Senate OKs wage hike; GOP says it's bad policy

Minnesota's minimum wage would rise 25 percent-plus under a DFL bill opposed by the governor.

By Conrad Defiebre, Star Tribune

Last update: April 18, 2007 - 9:08 PM

Minnesota's minimum wage would rise to as much as $7.75 an hour next year if a DFL bill given preliminary approval Wednesday in the state Senate becomes law.

But Republican Gov. Tim Pawlenty, who signed a $1 increase in the wage floor to $6.15 an hour in 2005, said he would veto the new boost unless it is scaled back. In its current form, he wrote to legislators, it "would result in an uncompetitive burden on Minnesota's employers."

Pawlenty called instead for "a reasonable increase" matching an expected rise in the federal minimum, removal of inflation indexing, preserving a lower rate for a trainee's first 90 days on a job and allowing food servers to be paid less than the new minimum if their tips make up the difference.

None of those changes was even offered as an amendment before Senate File 875, sponsored by Sen. Ellen Anderson, DFL-St. Paul, passed 40-23. Except for a no vote from Sen. Dan Sparks, DFL-Austin, the roll call followed party lines.

Anderson said that 25 states already have higher minimum wages than Minnesota's, including Wisconsin ($.6.50), Iowa ($6.20, going to $7.25 next year) and Illinois ($6.50, going to $7.50 in July). "Even Arkansas ($6.25) is higher," she said.

The U.S. House and Senate have each voted to raise the federal minimum to $7.25, but have yet to reconcile their different versions of accompanying business tax cuts.

Republicans disagreed.

"It's bad policy, bad timing and another punch in the gut of Minnesota businesses," said Sen. Geoff Michel, R-Edina. Sen. Julie Rosen, R-Fairmont, said it would contribute to "the slow death of our business climate."

Anderson's bill would set different wage floors for large employers and small ones, enterprises with less than $625,000 in annual sales.

For large firms, the rate would rise to $6.75 an hour on Aug. 1 and $7.75 a year later. For small firms, which now have a minimum of $5.25 an hour, the steps would be to $5.75 on Aug. 1 and $6.75 a year later.

The bill also would establish automatic annual raises in the minimum wage based on the U.S. Consumer Price Index, beginning on Jan. 1, 2009. If that becomes law, Anderson said, "we won't have to keep passing these bills."

Conrad deFiebre • 651-222-1673 • cdefiebre@startribune.com

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