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With the House Set to Vote on the Raise the Wage Act, the US Chamber of Commerce Backs A Wage Hike (With Caveats)


Readers might have heard of a bill introduced in the Democratic controlled House of Representatives, the Raise the Wage Act.  This bill would do several things:  1) it would more than double the federal minimum wage rate up to $15/hour over approximately five years; 2) index future wage hikes to median wage growth; and 3) do away with the tipped minimum wage rate.  While there was some disagreement among Democrats in the House about the precise language of the Raise the Wage Act, there has been a gradual coalescing of Democrats around the legislation.  (For the most part, Republicans have criticized the bill as being too extreme in terms of the overall wage hike and the time period over which it would occur.)

With that being said, the US Chamber of Commerce recently announced that it would throw its support behind a wage hike...with a few caveats.  (It would make too much sense for the Chamber to suddenly back the legislation, right?)  In a letter to the House of Representatives, Neil Bradley, the Executive Vice President at the Chamber, pointed out that a recent report found that a federal minimum wage hike to $15/hour would be too dramatic and lead to a notable loss in jobs.  With that being said, Bradley did state that the Chamber would support a "double digit" increase to the federal minimum wage if:  1) the legislation benefited both employers and employees; 2) allow de minimis use of employer provided electronic devices outside of working hours (which would not require the employer to compensate the employee); 3) update an exemption for outside sales; and 4) clarify the Fair Labor Standards Act to ensure that state or local minimum wage hikes are fairly applied to franchises.

Now bear in mind, I doubt there will be widespread acceptance of these proposals by Democrats.  Instead, Republicans will likely rally around these proposals and once rejected by Democrats, point out that attempts were made to find an amicable middle ground to get a new federal minimum wage approved.  Democrats appear to have the votes to get this bill approved in the House, which many expect will happen within the next few weeks.  The next stop would then be getting it approved by the Senate...which is controlled by Republicans.  If by some surprise, the Republican controlled Senate approved the bill, it would go before President Donald Trump.  As many expect, in the unlikely event this bill makes it that far, President Trump is expected to veto it.  At that point, it is unlikely that the Senate has a 2/3 majority to override that veto.

Now if a lower federal minimum wage hike were approved by Congress, it is possible President Trump might consider signing it into law.  After all, there have been some indications that he would approve an increase in the federal minimum wage (just not up to $15/hour.)


For a copy of the Raise the Wage Act of 2019 (HR 582):  https://www.congress.gov/bill/116th-congress/house-bill/582/text

For a copy of the letter from the US Chamber of Commerce:  https://www.uschamber.com/letters-congress/us-chamber-letter-hr-582-the-raise-the-wage-act

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