Minimum wage deal with automatic pay hikes: the horse trading
A bill in Minnesota is on track to increase the state?s minimum wage as well as tie future increases to inflation on an annual basis. After over a year of rallies, pounding the pavement, and lobbying, House Democrats and labor unions have convinced Senate Democrats to back the bill which would increase the minimum wage to $9.50 per hour. The bill is not without compromise, it contains a clause which allows a governor to suspend the annual indexed increase if the economy is facing a ?substantial downturn?. Similarly, the bill also contains a clause which would allow the governor to accelerate the annual increase back to where the index would have put it if there had not been a suspension. The overall effect may be that the minimum wage could change wildly with each new administration. Republican candidates for governor have already taken strong stances against indexing the minimum wage.
See "Minimum wage deal with automatic pay hikes: the horse trading", Briana Bierschbach, MinnPost, April 7, 2014