CWS 3.0: July 2, 2014

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Mass. to have highest state minimum wage in US

Last week, Massachusetts Gov. Deval Patrick signed into law a measure that raises the state’s minimum wage to the highest of any U.S. state. The measure, S.2195, raises the minimum wage to $11 per hour over three years. The bill also lowers unemployment insurance costs for employers in Massachusetts, strengthens safety protections for workers and makes permanent the multi-agency task force charged with combating worker misclassification.

Under the bill, reforms to the state’s unemployment insurance system would freeze UI rates for employers for three years and expand the wage base subject to those rates to $15,000. It also extends from one to three years the period the Department of Unemployment Assistance reviews an employer’s usage of UI benefits which is another factor in determining employer premiums.

The bill will also give both workers and employers continued protections from businesses that misclassify workers and abuse wage and hour laws creating unfair competition for employers who play by the rules by codifying the Joint Task Force on the Underground Economy (JTF). The JTF, established by the governor six years ago, has already collected millions of dollars in tax obligations and fines from unscrupulous employers. With the signing of this bill, the JTF will now become a permanent investigative unit to combat the underground economy.

“Raising the minimum wage brings a little relief to the working poor, many of whom do jobs we could not live without and who recycle money right back into the economy,” Patrick said. “By signing this bill, we show the Nation that opportunity can and must be spread outward, not just upward. I thank the Legislature for their important work in reaching this milestone.”

Meanwhile, California's minimum wage rose to $9 per hour from $8 yesterday. Illinois Gov. Pat Quinn has approved a ballot measure to put before the voters in November whether to raise the states' minimum wage to $10 per hour; it is currently $8.25. In May, an effort to lift the federal minimum wage was defeated in the U.S. Senate.