Julie Vogtman, Senior Counsel

Good news from New York on the minimum wage: the state Assembly passed a bill yesterday that would raise the minimum wage from $7.25 to $8.50 per hour next year and index it to keep pace with inflation. The bill would also raise the minimum cash wage for food service workers (a particularly large segment of tipped workers) from $5.00 to $5.86 per hour and index it for inflation.

This is particularly good news for women, who make up close to two thirds of minimum wage workers in New York. A mom with two kids working full time at $7.25 per hour makes just $14,500 per year, leaving her family thousands of dollars below the poverty line. Raising the minimum wage to $8.50 per hour would provide a meaningful boost of $2,500 each year. And raising the tipped minimum wage for food service workers – like restaurant servers, who are mostly women – to $5.86 per hour would increase their earnings by more than $1,700 per year. Moreover, because women are the majority of minimum wage workers in New York, increasing the minimum wage could help to close the gap between men’s and women’s typical earnings in the state. 

But the bill still needs to pass the Senate before it can get to Governor Andrew Cuomo (who has said he supports a minimum wage increase “in principle”). And unfortunately, a number of senators have expressed opposition to the minimum wage bill, trotting out false and tired arguments that an increase would “kill jobs.”

Connecticut’s legislative session ended last night at midnight. Unfortunately, the Senate did not take up the minimum wage bill that passed the House last month, so many workers struggling to get by on $8.25 an hour will have to wait until at least 2013 to get a raise. (The Senate did act at the last minute to approve a bill permitting the keeping of reindeer year-round, though, so to any Connecticut readers who always wished for Rudolph as a pet, you’re in luck!)  

But all is not lost. As I mentioned earlier this week, bills to raise the state minimum wage are still pending in Illinois, New Jersey, New York, and Massachusetts, and an increase looks likely to be on Missouri’s ballot in November.

And in a very exciting development at the federal level today, Representatives Rosa DeLauro (D-CT) and Bruce Braley (D-IA) just introduced the Rebuild America Act in the House. Like its companion bill introduced by Senator Harkin, the bill would raise the federal minimum wage from $7.25 to $9.80 per hour over three years and then index it for inflation, and would also gradually raise the minimum cash wage for tipped workers from $2.13 per hour to 70 percent of the minimum wage.