ST. PAUL, MN – Following in the footsteps of two east coast states, the Minnesota legislature on Thursday approved a phased-in minimum wage hike.
The current minimum wage of $6.15 would be hiked for many (but not all) workers to $9.50 an hour by 2016. In 2018, the minimum wage will be tied to inflation. According to the US Bureau of Labor, $100 in 2014 is the same as $92.88 in 2010.
Governor Mark Dayton is expected to sign the legislation next week.
Reaction was swift from the White House.
Vice President Joe Biden said “Minnesota joins a growing list of states, cities, counties and businesses that have done the right thing and raised the minimum wage.”
President Barack Obama released a statement praising the wage hike. He and other Democrats have been strong supporters of an even bigger hike, all the way to $10.10. The Minnesota minimum wage hike falls short of that, but the President nonetheless saw the move as “an important step”.
“Today, the Minnesota Legislature took action to increase the state minimum wage, giving more hardworking Minnesotans the raise they deserve,” President Obama said. “With this important step, Minnesota joins a growing coalition of states, cities, counties and businesses that have taken action to do the right thing for their workers and their citizens. I commend the state legislature for raising their minimum wage and we look forward to Governor Dayton signing the bill into law soon.”
The President urged Congress to follow suit and approve a higher minimum wage a the federal level.
“I urge Congress to follow Minnesota’s lead, raise the federal minimum wage, and lift wages for 28 million Americans. Congress should listen to the majority of Americans who say it’s time to give America a raise and help ensure that no American who works full time has to raise a family in poverty.”
In February, President Obama signed an executive order raising the minimum wage of federal contract workers to $10.10.
Iowa Congressman Steve King blasted the move, calling it an “abuse of the Constitution”.
In Iowa, legislation has been introduced over the last few years at the state capitol to raise the minimum wage, but has went nowhere, and is not expected to gain approval in 2014.
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