House Passes $15 Minimum Wage

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House Passes $15 Minimum Wage


Supporters of the “Fight for 15” achieved a victory yesterday, as the House of Representatives passed legislation to increase the minimum wage.

 

By a vote of 231-199, the House passed H.R. 582. Here is how VoteSpotter describes the bill:

 

To increase the federal minimum wage to $15 an hour, phased in over 5 years. This legislation would also end the ability of nonprofits to offer work paying below the minimum wage to people with disabilities and end the different minimum wage rates for tipped and newly-hired employees.

 

This legislation would gradually increase the minimum wage from the current $7.25 an hour to $15 an hour over 7 years. Ever year during that time, the minimum wage would automatically go up. Then, after the seventh year, the Department of Labor would increase the minimum wage based on the increase in the median hourly wage for all employees.

 

In addition, this bill would end the ability of employers to pay lower waged to tipped workers and younger workers who are new hires. The federal program that allows some nonprofits to pay wages that are based on productivity but are below the minimum wage to people with disabilities would also end.

 

Supporters of this proposal say that workers should be paid a “living wage,” and that $15 an hour will help accomplish this. They also argue that this boost in wages will put more money into the economy, helping businesses. Opponents counter that this higher minimum wage will boost the pay of some workers, but will destroy the jobs of others. They contend that businesses will be hurt with the new burden of paying higher wages, since they will face the choice of raising prices or letting people go.

 

A recent Congressional Budget Office study concluded that a $15 minimum wage would increase the wages of 17 million workers while eliminating the jobs of 1.3 million workers and reducing business income.

 

This legislation now heads to the Senate, where Senate Majority Leader Mitch McConnell (R-KY) is unlikely to schedule it for a vote.

 

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