Minimum wage increase

The state minimum wage could go up.

Sponsored by Rep. Tom Rukavina (DFL-Virginia) and Sen. Ellen Anderson (DFL-St. Paul), HF456/SF875* would raise the hourly minimum wage for large employers (companies with annual sales of $625,000 or more) to $6.90 as of July 24, 2008, and another dollar one year later.

For small employers (companies with annual sales less than $625,000), the hourly minimum wage would be $5.75 as of July 24, 2008, and bump to $6.75 on July 24, 2009.

According to the U.S. Department of Labor, “Under the Fair Labor Standards Act, the federal minimum wage for covered nonexempt employees is $5.85 per hour effective July 24, 2007; $6.55 per hour effective July 24, 2008; and $7.25 per hour effective July 24, 2009.”

Passed as amended by the House 82-45 on May 1, the bill returns to the Senate where it was previously approved 40-23 on April 23, 2007.

An amendment from Rep. Jeremy Kalin (DFL-North Branch) reinstated language allowing a “training wage” which allows employers to pay a lower minimum wage – $5.25 an hour – to employees under 20 years of age.