Senate Likely to Consider Minimum Wage Increase in 2014

Democratic Leaders in the Senate are looking to advance legislation in early 2014 that will significantly increase the minimum wage for employees. Legislation titled “The Minimum Wage Fairness Act,” S.1737, sponsored by Sen. Tom Harkin (D-Iowa) would increase the federal minimum wage nearly 40 percent from the current $7.25 an hour to $10.10 over two years and automatically index the wage rate to inflation thereafter.
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Democratic Leaders in the Senate are looking to advance legislation in early 2014 that will significantly increase the minimum wage for employees. Legislation titled “The Minimum Wage Fairness Act,” S.1737, sponsored by Sen. Tom Harkin (D-Iowa) would increase the federal minimum wage nearly 40 percent from the current $7.25 an hour to $10.10 over two years and automatically index the wage rate to inflation thereafter. The proposal would also increase the minimum cash wage for tip-based employees significantly from the current $2.13 an hour to $7.07.   

Though it has strong support from Senate Democrats, it is unlikely that House Republicans would consider this type of legislation. 

A significant minimum wage increase mandate would increase costs for businesses trying to recover from the recession and severely limit their ability to add employees, especially when coupled with the recent burdens associated with the new health care law. NATSO is monitoring the legislation and will be providing an update as the measure advances. 

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