Articles for February - March 2007 Minimum Wage Hikes -On Jan. 10, the U.S. House of Representatives approved a bill to increase the federal minimum wage to $7.25 per hour over the next two years. The Senate is considering a similar bill.
On Jan. 10, the U.S. House of Representatives approved a bill to increase the federal minimum wage to $7.25 per hour over the next two years. The Senate is considering a similar bill. Rather than wait for Congress to act, 18 states passed minimum wage increases that went into effect Jan. 1. Nevada approved an increase that became effective Nov. 28. Several other states have future increases scheduled. In ballot initiatives, voters have approved new hourly minimum wages in Arizona ($6.75), Colorado ($6.85), Missouri ($6.50), Montana ($6.15), Nevada ($6.15) and Ohio ($6.85). Wage increases were passed by the legislatures in: California ($7.50), Connecticut ($7.65), Delaware ($6.65), Florida ($6.67), Hawaii ($7.25), Massachusetts ($7.50), New York ($7.15), North Carolina ($6.15), Oregon ($7.80), Pennsylvania ($6.25), Rhode Island ($7.40), Vermont ($7.53) and Washington ($7.93). In Pennsylvania, minimum wage will go up in July from $6.25 per hour to $7.15 per hour despite a recent hike. Michigan and West Virginia are preparing to increase their hourly minimum wages in 2007. Michigan, which increased the minimum wage to $6.95 last October, will increase it again to $7.15 July 1. West Virginia will increase its minimum wage to $6.55 July 1. Arkansas ($6.25), Maine ($6.75) and New Jersey ($7.15) increased their hourly minimum wages last October. Source: American Staffing Association - Back to Top -
Senate Adds Tax Breaks to Minimum Wage Legislation When the U.S. House of Representatives passed legislation that would raise the federal minimum wage, the bill did not include tax breaks for businesses. In the Senate, some wanted to consider adopting the House-passed bill without any changes, but the motion failed in a procedural vote. Sen. Charles E. Grassley (R-IA), ranking minority member of the Senate Finance Committee, said that "sends a clear signal to the House that there needs to be some accommodation to small business in the minimum wage package." After the procedural vote, the Senate resumed consideration of a minimum wage bill that includes business tax incentives. The last time the federal minimum wage was raised (1996), the law contained business tax incentives of $20 billion. The current Senate version of the bill contains incentives of $8.3 billion. Even though the Senate is expected to pass its version of minimum wage legislation, constitutional considerations make the outcome somewhat murky. The Senate bill violates the House's prerogative to initiate tax and revenue measures. Once the Senate passes its bill, Senate Majority Leader Harry Reid (D-NV) and Speaker of the House Nancy Pelosi (D-CA) would need to reach an agreement on the final bill without upsetting an already fragile coalition of senators who support a minimum wage increase. Source: American Staffing Association - Back to Top -
California Governor Proposes Health Care Reform California Gov. Arnold Schwarzenegger has announced a comprehensive health care reform plan to provide health insurance coverage for all of the state's residents. Individuals, employers and health care providers will fund the plan. State and federal money also would be used to fund the plan. The plan is conceptually similar to the comprehensive health reform law passed in Massachusetts last year. Both plans include an individual mandate that will require all citizens to buy coverage, either on their own or with help from the state in the form of subsidies. Although few details are available, the Schwarzenegger plan appears to go further in some respects than the Massachusetts law. For example, Californians would have to buy health care coverage for themselves and their dependents, whereas Massachusetts only requires individual coverage. And California employers that don't provide health coverage would pay more than those in Massachusetts. In Massachusetts, non-providing employers will pay a so-called "fair share" assessment of up to $295 annually for each full-time equivalent employee. The Schwarzenegger plan imposes a four percent payroll tax on non-providing employers. Proponents argue that it is a "fee," not a tax—a big difference since, in California, fees can be enacted by a simple majority vote in the legislature. New taxes require a two-thirds majority. The Schwarzenegger plan has received favorable reaction from Democrats in the state's legislature, who hold a commanding majority in both houses—although some have announced their own plans. Senate Democratic leader Don Perata unveiled a health care plan for Californians last month. Republicans, business groups, doctors, and others have voiced deep concerns, which will likely result in a major battle to craft a bill acceptable to all. Past efforts to enact a universal health care law in California have failed because a consensus could not be reached. Source: American Staffing Association - Back to Top - 
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