Minimum Wage Increase

[TLR]

As I see it - we do not do $500,000 in gross revenue - and do not do any interstate commerce - so have any of you contacted a lawyer about complying to minimum wage increase effective July 24th for your laundromat? What have they told you ?

TLR

[Mungo Spike]

The minimum wage that goes into effect in July 2008 is $6.55 per hour. Your question implies that you pay your employees less than that now. Is that correct? If so, how much of an increase would the new minimum mean for you?

[Coinwash]

this was just sent to me to post...

http://www.dol.gov/esa/whd/flsa/

[Ronald]

I pay my help $8.00 hr..It is worth it to me to keep my laundry clean.

[pete f]

My workers only put in a couple hours a day, I pay them far more than min wage.
What about state laws? here is the Federal law,
I assume you reffer to this:
Who is Covered

The Fair Labor Standards Act (FLSA) establishes standards for minimum wages, overtime pay, recordkeeping, and child labor. These standards affect more than 100 million workers, both full‑time and part‑time, in the private and public sectors.

The Act applies to enterprises with employees who engage in interstate commerce, produce goods for interstate commerce, or handle, sell, or work on goods or materials that have been moved in or produced for interstate commerce. For most firms, a test of not less than $500,000 in annual dollar volume of business applies (i.e., the Act does not cover enterprises with less than this amount of business).

However, the Act does cover the following regardless of their dollar volume of business: hospitals; institutions primarily engaged in the care of the sick, aged, mentally ill, or disabled who reside on the premises; schools for children who are mentally, or physically disabled or gifted; preschools, elementary, and secondary schools and institutions of higher education; and federal, state, and local government agencies.

Employees of firms that do not meet the $500,000 annual dollar volume test may be covered in any workweek when they are individually engaged in interstate commerce, the production of goods for interstate commerce, or an activity that is closely related and directly essential to the production of such goods.

The Act covers domestic service workers, such as day workers, housekeepers, chauffeurs, cooks, or full‑time babysitters, if they receive at least $1,500 (2007) in cash wages from one employer in a calendar year, or if they work a total of more than eight hours a week for one or more employers. (This calendar year threshold is adjusted by the Social Security Administration each year.)

An enterprise that was covered by the Act on March 31, 1990, and that ceased to be covered because of the increase in the annual dollar volume test to $500,000, as required under the 1989 amendments to the Act, continues to be subject to the overtime pay, child labor, and recordkeeping requirements of the Act.

[TLR]

I pay $6 an hour plus 10% commission for wash and fold. An average week will pay close to that $6.55 when pay and commission are added up...

I have not checked Georgia State laws - but we are defintely not applicable to the Federal Law.

TLR

[pete f]

I pay $6 an hour plus 10% commission for wash and fold. An average week will pay close to that $6.55 when pay and commission are added up...

I have not checked Georgia State laws - but we are defintely not applicable to the Federal Law.

TLR

sharp reading of employment laws, I never knew....

[Senior Sudsy]

Illinois just raised ours another .25. Now it is at 7.75/hr.

[Mungo Spike]

I have nine employees. The one I hired last month makes just under $10 per hour. Six make between $10.50 - $11.50 an hour. Two make more than $12.00 an hour. All of these hourly rates include profitsharing for Wash-Dry-Fold and for processing dry cleaning and shirt laundry orders (which I outsource). My investment in the people is an investment in the laundromat ... employee turnover is just about nil, customer service is fantastic, and business keeps increasing.
I realize that not every laundromat can generate the amount of revenue that mine does, so not everyone can pay at these levels (though some owners might be able to do even more).
I guess the point I want to make is that our employees are people with families to care for and bills to pay ... the same as you and me. I think the goal should be NOT to pay them as little as possible to keep the business going, but to pay them as much as possible to make the business great. I have serious competition ... six laundromats within a mile or so, and my prices are higher than most of them. But my employees act like my laundromat is their laundromat. I take care of them, they take care of the customers, and business is booming. For the most part, I just have to stand out of their way.
My recommendation is to pay as far above minimum wage as you can afford ... sure, you take some money out of your pocket to do that, but I think it's the right thing to do.
Just one guy's opinion ... Mungo

[mike]

But my employees act like my laundromat is their laundromat. I take care of them, they take care of the customers, and business is booming. For the most part, I just have to stand out of their way.




This should be carved in stone for every store operator !

The secret of success ! (and a light work-load for the owner) !

[DuboisLaundry]

As sole proprietor with no employees, I will not be getting a raise.
I still get only what I find in the dryer lint cabinets

[Walter]

Mungo Spike,

Great post!!!


Walter

[detlaundry]

7.40 here in Michigan effective July 1, 2008.