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The Vermont Senate on Thursday advanced a measure that would raise the state’s hourly minimum wage to $15 by 2024.
The bill, S.40, would incrementally hike the state’s minimum wage over the next six years, from the current level of $10.50 per hour.
Sen. Michael Sirotkin, D-Chittenden, who introduced the bill, told his colleagues that addressing economic inequality in Vermont has been a priority for him since he joined the Senate in 2014.
“So here I am now in the same spot I was four years ago, and actually doing something about it,” he said.
In presenting the proposal, Sirotkin raised concerns about income disparity between high and low earners, and about stagnation of wages in Vermont. Vermonters are more likely to work full-time minimum wage jobs than working people in other New England states, he said.
Several Republicans offered amendments and spoke against the measure. Some raised concerns that business-owners would not be able to afford the increase; others said they would like to see Vermonters earning higher wages, but they should do so by developing their skill set.
“If people get the skills and we provide opportunity to train in a variety of fields, then we will be able to get them to a living way, not just the increase in the minimum wage,” Sen. David Soucy, R-Rutland, who was opposed to the measure, said during the floor debate.
The bill, which came out of a study committee that met through last summer, won preliminary approval on a 20-10 vote. If the bill passes in a second vote, which is expected Friday, it will move to the House.
Rebecca Kelley, spokesperson for Gov. Phil Scott, said he will consider the final bill “but as it stands, there are a number of concerns to be addressed.”
“While Governor Scott agrees with the goal to increase wages, and has supported economically responsible increases to the minimum wage in the past, the approach currently proposed comes with a lot of risk to our economy, businesses and increased costs to consumers,” Kelley said.
Over the course of a debate that lasted about two hours, lawmakers considered three amendments.
One, offered by Sen. Joe Benning, R-Caledonia, would limit the increase in minimum wage to Chittenden County, the most densely populated area in the state.
“I do not wish to cast cold water on the effort to have Vermont take the lead in trying to protect our most vulnerable,” Benning said. “What I am deeply concerned about, however is the lack of opportunities for businesses in my neck of the woods and in many places along the Connecticut River.”
Benning characterized Vermont as “a divided state.” Benning said there is a “night and day” difference between the economy in the area around Burlington and the Northeast Kingdom.
Sen. Phil Baruth, D-Chitt., responded to Benning’s comment.
“I simply disagree,” he said. “We are a united state aware that we have different economic levels in different parts.”
Baruth said passing the amendment would send the message that the Legislature is addressing wage stagnation in Chittenden County, while ensuring that those outside of the area “continue to endure” flat wages.
The Senate defeated Benning’s proposal on a roll call vote with 6 in favor, 24 opposed.
Another amendment, offered by Sen. Peg Flory, R-Rutland, would allow businesses to pay less than the minimum wage if they offer employees benefits packages that reach a certain threshold.
Sen. John Rodgers, D-Essex/Orleans, voiced support for the idea. He said he heard from a major employer in his district who was concerned that raising the minimum wage to $15 per hour would have a negative impact on their ability to afford the benefits package they offer.
Rodgers said he believes the bill “treats these responsible businesses unfairly.”
But others had questions about the details of Flory’s proposal, and concerns about the effect of allowing stratification of the minimum wage, as she suggested.
“The beauty of the minimum wage is that it is the minimum wage,” Baruth said.
Flory’s amendment failed, with only 11 in favor and 19 opposed.
Lawmakers did adopt an amendment, backed by the seven members of the Appropriations Committee, that would counteract a federal rule change the Trump administration has proposed that would give restaurant owners more control over the tips their workers earn.
More amendments are expected when the bill comes up for final reading Friday.
Sen. Ritchie Westman, R-Orleans, voted against the bill, saying he was concerned about its effect on childcare. Increasing the minimum wage could have an impact on Vermonters’ access to a benefit that helps families manage childcare costs.
The bill includes a provision that would increase the eligibility threshold for the program and increase the payments to account for the additional expense of childcare resulting from the rising minimum wage. However, Westman said, the fix isn’t enough.
“We’re not solving the issue here,” he said. “We’re highlighting where the issue should be solved.”
The bill still must be vetted by the House. Rep. Helen Head, D- South Burlington, who chairs the House General, Housing and Military Affairs Committee, said she does not expect the panel would be able to begin work on the bill until March at the earliest.
“I think there’s a great deal of interest in the bill,” she said.
The measure has dozens of supporters in the House, she said. However, it also has opposition from the Republican caucus.
Isaac Grimm of Rights and Democracy Vermont said the group supports raising the minimum wage as soon as possible.
“While this doesn’t get us there as fast as we would like, we think it’s still a really, really important bill and a really important step forward for workers in the state,” Grimm said.
He said the $15 minimum wage would “put at us the forefront of the country” for livable wages.
Many have concerns about the implications of the proposal.
Erin Sigrist, president of the Vermont Retailers and Grocers Association, said the proposal would put small businesses in financially challenging positions.
“We need to provide the training necessary to develop the workforce and allow workers to move up,” Sigrist said.
Many businesses are already paying above minimum wage to attract qualified workers, she said. She also said the discussion should include consideration of the total compensation package, rather than just the wage level, because many employers offer generous benefits.
“Employees are going to take a hit when it comes to their benefits, and I think that that is a huge concern,” she said.
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