Florida’s Minimum Wage To Increase As Debate Continues

December 9, 2014

Florida’s lowest-paid workers will get a raise Jan. 1, but a higher minimum wage sought by state and national Democrats doesn’t appear on the immediate legislative horizon.

The automatic increase of 12 cents an hour, recalculated by law each year based on the federal Consumer Price Index, will increase the state minimum wage to $8.05 in January, up from $7.93. Voters in 2004 approved a constitutional amendment aimed at annual minimum-wage hikes.

The upcoming increase will also boost the minimum wage for tipped employees from $4.91 an hour to $5.03.
The $8.05 rate — after the increases amounting to $4.80 per 40-hour work week and $249.60 a year — keeps Florida ahead of the federal minimum wage of $7.25, which has been in place since July 2009.

However, the rate remains below the $10.10-an-hour mark being pitched by President Barack Obama, state Sen. Dwight Bullard, D-Miami, and state Rep. Cynthia Stafford, D-Miami.

Bullard acknowledged Monday his proposal faces a tough future in the Republican-dominated Legislature. But with polls showing support in Florida and voters in other states approving similar measures, he believes pressure is growing so that Florida lawmakers will have to consider steps toward a higher minimum wage.

“Something will be done in the next few years,” Bullard said. “Every year that we wait there are more states that are moving to a higher increase and we’ll find ourselves as a state on the low end of the minimum wage scale. You have to do something that is going to entice your best and brightest. Even in low-wage fields, individuals will ultimately want to move to a state that is doing better business.”

Business groups like the Florida Chamber of Commerce have argued against such proposals, saying the $10.10 proposal will be a problem for small employers forced to absorb added labor costs.

“The voters have spoken and the automatic increase is in the Constitution,” Florida Chamber spokeswoman Edie Ousley said in an email. “However, attempts to raise wages beyond that can have adverse consequences where businesses raise prices or cut back on workforce.”

Still, the move to higher minimum wages has shown to be popular across the country.

In November, voters in Alaska, Arkansas, Nebraska and South Dakota backed proposals to raise the minimum wages in their respective states. Illinois voters also supported a similar, but non-binding ballot item.

But Florida isn’t rushing to drastically alter its rate — already higher than all of its Southern neighbors.

Voters narrowly opted to keep Gov. Rick Scott in office over former Gov. Charlie Crist, whose campaign platform included raising the minimum wage to $10.10 an hour.

In an Oct. 21 gubernatorial debate in Jacksonville, Scott supported the idea of a minimum wage, but wouldn’t say what the number should be.

“How would I know? I mean, the private sector decides wages,” Scott said during the debate.

During an Oct. 15 debate, Scott argued against raising the rate to $10.10 an hour, citing a nonpartisan Congressional Budget Office projection for the entire nation.

“The CBO says that if we raise the minimum wage the way Charlie wants to do it, it would lose 500,000 jobs,” Scott said. “I don’t want to lose those jobs.”

The CBO estimate also projected that 16.5 million workers nationwide would get raises, resulting in $31 billion in additional wages.

Rich Templin, legislative director of the AFL-CIO of Florida, said the state’s political and business leaders need to look at the long-term potential of the $10.10 per-hour proposal.

“We’re overly reliant on tourist dollars because people living here don’t have money to spend themselves. That’s a failed policy,” Templin said. “Job creators are not Wal-Mart. It’s the people that shop at Wal-Mart that create jobs.”

Templin argued that a rate hike would increase spending, reduce the need for public services and boost sales taxes, which produce more revenue for the state.

“We need money in the pockets of consumers, that is what drives the economy of Florida, and right now they don’t have money to spend,” Templin said. Lawmakers “can talk about all the things they do for the business community, but when is the last time they did something for workers?”

The proposal by Bullard and Stafford, (SB 114 and HB 47) will be considered during the legislative session that starts in March.

Asked about the chances for the proposal to advance, Katie Betta, spokeswoman for Senate President Andy Gardiner, R-Orlando, simply replied Monday that the bill is being reviewed so it could be referred to the appropriate committees.

Bullard proposed a similar measure in the 2014 session, but the idea failed to get taken up in committees. The same fate was met by its 2014 House version, which was also filed by Stafford.

by Jim Turner, The News Service of Florida

Comments

7 Responses to “Florida’s Minimum Wage To Increase As Debate Continues”

  1. DavidHuieGreen on December 10th, 2014 3:32 pm

    REGARDING:
    “You know, I never have understood the visceral reaction to the minimum wage”

    Simple, some see it as free money for the poorest.
    Some see it as stealing money from those people who have to pay it and robbing their savings by reducing the value of their money.

    David for honest people

  2. 429SCJ on December 10th, 2014 9:39 am

    In the game, not every person can win. Some are at the apex of the pyramid, more are on the bottom.

    Some of this socioeconomic structuring is built into the system, some of it the result of random chance.

    The only way to ascend in the game is to better one’s self though education and/or successful entrepreneurship.

    Increasing the minimum wage will only result in inflation on prices that are already rising, as a result of the dollar struggling against an 18 trillion dollar deficit.

  3. Jeff on December 9th, 2014 7:18 pm

    @BT–I agree-and it all comes back to an oversimplification of issues practiced by BOTH major parties in this country.

    BOTH appeal to the lowest common denominator=most votes.
    BOTH are bought & paid for by sums of money we commoners can’t imagine.
    BOTH are interested in maintaining/regaining power.

    Hard-working folks bear the brunt.. Always do–and that’s the reason this experiment carries on. Sign on or sign off~

    Whining is not becoming.

  4. BT on December 9th, 2014 12:48 pm

    You know, I never have understood the visceral reaction to the minimum wage. In small measure, it stimulates the economy. Poor people are generally going to spend every last dime they have, which has a multiplier effect.

    In large measure, it can be inflationary. Businesses can only absorb so much cost increase before it is passed on to the consumer. If kept moderate and indexed to inflation, it’s really not going to lead to massive unemployment and starving babies.

  5. Jason on December 9th, 2014 9:50 am

    If the minimum wage is raised beyond what is mandate of the CPI based raise, consumers will see price increases to off-set the new costs. Great for those that are at the bottom of the pay scale – the ones who havent done a thing to improve themselves but demand a pay raise – not so good for those on fixed incomes who raise were tied to the CPI. You know, those who are known as retiree’s.

    The minimum wage is the salary rate for a beginner with minimal skills. If you have been in a minimum wage job for more than 2 years, you should be asking your employer what you can do to move up in the organization, or, you should be seeking another job.

    George Stone Vo-Tech offers a number of short-term training programs that allows for graduates to obtain employment with starting pay exceeding $14 and hour plus benefits. There are better paying jobs available. However, those in minimum wage jobs need to be willing to obtain the needed training and education to obtain these jobs.

  6. Facts on December 9th, 2014 6:23 am

    Less than 5% make minimum wage so this means 5% will get a raise and 95% will be making closer to minimum wage. O yeah and the prices will go up so the minimum wage people will still be just as poor. But look at the good side we will be paying more taxes since people will be making more and prices will go up. Let’s keep going in this direction.

  7. JT on December 9th, 2014 5:35 am

    Yeah let’s just raise it to $100 an hour. The magic money used to pay wages comes from the sky. Everyone wants better pay but people expecting to make $35,000 a year being the guy that squirts the ketchup on the bun are expecting too much money. Better yourself. Educate yourself. Then push toward a higher paying job. I don’t make great money but I’m tired of seeing my generation wanting everything handed to them or they’ll figure out a type of “discrimination” it is if their demands are not met.

Written by William Reynolds · Filed Under News