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What I've Been Reading This Week


The past few weeks have seen quite a few developments not only with minimum wage issues, but also with labor disputes across the country.  In particular, minimum wage and right to work have been two of the hot topics this year.  As a result, I think two recent developments out of Minnesota and South Dakota are appropriate to lead off this post.

As always, below are a couple articles that caught my eye this week.


Minnesota Supreme Court to Hear $15/Hour Minimum Wage Ballot Dispute

Following Hennepin County Judge Susan Robiner recently ruling that the $15/hour minimum wage measure should appear on the November ballot, an appeal has been taken up to the Minnesota Supreme Court.  At this point, the Supreme Court is to hear the issue at the start of next week...given the tight turnaround to actually get this measure on the November ballot, if the Court should so order.  This is one of the more heavily litigated minimum wage disputes that I can recall in recent memory.  Regardless of the outcome, I doubt this is the last time a city/state has taken a minimum wage dispute to court.


Minimum Wage Hike in Chicago Cited For Restaurant Closing

The Daily Signal has a recent article about a restaurant in Chicago, Cantina 1910, that has closed as a result of increased labor costs directly tied to minimum wage hikes in the city.  Readers might remember that the Chicago City Council passed an ordinance in 2014 that will raise minimum wage rates in the city to $13/hour by 2019.  Today, the minimum wage rate currently sits at $10.50/hour for hourly workers in the city.  Cantina 1910 certainly is not the first nor the last business to be forced to close as a result of the higher minimum wage rates in cities across the country.  However, it makes you wonder:  At some point in the not too distant future, will more and more smaller businesses be forced to close up shop when only big box/chain restaurants are able to absorb the cost of rising labor costs?

Pro Business Groups Fight South Dakota Right to Work Ballot Measure

As James Nord writes, several South Dakota business groups have gone on the attack to counter a labor backed ballot measure that they suggest would circumvent the state's right to work law.  In essence, the ballot measure would give corporate or nonprofit groups the right to charge fees for services provided.  Although the measure does not specifically refer to unions, but would still ultimately allow a labor union which has a collective bargaining agreement with an employer to charge fees to non-union members covered under the contract for various services (such as representation during the grievance process)..which of course conflicts with right to work laws.  Interesting to see how this one turns out in November.

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