Today's New Member Special: Save $15 & Get a Tote!
Employers are offering creative perks to attract and retain today’s workers.
Plus all the HR resources you need to be more efficient and effective this fall!
Prepare for your exam with the guidance of a SHRM-certified instructor in Boston, Oct. 24-26.
Learn how to make the business case for diversity, October 25-27.
Senate Bill 39, introduced on March 19, 2015, would increase the state’s minimum wage to $10.25 by 50 cents per year for the next four years, beginning June 1, 2016, and indexing it to the cost of living after that.
Specifically, the bill would raise the wage to $8.25 per hour on June 1, 2015; $8.75 on June 1, 2016; $9.25 on June 1, 2017; $9.75 on June 1, 2018; and $10.25 on June 1, 2019. On July 1, 2019, it would increase by a percentage equal to the cost of living adjustment (COLA) as determined periodically under the federal Social Security Act.
Under legislation enacted last year, however, the state's hourly minimum wage increased by 50 cents to $7.75 on June 1, 2014, and this year, on June 1, it will go up another 50 cents.
In response, business groups are pushing back with the Delaware Wage Facts Coalition, a group that includes the statewide Chamber of Commerce, the Delaware affiliate of the National Federation of Independent Business (NFIB), and the Delaware Restaurant Association. Their point: that the wage increase would threaten the service jobs on which thousands of Delawareans depend.
“It is premature to mandate additional wage increases on Delaware small businesses in the midst of the current implementation of higher labor costs,” stated the Delaware NFIB. “It is also concerning that the message of ever-increasing wages sends to job creators – that Delaware is not business friendly.”
The bill stems from a study by the legislative Low-Wage, Service Worker Task Force, which took public testimony and released a report in January 2015, stating that the state’s minimum hourly wage is unable to sustain the families who are becoming increasingly reliant on it in the wake of the recession and the extreme shrinkage of blue-collar industries.
A strong minority report countered by warning that government must not pursue policies, regardless of how well-intentioned, that would reduce the number of jobs available, the number of hours worked, and the amount of take-home pay.
The bill is expected to experience intense opposition from the business community.
Diane Cadrain is an attorney who has been writing about employment law issues for more than 20 years.
You have successfully saved this page as a bookmark.
Please confirm that you want to proceed with deleting bookmark.
You have successfully removed bookmark.
Please log in as a SHRM member before saving bookmarks.
Your session has expired. Please log in again before saving bookmarks.
Please purchase a SHRM membership before saving bookmarks.
An error has occurred
Recommended for you
Join SHRM's exclusive peer-to-peer social network
SHRM’s HR Vendor Directory contains over 3,200 companies