The United States Senate is scheduled to consider legislation that includes a flawed, too slow increase in the minimum wage.
Specifically the legislation would increase the minimum wage from its current rate of $5.15 an hour to $7.25 an hour over the next three years and it would penalize minimum wage workers who live in states that have had the forethought to protect minimum wage earners in service industries from the "tip penalty." The NAACP has consistently supported legislation that would increase the minimum wage by $2.10 over two years and would protect all minimum wage earners, including those who earn tips.
Since the last time Congress increased the minimum wage, in 1997, CEO's have seen a 73% increase in pay while the pay of members of Congress is up 24% and the President's salary has increased 100%. Yet a minimum wage worker who works full time, 40 hours a week, 52 weeks a year earns only $10,700 a year – more than $6,000 below the poverty level for a family of three. In the last four years alone, the cost of housing has gone up 44 percent, college tuition is up 35 percent, and the cost of health insurance is up 59 percent. It is a struggle for any family, but for minimum wage workers, it's nearly impossible to care for their families. This is especially important to the NAACP as unfortunately, in our Nation today, minimum wage workers and workers who depend on tips are disproportionately racial and ethnic minority Americans.
An increase of $2.10 over two years, in three increments of .70 cents, will add $4,400 to the income of full-time, year-round workers. The benefits of this increase, however, will be limited if the increase is spread over three years as opposed to two; the cost of living and expenses such as energy, housing, education and food will continue to climb in that third year. If the increase is implemented over three years, it will be another example of Congress doing too little too late for American's working class.
Furthermore, the provision to be considered by the Senate later this week would cut pay for tipped workers, then prohibit states from fully restoring wage protections for those workers. Over one million tipped employees in the seven states without tip penalties will see a drastic cut in their base pay without tips to the federal minimum for tipped employees of $2.13. This would amount to a pay cut of as much as $5.50 per hour for tipped workers (in Washington state), which could amount to as much as $11,440 annually.
The NAACP has consistently supported, and continues to support, legislation (S. 1062) that would increase the minimum wage by $2.10 over two years and would protect all minimum wage earners, including those who earn tips
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