The minimum wage is an hourly dollar amount that workers are guaranteed they will be paid. The dollar amount is set either by the state government or the federal government. Not all states have a minimum wage law, and it is not a requirement to pay a minimum wage. There are arguments both for and against a minimum wage.
Con: Business Revenues
The minimum wage impacts the revenue of a business negatively. Mandated wages to an employee are the expenses of a business over which an owner has little control.
Pro: Guaranteed Pay
A minimum wage guarantees that a worker will gross a minimum amount of money for each hour worked.
Con: Government Interference
The minimum wage mandate interferes with the employee/employer agreement. The government is interfering with the relationship between two parties and telling one party how to compensate another and what the other party should expect.
Pro: Less Worker Abuse
Businesses are not able to abuse the workers. Historically, businesses left unchecked did not pay workers a fair wage for work performed; this was the impetus behind the creation of the unions.
Con: Price of Goods
Businesses build in the cost of goods/services plus profits into the price. The cost to produce a good/service increases if the minimum wage increases.