To repeal the current state minimum wage law that makes it unlawful to employ a worker for less than $7.40 an hour, and replace it with a new law gradually increasing the mandated minimum to $9.20 an hour, and increasing the minimum amount the employer of a worker who receives tips must pay from $2.65 to $2.93 an hour. (A tipped-worker’s employer must pay the difference between this amount and the regular mandated minimum if tips come up short). These amounts would increase with inflation (with a 4 percent annual cap), and the state would be required to reimburse local governments for any cost increases caused by the mandated wage hikes.
As introduced the bill was seen as a Republican gambit to keep an “initiated law” off the November ballot, to hike the mandated minimums to $10.10 for both tipped and non-tipped employees. It became a bipartisan gambit after negotiations for the higher rate and inflation indexing brought most Democrats on board.