MN Prominent In U.S. House Subcommittee Hearing On Minimum Wage

WASHINGTON, DC —With the House and Senate both discussing the $1.9 trillion coronavirus relief bill, a Wednesday House subcommittee hearing on one component of that bill - the $15-an-hour-minimum wage - had a decidedly Minnesota flavor, according to reports.

Rep. Dean Phillips (D-03) is the chairman of the House Small Business Oversight, Investigations and Regulations Subcommittee, which spent two hours debating the pros and cons of the $15 minimum wage. Phillips welcomed in Minnesota business leader John Puckett, CEO of Punch Neapolitan Pizza and a founder of Caribou Coffee, to participate in the proceedings.

Two other Minnesota politicians, Rep. Angie Craig (D-02) and Rep. Jim Hagedorn (R-01), also served on the panel.

In an opening statement, Phillips said the current minimum wage falls well below the poverty line for a family of two or more. He cited a study by the Congressional Budget Office (CBO) that suggests the policy, as written, likely will raise almost a million people out of poverty and increase aggregate wages for low-wage workers by over $300 billion over the next decade.

However, Phillips said the same CBO study projected the policy, as written, could cost 1.4 million jobs.

Phillips said it was important to hear different perspectives on the wage hike.

"I am certain that all of us in this room have heard from small businesses and hardworking people in our districts about the impact - both positive and negative - this policy change will have," Phillips said.

According to the Star Tribune, Puckett said the average wage at his restaurants is $15 an hour, with a starting wage of $13 per hour.

Meanwhile, Phillips mentioned his constituent, Ken Savik, owner of the Original Pancake House in Wayzata, who is deeply concerned the $15 minimum wage will force him to cut jobs in order to stay open.

Hagedorn, meanwhile, is an opponent of the $15 minimum wage, especially it's one-size-fits-all solution. He said it would force businesses in his rural congressional district to close.

Craig said the data shows an increase in the minimum would be a positive, but she said it must be done gradually.

According to the Washington Post, top Senate aides from both parties were huddling with the Senate parliamentarian Wednesday morning to advance arguments about whether the $15 minimum wage is allowed in the coronavirus relief bill. A ruling from the parliamentarian was expected Wednesday evening or Thursday.

House Democrats were preparing to advance the $1.9 trillion relief bill on Friday, and they were planning to include the minimum wage increase regardless of the ruling in the Senate, the Washington Post reported.

Read more at StarTribune.com.

Read more at Washington Post.com.