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N.C. Minimum wage hits a snag

Update, 3:07 p.m.The minimum wage bill passes, 32-8. Because Sen. Eddie Goodall, a Republican of Union County, objected to third reading – a parliamentary maneuver – the bill will have to be debated by the Senate again Monday before being sent to the governor. Audio of the debate to come later, probably in a new post.

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Update, 3:03 p.m. Sen. Andrew Brock (Republican of Davie): "The minimum wage is just an artificial number."

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Update, 3 p.m. Sen. Stan Bingham (Republican of Davidson): Supports the bill. "I feel that it gives at least an impression that the leadership in this body is concerned about the health and welfare of workers."

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Update, 2:50 p.m. Sen. Tony Rand(Democrat of Cumberland): "There's no dignity in working for $5.15 an hour, there's no dignity in any of this," he says in reply to criticism of the wage hike. "What we're trying to do is recognize the value of a person's labor."

Sen. Phil Berger (Republican of Rockingham): Opposes the bill. "The idea of the minimum wage is wildly popular ... a lot of times, we vote for things because they're popular...none of our neighbors are doing this."

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Update, 2:45 p.m. The bill is being debated on the Senate floor now.

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Update, 2 p.m. The minimum wage bill was just placed on today's calendar. My guess is the honorables will get to hearing it sometime after 3 p.m. or so.

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Update, 1:50 p.m. The Senate Commerce Committee just scrubbed the bill of the language that had folks up in arms. The bill now mirrors the House version. Word continues to be that it will be heard on the Senate floor this afternoon.

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Update, 1:15 p.m. The Senate Democrats just emerged from a caucus meeting. Apparently enough of a fuss has been kicked up about the bill that they’re going to strip the training wage provision and try passing it straight up, as the House sent it.

Technically what’s going to happen is this: the Senate will take a temporary break, the Commerce Committee will be reconvened, and then it will be kicked up to the full Senate floor. Of course, even if the Commerce Committee does one thing, members not on the committee could try to re-amend the bill once it’s on the floor.

Stay tuned.

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So, the Senate Commerce Committee passed a minimum wage hike to $6.15 an hour. But before sending it to the floor, they plunked in a crazy little provision that advocates for the wage increase have described as “outrageous,” “disgraceful,” and a few phrases I can’t print here on a family blog.

The new provision allows employers to pay people under 20-years-old a “training wage,” which would be equal to 85 percent of the state minimum, for 90 days. If the state minimum wage goes up to $6.15, that training wage would be $5.13 an hour. (Update, 11:15 a.m. - we have some conflicting info. Some folks are sticking with the 85 percent interpretation. But others say that the training wage could go down to a federal minimum, which would be $4.25 an hour. I'll try to clean up the difference.)

There are lots of ways to think about this, but here is one that clarifies the objections in my mind: If you’re a 19-year-old in college and come home to work for the summer, your employer can pay you 85 percent of the wage he gives a 20-year-old who may be in your same class at school.

Or say, if you’re a 19-year-old in the Army reserve, home from Iraq, you can be paid less the first 90 days you’re home from the war if you pick up a new job.

House members, including Rep. Alma Adams, say they won’t concur with the bill if it comes from the Senate in its current state. That would put it in a conference committee, which would put the bill in serious jeopardy as the session careens toward close.

By the way, both Sens. Kay Hagan and Phil Berger, a Democrat and Republican of Guilford County, voted for the change.

I’ve got conflicting word on whether the full Senate will debate the thing today. Some think yes, just to clear it off the calendar. Some think no, because the tempers are so bad at this point.

Stay tuned.

Update:(10:51 a.m.) For those new to this topic, I should note that the House already passed the minimum wage bill (back in May) and the Senate has had the bill ever since.

Click here for more background.

Comments (7)

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Sounds like a typical day in Raleigh to me, i.e. "Let's figure out how we can pull a fast one without anybody noticing" (ala the eye exam fiasco).

Mark, you do a great job here.

But I have one question. Why do you keep calling these guys/girls in Raleigh "honorables" - especially when they repeatedly behave so badly?

Mark Binker said:

Mary: I'm sure you know, but for those with the same question, one of the titles that confers upon a legislator when they take office is "The Honorable" So and So.

Referring to "the honorables" is a typical slang reference to the group used by those who work around the legislators.

george said:

Well...the government does not need to be business of determining wages. A person should have the liberty to bargain for his wages individually or corporately. The minimum wage merely makes the cost of doing business more and denies low skill persons a chance to work. (Look at France, its socialist approach to employment makes it virtually impossible to fire anyone and has hurt the employment opportunities of younger people). Without a minimum wage, folks with no skills could get low skill jobs that now are being done by machines.

The argument regarding the 19 year old reservist or college student is spurious. A person with skills will be able to command a higher wage regardless of age.

George, when I worked at McDonalds during the summers of high school and college (a great learning/growing experience), I did not "command" anything more than the minimum wage (or slightly above it). For most individuals (even those of us who eventually crafted considerable skills in one field or another), having the "liberty to bargain" with an employer in this "right-to work" (which translates into "the right to be fired") state is a myth.

As for the jobs that are being done by machines . . . say "Bye-bye!", because those jobs are not ever going to be given back to humans no matter how low the minimum wage might be. Humans are just more expensive and troublesome all the way around.

Yes, Mark. I know;) I just choose not to address any of these people by the term "honorable" unless they treat me honorably. And they haven't.

How would you respond to the position that an expansion of the Earned Income Tax Credit is a much more effective and equitable way of helping the working poor than raising the minimum wage?

Mark Binker said:

David:

With regards to the EITC - That's earned income tax credit for those who don't know the abrev. - I'd say a few things, and you can take them as you will:

* It was never an issue in this year's NC General Assembly session.
* I have seen a trend of those who don't like the minimum wage offering the EITC as a trade off.
* I would think that those who the minimum wage hike would help probably pay little to nothing in taxes right now.

I hesitate to say it's a red herring, the EITC is probably worthy of debate on its own merrits. But I'm not sure if or how it fits in a discussion of the minimum wage.

Mark:

Please allow me to direct your attention to the fact that the EITC is designed to give benefits of about $4,400.00 to single parents with two children who are working full time for the current federal minimum wage. Most of these people do not owe this much in taxes, so the EITC acts as a wage subsidy that lifts millions of these families above the federal poverty line. In striking contrast, a paper published by the Department of Health and Human Services reports that minimum wage laws do *NOT* reduce poverty rates because the number of people lifted out of poverty by a raise in the minimum wage is offset by the number of uneducated and unskilled workers who lose their minimum wage jobs. To wit, "Overall the tradeoffs created by minimum wage increases, more closely resemble income redistribution among low-income families than income redistribution from high-to-low-income families."

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