Sen. Jack Reed are Tom Harkin of Iowa are sponsoring legislation to raise the federal minimum wage $10.10 in 2015.
“Raising the minimum wage is vital because too many people have been left out of the economic recovery,” Reed said in a press release. “The stagnation of earnings in the face of soaring prices for gasoline, home heating, and health care is squeezing the middle-class.”
The federal minimum wage is $7.25 and Reed and Harkin’s proposal calls for phasing the increase in by $.95 per year.
His press release on the legislation references a report that RI Future reported on January 2. It shows the majority of companies that pay minimum wage are large corporations that have fully recovered from the economic crash.
According to the report, “the majority of America’s lowest-paid workers are employed by large corporations, not small businesses, and that most of the largest low-wage employers have recovered from the recession and are in a strong financial position.”
Reed said in the press release, “Strong productivity has translated into higher profits for companies, but not more take-home pay for employees.”
Rhode Island’s minimum wage is $7.75 and was increased $.35 in January 1.