Wednesday, October 19, 2016

Amendment 70 – Increase the State Minimum Wage

Amendment 70 would increase the current state minimum wage of $8.31/hour for most workers to $9.30/hour on January 1, 2017. It would then increase the minimum wage by 90 cents each year until January 1, 2020. Thereafter, the minimum wage could increase based on the Colorado consumer price index. If there is deflation, the minimum wage would not decrease, but rather be stagnant.

In 2006 when the federal minimum wage was $5.15/hour for most workers, CO voters approved Initiative 42 enshrining a state minimum wage in the constitution. Initiative 42 tied the state minimum wage to the Colorado consumer price index; the state minimum wage actually decreased on January 1, 2010 from $7.28 to the new federal minimum wage of $7.25. (The federal minimum wage can only increase through congressional action.) When workers who earn “wages plus tips” don’t earn enough in tips to make the state minimum wage, the employer must make up the difference.

Initiative 42 added Section 15 to Article XVIII in the constitution, and Amendment 70 would amend that language. The federal government allows states and local governments to set minimum wages higher than the federal level. However, neither current Colorado law nor Amendment 70 allows local governments to adopt a minimum wage higher than the state’s.

Recommendation: yes/for

The entire Article XVIII, Section 15, even with the additions proposed by Amendment 70, is under 100 words, but they are powerful words.

I support a higher minimum wage. I support a living wage. I’d like to see the state allow local governments to set higher minimum wages to account for differences in the cost of living. Perhaps then people could live closer to work and commute shorter distances.

According to the Bureau of Labor Statistics, the youth labor participation rate for older teens (age 16 to 19) has dropped from about 52% in 1996 to about 35% in 2014. With a higher minimum wage, employers are even less likely to hire youth for entry-level, minimum-wage jobs. Perhaps that is good – those jobs can go to people who need more than just spending money , though some teens contribute to their household’s income and all teens need to learn job skills if only the soft skills of showing up on time, being polite to customers, etc. Meanwhile, the rate of volunteering for older teens, where they can acquire many of the same skills, has more than doubled from 13.4% in 1989 to 28.4% in 2006.

Those tip jars at counter-service restaurants may not fill up as fast if a higher minimum wage fuels higher restaurant prices, but minimum-wage workers who don’t get tips, such as child care workers and home health aides, will see a big financial benefit.

Website for the Yes Side (Colorado Families for a Fair Wage)
http://www.coloradofamiliesforafairwage.org/

Website for the No Side (Keep Colorado Working)
https://keepcoloradoworking.com/


Approved Ballot Language

Amendment 70 (CONSTITUTIONAL)

Shall there be an amendment to the Colorado constitution increasing the minimum wage to $9.30 per hour with annual increases of $0.90 each January 1 until it reaches $12 per hour effective January 2020, and annually adjusting it thereafter for cost-of-living increases?

YES/FOR _______
NO/AGAINST _________

Amendment 70 initiative language filed with the Secretary of State
http://www.sos.state.co.us/pubs/elections/Initiatives/titleBoard/filings/2015-2016/101Final.pdf

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