I'm not in a sector where I have min wage employees but a fair argument is that if min wage increases by 40%, should I increase wages by 40% of all of my employees? How do I tell them that they are now only worth 3x min wage as opposed to 4x or more? If I compensate for the min wage increase and give a proportionate increase across the board, how do I determine which employee(s) I lay off in order to free up the cash flow to hand out the pay raises?