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You are here: Home / Business / Inflation could determine wage hikes

Inflation could determine wage hikes

March 25, 2010 By Andrew Beckett

Workers in Wisconsin would no longer have to wait for lawmakers to approve an increase in the minimum wage, under legislation being debated at the Capitol.

State Representative Cory Mason (D-Racine) is a sponsor of the legislation, which would automatically adjust the minimum wage each September, based on the rate of inflation. He says the move is needed to help low-earning workers survive as the cost of living goes up each year, even if their pay checks don’t increase.

Mason says those working full time at minimum wage jobs still struggle to reach the federal poverty line, which he says should not be the case.

The proposal is drawing concerns from business groups. Wisconsin Restaurant Association President Ed Lump warns that employers may not be able to keep up with the wage increases during tough economic times, when inflation is often at its highest. As a result, he says the indexing could force them to cut jobs they can no longer afford.

The bill is currently being considered by the Assembly Labor Committee.

AUDIO: Andrew Beckett reports (1:07)

minwageva032510

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Filed Under: Business, Legislature



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