From our newswires this morning regarding the MN Senate raising the minimum wage. Just passng it along.....A 31%increase for businesses to absorb. Do you think there will be lay-offs?...... Yesterday the Minnesota House and Senate DFL leadership agreed on legislation that will dramatically raise Minnesotas minimum wage to $9.50 in 2016 with an inflationary increase. If passed, Minnesota will have one of the highest minimum wages in the nation. Your legislator needs to hear from you as soon as possible! The bill includes: •$9.50 minimum wage for businesses with gross sales over $500,000 in 2016. Phased in over 3 years from $7.25 currently to $8.00 in August 2014; $8.50 in August 2015 and to $9.50 in August 2016. •$7.75 minimum wage for businesses under $500,000 in gross sales in 2016. Phased in over 3 years from $6.15 to $6.50 in August 2014; $7.25 in August 2015 and to $7.75 in August 2016. •(The wage cut off has been reduced from $625,000 to $500,000.) •The $7.75 minimum wage also applies to large businesses for: a 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 annually on January 1st through an inflation adjustment called the implicit price deflator. The implicit price deflator is similar to the Consumer Price Index. Wage growth will be capped at 2.5%. •The increase could be suspended for one year by the Commissioner of the Department of Labor and Industry (DOLI) if leading economic indicators show a possible substantial economic downturn. The suspension could only be implemented after a public hearing and comment period. In better economic times, the suspended increase could be added back. This increase is roughly the equivalent of a 31% increase on most businesses minimum employee cost. The bill makes Minnesota an outlier in the nation: only ten states index minimum wage to inflation, and none of them have a minimum wage as high as $9.50. These proposed changes will disproportionately affect small businesses in Minnesota, our border communities, young people, and entry-level workers. Minimum wage jobs give young and low-skilled workers the opportunity to learn important soft skills that cannot
Posted on: Tue, 08 Apr 2014 16:21:32 +0000
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