What is the difference between a minimum wage law and a living wage law?

The difference between a minimum wage law and a living wage law is an important one to understand in North Carolina. Minimum wage laws establish a legal minimum wage that employers must pay to their employees. The hourly rate that employers must pay on the minimum wage depends on the industry, and can be affected by the number of employees they have. Living wage laws are set at a higher rate than the minimum wage and are also based on the industry and number of employees. Living wage laws are designed to better reflect the cost of living in a particular area than the minimum wage does. Whereas the minimum wage is meant to ensure that workers are able to pay for basic needs, the living wage is typically higher so that workers and their families can afford housing, health care, and a healthy diet. To achieve this, living wage laws are often reevaluated to keep up with changes in the cost of living and inflation. In North Carolina, the current minimum wage is $7.25 and it is set to increase to $15 per hour by 2025. Living wage laws are still being evaluated and will likely differ from the minimum wage in certain areas and industries. Overall, the main difference between minimum wage laws and living wage laws is that the latter are designed to provide workers with an income that is closer to the cost of living in a particular area.

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What is the difference between a minimum wage law and a living wage law?

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