DCED cites 869,900 workers affected by proposed $15 minimum wage; lawmakers debate phase-in and small-business protections

Minimum wage drew sustained questioning at the Appropriations hearing.

Representative Flood said small businesses were concerned that an immediate jump to $15 an hour could harm employers that typically employ 5 individuals. Secretary Seager cited 2023 Department of Labor data and said "Workers between $7.25 and $15... 869,900 as of 2023" would be affected if the governor's proposal is enacted.

Seager noted 68% of affected workers are age 20 or older and said the administration views the $15 proposal as part of a broader economic strategy to raise wages and spur local economic growth. He also said conversations about phasing or other approaches were possible as the budget process proceeds, but the governor's proposal as introduced is a $15 minimum.

Lawmakers pressed for revenue and employment-impact modeling; Seager deferred detailed modeling questions to the Department of Revenue and encouraged committee members to consult revenue analysts for job-loss or revenue estimates.

Next steps: discussion of potential amendments and modeling will continue in the legislature and DCED indicated teams would coordinate with Revenue to provide further detail.