More States Looking to Raise the Minimum Wage

According to the U.S. Department of Labor, workers earning the federal minimum wage of $5.15 in 2004 had the buying power of $4.42 in 1996 dollars.

California Assemblywoman Sally Lieber (D-Mountain View) has introduced AB 48 into the Calif. Legislature to raise the state's minimum wage from $6.75 to $7.25 beginning July 1, 2006. The bill calls for the minimum wage to jump another 50 cents on July 1, 2007 (to $7.75 per hour) and thereafter be adjusted for inflation each January 1. The bill passed 6-2 out of the Labor and Employment Committee on April 20 and was referred to the Committee on Appropriations.

Dan Weintraub, who reports on economic matters for the Sacramento Bee, feels that minimum wage increase, while a popular cause of some politicians, is not the most effective way to help lower wage earners. He believes the answer is for states to make it easier for employers to create more jobs. With more jobs to fill, the price of labor will climb as employers compete to attract workers, the argument goes.

Still, measures to raise the minimum wage above the federal standard ($5.15) are in the works in other states. As of Jan. 2005, 13 states, plus the District of Columbia, had minimum wages higher than the fed (Ala., Ca., Del., Fla., Hi., Maine, Mass., N.Y., Ore., R.I., Vt., and Wash.).

In April 2005, the Maryland legislature, controlled by the Democrats, passed a bill to raise the state minimum wage $1/hr. to $6.15. Republican Gov. Robert Ehrlich is not a fan of the bill, but is likely to sign it.

In Connecticut, the Democrat-controlled House passed legislation that would raise the current $7.10 hourly rate to $7.40 as of Jan. 1, 2006. Proponents hail the bill, but Connecticut Rep. Lawrence Cafero Jr., R-Norwalk, said the legislature is sending businesses a ?EUR??,,????'??stay out of Connecticut?EUR??,,????'?? message.

A bill to raise the wage from $5.15 to $5.90 an hour on July 1, 2005, and to $6.65 on July 1, 2006, has passed the Minnesota Senate and is pending in the House.

In Oregon, voters supported raising the minimum wage to $7.25 an hour. The Oregon Restaurant Association wants the legislature to make two exceptions: a subminimum ?EUR??,,????'??training wage?EUR??,,????'?? for workers 18 and under, and a freeze on the minimum for workers earning at least $30 per month in tips.