Business
R.I. Senate ties wage hike to consumer price index
01:00 AM EDT on Thursday, May 28, 2009
PROVIDENCE –– The Senate approved legislation on Wednesday that could raise Rhode Island’s $7.40 minimum wage each year in accordance with federally adjusted cost-of-living measures, known as the consumer price index.
“It takes the politics out of the minimum-wage debate,” said bill sponsor Sen. Leonidas P. Raptakis, D-Coventry, a reference to the General Assembly’s irregular decisions in recent years to raise the base pay for Rhode Island workers, a rate that was last changed Jan. 1, 2007.
While the Senate voted 31-6 to adopt the proposal, it will not become law without surviving major hurdles. It must first get through the House of Representatives, where a similar proposal stalled last year. And if approved there, it must then survive a gubernatorial veto, which is likely.
Republicans largely oppose the bill, which they say would impose an unfair burden on employers.
“We can’t be making decisions that drive away small businesses on a whim,” Sen. Leo R. Blais, R-Coventry said in the brief debate that preceded yesterday’s vote.
At least one lawmaker voted against the proposal because he said it wouldn’t do enough to raise the minimum wage.
“I challenge any one of us to live on minimum wage,” said Sen. Harold M. Metts, D-Providence.
The legislation would adjust the minimum wage each January, beginning in 2011, based on the consumer price index released by the federal government the previous March. In the event of negative growth, the rate would stay unchanged. Annual growth would be capped at 3 percent.
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