abc
QUICK LINKS:

Minn. Lawmakers Reach Deal to Hike Minimum Wage to $9.50

Updated: 04/07/2014 5:18 PM
Created: 04/07/2014 7:15 AM WDIO.com

ST. PAUL, Minn. (AP) - Minnesota's minimum wage would rise to $9.50 per hour within a few years and continue going up unless a governor's administration applied the brakes.

That's the outline of a deal announced Monday between leaders of the House and Senate. It could move through both Democratic-led chambers this week.

Minnesota's current minimum is $6.15 for large employers, though most workers qualify for a higher federal minimum. Minnesota's base rate hasn't gone up since 2005.

Lawmakers had generally agreed to hit the $9.50 mark in a series of steps beginning this summer. But House leaders insisted on raises tied to inflation starting in 2017. Top senators said they couldn't muster support for purely automatic increases.

By giving the governor veto power, future raises could be withheld if economic trouble hits.

While many people support the minimum wage change, some restaurant owners said tips should be counted as wages. The bill does not have a tip credit, and Grandma's Regional Manager told Eyewitness News last month that would hurt the industry.

"If it goes through without some recognition of tips as wages, there will be job loss," Tony Boen said. "That might mean moving us into technology such as iPod ordering, kiosk ordering."

Boen, who is on the board of the MN Restaurant Association, also said he does not support the automatic tie to inflation.

"Minimum wage is too important of an economic driver to leave on auto pilot," Boen said.

If you're wondering how this will play out, the bill would mean a raise to $8.00 in August 2014. It would go to $8.50 in August 2015. Then, it will go to $9.50 in 2016.

Small businesses with gross sales under $500,000 will be forced to raise the wage to $7.75 over the three-year period. That will also be the cap for workers ages 16 and 17.

(Copyright 2014 WDIO-TV, LLC. All rights reserved. This material may not be published, broadcast, rewritten or redistributed. The Associated Press contributed to this report.)

Front Page

  • Justin's 2014-2015 Winter Prediction

    Winter is right around the corner and the question on everybody's mind is will we have a winter like last year.  With record stretches of cold and record snowfall last year is one we one like to forget. Chief meteorologist Justin Liles lets us know what we can expect this year

  • Woman in Douglas Co. Shootout was found Unresponsive in House Fire Day Before

    A 22-year-old Lake Nebagamon woman was hospitalized on Wednesday evening after an armed standoff with the Douglas County Sheriff's Office. On Tuesday, authorities say that same woman was found by her neighbors unresponsive and not breathing after they saw flames coming from a downtown Lake Nebagamon home. 

  • Funding for Military Funeral Personnel Restored

    On Thursday, Rep. Rick Nolan received a letter from the Secretary of the Army that funding for the playing of "Taps," a rifle salute, and delivering a folded American flag will be restored.

  • Preparing for Ebola: Health System Working Together

    People who work in the Northland's health system are communicating on a regular basis, to prepare for Ebola, even though it's unlikely to appear here.

  • St. Luke's Honored by American Heart Association

    St. Luke's received three honors from the American Heart Association on Thursday, for their approach and teamwork when taking care of heart and stroke patients.

 

Lake Effect Snow Advisory

WI AREAS AFFECTED: Ashland
Expires: 10/31/2014 11:00 AM

Lake Effect Snow Advisory

WI AREAS AFFECTED: Iron
Expires: 10/31/2014 11:00 AM

Lake Effect Snow Advisory

MI AREAS AFFECTED: Gogebic; Houghton; Keweenaw; Ontonagon; Southern Houghton
Expires: 10/31/2014 12:00 PM

Lakeshore Flood Advisory

MI AREAS AFFECTED: Alger; Baraga; Gogebic; Houghton; Keweenaw; Marquette; Ontonagon
Expires: 10/31/2014 2:00 PM

Advertisement
Advertisement
Advertisement
Advertisement