Minnesota House Committee Agrees to Disagree on Raising Minimum Wage

The following was provided Feb. 28, 2013 by the Minnesota House of Representatives Public Information Services. 

Members of a House committee agreed to disagree on the economics of raising the minimum wage.

On a party-line vote, the House Labor, Workplace and Regulated Industries Committee approved HF92 as amended, which would raise the minimum wage incrementally up to $9 an hour by Aug. 1, 2015, for small businesses and up to $10.55 per hour for large employers. Small and large employers are defined as those whose volume of sales or business is above or below $625,000. 

Sponsored by Rep. Ryan Winkler (DFL-Golden Valley), the bill was referred to the House Jobs and Economic Development Finance and Policy Committee. Sen. Chris Eaton (DFL-Brooklyn Center) sponsors a companion, SF3 which awaits action by the Senate Jobs, Agriculture and Rural Development Committee.

The vote came after two days of hearings in which service industry owners, such as restaurants and hotel representatives, testified that the bill would severely impact their businesses. 

“My goal is not to punish business. My goal is to make sure that workers get a better wage,” Winkler said. 

The bill also would prohibit an employer from displacing an employee through a reduction in hours, wages or benefits in order to hire an employee at the new minimum wage. 

“If we addressed (minimum wage) on a regular basis, we wouldn’t be in this predicament,”Rep. Sandra Masin (DFL-Eagan) said. 

Beginning in 2016, the minimum wage would automatically be adjusted based on the rate of inflation, a provision opposed by Republicans.

“It’s bad business to tie yourself to something you can’t control,” said Rep. Mark Uglem (R-Champlin).