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What I've Been Reading This Week: Minimum Wage Edition


I came across quite a few articles this week in regard to minimum wage hikes/the future of minimum wage hikes in the country over the coming months.  Add in the fact that in the upcoming new year workers in several cities are soon to see a minimum wage increase, I think it is appropriate to dedicate one of the last ‘What I’ve Been Reading This Week’ posts for 2017 to this topic.

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


Forget About That Wage Hike, Miami Beach Minimum Wage Workers

As posted on the Tampa Bay Tribune website, this past Wednesday, an appeals court in Florida upheld a circuit judge's ruling and held that state preemption laws barred Miami Beach from setting its own minimum wage rate.  Last year, the Miami Beach City Commission passed an ordinance that would have raised minimum wage rates in the city to $10.31/hour in 2018 with wages going up $1/year to $13.31 on January 1, 2021.  However, the statewide hourly wage rate is only $8.10/hour (set to go up to $8.25/hour next year.)  In its opinion, the appeals court pointed to state law which prohibits local governments (like Miami Beach) from setting their own hourly wage rates and disagreed with an argument that a 2004 state constitutional amendment did away with that preemption law.  While this minimum wage hike is currently dead (or at least on hold), I would expect minimum wage advocates to take this case to the Florida Supreme Court.


Study Warns California Could Lose 400,000 Jobs As a Result of $15/Hour Minimum Wage

Perhaps the title of this article says it all?  A report has been released which predicts that by the time California's statewide $15/hour minimum wage rate fully goes into effect in 2022, nearly half a million jobs could be lost as a result.  Readers might recall a study was released several months ago which predicted a similar job loss for Seattle after the city chose to raise hourly wage rates to $15/hour, although the number of jobs expected to be lost there was lower than what has been forecasted for California.  I think there are far too many variables to accurately predict the number of jobs that will be lost over the coming years to these minimum wage hikes, but I think it is quite likely (if not inevitable) that the rise in labor costs could prove detrimental to many jobs in the state.



For those that did not hear, on Tuesday, Alabama elected its first Democratic Senator, Doug Jones, in nearly 25 years.  In a traditionally red state such as Alabama, this victory has emboldened Democrats to start dreaming of taking on an ambitious agenda in 2018 which includes a renewed effort to raise minimum wage rates across the country to $15/hour.  Lee Fang and Nick Surgey at The Intercept make note of Republican lobbyists (and one in particular) who are warning that with a general acceptance among the public for a federal minimum wage hike, Democrats pouring increased money and resources into the movement, and a somewhat rocky road ahead for Republicans in many races in 2018 (who traditionally do not support the large scale minimum wage hikes that Democrats push for), the time could be ripe for Democrats to make a $15/hour minimum wage rate a reality.  I question whether Democrats have the votes/support to increase the federal minimum wage rate this high (as Republicans have majority control of Congress, for now), I think it is certainly possible that many states and cities will see voters approve a minimum wage hike next year.  Stay tuned.



As Matthew Santoni writes, this past Tuesday, the Pittsburgh City Council unanimously passed legislation that will require any professional service firm (such as accountants, doctors, and lawyers) that bids for a contract with the City worth more than $100,000.00 to pay its employees at least $15/hour.  This legislation had been introduced by Mayor Bill Peduto who has been proactive in working to raise minimum wage rates in the city, mainly among city employees.  I would not call this legislation much of a shock, given that it narrows this $15/hour minimum wage floor only for professional service firms seeking contracts with the City.  But now that this legislation has passed rather effortlessly, will we see attempts to broaden this $15/hour wage requirement to other employers (such as employers that hire more blue collar workers) that seek contracts with the City?



With the election of a new Governor in New Jersey this year, who campaigned on a platform that included a $15/hour minimum wage, many businesses in the state are wary of an impending increase to the minimum wage.  As Michael Diamond writes, the hourly minimum wage rate in the state, currently at $8.60/hour, is expected to rise in the coming years, due in no small part to the new Governor backing the effort.  Given this apparent support for a minimum wage hike, businesses are 'warning' that an increase to the minimum wage could result in layoffs (especially among smaller employers that cannot absorb these increased labor costs.)  With New York having raised its minimum wage rates not too long ago, it would not surprise me to see the Garden State attempt to follow suit.  The only question is whether Governor Phil Murphy can leverage the votes to pass this legislation.



This past Monday, a judge in Minnesota denied a request to issue a temporary injunction and block the initial implementation of a minimum wage hike for workers in Minneapolis.  The Minneapolis City Council, which passed a wage ordinance in June that will eventually raise the minimum wage rate to $15/hour, has seen mounting resistance over the last few months by employers and pro business groups.  The Judge's denial of the injunction means that on January 1, 2018, employers in the city with more than 100 employees will be required to pay their employees $10/hour.  Employees at small businesses will be given additional time and will be required to pay their employees $10.25/hour by July of next year.   Although this minimum wage fight is likely far from over, this is one of many hurdles that proponents of minimum wage hikes have managed to clear.

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