Measures To Allow Local Minimum Wages, Increase Statewide Wage Face Continued Debate
In a
series of partisan votes, Colorado’s House of Representatives approved House Bill 1300 on Monday, which would allow
local governments to set minimum wages higher than the state’s. However, state
Democrats could not find support for a measure that would have put a statewide
minimum wage hike on the November general election ballot. House Bill 1300
passed 34-30 with all Democrats in favor and all Republicans opposed. House Concurrent Resolution 1001, the ballot
initiative, failed despite receiving 33-31 support; the measure required 2/3
support because it involved possible changes to the state constitution. HCR1001
would implement a gradual increase to the Colorado minimum wage, raising it
from its current level of $8.23 per hour to $12.50 per hour by 2020. HB1300
would abolish a 16-year-old ban on local minimum wages and ultimately lead to a
tiered minimum wage.
What Happens Next:
Despite yesterday’s defeat,
proponents of a higher minimum wage believe the initiative may ultimately have
a better chance of becoming law than the local control bill. House Bill 1300
faces stiff opposition from the state senate’s Republican majority. In
contrast, Colorado state law allows voter initiatives to bypass the legislature
and gain a place on the ballot through a petition drive. The proposal needs
98,492 verified signatures.
What This Means For Small Business:
An
increase to Colorado’s minimum wage would raise the cost of doing business in
the Centennial State, forcing employers to scale back operations and staffing
in the face of higher labor expenses. NFIB Colorado State Director Tony
Gagliardi previously described the harm inherent in the two proposals, saying,
“Raising the minimum wage disproportionately hurts small businesses and their
employees, directly impacting operating costs, increasing obstacles to hiring
and encouraging businesses to use less labor, not more. This policy is a blunt
tool that kills jobs, while failing to achieve the goal of alleviating
poverty.” Colorado House Minority Leader Brian DelGrosso (R) similarly warned
that increases to the minimum wage could result in low-wage workers losing
their jobs and facing worse financial prospects.
Additional Reading:
Other news outlets covering the
Colorado House votes include the AP, the Denver (CO) Business Journal, and the Denver (CO) Post, which also published an editorial about HB1300’s potential impact on
the Denver area.
