Briefing: Mass. minimum wage
With the state Legislature's approval this month, Massachusetts is poised to have the highest minimum wage of any state by 2017.
The $11-an-hour minimum would be implemented gradually over three years, beginning next Jan. 1, when it will rise to $9 from the current $8. The Bay State is topped only by Washington, D.C., when it comes to the wage floor; that city is scheduled to boost its minimum to $11.50 by July 2017, according to the National Conference of State Legislatures.
What do businesses say?
Proponents of the Massachusetts hike have touted it as an important step toward improving the quality of life for the state's working poor. But the business community has largely opposed an increase
In a June 12 blog post, the Associated Industries of Massachusetts (AIM), which has opposed efforts to boost the wage to $11, expressed disappointment that a legislative conference committee voted to support the measure.
“AIM has argued that there are sound economic reasons not to increase the minimum wage. Far from helping poor people, moving the minimum wage to $11 an hour will simply ensure that people whose skills do not justify that wage will not find jobs,” said John Regan, AIM's vice president of government affairs.
On the other hand, AIM was enthusiastic that the same conference committee agreed on measures to reform the unemployment insurance system, which businesses have insisted must be linked to efforts to boost the minimum wage.
Who else is trying to boost the minimum?
Massachusetts is not alone on this issue. It's a hot topic at all levels of government. A handful of other states have scheduled similar hikes, while officials in West Coast cities like Seattle and San Francisco have supported measures to increase to at least $15 over several years. Seattle's will be fully implemented in 2021. And, President Obama has called for raising the U.S. minimum wage to $9, up from the current $7.25. Last week, the International Monetary Fund (IMF) put pressure on the U.S. to move forward with a federal wage increase.
What's next?
Gov. Deval Patrick is expected to sign the bill, and leading candidates to replace him are also supportive. Despite opposition from the business community, Republican candidate Charlie Baker has advocated a hike as an important driver for economic growth. Meanwhile, Atty. Gen. Martha Coakley, one of the three Democratic candidates, has also advocated a hike in the minimum wage.
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