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University of Wisconsin–Madison
Poverty-related issues in the news, from the Institute for Research on Poverty

State Minimum Wages

  • Iowa minimum wage trails neighbors, but hike unlikely, By Matthew Patane, January 11, 2015, Des Moines Register: “In South Dakota, a worker earning minimum wage gets paid $8.50 an hour — $1.25 an hour more than in Iowa. In Nebraska, the minimum wage is $8 an hour, and in Illinois, it’s $8.25 — both higher than Iowa’s $7.25 minimum. In fact, except for Wisconsin, Iowa is surrounded by states that offer a higher minimum wage. And the difference can be substantial — adding up to an additional $800 to $2,600 a year for full-time workers earning a higher minimum…”
  • Minnesota restaurant owners want break on tipped workers, By Patrick Condon, January 13, 2015, Minneapolis-St.Paul Star Tribune: “Minnesota restaurateurs, sensing an opportunity with the new Republican House majority and fresh signs of sympathy from DFL Gov. Mark Dayton, plan to push for an exemption to last year’s minimum wage increase that would allow them to pay a lower base wage to tipped employees. ‘This last year has been a test for us,’ said Ed Fong, owner of David Fong’s, a Bloomington Chinese restaurant his parents opened in 1958. ‘With the minimum wage increase, and big increases in food costs — those are my two biggest costs, and I seem to have less and less control of those items.’ When the Legislature boosted the state minimum wage last year, a proposal to add the so-called ‘tipped employee tier’ nearly became part of the package. The idea had bipartisan support, but failed by one vote in the DFL-controlled House. Then Dayton, who strongly backed the minimum wage law, said shortly after signing it that he saw the logic behind an exemption for restaurants…”
  • Minimum wage increase in Colorado still leaves some workers short, By Greg Ruland, January 10, 2015, Grand Junction Daily Sentinel: “The 23-cent increase in Colorado’s minimum wage provoked mixed reactions from local business owners and county officials, but did little to close the gap between full-time pay and the cost of living in Mesa County. The raise from $8 to $8.23 per hour — or for tipped employees, from $4.98 to $5.21 per hour — took effect Jan. 1. Spokesmen for two area restaurants employing minimum wage workers voiced different points of view about the increase…”