Gov. Dayton signing the minimum wage bill into law. Source: Tom Scheck/MPR News
After a debate in the Senate lasting several hours, with a close 35-31 final vote the bill to raise the state’s minimum wage (H.F. 92) was passed last Wednesday evening. Yesterday afternoon, Governor Dayton officially signed the bill into law.
What’s in the New Law
With the passage of H.F. 92 businesses with a gross revenue of $500,000 or more will be required to pay employees a minimum wage of $9.50/hour starting in 2016, with a yearly index to inflation beginning in 2018. The $9.50 wage will be implemented gradually beginning this August, when the wage will increase to $8/hr; it will then increase to $9/hr in August of 2015 and will reach $9.50/hr in August of 2016. Beginning in January of 2018 the wage will be indexed to inflation every year to ensure that when cost of living increases, people’s wages will as well.
Senate Provisions
Although the Senate agreed to most of the provisions outlined in the House bill, through negotiations some extra exemptions were included:
- For workers from abroad in the J-1 Visa program, wages will be increased to $7.75/hr by August of 2016, rather than $9.50/hr.
- Wages for youth under 18 will also increase to $7.75/hr, rather than $9.50/hr, by August 2016.
- For the first three months of employment for adults under age 20, wages will increase to $7.75/hr. Once three months have been exceeded, $9.50/hr will be applied.
- Agricultural and transportation workers will only receive overtime pay if they exceed a 48-hour work week, as opposed to a 40-hour work week.
Further Considerations for Child Welfare
In a previous post I discussed how raising the minimum wage can reduce the likelihood of child welfare involvement for families living in poverty. As I stated previously,
although poverty alone does not cause child abuse or neglect, because it is so highly correlated with other significant stressors such as substance abuse, depression and social isolation, poverty remains the best predictor of child maltreatment and neglect.
There are other important elements to consider when examining the potential significance of the new law’s exemptions on Minnesota’s youth. For instance, the provisions pertaining to wages of individuals under age 20 could affect young adults aging out of foster care who are left with limited resources and struggle to earn a livable wage.
In addition, agricultural and transportation workers are typically low-wage earners who often work long hours under strenuous conditions. The 48-hour work week requirement for agricultural employees prior to receiving overtime compensation could impact the amount of time children can spend with parents employed in these sectors, while further influencing the stress level on these families as a whole. Over the next several years as the bill is implemented it will be important to examine how the wage increase will affect families served in the child welfare system.
A $9.50/hr minimum wage increase is a historic moment for Minnesota, placing us in one of the top 5 states with the most generous minimum wage platforms. Many supporters of the bill express the benefits it will have for low-income and impoverished families, while opponents continue commenting that the wage increase will be detrimental to businesses. What kinds of effects do you think the $9.50 increase will have on our state? Write your comments below!
