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Legislative News and Views - Rep. Jason Metsa (DFL)

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Metsa, Melin Vote to Raise the Minimum Wage

Thursday, April 10, 2014

ST. PAUL, MN – Today the Minnesota House approved legislation to increase the state’s minimum wage to $9.50 per hour by 2016 and give minimum wage workers an annual pay raise tied to the rate of inflation starting in January 2018.

Governor Dayton intends to sign the bill into law on Monday, April 14.

State Representative Jason Metsa (DFL – Virginia) who was a member of the minimum wage conference committee and a participant in the ‘minimum wage challenge’ this year and last year, said the bill represents a major milestone of progress for Minnesota’s working families.

“This is about making sure the hardworking men and women of Minnesota have more dollars in their pockets to support their loved ones, it’s as simple as that,” said Metsa. “We need to make sure people can put food on the table, keep a roof over their head and spend more time with their kids. The bill we passed today will help make that goal a reality for thousands of people throughout our state. I’m proud as heck of all the people who organized and made their voices heard on this issue.”

State Representative Carly Melin (DFL – Hibbing) said the bill is especially important for the well-being of women in the state, who make up the majority of Minnesota’s minimum wage workers.  

“More and more women are the primary breadwinner of their families, so this bill will really make a positive difference in the lives of women, men and their children,” said Melin, who is the chief author of the Women’s Economic Security Act (passed yesterday with strong bipartisan support by a vote of 106-24), another major component of DFLers’ agenda to build on Minnesota’s economic progress.

“This minimum wage increase goes hand-in-hand with closing the gender pay gap and making sure women have equal opportunities to succeed in the workplace.”

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:

  • $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 (matching the Federal threshold of ‘large employers’ and thus simplifying compliance and enforcement).
     
  • $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.
     
  • 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.
     
  • 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.
     
  • 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.

Melin and Metsa encourage their constituents to contact them with any questions or comments about the minimum wage bill. Their respective contact information is as follows:

REP. MELIN
515 State Office Building
100 Rev. Dr. Martin Luther King Jr. Blvd.
Saint Paul, Minnesota 55155
651-296-0172 or toll-free at 888-726-0711
E-mail: rep.carly.melin@house.mn

REP. METSA
521 State Office Building
100 Rev. Dr. Martin Luther King Jr. Blvd.
Saint Paul, Minnesota 55155
651-296-0170 or toll-free at 888-682-3205
E-mail: rep.jason.metsa@house.mn