The Minnesota House on Friday will put its stamp on a minimum wage hike that would give up to 400,000 workers raises.
The measure would lift the state minimum to $9.50 an hour by 2015 for most workers. Currently, about 93,000 workers earn the federal minimum of $7.25 an hour or less.
"It is important that Minnesota finally take a step forward on the minimum wage. We are one of six states that have a minimum wage that is less than the federal minimum wage," said Rep. Ryan Winkler, DFL-Golden Valley.
The state minimum wage, last raised in 2005, is $6.25 $6.15 so the higher federal wage applies to most businesses.
Many business groups say the 50 percent increase in the state wage floor would cripple employers' flexibility and could cause businesses to scale back the number of jobs they provide.
"Simply put, this bill puts Minnesota retailers at a marketplace disadvantage, especially in non-metro areas and border communities," the Minnesota Retailers Association said in a plea to members to call lawmakers.
Rep. Greg Davids, R-Preston, said if Minnesota hikes the minimum wage to $9.50 the state will stick out like a sore thumb.
"Minnesota wage has to be determined at the federal level. You cannot have one state that is higher than the surrounding states," said Davids, whose southern Minnesota home is about 14 miles from the Iowa border. Iowa's minimum wage is $7.25 an hour.