Pawlenty rejects minimum wage hike

05/15/2008

Veto-proof support appears lacking for the bill to boost pay for low-paid workers, including those who receive tips.


By KEVIN DUCHSCHERE,
Star Tribune
Last update: May 15, 2008


As expected, a minimum wage bill that would boost hourly pay for the state's lowest paid workers to $7.75 by 2009 was vetoed today by Gov. Tim Pawlenty.

The bill would raise the hourly minimum for large employers -- currently, $6.15 -- by 75 cents in July, and by another dollar next summer.

For small employers, under the bill, the $5.25-an-hour wage would go up 50 cents in July and another dollar next year.

In his veto message, Pawlenty said that the minimum wage approved by the Legislature would give Minnesota the 7th-highest in the country, hurting efforts to maintain jobs during the economic slowdown and ultimately raising consumer costs.

And he noted the bill failed to include a tip credit, which allows employers to pay a lower wage to workers who get gratuities for their services, such as waiters.

Pawlenty said he had made it clear he would have supported a reasonable increase in the minimum wage, provided the bill included a tip credit.

"Minnesota is one of only a handful of states that do not recognize a tip credit at the state level," Pawlenty wrote in his message. "A tip credit is applied in 43 states for calculating the base wage for tipped employees. The tip credit is essential for the continued viability of many employers."

Worker advocate groups criticized the veto, saying they had compromised several times to meet Pawlenty's concerns only to have him reject the bill anyway.

"I don't think a total of $8 a week above the federal minimum wage for the rest of this year or $13 a week over the next year is too much to ask," said Kris Jacobs, director of the JOBS NOW Coalition.

In his message, Pawlenty said that he would consider a bipartisan minimum wage in next year's session if it's reasonable and includes a tip credit. He noted that the federal minimum wage will rise to $6.55 this year and $7.25 next year for most employers.