Companies that pay over the federal minimum wage are thriving. Costco, the third largest retailer in the United States, has a starting wage of $11.50 an hour and provides healthcare. Costco has the lowest amount of employee theft, higher worker productivity and half the employee turnover rate of Wal-Mart, creating a more stable work environment. And companies that don’t pay over the federal minimum wage in America pay a higher wage in other countries with a similar standard of living and are still profitable. Wal-Mart is profitable in Ontario, Canada where they pay a $10.25 an hour minimum wage.
Prices would not be experience a large affect from an increase in the federal minimum wage. Studies show that an increase in the federal minimum wage to $10 an hour would increase overall price levels by no more than .5%. Lower turnover from a higher federal minimum wage increases productivity as training and recruitment costs are reduced, saving companies money.