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Senate passes minimum wage increase Wednesday, Apr 5, 2006 By Doug Thompson and Rob Moritz Arkansas News Bureau LITTLE ROCK - The state Senate voted Tuesday to raise Arkansas' minimum wage from $5.15 to $6.25 an hour Tuesday. The $1.10 statutory hike, offered as an alternative to a proposed constitutional amendment that includes yearly increases for inflation, would give workers the first minimum wage increase since 1997. Senate Bill 11 by Sen. Jack Critcher, D-Batesville, passed on a 28-1 vote and goes to the House. The bill passed with little debate. No one spoke against it, though Sen. Kim Hendren, R-Gravette, did question whether the measure would cost some Arkansans their jobs. Critcher said the impact would be minimal compared to the possible ramifications of the proposed constitutional amendment and its built-in annual cost-of-living increase. "If we do nothing, they will get the signatures to put the constitutional amendment on the ballot," Critcher said. "We will have a huge job loss, with few industries coming in to the state." Groups that support raising the minimum wage, including the state AFL-CIO, support the legislative version as an alternative. Identical legislation to the bill that passed the Senate is awaiting a House vote after winning a committee endorsement Tuesday. The House Public Health, Welfare and Labor Committee approved the measure on a voice vote. Along with increasing the minimum wage, both versions would require that employees who work for tips be paid at least $2.63 an hour. Currently, larger employers pay $3.13 an hour and smaller business pay $2.58 an hour to restaurant servers and other workers who rely on tips from customers. Testifying before the committee, Marybeth Ringgold, owner of Cajun's Wharf and Capers restaurants in Little Rock, said the provision would cost her about $60,000 a year while her employees would not make that much more money. "The tip credit is a big ordeal," she said. "This is an anti-business move and it's not going to help the people I think the minimum wage was designed to help." The Rev. Stephen Copley, who is leading a group that is trying to get a minimum wage increase on the Nov. 7 general election ballot, said his organization supported the tips increase. Copley also said his group would abandon its push for a constitutional amendment if the Legislature adopts a statutory minimum wage increase and Gov. Mike Huckabee signs it into law. He told lawmakers that about 127,000 Arkansans work minimum wage jobs, and that more than 80 percent of those employees are over 20 years old. Petrus said having the minimum wage increased by the Legislature is much better than making the hike part of the state constitution. Allan Roberts, president of Dixie Restaurants Inc., spoke for HB1033, saying it was better than changing the constitution. He said he was "not wildly enthusiastic" about raising the minimum wage or changing the amount of tips employees receive, but he doubted it would seriously impact his restaurants. |
