Madison, Wisconsin – A bill has been introduced in the Wisconsin State Legislature aiming to significantly raise the state’s minimum wage, potentially impacting over one million workers. The proposed legislation, spearheaded by State Representative Angelina Cruz, would establish a pathway to a $20 hourly minimum wage by , indexed to inflation thereafter.
The bill, unveiled on , proposes an initial increase to $15 per hour upon enactment, followed by annual increments of $1.25. This phased approach is designed to allow businesses, particularly small enterprises, to adjust to the increased labor costs. A slower phase-in schedule is specifically included for businesses with 50 or fewer employees. The legislation also addresses tipped wages, proposing to raise them to 50% of the standard minimum wage.
Representative Cruz underscored the urgency of the measure, highlighting the stagnation of Wisconsin’s minimum wage at $7.25 per hour since . “It should shock us all that Wisconsin’s minimum wage has remained stagnant at $7.25 per hour since 2009,” she stated. “In the 17 years since the federal minimum was set at that level, costs have soared. Wisconsin workers deserve far more than a poverty wage.”
The impetus behind the bill stems from concerns over the rising cost of living in Wisconsin, encompassing essential expenses such as housing, food, and healthcare. Cruz argued that suppressed wages exacerbate financial instability for workers and their families. “The rising cost of basic necessities including housing, food, and health care undermines the stability of our workers, families, and communities,” she explained. “While rising costs continue to receive attention – as they should, suppressed wages require our attention as well.”
Beyond the immediate impact on wages, the legislation seeks to restore local control, empowering communities to establish higher minimum wage standards if deemed necessary. This provision acknowledges the significant variations in the cost of living across the state. According to a Living Wage Calculator from the Massachusetts Institute of Technology (MIT), a single adult with no children requires an hourly wage of $20.96 to maintain a basic standard of living statewide. This figure rises further in metropolitan areas like Madison, Milwaukee, and Waukesha.
Proponents of the bill also point to potential economic benefits, arguing that increased wages will boost consumer spending and generate higher tax revenues for the state. “There is also an economic benefit to wider communities, as workers have more purchasing power, and to the state, which relies on revenue from income taxes,” according to materials released by Representative Cruz’s office.
The legislation has garnered support from a significant number of Democratic lawmakers in the Wisconsin Assembly. Representative Cruz noted the backing of over 30 of her Democratic colleagues, signaling a unified front in advocating for the measure. “I’m proud to be joined by more than 30 of my Democratic colleagues in introducing this legislation. We are serious about creating the conditions under which working people and our communities can thrive.”
The introduction of this bill comes amid a broader national conversation regarding minimum wage and affordability. While 30 other states have already raised their minimum wages above the federal level of $7.25, Wisconsin has remained among those lagging behind. The proposed legislation aims to address this disparity and provide a more sustainable income for Wisconsin’s workforce.
Senator Kelda Roys (D-Madison) is co-sponsoring the legislation, emphasizing the dignity of work and the need for a living wage. According to a statement released by Senator Roys, over one million Wisconsin workers currently earn less than a living wage, highlighting the scale of the issue. She argued that a “free” market that fails to provide families with the means to survive is a failed market, and that legislative intervention is necessary to address the problem.
The bill’s success will depend on navigating the political landscape in Wisconsin, where debates over economic policy often fall along partisan lines. The coming weeks and months will likely see intense discussion and scrutiny as the legislation moves through the legislative process. The potential impact on businesses, workers, and the state economy will be central to these deliberations.
