ST. PAUL, MN – Today the Minnesota House approved legislation to increase the state’s minimum wage to $9.50 by 2016 and give minimum wage workers an annual pay raise tied to the rate of inflation starting in January 2018.
The bill now goes to Governor Dayton to be signed into law.
State Representative Jeanne Poppe (DFL – Austin) who was a member of the minimum wage conference committee, voted in support of the bill.
“This is a good day for working families in Minnesota,” said Poppe. “We have not raised the minimum wage in nearly ten years. The bill we passed will make a difference in helping Minnesotans provide for themselves and their families.”
Over 357,000 workers will see a raise when the bill is fully implemented. Of those workers, 45 percent have some college education and 57 percent, or 200,000 are women.
The bill is expected to have significant impact on Minnesota families. Of the workers expected to receive a raise, 62,850 are parents. And 14,200 of those are the sole wage earner in their household.
“Minnesota’s economy continues to add jobs as it recovers from the recession,” said Rep. Ryan Winkler, the author of the bill in the House. “Unfortunately, a significant portion of those jobs offer part time hours, poor working conditions, and low wages. Those low wages force families to rely on public assistance while highly profitable corporations reap the benefits. Raising the minimum wage will increase the spending power of hundreds of thousands of Minnesotans and inject hundreds of millions of dollars into our state's economy. It will improve our economy and make our economy better reflect our values.”
Details of the bill’s minimum wage increases include:
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$8.00 per hour in August 2014, $9.00 per hour in August 2015, and $9.50 per hour for businesses with gross sales over $500,000 in 2016.
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$6.50 per hour in August 2014, $7.25 per hour in August 2015, and $7.75 per hour for businesses under $500,000 in gross sales in 2016.
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The $7.75 minimum wage rate would also apply for large businesses in the following circumstances: 90 day training wage for 18 and 19 year olds, all 16 and 17 year olds and employees working under a J1 visa.
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Beginning in 2018, all wages would increase each year on January 1st by inflation measured by the implicit price deflator capped at 2.5 percent.
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The indexed increase could be suspended for one year by the Commissioner of the Department of Labor and Industry (DOLI) if leading economic indicators indicate the possibility of a substantial downturn in the economy. The suspension could only be implemented after a public hearing and public comment period. In better economic times, the suspended inflationary increase or a lesser amount could be added back into the minimum wage rate in a subsequent year.
Rep. Poppe encourages her constituents to contact her with any questions or comments about the minimum wage bill. She can be reached by phone at (651) 296-4193, by email at rep.jeanne.poppe@house.mn, or by postal mail at 487 State Office Building, 100 Rev. Dr. Martin Luther King Jr. Blvd., St. Paul, MN 55155.