State minimum wage increase bill in spotlight after Obama speech

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wage dollar billThe Delaware General Assembly will once gain hash out an increase in the minimum wage. Senate Bill 6 would increase the minimum wage to not less than $8 an hour effective July 1, 2013 and not less than $8.75 per hour effective July 1, 2014.

Under the bill, the federal minimum wage becomes higher than the Delaware minimum wage, the Delaware minimum wage would increase by $1 above the federal minimum wage.

In addition, effective July 1, 2014, the minimum wage would increase by a percentage equal to the percentage of Cost of Living Adjustment (COLA) as determined periodically under the federal Social Security Act.

Sen.  Bob Marshall, D-Wilmington, is lead sponsor for the  legislation that passed the Senate, but died in the House last year.

The legislation is getting more attention this year after President Barack Obama called for an increase in the minimum wage and a cost of living adjustment.

In Delaware and throughout the nation, any plan to increase the minimum wage faces opposition from the business community.

The argument often centers on the minimum wage boosting all wages during a slow economic recovery.

Workers earning that wage counter that they end up working more than one job, as employers work to avoid having too many full-time workers who would earn benefits.

Another worry is the phase in of the Affordable Care Act that will require many companies to offer health insurance.

The National Federation of Independent Business issued a press release more than a month ago opposing the increase.

“Delaware has the best reputation in the northeast as a place to do business and this legislation puts that at risk,” said Ellen Valentino, state director for the National Federation of Independent Business (NFIB). “All the credible research shows that higher minimum wage laws hurt small employers and cost jobs.”

She said that Delaware small businesses will react to a higher minimum wage by cutting hours for their employees, automating certain jobs or simply finding ways to avoid hiring.

“Small businesses can’t increase their sales by 10 percent by waging a magic wantd” said Valentino.

 

1 COMMENT

  1. i am a single mom of 3 trying to survive off of $7.25 an hour it is almost impossible iI get paid every two weeks living pay check to pay check after iI get paid im out of money a week befor iI get paid again its so hard when my kids cant go on a school trip or a dance because mommy doesnt have any money after iI get everythong theyn need theres nothing left for them to have fun iI cant let them go to friends bday parties because mommy doesnt have ten bucks to buy a cheap present. if it was just me iI would work for pennies but its my babies that have to miss out on fun stuff…

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