Lisa Law View

Last week, Governor Tim Pawlent vetoed legislation approved by both houses of the Minnesota Legislature that would have increased the state minimum wage from the current $6.15 per hour to $7.75 per hour in 2009. The state law would have provided a raise beyond federal minimum wage $7.25 next year.

More than 300,000 Minnesota jobs was paid less than Pawlenty vetoed $7.75. Kris Jacobs, director of the statewide JOBS NOW Coalition, said, "I don't think a total of $8 a week above the federal minimum wage for the rest of this year or $13 a week over the next year is too much to ask. Seven out of 10 Minnesotans agree. Twenty-eight states have higher minimum wages than Minnesota."

He also said a minimum wage increase is especially important for workers outside the Twin Cities metro area: although Greater Minnesota workers hold just 41 percent of the state's jobs, they hold 56 percent of the jobs that pay less than $7.75 per hour.

In a statement, the members of the coalition present their response to the veto that the Governor said the wage was too high, so they compromised by lowering the amount in both the first and second years. The Governor said he wanted to keep a sub-minimum wage for younger workers. They compromised by putting it back in the bill. The Governor argued that most restaurant servers earn more than the minimum wage, so they should be excluded from the increase.

"If only that were true," said Jacobs. "According to the Governor's own Department of Employment and Economic Development, the state median wage for servers (including tips) is $7.69 per hour. That's why a tip penalty for servers was the one thing we could not agree on."

Labels: Minnesota Minimum Wage

House and Senate negotiators reached agreement on May, 8 that would increase the minimum wage for Minnesota’s lowest-paid workers.

Under the plan, for large employers (enterprise with annual receipts of $625,000 or more), the minimum wage would increase from $6.15 an hour to $6.75 per hour on July 24, 2008, and would increase again to $7.75 per hour in July of 2009. For smaller employers (enterprise with annual receipts of less than $625,000), the minimum wage would increase from $5.25 to $5.75 per hour on July 24, and up to $6.75 per hour in 2009.

“Without an increase in the minimum wage, many of our lowest-paid workers will soon find themselves unable to afford their basic necessities. I believe that this agreement takes a major step in the right direction, and will help thousands of our state’s residents cope with the challenges presented by our current economic downturn,” said Sen. Ellen Anderson, DFL-St. Paul, who carried the measure in the Senate.

The House and Senate agreement also increases the state’s training wage from $4.90 to $5.35 per hour in July, and increase to $5.75 per hour in 2009, while reducing the maximum age to receive a training wage down to 17.

Minnesota’s current minimum wage of $6.15 per hour for large employers has fallen below many Midwestern neighbors, including Iowa ($7.25), Illinois ($6.50, increasing to $7.50 in July), Wisconsin ($6.50), and Michigan ($7.15, increasing to $7.40 in July).

The state’s current minimum wage also ranks lowest among the 31 states that have enacted minimum wages above the federal minimum.

Labels: Minnesota Minimum Wage