Bill would tie state, federal minimum wages

BOISE – Faced with rival plans for boosting the state’s minimum wage, legislators picked a Republican-backed bill Tuesday to tie the state’s wage to the national minimum wage but rejected a Democratic proposal to require annual increases based on the rate of inflation.

The House State Affairs Committee voted unanimously to introduce a bill presented by Rep. Ken Roberts, R-Donnelly, to conform the state’s current $5.15 minimum wage to future changes in the federal rate. Congress is considering an increase to $7.25 an hour.

But committee members voted 10-8 against introducing competing legislation to increase the state wage to $7.25, adjust Idaho’s wage annually for inflation and phase out lower wages for service employees who receive tips. The rejected bill also would have restricted the lower training wage that Idaho permits.

Some committee members were concerned that the Democrats’ proposal would harm small business. Its sponsors, however, pleaded for a full hearing, citing evidence that minimum wage increases aid state economies.

“Frankly, at this time I think the changes that we are proposing are dynamic and would really help our workers in this state,” said Rep. Shirley Ringo, D-Moscow, a co-sponsor.

The Democrat-controlled U.S. House passed the wage increase, the first since 1997, in January. The Senate passed it recently after adding tax breaks for small businesses.

The federal wage applies to Idaho, but some businesses, depending on amount of income and interstate commerce, can pay the state’s minimum wage, which includes exemptions for workers who receive tips or are in training.

Twenty-nine states, including Oregon, Washington, Nevada and Montana, have set wages higher than the federal standard. The federal rate is at its lowest inflation-adjusted value in more than 50 years, according to the Economic Policy Institute.

Roberts’ bill mandates that Idaho’s minimum wage conform to the federal rate starting in July.

“As the feds change the rates from time to time, we find ourselves as a state wrestling with that issue basically every time it comes up,” he said.

His legislation preserves a provision allowing employers to count workers’ tips as part of their salary. It also maintains rules allowing employees younger than 20 who are undergoing training to earn $4.25 an hour for 90 days.

The alternate bill, presented by Ringo and Rep. Anne Pasley-Stuart, D-Boise, would have required Idaho’s minimum wage to initially increase to $7.25 an hour and keep pace with inflation in following years.

Ringo said Oregon and Washington adjust their wage requirements annually, and Nevada and Montana voters passed measures in November to adjust their wages.

It also would have lowered the training-age limit to 18, increased training wages to $5.98 an hour and shortened the training period to 30 days.

“Jobs at this level do not require 90 days to learn the job,” Ringo said.

She added that Idaho’s comparatively low minimum wage hurts businesses because workers cross into Washington to make $8 an hour.

“We need to show that we value families by protecting the buying power of whatever value this has for minimum wage,” Ringo said. “Let’s keep families from having to make the hard choices between, for example, rent and utilities, treatment for a sick child or food.”

Rep. Russ Mathews, R-Idaho Falls, facetiously suggested raising the wage to $17 an hour. He said that working for a company is “not an entitlement” and increasing the minimum wage might hurt the state’s “business-friendly environment.”

“Mr. Chairman, would this be the proper place to repeal the laws of gravity?” asked Rep. Raul Labrador, R-Eagle, referencing a January speech by Rep. Bill Sali, R-Idaho. Sali proposed curbing U.S. obesity by reducing gravity, saying increasing the minimum wage was equally foolhardy.

Rep. Eric Anderson, R-Priest River, who will become a co-sponsor with Roberts, departed from the majority to vote in favor of introducing the Democrats’ legislation.

Adjusting for inflation using the Consumer Price Index is “really asking for trouble,” he said, yet added he’s not afraid to debate the issue. Rep. George Sayler, D-Coeur d’Alene, said he supported the alternative proposal.

“I guess they don’t want to give us a chance to pre-empt the issue,” he said. “Ultimately, I think it’s the people who lose out by not having debates on the thing.”

Democrats may introduce the failed bill in the Senate, Pasley-Stuart said.