The Living Wage Rage

1 | P a g e Cities, States Increasing Minimum Wage, Requiring Paid Leave By Joanne Deschenaux 8/27/2015 Democrat-backed bills in both the House and the Senate to raise the federal minimum wage to at least $12 per hour from the $7.25 current rate and to require most employers to offer up to seven days of paid sick leave per year are unlikely to move forward in the Republican-controlled Congress. Faced with this legislative gridlock on the federal level, however, more cities and states are raising their minimum wages and securing paid sick leave for workers, the White House said in a report issued Aug. 18, 2015. States and Localities Take Action Since President Barack Obama called for a minimum wage increase during his State of the Union remarks back in 2013, 17 states and the District of Columbia have increased their minimum wage—including four states where voters approved minimum wage increases on Election Day in 2014. Cities and counties have also taken action, with 29 local jurisdictions including Berkeley, Calif.; Chicago; Las Cruces, N.M.; and Montgomery County, Md. raising the wage floor. “While Congress has stood in the way of addressing these issues, mayors and governors of both parties are working with the president to make progress,” the White House report said. Rhode Island became the latest state to increase its minimum wage in June when Democratic Gov. Gina M. Raimondo signed legislation raising the pay floor to $9.60 per hour. Meanwhile, some cities, including Los Angeles, San Francisco and Seattle, are set to phase in a $15 minimum wage over the next few years. Obama has also looked to raise wages at the federal level, signing an executive order that requires contractors to pay their workers at least $10.10 an hour. Philadelphia and Montgomery County, Md., are among the localities that have recently enacted paid-sick-leave laws. Oregon’s Democratic governor, Kate Brown, signed legislation on June 22, 2015, requiring most employers to offer 40 hours of paid sick time annually. On the federal level, Obama said he is considering a second executive order mandating at least seven days of paid sick leave for employees of federal contractors. Companies Also Taking Action The White House noted that a number of companies are acting on their own to increase their minimum wage and expand paid leave opportunities. Companies taking steps to this end include Wal-Mart, Disney, Gap, TJX Companies, Target, IKEA, Aetna and Starbucks. In April, Wal-Mart raised its lowest starting wage to $9 per hour, with a promise to raise it to $10 by February 2016. 2 | P a g e And as for paid leave for employees, Microsoft and Netflix are two companies that recently announced separate plans to give more time off to eligible workers who are new parents, the White House report said. Joanne Deschenaux, J.D., is SHRM’s senior legal editor.