On Wednesday evening, St. Paul city leaders came to a wider consensus of their plans to raise the city’s minimum wage to $15 an hour. Earlier last week, Citizens League sponsored by the St. Paul Foundation released a 446-page report confirming the intention of having the minimum wage increase, having it indexed to inflation, and stated that it is expected to be phased in over the next four to seven years.
What exactly is in this 446–page report? The conclusion of it, is as follows:
The committee agreed on forwarding three scenarios to the city of Saint Paul for consideration with percentages indicating the level of support each scenario found within the study committee. All three scenarios include a recommendation of a $15 per hour minimum wage indexed to inflation, as well as exemptions for City-approved youth training programs and disability employment programs. Two scenarios recommend no tip adjustment in the calculation of wages, while one includes a tip credit model that applies to full-service restaurants only with a probationary period and annual reevaluation for effectiveness by the City of Saint Paul.
Based on the developments of this report, the path St. Paul is on is concerning to say the least. Such a drastic increase in the minimum wage from the current state minimum of $9.65 an hour for large employers and $7.87 for small employers to $15 by 2022, is going to have crippling effects on the economy.