Minimum wage set to rise in 25 states in 2021—What supporters and opponents have to say

Minimum wage is set to rise in 25 states in 2021. Steven Ricchiuto, Mizuho Securities chief U.S. economist, and Lily Roberts, Center for American Progress director of economic mobility, joins 'Power Lunch' to discuss what the program accomplishes and what it falls short of. For access to live and exclusive video from CNBC subscribe to CNBC PRO: https://cnb.cx/2NGeIvi

The move toward a $15 minimum wage gained more ground in 2020 through the electoral victory of President-elect Joe Biden and yet another state voting in favor of an eventual $15 pay floor.

Next year, half of U.S. states will raise their minimum wage, up from 21 in 2020. All but five of those states — Connecticut, Florida, Nevada, Oregon and Virginia — will hike their hourly minimum on Friday.

And the federal minimum wage, which hasn’t recorded an increase in more than a decade, could finally get a boost, affecting millions of workers ranging from restaurant cooks to janitors. Biden has pledged to boost it to $15 an hour and eliminate the tipped minimum wage, which is the low base pay given to employees who make most of their compensation from tips. He has also said he would index minimum wage to match inflation. All three measures are in line with a bill passed by the House in 2019.

Critics say that a higher minimum wage hurts small businesses and causes job losses — and would add even more pressure during an economic crisis caused by the coronavirus pandemic. But this year’s events have also raised new awareness about the important roles held by hourly workers, as well as their low wages. An analysis by employment site Snagajob found that three-quarters of hourly workers in the U.S. were better off sticking to unemployment benefits instead of finding a new position when the federal supplement was $300 per week.

“I’m not sure if the pandemic itself affects the likelihood of a minimum wage increase because it’s a fundamentally political decision,” said Daniel Zhao, senior economist at jobs site Glassdoor. “I think that the pressure has been rising over the last few years.”

Whether Biden will get the chance to raise the minimum wage will likely come down to runoff election results in Georgia, where both Senate seats are up for grabs on Tuesday.

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