Senator John Marty, DFL-Roseville, introduced a bill Monday that requires all Minnesota employers to pay a "living wage." Those that don't would be subject to "a low-wage compensation surtax" on the difference between actual worker wages and the defined living wage.
Revenues collected from the surtax would be used to increase the Working Family Tax Credit, which helps low income workers pay for necessities.
Unlike other living wage proposals adopted by some cities, which cover only employers with government contracts, this legislation would apply to all employers.
"The current minimum wage is grossly inadequate to provide workers' families with basic necessities, like housing and healthcare," Marty said. "Many underpaid workers are forced to rely on the state to meet their families' basic needs. Taxpayers subsidize employers, like Wal-Mart, that pay low wages because public programs support employees who do not receive a sufficient wage.
"This bill will reduce the burden on government services by ensuring that workers receive a living wage, either through their pay or, if necessary, through the Working Family Credit. Businesses that pay too little should pay at least a portion of the taxpayers' burden for each worker that they inadequately compensate."
Under the Marty legislation, the living wage is set at $14 per hour in the Twin Cities metropolitan area and $12 per hour in greater Minnesota. The wage is reduced $3 per hour if the employer provides health benefits.
Initially, the surtax would be one-third of the difference between the hourly wage paid, and the defined living wage.
"The living wage may seem high to some," Marty commented, "but the costs of housing, health care, and other basic needs are simply unaffordable regardless of how much overtime some workers put in. Workers with full-time jobs should never be forced to choose between feeding their families or putting a roof over their heads."
"Some will undoubtedly call this bill a burden on business," Marty continued. "But, if the minimum wage had grown as fast as CEO pay since 1990, the minimum wage would be almost $12 per hour. If it is not a burden on business to triple CEO pay in just 15 years, then it should not be a burden to increase worker pay for under-paid employees."
The legislation provides a phased approach to the surtax, eventually covering all employers regardless of size. New businesses would be exempt from the surtax for several years after startup.
"In the current debate, the minimum wage is portrayed as a burden on some businesses. This legislation will focus discussion on the reality that the real burden is on taxpayers, when employers are paying inadequate wages," Marty said.
The bill, S.F. 2090, has been referred to the Senate Jobs, Energy and Community Development Committee.
For more information
The text of the legislation, Senate File 2090, is available at: www.revisor.leg.state.mn.us
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Senator John Marty, DFL-Roseville, introduced a bill Monday that requires all Minnesota employers to pay a “living wage.” Those that don’t would be subject to “a low-wage compensation surtax” on the difference between actual worker wages and the defined living wage.
Revenues collected from the surtax would be used to increase the Working Family Tax Credit, which helps low income workers pay for necessities.
Unlike other living wage proposals adopted by some cities, which cover only employers with government contracts, this legislation would apply to all employers.
“The current minimum wage is grossly inadequate to provide workers’ families with basic necessities, like housing and healthcare,” Marty said. “Many underpaid workers are forced to rely on the state to meet their families’ basic needs. Taxpayers subsidize employers, like Wal-Mart, that pay low wages because public programs support employees who do not receive a sufficient wage.
“This bill will reduce the burden on government services by ensuring that workers receive a living wage, either through their pay or, if necessary, through the Working Family Credit. Businesses that pay too little should pay at least a portion of the taxpayers’ burden for each worker that they inadequately compensate.”
Under the Marty legislation, the living wage is set at $14 per hour in the Twin Cities metropolitan area and $12 per hour in greater Minnesota. The wage is reduced $3 per hour if the employer provides health benefits.
Initially, the surtax would be one-third of the difference between the hourly wage paid, and the defined living wage.
“The living wage may seem high to some,” Marty commented, “but the costs of housing, health care, and other basic needs are simply unaffordable regardless of how much overtime some workers put in. Workers with full-time jobs should never be forced to choose between feeding their families or putting a roof over their heads.”
“Some will undoubtedly call this bill a burden on business,” Marty continued. “But, if the minimum wage had grown as fast as CEO pay since 1990, the minimum wage would be almost $12 per hour. If it is not a burden on business to triple CEO pay in just 15 years, then it should not be a burden to increase worker pay for under-paid employees.”
The legislation provides a phased approach to the surtax, eventually covering all employers regardless of size. New businesses would be exempt from the surtax for several years after startup.
“In the current debate, the minimum wage is portrayed as a burden on some businesses. This legislation will focus discussion on the reality that the real burden is on taxpayers, when employers are paying inadequate wages,” Marty said.
The bill, S.F. 2090, has been referred to the Senate Jobs, Energy and Community Development Committee.
For more information
The text of the legislation, Senate File 2090, is available at: www.revisor.leg.state.mn.us