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Friday, May 26, 2006

TN minimum wage update

After numerous delays over the past few weeks, it appears the Tennessee House may finally be voting on the minimum wage bill.

It was scheduled for a vote yesterday in both the House and the Senate, but was postponed again until today.

It now appears that the House is voting on several amendments at this moment, indicating that a vote on the bill could be imminent.

More details as they emerge...

UPDATE: The minimum wage increase has passed in the Tennessee House of Representatives, 52 to 43. Still waiting for a Senate vote...

UPDATE: It appears that more amendments, in addition to removing any regulatory enforcement or oversight, have severely gutted the bill. Employers with less than 50 employees appear to be exempt (it is not clear whether this amendment was voted on or included in the bill which passed "as amended").

Another amendment appears to exempt employees who do not have a high school diploma or GED equivalent. (This sounds unconstitutional, and I predict a court challenge.)

It also appears employers are only required to pay half the difference starting in 2007, and the bill will not go into full effect until 2008, depending on the status of these amendments.

There is also a provision that the minimum wage only applies to natural born and naturalized citizens, or workers here on valid work visas. It's hard to argue with that, except the flip side is that they are acknowledging that undocumented workers are a source of cheap labor, and they are still looking the other way to protect it, wink, wink, nudge, nudge. It's illegal to hire illegals, so this provision would seem to be redundant. Wink, wink, nudge, nudge. Say no more.

So the minimum wage is now effectively voluntary (the only recourse for employees being cheated is to sue their employers, and most will not have the means) and the bill exempts pretty much everyone who might have been covered, including college students, people working for tips, those without a high school diploma, and those working for employers with less than 50 employees.

UPDATE: It appears that the Senate has substituted the House bill as amended, indicated that there might be a vote forthcoming in the Senate this evening.

UPDATE The Tennessee Senate has killed the minimum wage hike. So I reckon that's that.
posted by R. Neal at 1:00 PM | Email this post | Post a Comment
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CHRIS KROMM blogs three days a week for Facing South. Chris is Executive Director of the Institute for Southern Studies and publisher of the Institute’s award-winning magazine, Southern Exposure.

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