FORT WAYNE, Ind. (WFFT) - McMahon’s Best-One Tire raised their minimum wage for all full-time employees to $15 an hour on March 1.
The business says it's the right thing to do to support our local economy.
“A year ago, we were laying people off, we had to cut hours.” President Kim McMahon said.
McMahon would’ve never guessed a year later she’d be in the position to raise the company’s minimum wage to $15 an hour.
“To a certain extent, kind of a thank you to our employees who got us through this. Obviously, we couldn’t have done it without them,” she said.
The national debate over raising the minimum wage inspired her to take things into her own hands.
She says it’ll help our economy.
“It’s about taking care of their families. It’s about taking care of the community. The more you invest in your employees, the more they’re going to invest in you,” McMahon said.
Purdue University Fort Wayne Economics Professor Heather Tierney agrees.
“Having an increased would help to incentivize work and reduce welfare and snap payments,” Tierney said.
The national minimum wage is currently $7.25 an hour.
If you work full-time, 40 hours a week, you’re still below the poverty line.
She says that raising the national minimum wage incrementally over four years would not only give employees a more livable wage but also save businesses money long-term.
“You get to attract and retain higher-skilled workers, so employers, in the long run, would have to spend less on employee turnover, because trading of employees is very expensive,” Tierney said.
She says there are some cons to consider.
“It could be too much for people in the rural communities. I think that is definitely a fair point, something to consider because the cost of living in Fort Wayne is a lot less compared to New York or Los Angeles.”
For McMahon, that doesn’t matter.
“We don’t really need to wait until Congress makes a decision. This is the right thing to do,” she said.