Running Header: MINIMUM WAGE: USA VS. MEXICO

Minimum Wage: USA vs. Mexico

Abstract

Minimum wages varies from countries to countries and even some times varies with in country also. The lowest rate offered by employers to their employees on hourly, daily or monthly basis is known as Minimum Wage Rate. Minimum wage was set in place to protect the workers from being exploited by their employers. This paper aims to discuss the concept of minimum wage and its impact on human resource. It will also discuss minimum wages in USA and Mexico.

Table of Contents

Introduction3

Discussion3

Minimum Wage Rate3

HR Function in the Hospitality Industry4

HR and Minimum Wage5

Consequences of Minimum Wages7

Minimum Wage in United States7

Minimum Wage in Mexico8

References10

Minimum Wage: USA vs. Mexico

Introduction

The lowest rate offered by employers to their employees on hourly, daily or monthly basis is known as Minimum Wage Rate. Minimum wages varies from countries to countries and even some times varies with in country also. Managed effectively, a minimum wage rate can reduce poverty and deliver significant societal and economic benefits. Minimum wage was set in place to protect the workers from being exploited by their employers. Anytime an increase in wage is put in place a company needs to address how they are going to handle the additional expense. This paper aims to discuss the concept of minimum wage and its impact on human resource. It will also discuss minimum wages in USA and Mexico. HRM is a series of integrated decisions that form the employment relationship. Human Recourse Function includes recruitment selection, staffing, training and development, compensation, employee relations, and work structure. After 2010, the federal minimum wage is U.S. $ 7.25 per hour, however each state reserves the right to set their own minimum wage, which may be higher than those set by the federal government. The overtime pay is not less than one and half times the regular wage, and must be paid if they exceed the 40 hour work week. As of 2012, according to the Tax Administration Service, the daily minimum wage in Mexico is 62.33 pesos in Area A, Area B 60.57 and 59.08 in Area C, with reference to the salary of the area A, an exchange rate of 13.65 pesos per 1 U.S. dollar and an 8-hour workday, salary is 0.57 USD per hour / man. Zones A, B and C above are geographical areas grouped various states or municipalities.

Discussion

Minimum Wage Rate

The lowest rate offered by employers to their employees on hourly, daily or monthly basis is known as Minimum Wage Rate. Minimum wages varies from countries to countries and even some times varies with in country also. Usually minimum wage rates are revised on a yearly basis by adjusting inflation to it. The minimum wage is to ensure a level of income to employees and workers. It maintains a "fair competition" between employees as well between employers. It contributes to the social cohesion of a country and the redistribution of income. If the principle of the minimum wage is admitted differences economic ...