$25 an hour? CT senators push to triple the federal minimum wage
The Living Wage for All Act would raise the federal minimum wage from $7.25 to $25 by 2032, while giving small employers until 2040. Research on the job impact is mixed.
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Connecticut’s two senators think 67 million workers deserve a raise.
On Thursday, Democratic Sens. Chris Murphy and Richard Blumenthal introduced legislation that would more than triple the federal minimum wage – from $7.25 to $25 an hour.
Business groups called it a job killer, but the research is mixed in cities that have already done it.
$25 AN HOUR?
How does a $25 an hour sound?
“I think that would be awesome,” said Christopher Thigpen, of Norwalk. “Living in this town, it’s expensive. But $25 an hour will make it a little better.”
Surrounded by service workers outside the U.S. Capitol, Murphy and Blumenthal unveiled the Living Wage for All Act.
“There is no reason that somebody should go to work full-time in this country and not be able to pay their bills,” Murphy said.
The increase would happen gradually, and not immediately affect Connecticut.
If the bill passes this year – an extremely tall order in the Republican-controlled Congress – the federal minimum wage would jump to $12 an hour on Jan. 1, 2027.
But Connecticut’s rate is already $16.94, so the earliest impact here would be 2029, when the federal wage would increase to $18.
In 2032, the full $25 an hour would take effect. Small businesses would get until the year 2040.
The legislation would also phase-out lower “tipped wages” for servers and bartenders – an idea that service workers have pushed back on at the state Capitol.
“I work hard. I work long hours,” said Sylvie King, a Bridgeport restaurant worker. “Sometimes up to 13 hours a day. My base pay is $8 an hour.”
JOB KILLER?
Could a $25 minimum wage backfire?
The research is mixed.
Business groups said it will mean fewer workers and more automation.
“Our state and federal lawmakers should be focusing on meaningful policies that address the key factors driving Connecticut’s affordability crisis, including the growing cost of healthcare, housing, and energy,” the Connecticut Business and Industry Association said in a statement. “Let’s talk instead about implementing solutions that will address the spiraling cost of healthcare, energy, and housing.”
When Seattle dramatically raised its wage in 2014, a University of Washington study found that wages rose 3.2% – but workers’ hours dropped by 6.9%. Younger, inexperienced employees were impacted the most.
Some restaurants also raised prices, but 99% of them remained open 18 months into the new law.
A 2021 review from the National Bureau of Economic Research found similar results.
“There is strong and consistent evidence of negative employment effects for teens, young adults, the less-educated and directly-affected (low-wage) workers,” researchers concluded.
Even supporters worry that artificial intelligence could threaten lower-wage jobs.
“Even for myself, a small business owner, using AI has relieved some of the need for receptionists, so on and so forth, secretary,” said Donyae Carter-Smith, of Norwalk.
But studies in other cities have shown minimal employment impacts.
“The sky doesn’t fall,” Murphy said. “In fact, what happens is that, when you put more money in the pockets of workers, that money goes right back into the economy.”
MAMDANI EFFECT?
The legislation comes two days after Democratic Socialists swept primaries in New York City, a political earthquake boosted by endorsements from Mayor Zohran Mamdani.
“What we saw last night was a hunger for leaders who will be there on the front lines looking to make it easier for working people to afford life in the greatest city in the world,” Mamdani said on Wednesday.
DSA candidates also won in Pennsylvania and Washington, D.C.
“Party leaders need to listen to what voters are telling us,” Murphy posted on X. “And right now, they are demanding our party be bolder.”
Polls show that voters are unhappy.
According to a new Marist Poll, 60% of Americans disapprove of how President Donald Trump is managing the economy.
Still, Trump predicted that the Mamdani strategy will backfire for Democrats in this year’s midterms.
“Mayor Mamdani pulled through 3 solid Communists, and has received loud and universal applause from the Fake News Media,” Trump posted on Truth Social.
