Wal-Mart Move Prompts Calls for Even Higher Minimum Wage Increase

Employment Law

The decision by Wal-Mart to raise its base wage to $10.00 is causing minimum wage advocates to push for an even higher increase, and could make it difficult for Sen. Susan Collins (R-ME) to find bipartisan for support for an increase in the federal rate to $9.00 an hour.  Last year, the leading Democrat bill would have raised the minimum from the current $7.25 to $10.10 over a three year period.  On Thursday, Wal-Mart said it would raise its base wage to $9.00 in April 2015, and to $10.00 by February 2016, a move that mirrors similar efforts by other large employers, including Gap, Costco, and Starbucks.  Josh Bivens, research director at the Economic Policy Institute, a liberal think tank, said the Wal-Mart action "shows a higher minimum wage is affordable for companies," and "should be a prod to put an ambitious number on the table."  Rep. Al Green (D-TX), has already introduced the Original Living Wage Act (H.R. 122), that would increase the federal minimum wage to at least $13.40 per hour (15% higher than the poverty level for a family of four).  Sen. Patty Murray (D-WA) is reportedly considering proposals to raise the rate to $11 or $12 with varying timelines, but Sen. Bernard Sanders (I-VT) said "while [Wal-Mart's action] is a step forward and a response to grassroots activism across the country, this is nowhere near enough... Struggling working families should not have to subsidize the wealthiest family in the country."