1. MOTIVATION OF THE EMPLOYEES WITHIN THE SERVICE INDUSTRY AND THE MINIMUM WAGE By: Kali M. Hayse Gregory E. Dunlop Charles R. Kennedy Ryan C. Sharp

2. WHAT IS THE SERVICE INDUSTRY? The service industry includes the divisions of Transportation/Communication, wholesale trade, and public administration. From 1950 and 2000, service industry grew from 57 to 75 percent in the U.S. The service industry accounts for 80% of all employment in the U.S.

3. HISTORY LEADING UP TO THE MINIMUM WAGE WWII Court cases West Coast Hotel v. Parrish 1937 National Labor Relations Board (NLRB) v. Jones & Laughlin Steel Corporation 1937

4. WHAT ESTABLISHED THE MINIMUM WAGE? The Fair Labor Stands Act of 1938 What it gave us.

5. ADVANTAGES Minimum wage gives a standard for paying employees 3 out of 5 small businesses are not only for minimum wage but they also think we should raise it Without a minimum wage small businesses have a hard time budgeting their money

6. Drawbacks Employers tend to hire only the top candidates from the applicant pool. Lower tier applicants could be passed over multiple times. Companies laying off lower end workers to save money.

7. UNEMPLOYMENT Minimum wage increases could cause unemployment Cost-push inflation Setting the wage higher could likely increase production cost for companies and this cost is then pushed onto the consumer

8.  INCREASING MINIMUM WAGE DOES NOT MOTIVATE EMPLOYEES TO A CERTAIN EXTENT. A DIFFERENCE OF $0.25/ 1% OF YOUR PAY IS CHANGED IF MINIMUM WAGE IS DECREASED OR INCREASED. THIS DOES NOT MOTIVATE EMPLOYEES TO WORK HARDER BECAUSE IT IS SUCH A SMALL MARGIN.  Does Increasing Minimum Wage Motivate Employees?

9. SOME SMALL BUSINESS OWNERS SAY RAISING THE MINIMUM WAGE WILL FORCE THEM TO CUT EMPLOYEES' HOURS OR JOBS. THIS IS MAINLY DIRECTED TOWARDS THE COMPANIES PROFITS. IF PROFITS ARE SMALL, HAVING TO PAY THE EMPLOYEES MORE WOULD RESULT IN A NON-PROFITABLE BUSINESS. MANY SMALL BUSINESSES WOULD OPPOSE THE INCREASE STRICTLY BECAUSE OF THIS.  Businesses for or against Raising Minimum Raise?

10.  Businesses for or Against Raising Minimum Raise?

11. 2016 Presidential Election How will the minimum wage debate impact the election? Candidates who promote economic plans or strategies that will increase the federal minimum wage can increase their appeal. Estimated 11 million American workers would be affected by raising the minimum wage. Only 3 million are working for minimum wage or less. So how will candidates get more votes?

12. Democrats vs. Republicans Approximately 30% of Tea Party Republicans agree with raising the federal minimum wage. 87% of Higher Income Democrats agree with raising the federal minimum wage. Minimum wage workers will likely opt to choose the democratic electors to represent their state. Ironically, the minimum wage workers who will benefit the most from a minimum wage raise, are primarily residents of states that win the Republican electoral votes.

14. Middle Class Workers Americans who are considered middle class workers will not see an income increase by raising the minimum wage. However, middle class workers will be affected by inflation. Middle class votes may be swayed against an increase in minimum wage to avoid the inflation of goods and services they regularly purchase.

15. Conclusion We have shown that there are advantages and disadvantages to both sides. However, the evidence trends towards a negative effect on the economy. The increase would be beneficial to high skilled minimum wage workers. Substantial risk of unemployment rate rising.