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Advertiser Article on Minimum Wage; Quoted

This morning, the Honolulu Star-Advertiser printed an article about the proposals before the Legislature to raise the State’s minimum wage.  The current minimum wage is $7.25 an hour.  As noted in a prior blog entry, Governor Neil Abercrombie is proposing an increase of $1.50 to a total of $8.75 an hour.

I had two quotes in the article. First, I noted that the $1.50 increase was rather large:

Ryan Sanada, assistant general counsel at the Hawaii Employers Council, agreed the proposed increase is high.

“A dollar fifty is basically over 20 percent of the current minimum wage,” Sanada said. “In the private sector you rarely see a wage increase of 20 percent. … We appear to be coming out of the recession, but I don’t think we’re coming out of it yet, so a raise of $1.50 seems to be pretty big to me at this time.”

Second, I discussed the proposal for an “escalator clause” which would call for annual adjustments to the minimum wage based upon inflation:

Hawaii Employers Council’s Sanada said that could be a risky move.

“That’s pretty dangerous because it basically sets the minimum wage based on the economy for one year,” he said, cautioning that the economic climate ebbs and flows during long periods of time.

You can view the article in its entirety here:  Star-Advertiser on Minimum Wage.