Please note: This is a revised version of a news release that was sent within the past hour. This version clarifies that the proposed minimum wage increase would not apply to businesses with annual gross volume of sales of less than $500,000.
For Immediate Release
January 28, 2016
State minimum wage increase proposal moves to House floor
FRANKFORT—The state’s minimum hourly wage would be raised to $10.10 over the next two and half years under a bill that cleared a House committee today.
House Bill 278, sponsored by House Speaker Greg Stumbo, D-Prestonsburg, would increase Kentucky’s current minimum wage of $7.25 an hour to $8.20 this August, $9.15 in July 2017 and $10.10 in July 2018. The increase would not apply to businesses that have a recent average annual gross volume of sales of less than $500,000.
Stumbo said HB 278, if passed into law, would put an extra $2,000 or so a year into the pockets of Kentucky minimum wage workers. Those workers now earn around $15,000 annually for full-time work, he said.
“Can you live on that? I don’t think so,” the Speaker said to House Labor and Industry Committee members. The bill also includes language prohibiting wage discrimination based on race, gender, or national origin.
Kentucky’s current minimum wage, which mirrors the federal minimum wage, has not increased since 2009. That increase was approved by the Kentucky General Assembly in 2007. Only Louisville and Lexington have approved a minimum wage above the state rate.
Twenty nine states and Washington D.C. now have a minimum wage above Kentucky’s minimum wage and the federal minimum wage, according to the National Conference of State Legislatures.
Lawmakers voicing concerns with HB 278 included Rep. Jerry Miller, R-Eastwood, who said some surrounding states, including Virginia and Indiana, have the same minimum wage rate as Kentucky. Miller expressed concern that companies may move their business across the border if a Kentucky minimum wage increase were passed.
“The market’s the best way to raise wages,” said Miller.
Representatives from the Kentucky Chamber of Commerce, Kentucky Retail Federation and the Kentucky office of the National Federation of Independent Business also spoke in opposition to the bill.
Stumbo responded that 13 states have raised their minimum wage since 2014 and the unemployment rate in every one of those states has fallen in the past year and half.
HB 278 now goes to the full House for consideration.