The “Training Wage” Loophole

A Sub-Minimum Wage for Teenagers Would Not Help Most Employers, Would Provide an Unfair Subsidy for Fast Food and Retail Chains, and Would Create Bad Incentives

When low-wage employers are unable to block a minimum wage increase, they frequently propose adoption of a 90-day, sub-minimum “training wage” for teenage workers. They generally argue that such a reduced wage for teens is necessary either to avoid putting teens out of work, or to cushion the impact on employers of a higher minimum wage. But review of the economic evidence shows that neither rationale holds up to scrutiny.

Read the full report from the National Employment Law Project here.