Dive Brief:
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The United States Senate on Wednesday blocked a vote on a bill that would raise the national minimum hourly wage from $7.25 to $10.10 in a series of gradual increases.
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Meanwhile, Seattle mayor Ed Murray on Thursday announced a plan developed by a special committee to increase the city’s minimum wage over seven years to $15 an hour. The plan is subject to a vote by the city council.
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A minimum wage increase is a major goal of President Barack Obama and Congressional Democrats, who say they plan to reintroduce a minimum wage increase bill “soon.”
Dive Insight:
The National Retail Federation solidly opposes a minimum wage hike, while certain retail experts say that paying workers more is central to retailers’ success in a new, highly competitive omnichannel environment. Many larger retailers pay above the minimum wage already, and Gap Inc. announced recently that it would adopt an across-the-board minimum of $10 an hour by 2015 because it would boost business. While it promises to be a political football this election cycle, it's not clear how close a minimum wage hike on the federal level is to actually passing. This issue is possibly more effectively taken up by states and cities, as Seattle appears poised to do in dramatic fashion.