Raising the minimum wage is important. The current state minimum wage of $6.15 makes Minnesota one of only four states with a minimum below the federal level. Being an outlier on the low end is not reflective of our Minnesota culture of respect with a focus on healthy families. When Minnesotans work full time while living in poverty it undermines our children, our families and the fabric of our communities.
Two-tier minimum-wage idea could be a winner
Not a "tip credit," the misunderstood proposal would make for an equitable compromise.
As the Legislature considers raising the minimum wage to $9.50, one element of the discussion has been misunderstood and overlooked. There has been strong opposition to the new proposal from the restaurant industry. They have asked us to consider including a two-tier wage structure as part of the new wage plan. Unfortunately, their proposal is misunderstood by many.
This is not a "tip credit," which would dramatically lower a server's hourly wage. Rather, it is a formula that calculates the server's hourly rate, including tips, over a two-week period. As proposed, for servers who in total make more than $12 per hour, their hourly wage during that two-week period would be $7.75. If their average wage was below $12 per hour the next two weeks, they would receive the $9.50 wage. I believe this is an equitable compromise, and other states have shown it to be effective.
No one who works full time should have to live in poverty. People working minimum-wage jobs should have the dignity of being able to provide for their families. Enacting the two-tier wage structure would make a real difference in bringing a broad coalition together to make this change.
Terri Bonoff, DFL-Minnetonka, is a member of the Minnesota Senate.
about the writer
Terri Bonoff
Government reforms can be done with dignity and respect and without breaking the government most Americans depend on.