Amazon wage boost sparks conversation in Iowa
Amazon employees will see more money in their pockets come November 1.
On Tuesday, Amazon announced it will raise its minimum wage to $15 an hour -- more than twice the federal minimum of $7.25.
Business experts told KCCI the announcement could fuel the conversations of increased minimum wage in Iowa.
"That robust debate we're having in Iowa about what is an appropriate living wage for people to work,” said Matthew Mitchell, associate professor of international strategy and business at Drake University.
Iowa last raised its minimum wage 10 years ago.
When various Iowa counties pushed for a higher minimum wage in 2017, then-Governor Terry Branstad signed a bill barring cities and counties from setting minimum wages higher than $7.25 an hour.
"I don't see this issue going away any time soon,” Mitchell said. “I think employers are going to have to wrestle with, ‘How are we going to pay our workers an appropriate living minimum wage?’”
Other companies, like Walt Disney and Target, have considered similar wage increases. Since Amazon bought Whole Foods, those employees will receive the same benefits.
"This is an issue that's ripe for conversation, and it's one that I expect today's announcement will really help us advance,” Mitchell said.