Main Street Coalition: Business Groups Applaud the Governor and Legislature for Accord on Minimum Wage

Contact:
Ed Lump: 608.270.9950
Chris Tackett: 608.257.3541
Bill G. Smith: 608.255.6083

The Main Street Coalition for Economic Growth, Inc., a consortium of more than 20 state and local business groups, commends Democratic Governor Jim Doyle and Republican legislative leaders for coming to an agreement on minimum wage. This accord will guarantee one statewide minimum wage and overrule all local minimum wage ordinances. It will also include a hike in the statewide minimum wage.

Signed into law today by the Governor, 2005 WI Act 12 will clarify that cities do not have the legal authority to mandate minimum wage requirements. The law will roll back Madison’s ordinance and prevent La Crosse, Eau Claire and Milwaukee minimum wage ordinances from going into effect. All municipalities will be prevented from regulating minimum wage by ordinance in the future.

Gov. Doyle’s emergency rule raising the minimum wage also takes effect today, increasing the statewide minimum wage to $5.70 per hour as of June 1, 2005. A permanent administrative rule will follow that will take the minimum wage to $6.50 per hour on June 1, 2006.

“The Main Street Coalition applauds the Governor and the Legislative Leadership,” said Bill G. Smith, State Director for the National Federation of Independent Business. “By their bipartisan actions, they have eliminated the potential for economic chaos that would result by municipalities creating ‘wage islands’ throughout the state.” The Main Street Coalition has maintained that wage laws are the role of state government because they affect our state’s ability to have a stable economy. As of today, state law clearly states that the authority to regulate minimum wage in Wisconsin is reserved to the state.

“We are gratified that an agreement was reached and that we have a unified minimum wage for the entire state,” said Ed Lump, President of the Main Street Coalition and President and CEO of the Wisconsin Restaurant Association. “Each side had to set aside their philosophical differences and do the right thing for the entire state. This is compromise. This is democracy.”

Main Street Coalition members include the Wisconsin Restaurant Association, Wisconsin Merchants Federation, National Federation of Independent Business – Wisconsin, Wisconsin Grocers Association, Wisconsin Manufacturers & Commerce and others. Six members of the coalition served on the Governor’s Minimum Wage Advisory Council, which voted unanimously to recommend this minimum wage compromise.