$15 Minimum Wage Becomes a Barrier for Lawmakers to Immediately Pass the Stimulus Bill

Within weeks, Senate Democrats want to present a new $1.9 trillion stimulus bill. Still, one significant barrier lies between them and the bill's actual passage: whether it would include a $15 increase in the minimum wage.

Minimum wage increase likely to spark conflicts

Workers Across The Country Demonstrate For Higher Minimum Wage

(Photo : David McNew/Getty Images)
LOS ANGELES, CA - NOVEMBER 29: People chant as striking McDonald's restaurant employees are arrested and put onto buses for sitting in an intersection after walking off the job to demand a $15 per hour wage and union rights during nationwide 'Fight for $15 Day of Disruption' protests on November 29, 2016 in Los Angeles, California. Police made 40 peaceful arrests. Protest rallies are expected in nearly 20 airports and outside restaurants in numerous cities, according to organizers.

The wage provision is likely to spark some conflicts between Democratic senators until the House passes the legislation and sends it to the Senate. In the Biden rescue package, the minimum wage increase will be phased in over five years, and tip wages will be eliminated.

According to Business Insider, both Arizona Senator Kyrsten Sinema and West Virginia Senator Joe Manchin have said they are opposed to the stimulus bill. Even if it eliminates all the barriers needed by a compromise package, these two senators' opposition threatens the measure. A looming legislative ruling from the Senate would undoubtedly face obstacles.

In an interview, Jim Manley, a former senior Democratic aide, said, "There might be a few other Democrats with pretty significant concerns about the minimum wage increase." "No matter how the parliamentarian rules, I'm not sure the votes are there in the Senate to increase the minimum wage to $15 per hour."

The Senate parliamentarian acts as an impartial reconciliation arbitrator. This process would allow Democrats to pass a bill in the upper chamber with a simple majority of 51 votes instead of the standard 60. Reconciliation requires the federal budget to be attached to a bill's clause, or else the parliamentarian will throw it out.

If this mechanism does not survive by the minimum wage, it could hinder the fast acceptance timetable of the Democrats, planned for mid-March. Even if it persists, every Democrat must back the final package in an evenly divided chamber where Vice President Kamala Harris will break ties.

Republicans: Minimum wage increase could shed jobs

As a neutral arbiter of reconciliation, the Senate parliamentarian has not increased the federal minimum wage from $7.25 since 2009. Labor advocates say a measure could increase salaries for essential workers and those at risk of the pandemic.

"To say that we can support jobless workers, teachers, caregivers, and medical professionals without supporting workers earning $7.25 per hour isn't just bad policy, it's inhumane," Elizabeth Pancotti, Employ America's policy director, said on Twitter. "Economic relief must include raising the minimum wage," Pancotti added.

However, Republicans claim that increasing the minimum wage amid the COVID-19 pandemic could push employers to shed jobs. Some Democratic lawmakers share the same concerns.

Meanwhile, Senator John Hickenlooper of Colorado told the Wall Street Journal, "I think small business has got to be kept in mind, and I think there are a number of different variations that are being proposed that help insulate the impact in terms of small business."

The $15 minimum wage initiative will cause 1.4 million job cuts but bring 900,000 people out of poverty, a report by the nonpartisan Congressional Budget Office suggested. Any GOP funding is available to increase salaries. On Tuesday, Senators Mitt Romney and Tom Cotton proposed bills to increase the minimum wage to $10 over four years after the pandemic. They will also relate that to the mandatory use of the E-Verify service to keep track of their employees' immigration status.