For the first time in five years, Rhode Island’s minimum wage workers could get a pay raise. Now that a new bill has been approved by both the State House and Senate, the final decision lies with Governor Lincoln Chafee.
If Governor Chafee signs the bill, Rhode Island’s minimum wage rate will go from $7.40 to $7.75 per hour, starting in 2013. It may not look like a huge raise, but supporters of the measure say it’s a big step forward for the 10,000 Rhode Island residents who make minimum wage.
“The smallest increase will help,” said Rep. Anastasia Williams, D-Providence, Chairwoman of the House Labor Committee. “Young people in my district have to go out and work to support their families. It’s past due. If not now, when?”
Even if the rate increase passes, it will still be lower than the rate in neighboring states. Minimum wage workers in Massachusetts make $8 per hour, while the hourly minimum wage rate in Connecticut is $8.25. The federal rate is $7.25 per hour.
However, not everyone is in favor of a rate increase. Food retailers around the state say that if they have to pay their employees more, it will result in higher food prices. Some state Republicans argue that small businesses may delay hiring new workers because they can’t afford it.
“People who do not have a job are going to find it that much more difficult,” said House Minority Leader Brian Newberry, R-North Smithfield. “Don’t think that this is just some feel-good legislation.”
As for Governor Chafee, he hasn’t yet said whether or not he supports the raise.