For more information contact: Sandy Connolly 651-296-8877
State Rep. Jeanne Poppe (DFL-Austin) joined fellow Democrats and several Republican legislators in passing a minimum wage increase on the House floor yesterday.
The minimum wage has not been increased for over eight years and is currently at $5.15 an hour. For employers with annual gross sales of more than $625 thousand, this bill will raise the minimum hourly wage to $6.15 an hour beginning August 1, 2005. Employers with annual gross sales of less than $625 thousand will be required to pay an hourly wage of $5.25 an hour beginning August 1. Minimum wage for training purposes will be raised to $4.90 an hour.
"It's time for us to do more to help those individuals throughout the state who are working at these poverty level wages," said Poppe. "These are not just teen-agers working their first job, but Minnesotans of all ages, many who have dependents to support."
Poppe disputes the argument that raising the minimum wage could force some small businesses across the state to go out of business due to rising costs. "My understanding is that small business owners are more concerned about issues such as how to provide health insurance for their employees, how to afford liability insurance and pay their rising energy costs," said Poppe.
A person working 40 hours a week at the $6.15 minimum wage level will earn under $13 thousand a year, which is below the Federal Health and Human Services 2005 poverty level for a family of two.
"Whatever age they may be, people need to make enough money to pay their bills, or their rising college tuition costs, or their health insurance premiums, or even worse, pay skyrocketing medical bills because they don't have health insurance," said Poppe.
"Clearly, no one can do any of those things on $5.15 an hour."
Poppe adds that this increase is also good for promoting economic growth and development in the state. "People want to live where they can make a reasonable income," said Poppe. "And when they make more, they spend more, which is good for all of us."
The Senate has already passed a bill that will increase the minimum wage and there is every indication that the Governor supports this legislation and will sign it when it comes to his desk.
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