Governor Bans Minimum Wage Increases And Paid Sick Leave Laws

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"Governor Bans Minimum Wage Increases And Paid Sick Leave Laws"

Oklahoma Gov. Mary Fallin (R)

Oklahoma Gov. Mary Fallin (R)

CREDIT: AP/Sue Ogrocki

At a time when many states and cities are working passing minimum wage increases, Oklahoma Gov. Mary Fallin (R) has gone in the opposite direction and signed a law banning cities from passing higher wages. The bill also bans them from enacting paid sick days or vacation requirements.

The law will stymie the efforts of activists in Oklahoma City, where a labor federation has led the push on a petition to raise the city’s minimum wage to $10.10 per hour. The state’s current minimum has been set at the federal level of $7.25. In 2012, 64,000 workers in the state earned $7.25 an hour or less, making up 7.2 percent of all hourly workers, a larger share than the 4.7 percent figure for the country as a whole.

Fallin said she signed the bill out of the worry that higher local minimum wages “would drive businesses to other communities and states, and would raise prices for consumers.” She also argued that “most minimum wage workers are young, single people working part-time or entry level jobs” and that “many are high school or college students living with their parents in middle-class families.” She warned that increasing the minimum wage “would require businesses to fire many of those part-time workers” and harm job creation.

But that’s not what the typical American minimum wage worker looks like. Nearly 90 percent of workers who would be impacted by an increase in the wage are older than 20, while the average age is 35. More than a quarter have children to support. More than half work full time, and 44 percent have at least some college education, while half a million minimum wage workers are college graduates.

Meanwhile, experts have analyzed state minimum wage increases over two decades and found that even at times of high unemployment, there is no clear evidence that the hikes affected job creation. Five other studies have come to the same conclusion. The same has held true for the city of San Francisco, where employment grew by more than 5 percent after it passed a higher minimum wage while nearby counties experienced declines.

Oklahoma is not the only state to pass a blanket ban on raising the wage. Wisconsin lawmakers recently considered doing the same, and Kansas Governor Sam Brownback (R) signed a law that prevents local governments from requiring contractors to pay higher wages last year. According to Paul Sonn, general counsel and program director at the National Employment Law Project, a handful of mostly Republican-leaning states passed these kinds of bans about a decade ago, including Colorado, Florida, Georgia, Louisiana, Oregon, and Texas. But the states that are the most likely to see campaigns to raise minimum wages are not the ones that are likely to pass similar bans, he told ThinkProgress.

The ban on paid sick days is also not new. While seven American cities and one state have passed paid sick leave requirements, ten states — Arizona, Florida, Georgia, Indiana, Kansas, Louisiana, Mississippi, North Carolina, Tennessee, and Wisconsin — have banned local efforts, with seven of those passing over the last year, and many other states have considered similar bills. Yet there is no evidence to support the idea that these requirements hurt businesses or job growth.

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