Working for a Living (Wage)

By Kathleen Hunter, Stateline.org. Posted January 23, 2006.

Nearly one-half of Americans now live in states that require wages higher than the $5.15 an hour set by Congress nine years ago. And the trend of states raising their minimum wages in the face of federal inaction shows no sign of fading.

Just since the start of the year, one state has increased its minimum wage, a governor from each party has announced a wage hike is on his agenda, and supporters are rallying in six states where campaigns are under way for wage-hike initiatives on the November ballot.

On Jan. 17, Maryland became the 18th state to set a minimum wage higher than the federal level of $5.15 an hour when the Maryland General Assembly overrode Republican Gov. Robert Ehrlich's veto of a bill raising that state's minimum wage to $6.15 an hour.

The same day, New Mexico Gov. Bill Richardson (D) in his annual State of the State address proposed raising his state's minimum wage to $7.50 an hour -- up from $5.15 an hour -- over the next three years.

Even Republican Gov. Arnold Schwarzenegger of California ventured into what is traditionally considered the territory of Democratic politicians and called for a $1 increase in California's minimum wage -- to $7.75 from $6.75 -- during his annual address to the Legislature earlier this month.

"The economy has bounced back, so it is now time for those who often work the hardest and earn the least to benefit from California's growth," Schwarzenegger said in his speech.

Ballot initiative campaigns are under way in six states, including in Nevada, where voters will consider a pioneering measure this November. Nevadans will decide whether to enact a bifurcated minimum wage requirement in which companies that don't provide health benefits for employees would be forced to pay a higher minimum wage than those that do. Minnesota already requires employers with annual receipts of $625,000 or more to pay higher wages than smaller companies.

Experts say the growing patchwork of laws setting various wage floors across the country is driven largely by the longest period without a congressionally mandated increase since the federal minimum wage was introduced in 1938.

"I think it will continue to be a hot issue for the states in 2006," said Jeanne Mejeur, who tracks minimum wage issues for the National Conference of State Legislatures.

Mejeur predicts as many as 30 states could consider legislative proposals to increase the minimum wage this year, including 11 states where such proposals will carry over from 2005.

Efforts to place minimum wage hikes on the ballot this November also are afoot in Arizona, Arkansas, Michigan, Montana and Ohio, according to the Ballot Initiative Strategy Center.

Washington state, which in 2001 became the first state to mandate automatic increases in its minimum wage tied to inflation, currently has the highest minimum wage of any state -- $7.63 an hour, according to the NCSL.

Kathleen Hunter is a staff writer for Stateline.org.

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