Minimum Wage Bill, HF 92

Raising the minimum wage is an effective way to directly impact wages for 350,000 Minnesota workers and to make hard work pay.
Minnesota has long earned and maintained a reputation as a hard-working state with a high standard of living. But today, the majority of Minnesotans in the labor force are earning less than they did a decade ago. Minnesotas median wages have declined since 2003, particularly for those at the lowest pay levels. As our economy recovers, wages are unfortunately not increasing with growth. Minnesota last raised the minimum wage, in 2005, to $6.15 for large employers and $5.25 for small employers. The House Minimum Wage Bill: Raises the minimum wage for large employers to $8.00 in 2013, $9.00 in 2014 and $9.50 in 2015. Raises the minimum wage for small employers to $7.00 in 2013, $8.00 in 2014 and $8.50 in 2015. Automatically adjusts wages to inflation from 2016 on. Conforms to federal standards and defines large employers as making $500,000 and above, overtime as hours beyond 40/week, and includes 12 weeks of parental leave. (Minnesota currently allows 6). Minnesotas minimum wage has fallen behind nationally and regionally. Of states that have a minimum wage, only Georgia and Wyoming are lower than Minnesota. All of our neighboring states match the $7.25 Federal minimum wage. Only four states have a state minimum wage thats lower than the Federal wage: Minnesota, Georgia, Wyoming and Arkansas. Six states have no minimum wage. 18 states and the District of Columbia have minimum wages higher than the Federal minimum wage, 11 states have state minimums that automatically change with the Federal rate and 9 states have indexed their minimum wage to inflation or cost of living. Raising the minimum wage will create more business because those with less money tend to spend wages directly in their communities. Minnesotas last minimum wage increase, in 2005, did not lead to job losses. Employment grew 1.5% from 2005-2006, and average hourly wages rose 67 cents. Increasing minimum wage would translate into $553 million in GDP and 4,820 jobs for Minnesota. In Greater Minnesota, more workers make and spend low wage earnings. Raising the minimum wage to $9.50 would impact a large number of workers (not just teenagers) currently making slightly more than the minimum wage but still not making a living wage. 58% of MN workers earning $7.25 or less are between ages 20 and 64. 15% are married. 365,000 Minnesotans have bachelors degrees and work in jobs that require only a high school diploma. Thats half of MNs college grads. 10% of low-wage workers have a college degree or higher. While unemployment is getting better, underemployment is substantial and continues to persist.