Madam President, I ask unanimous consent the pending amendment be set aside and I call up amendment numbered 116 and ask for its immediate consideration. I ask unanimous consent the reading of the amendment be dispensed with. Madam…
Madam President, I ask unanimous consent the pending amendment be set aside and I call up amendment numbered 116 and ask for its immediate consideration.
I ask unanimous consent the reading of the amendment be dispensed with.
Madam President, I rise today to ask my colleagues to support amendment No. 116, which I will discuss.
This amendment allows States the rights and flexibility to determine a minimum wage that works for them. Every State has its own microeconomy, and the voters and legislatures in those areas have decided what works best.
This is reflected in a map I have for demonstration purposes, reflecting the number of States in green that have higher wage rates than the minimum Federal rate. It reflects in blue the States with wage rates the same as the Federal rate. We have American Samoa, which has a special minimum wage rate, and States with no minimum wage rate, which are very few, by the way. They rely on the Federal, in that case, where they do not have one. And States with a minimum wage rate lower than the Federal, again, the State is preempted.
I rise to point out that the merits of increasing the Federal minimum wage, for better or for worse, for days on end--there is no debate on the cost of living, and wages greatly differ from State to state.
In its current form, the bill attempts to blindly blanket the Nation with a new Federal minimum wage without
regard to unique economic conditions of each individual State. Effective on January 1 of this year, my own home State of Colorado increased its wage from $5.15 an hour to $6.85 an hour. But they went further than that. This new wage will adjust annually with inflation as measured by the Consumer Price Index in my own State--in this case, the State of Colorado.
During the course of the 109th Congress, the Senate considered a range of different minimum wage proposes. I evaluated each on a case- by-case basis. As a former small business owner, I recognize the financial challenges many families face, both those who are employed by the small business, as well as those struggling to keep their small business working. I also recognize the importance of small business to our Nation's economy and the chilling effect that increasing operating costs can have on the growth and ability to create jobs.
In my small business, for example, I hired a large percentage of employees whose first job was working for me. I was able to incorporate them into my business because, in some cases, because of their lack of job experience, I was willing to bring them in at a relatively low wage, give them an opportunity to improve themselves, which usually didn't take long--a month, 2 or maybe 3 months--and then begin to increase their wages as they increased their performance. This helped for morale in the business, and they felt like they were treated fairly. And it worked out very well.
We ran into problems when I was forced to raise the minimum wage, and I had to look at those employees in my small business who were full- time employees and expand the responsibilities of what my expectations were during their time of employment, at the expense of part-timers, and I laid off a few part-timers in the process, until I was able to grow the business a little more and I was able to begin to bring on some of the part-time employees again.
That is my personal experience and that reflects my view on increasing the minimum wage and why I think it has an adverse effect, particularly on those trying to move into the workforce. I have long been a supporter of legislation to help small businesses, and I do not wish to overburden our small businesses. Last year, I supported Senator Enzi's small business health plan legislation to give small business and their employees relief from health care costs. I supported this bill as a way to help small business and will continue to support such good ideas in the future.
In my view, in order to stimulate economic growth and create better paying jobs, Congress should implement programs aimed at reducing taxes and Government regulations on small business. Less Government intervention, at all levels, enables the private sector to attract, recruit, and retain the best possible employees and reward increased productivity and responsibility with higher compensation.
Although I believe the market is capable of setting wages, States are better equipped than the Federal Government to determine what is a fair and equitable standard wage for their workforce because of their own economy within that State.
As my chart shows, letting States take the lead on this issue is working. According to the Department of Labor, as of January 1, 2007, the majority of States have opted to increase the minimum wage over the federally mandated $5.15 an hour.
According to the Economic Policy Institute, 28 States plus the District of Columbia have minimum wages above the Federal level in 2007. Washington State has the highest minimum wage at $7.93 an hour. Several States, including Connecticut, Massachusetts, and Oregon, have raised their minimum wage beyond $7.50 an hour.
If we are going to do this and do this right, we should be cautious in Federally mandating a one-size-fits-all minimum wage. We should allow States to take into consideration the needs of their economy. We should give States the rights and flexibility to set their own minimum wage. Costs of living and wages vary dramatically State to State. What is right for Wyoming is not necessarily what is right for Massachusetts. Imposing dramatic increases to the minimum wage on States poses a threat to local economies. States are better positioned than the Federal Government to set a wage that works best for their workforce. Whether the need is above or below the proposed $2.10 increase, State officials should have the right to decide. Local legislators are in touch with the business community and I think better represent the needs of the local labor markets. Allowing the minimum wage to be set by State legislatures is a better alternative to a Federal mandate. My amendment simply affirms the traditional definition of States rights and allows respective State legislatures the flexibility to determine employee pay benefits.
Let's allow the States to have a say and decide what is right for them. They are the closest to the people. Let's give States the right and flexibility to regulate minimum wage. A one-size-fits-all unfunded Federal mandate is not the answer to protecting America's economic security. I urge my colleagues to join me in supporting this amendment which gives States the flexibility to determine what is best for their citizens.
Thank you, Madam President.
Madam President, I want to take a moment to explain my amendment No. 116. This amendment gives the States the rights and the flexibility to determine a minimum wage that works best for them. My provision does not allow States to go any lower than the minimum wage they currently operate within their State.
This is an important amendment for small business, an important amendment as far as the States are concerned because cost of living and wages vary dramatically from State to State. A one-size-fits-all federally imposed minimum wage does not take into account the economic realities that exist in each State.
The States are already fulfilling their responsibilities of regulating wages. Currently, 28 States and DC have minimum wage rates above the Federal level. Because the minimum wage varies by State, this legislation threatens to impose a 41-percent increase on some States and a 0-percent increase on others.
Let's give the States the right and flexibility to regulate minimum wage. State legislatures are closer to the people and are better situated than the Federal Government to set a minimum wage. A one-size- fits-all solution under Federal mandate is not the answer to protecting America's economic security.
I urge my colleagues to join me in supporting this amendment that gives the States the flexibility to determine what is best for its own citizens.
When it is appropriate, Madam President, I will call for the yeas and nays.
Mr. President, I reiterate, my amendment gives flexibility to States to set their own minimum wage. What is an appropriate minimum wage level for one State does not apply for another, and has different potential effects on the ability for economic growth in that State. When you vote for my amendment, you are voting for State flexibility. The States are already fulfilling their responsibilities of regulating wages. My amendment does not allow the States to set a minimum wage lower than their current operating minimum wage as of January 1, 2007.
I ask my colleagues to join me in voting for the Allard amendment.
I ask for the yeas and nays.
The Senator from South Carolina seeks time? I yield time to the Senator.
If the Senator from South Carolina will yield, Senator Enzi would also like to speak briefly on this amendment, if you will allow him at least a minute.