Alaska Governor signs minimum wage bill into law
Alaska Governor Sarah Palin has signed into law Senate Bill 1, which will increase Alaska's minimum wage for the first time in more than six years. Alaska's minimum wage will increase from $7.15 per hour to $7.25 per hour on July 24 and then to 50 cents above the federal minimum wage (or $7.75 per hour) on January 1, 2010 (Alaska State Legislature, Senate Majority Working Group News, July 10, 2009).
"Alaska's cost of living is one of the highest in the nation," said Senator Bill Wielechowski (D-Anchorage), a prime sponsor of the bill, adding that, "Despite this, 39 states have a higher minimum wage than Alaska, including California, Oregon, and Washington. For a state with Alaska's resources, this is unconscionable."
More than 8,000 Alaskans earn less than $7.75 per hour and are expected to benefit from this legislation
Alaska's minimum wage was last raised in January 2003. Had it kept pace with inflation, it would be about $8.46 today. Senator Wielechowski said that workers who earn the current Alaska minimum wage make roughly $14,872 a year, little more than the federal poverty level for Alaska, which is $13,530. Nationally, 25% of those workers are parents, and many are the sole wage earners in their households.
Economic studies have found that modest increases in the minimum wage do not lead to job loss, but do result in greater productivity, lower recruiting and training costs, decreased absenteeism, and increased worker morale.
Other prime sponsors of SB 1 are Senator Johnny Ellis (D-Anchorage), Senator Joe Thomas (D-Fairbanks), Senator Bettye Davis (D- Anchorage) and Senator Hollis French (D-Anchorage).
Reprinted with permission. © CCH
(Submitted July 15, 2009)
<p> Alaska Governor signs minimum wage bill into law
Alaska Governor Sarah Palin has signed into law Senate Bill 1, which will increase Alaska's minimum wage for the first time in more than six years. Alaska's minimum wage will increase from $7.15 per hour to $7.25 per hour on July 24 and then to 50 cents above the fed</p>