ST. PAUL, MN – The Minnesota House approved legislation on April 10 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 today.
State Representative Linda Slocum (DFL – Richfield) said the bill will make a positive difference in the lives of Minnesotans.
“If you work full time you should never have to live in poverty,” said Slocum. “This bill is a positive step forward toward turning that goal into a reality. It’s a very reasonable approach considering we take incremental steps to increase the minimum wage instead of doing it all at once. We built in safeguards to suspend automatic increases to mirror the economy. It strikes a good balance between the need to give working families greater economic security and the legitimate concerns of business owners. I was very pleased to support this bill.”
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 large employers (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 smaller employers (businesses with gross sales under $500,000) 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.
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Beginning in 2018, the minimum wage would increase annually on January 1st based on inflation with a cap at 2.5 percent.
An increase in the minimum wage will:
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Improve the income of 357,000 working Minnesotans across the demographic spectrum.
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Improve the income of 274,000 working adults, age 20 and up.
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Improve the income of 202,000 working women.
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Improve economic security for 137,000 children whose parents are low-wage earners.
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Increase annual consumer spending power in Minnesota by $472 million.
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Boost the aggregate income of working women by $256,987,000.
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Boost the aggregate income of working people of color by $124,416,000.
President Obama issued the following statement:
“Today, the Minnesota Legislature took action to increase the state minimum wage, giving more hardworking Minnesotans the raise they deserve. With this important step, Minnesota joins a growing coalition of states, cities, counties and businesses that have taken action to do the right thing for their workers and their citizens. I commend the state legislature for raising their minimum wage and we look forward to Governor Dayton signing the bill into law soon. I urge Congress to follow Minnesota’s lead, raise the federal minimum wage, and lift wages for 28 million Americans. Congress should listen to the majority of Americans who say it’s time to give America a raise and help ensure that no American who works full time has to raise a family in poverty.”
Rep. Slocum encourages her constituents to contact her with any questions or comments about the minimum wage increase bill. She can be reached by phone at (651) 296-7158, by email at rep.linda.slocum@house.mn or by postal mail at 415 State Office Building, 100 Rev. Dr. Martin Luther King Jr. Blvd., Saint Paul, MN 55155.