By Melanie Trottman
Wall Street Journal, Dec 23, 2012
A dozen states and cities will raise their minimum wages on Jan. 1, and efforts are afoot in Congress and several state legislatures to push through increases next year, spurring fresh debate about whether such efforts would help or hurt the already sluggish economic recovery.
The minimum wage will increase in 10 states—including Florida, Ohio and Colorado—as well as San Francisco and Albuquerque, N.M., on Jan. 1. San Jose, Calif., will raise its minimum wage in March. Ten of the increases are inflation-related triggers, while the others are because of legislation or ballot initiatives that passed this year.
Since 2009, the federal minimum wage has been $7.25 an hour, and 18 states, Washington, D.C., and several cities have higher rates. They include Washington state, where the minimum wage will hit $9.19 an hour on Jan. 1, and San Francisco, where it will rise to $10.55 an hour.
Aides for Sen. Tom Harkin (D., Iowa), chairman of a Senate labor committee, and Rep. George Miller (D., Calif.), the top Democrat on a House workforce committee, say the lawmakers plan to reintroduce legislation next year to raise the federal hourly minimum wage to $9.80 over two years and increase the $2.13 minimum wage for tipped workers for the first time since 1991 by gradually raising it until it reaches 70% of the regular minimum wage. It would also trigger automatic increases linked to the rising cost of living, a first for the federal wage. ...
New Jersey Republican Gov. Chris Christie has a bill on his desk to boost the state minimum wage to $8.50 from $7.25. The measure will automatically become law if Mr. Christie doesn't veto it. …
Legislation in Illinois ... would boost that state's minimum wage to more than $10 from $8.25, putting it above neighboring states.
In California ... Democratic Assemblyman Luis Alejo introduced a bill this month to raise the $8-an-hour minimum wage beginning in 2014. It would reach $9.25 within two years.
New York's Democratic-controlled assembly has approved a bill to boost the minimum wage to $8.50 from $7.25.
Greater New York Chamber of Commerce President Mark Jaffe said most members surveyed don't consider the state's wage proposal a hindrance to job creation. "It will spur the economy and challenge businesses to make sure they're not wasting money in other efforts," he said.
Supporters of increases point to workers like Tyree Johnson, a 44-year-old who works the grill and helps clean at two Chicago McDonald's restaurants. After 20 years of being transferred among many McDonald's outposts, "I'm still making minimum wage and living from payday to payday," said Mr. Johnson, who makes $8.25 an hour. ...
The high-school-educated Chicago native often falls behind on his $320-a-month rent at a men's hotel and can't afford health insurance or help his elderly mother. McDonald's declined to comment, noting most outlets are franchised. ...
Write to Melanie Trottman at melanie.trottman@wsj.com
Read full story:
http://online.wsj.com/article/SB10001424127887324660404578197712511565672.html
Copyright 2012 Wall Street Journal