Apr 21, 2016 in Wages

Earlier this month, California Governor Jerry Brown signed legislation increasing the California minimum wage for 43% of the state’s work force to $15 per hour over the next six years, making it the highest minimum wage state in the country along with New York.

We recently shared with you a case study citing that a $1 increase in minimum wage could equal $1 million cost increase in annual warehousing costs to a facility with 500 or more employees. If you missed that issue, read about it here.

Under California’s new law, the minimum wage will increase to $10.50 in 2017, $11 in 2018 and a one dollar increase each year through 2012, this on the heels of two one dollar increases over the past two years. A similar law was approved by New York Governor Andrew Cuomo on the same day.

The California and New York increases represent the largest victories to date in the national campaign to raise minimum wage and will place increasing pressures on other states to follow suit.

With states increasing minimum wages by as much as $5 over the coming years, the cost implications to business are staggering. The reality is wages and costs are going to rise. No business should assume it is insulated from the affect of California and New York’s recent moves.  Every business should prepare to respond.

How do you avoid rising minimum wage increase and be a hero by providing the savings your company needs?

There is a proven solution you can implement immediately.  XB Fulfillment can help you save up to 30%–guaranteed —on warehousing, order fulfillment, and value-added services such as kitting, tagging, POS/POP displays, labeling and more.

XB Logistics’ time-tested and ISO 9001:2008 certified business practices enable our customers to cut costs without impacting service levels.  We focus on the same performance metrics you do: on-time delivery, order and inventory accuracy, and put away times.  And, using our web portal you’ll have real-time, 24 x 7 access to your data including receipts, on-hand inventory, shipping status and tracking information.

Take the first step towards identifying cost-saving opportunities to mitigate the impending minimum wage increases.  Implement our proven strategies that will save you money without sacrificing quality.  Our team will provide you with the information you need, including a cost savings analysis, to fully explain the XB Fulfillment method and present our cost-cutting business practices to your CFO and decision-makers. We provide the presentation materials. You present the answers.  Or have our experienced team make the presentation for you. How much easier can it get?

Start the dialog on 30% cost-savings today. Click here to get started.