Senate File 2222 - Introduced



                                 SENATE FILE       
                                 BY  DEARDEN, KREIMAN, COURTNEY,
                                     QUIRMBACH, GRONSTAL, KIBBIE,
                                     BLACK, BEALL, CONNOLLY, BOLKCOM,
                                     STEWART, DVORSKY, HATCH, HORN,
                                     SENG, RIELLY, and McCOY


    Passed Senate,  Date               Passed House, Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act relating to the state minimum hourly wage rate requirement
  2    and providing for an inflation adjustment.
  3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  4 TLSB 5745SS 81
  5 kh/gg/14

PAG LIN



  1  1    Section 1.  Section 91D.1, subsection 1, paragraph a, Code
  1  2 2005, is amended to read as follows:
  1  3    a.  (1)  The hourly wage stated in the federal minimum wage
  1  4 law, pursuant to 29 U.S.C. } 206, shall be increased to $3.85
  1  5 on January 1 of 1990, $4.25 on January 1 of 1991, and $4.65
  1  6 $7.25 on January 1 of 1992, 2007.
  1  7    (2)  No later than September 30 of each year, beginning in
  1  8 the fiscal year beginning July 1, 2007, the labor commissioner
  1  9 shall calculate an adjustment of the wage amount specified in
  1 10 subparagraph (1) based upon the increase, from August of the
  1 11 preceding year to August of the year in which the calculation
  1 12 is made, in the United States city average consumer price
  1 13 index for all urban consumers for all items as prepared by the
  1 14 bureau of labor statistics of the United States department of
  1 15 labor or its successor.  The wage amount established under
  1 16 this subparagraph shall be rounded to the nearest five cents
  1 17 and shall take effect as the state minimum hourly wage rate,
  1 18 replacing the amount specified in subparagraph (1), on January
  1 19 1 of the following year.
  1 20    Sec. 2.  Section 91D.1, subsection 1, paragraph d, Code
  1 21 2005, is amended by striking the paragraph.
  1 22                           EXPLANATION
  1 23    This bill raises the state's hourly minimum wage to $7.25
  1 24 beginning January 1, 2007.  The bill eliminates a separate,
  1 25 lower minimum wage for employees who have worked less than 90
  1 26 days for an employer.  The bill also directs the labor
  1 27 commissioner, beginning in fiscal year 2007=2008, to calculate
  1 28 an adjustment to the minimum hourly wage rate set in the
  1 29 previous fiscal year, based on the increase, from August of
  1 30 the preceding year to August of the year in which the
  1 31 calculation is made, in the U.S. city average consumer price
  1 32 index for all urban consumers for all items as prepared by the
  1 33 bureau of labor statistics of the U.S. department of labor.
  1 34 The bill directs that the amount be rounded to the nearest 5
  1 35 cents and take effect as the state minimum hourly wage rate,
  2  1 replacing the prior year's rate, on January 1 of the following
  2  2 year.
  2  3    The federal minimum wage laws have primacy over state
  2  4 minimum wage laws unless the state sets a higher minimum wage.
  2  5 The federal hourly minimum wage, which took effect September
  2  6 1, 1997, is $5.15.  The federal subminimum, or youth, wage for
  2  7 employees under 20 years of age during their first 90
  2  8 consecutive calendar days of employment with an employer is
  2  9 $4.25 an hour.
  2 10 LSB 5745SS 81
  2 11 kh:nh/gg/14