The Democrat-led House voted to raise the federal minimum wage to $15 per hour, more than double the current rate of $7.25, and the first proposed increase in a decade.
The legislation, approved 231 to 199, now goes to the Republican-led Senate, which is not expected to take it up. Six Democrats voted against the bill, while three Republicans voted in favor of it.
The bill, the Raise the Wage Act, would increase the minimum wage in increments over seven years.
The new wage floor was originally intended to be phased in over five years, but it was amended this week at the urging of centrist Democrats to have an extra year. The legislation would also eliminate the tip credit, which allows some employers, such as restaurants, to pay workers less than the federal minimum provided they can make up the difference in tips.
Democrats argued the legislation was a long-overdue effort to help the working poor. “This is direct help. Not indirect. Not trickle down. Direct. It says to those who make the least we think what you do is important,” said House Majority Leader Steny Hoyer.
Republicans countered that the effort would hurt at least as much as it would help, citing a recent analysis of the legislation by Congressional Budget Office that found that raising the federal minimum wage to $15 an hour would increase the wages for an estimated 37 million, but likely cause 1.3 million people to lose their jobs and cited scenarios where the loses could reach 3.7 million.
“The CBO just released a report that said as many as 4 million jobs could be lost as a result of this bill,” said Rep. Rick Allen, a Georgia Republican. “As a businessman, I know that as job openings grow, wages will go up.”
He argued that the economy would growing fast enough to aid workers without Congress’ intervention and that states were better suited to set the local rates, noting that 29 states already had rates above the federal minimum.
Business groups echoed those points. National Restaurant Association spokesperson Sean Kennedy said that the group’s members and servers alike opposed the increase. “They have explained that the wage hike is a job killer in their communities, and that eliminating the tip credit overwhelmingly supported by employees, would cut pay that right now averages $19-25 per hour,” Kennedy said.
Democrats leaders have scorned proposals to pass more incremental increases, such as one offered by the Chamber of Commerce last week, arguing that anything less than $15 was too little.
The House narrowly defeated an attempt by Republicans to amend the bill with language that would exclude businesses employing fewer than 10 people and grossing under $1,000,000 annually. It failed 210-218, but earned the support of 13 Democrats.
Liberal groups cheered the passage. “Passing the #RaisetheWage Act of 2019 empowers working families in need and moves us toward building an economy that works for everyone. The Senate should follow suit and give millions of hard-working Americans a raise they’ve deserved for 10 years.” tweeted AFL-CIO President Richard Trumka.
