRGINIA BEACH, Va. — Virginia lawmakers are planning for next year's General Assembly. Some democrats are looking to raise the state's minimum wage.
Currently, Virginia's minimum wage is $12. That's starting pay for many workers, especially those who are just starting out.
"Why is it important for you and other teens to have jobs?" News 3 reporter Erika Craven asked employees at the Beach Cinema Alehouse.
"Probably for experience when you grow older," said Taya Jackson, food runner at Beach Cinema Alehouse. "It's good to start at a young age so you're ready for other jobs later."
"And [at the movie theater] it's good starting money. Which is good for me because I want to go to college," added Amberly Harrison, hosting and food running at Beach Cinema Alehouse in Virginia Beach. "I'm saving up."
In her time at the theater Harrison's already seen one pay increase.
"When I started it was around $11," said Harrison. "About a month later they raised it to $12."
Increased wages can mean a lot to employees, especially to those paying bills and trying to make ends meet. But wages are also on the minds of business owners.
"I'm just trying to make wages make sense as if I were living on the wage that I'm offering," said Luvenia Hankins, founder of CLTRE VGN JNT. Hankins said she's been busy running the establishment in Virginia Beach and opening a new location in Norfolk.
That's why she said bottom lines are especially important.
"The most expensive things are labor and cost of goods," added Hankins.
When minimum wages increase however, she said the tip model helps her keep that bottom line in check.
"I typically start a little higher than the minimum wage and then they also get the card tips and cash tips and stuff like that," said Hankins. "I always help explain to employees how that factors in."
News
Dems. to control State House & Senate; Abortion, legalizing marijuana key issues
But it isn't always easy. Mark Stevens who owns Zero's Subs on Cypress Avenue in Virginia Beach said he's felt the impact of minimum raise increases in years past.
"The prices went up, yes," said Stevens. "I had to increase my prices to afford to stay and keep my doors open. There's such a small margin in these businesses."
The Bureau of Labor Statistics report that employees making minimum wage only make up a small percentage of the labor market, they were just 1.5% of hourly employees in 2020, but adjustments to the figure can have wider-reaching positives and negatives. That's why economists noted that raising wages is controversial. A Quarterly Journal of Economics report from 2019 suggests minimum wage raises come with pros that include lifting people out of poverty and cons where costs may shift to customers.
Watch related story: Abortion access, marijuana legalization are key issues for Democrats who will control State House & Senate
Stevens said most of his employees are working their first jobs or are working to pay their way through school. He said, when it comes to a livable wage and a minimum wage there's more than meets the eye.
"Young people are not going to have the opportunity to get that first job, the job that's not going to be permanent, because people are just going to stay put," Stevens said.
He hopes for a more nuanced solution than simple minimum wage raises.
Lawmakers could increase wages to $13.50 in 2025 and $15 in 2026. If that doesn't go through, minimum wage could be pegged to inflation.
