Senate Leadership
June 24, 2008
Minimum Wage Increase to Help Thousands of Families in Greater New Haven
Senators Looney and Harp: Override of Governor Rell’s veto could also affect public safety
Senate Majority Leader Martin Looney, Senator Toni Harp, Rev. Bonita Grubbs of Christian Community Action, Bill Villano of CT Workforce Alliance, and minimum wage workers gathered at a local food pantry today at 168 Davenport Ave. to hail the General Assembly's final passage of a minimum wage increase--vetoed by Gov. Rell a few weeks ago.
Two-thirds of lawmakers in both the House and Senate voted to increase the hourly minimum wage from $7.65 to $8.00 beginning January 1, 2009 and then to $8.25 beginning January 1, 2010. Lawmakers also voted to increase the tip credit for bartenders and wait staff.
"There are thousands of people in Greater New Haven and across Connecticut who will be helped by this increase," said Senator Looney. "They work hard and struggle to make ends meet, and at a time when inflation is eroding purchasing power, it is shameful to deny them a modest increase in wages. We also know that when it pays to work, people have a powerful incentive to seek employment and not look for public assistance. Today we scored a victory for hard working families."
"Increasing the minimum wage will not end the incredible wage disparity that exists in our state, but it will help families that are really struggling," said Senator Harp. "Increasing the benefit of work will also help in our efforts to address the prisoner reentry problem in communities across Connecticut -including New Haven. Each month dozens of prisoners are released in New Haven with few prospects for work that pays. If we want recently prisoners to work and not victimize more families, it is important that work pays. Many Republicans still argue we can't afford to do this but it is clear that we can't afford not to."
Increasing the minimum wage helps those hard working families who have suffered the most during the Bush years. According to a study by the Economic Policy Institute and the Center on Budget and Policy Priorities, the gap between the wealthy and the poor is growing faster in Connecticut than in any other state in the nation. The study also found that Connecticut is the only state in the U.S. in which the poorest 20th percent lost real ground in terms of wages (adjusted for inflation) over the past 20 years.
"Every dollar makes a difference. We see that the money runs out before the month does. In may 2008 we delivered 736 bags of food, up 25 percent from 2007," said the Rev. Bonita Grubbs, who administers Christian Community Action and its food pantry. "Right now I have to make tough choices between buying clothes and putting food on the table," said Tonya Brooks from New Haven, a single mother of two. "The raise will help."
Opponents of the minimum wage increase claim the people who benefit most from a hike in the minimum wage are students working in seasonal jobs. In truth, the State Department of Labor (DOL) estimates there are 65,000 workers in Connecticut who are paid at or below the state minimum wage and the majority of them are women- many single mothers--over 24 years of age who live in households with an annual income of less than $50,000. Many are part-time workers or work in retail, sales, cashier and food service jobs.
Recent studies and research suggests increasing the minimum wage does not adversely affect employment rates. Last month a team of economists published a paper, Minimum Wages and Firm Profitability, and concluded that, "Between September 1997, and the end of 2005, 17 states and the District of Columbia raised their own minimum wages a grand total of 47 times. Examination of several demographic groups for which wages and employment are thought to be sensitive to minimum wages found some positive effect on wages and scant effect on either employment or labor supply."
HB 5105--Raises the state minimum hourly wage from $7.65 to $8.00 beginning January 1, 2009, and to $8.25 beginning January 1, 2010. For a full-time worker making the minimum wage, the minimum wage hike would amount to a weekly increase of $14.
SB 55--Increases the minimum wage tip credit for hotel and restaurant employers from 8. 2% to 11% for bartenders and from 29.3% to 31% for service employees (waiters and waitresses) effective January 1, 2009. The tip credit allows hotels and restaurants to pay service employees and bartenders, who customarily and regularly receive tips, less than minimum wage as long as tips make up the difference. Under the bill, a hotel or restaurant can pay (1) a bartender 11% less than minimum wage and (2) a waiter or waitress 31% less than minimum wage. Incredibly, 178 out of 183 members of the General Assembly voted in favor of this bill but Gov. Rell vetoed it.
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Senator Williams’ Derek Slap |
Listing of Leadership’s recent press releases. |
Senator Looney’s Derek Slap |
