Asked by Suren Laknuwan on Sep 24, 2024
Verified
An employer faces a higher minimum wage control where it cannot pay its workers any less than $10.25 an hour.The employer may react by
A) Doing nothing-it cannot violate the regulation
B) Offering the employees fewer fringe benefits
C) Increasing spending on workplace amenities
D) Hiring additional workers
Minimum Wage Control
Regulatory measures that set the lowest hourly rate of pay that employers can legally offer their employees.
Fringe Benefits
Additional compensation provided to employees beyond their normal salaries or wages, such as health insurance, retirement plans, and paid time off.
Workplace Amenities
Features and benefits provided in the workplace beyond salary, aimed at improving employees' working conditions and satisfaction.
- Understand the implications of minimum wage regulations on employer practices.
Verified Answer
AP
Akanksha Patadia4 days ago
Final Answer :
B
Explanation :
The employer may choose to reduce its spending on fringe benefits in order to offset the increased cost of paying employees a higher minimum wage. This would allow the employer to avoid cutting jobs or reducing hours to adjust to the new minimum wage control. Increasing spending on workplace amenities or hiring additional workers may not be financially feasible options for the employer. Doing nothing is not a valid option, as the employer cannot violate the regulation.
Learning Objectives
- Understand the implications of minimum wage regulations on employer practices.