Last night, the Senate approved a compromise bill raising the minimum wage and stabilizing unemployment insurance rates in Massachusetts. The bill was the product of lengthy negotiations between House and Senate conferees.
Here are the minimum wage highlights:
For employers, the minimum wage is a cost increase and the basic trade is that they get lower and more stable unemployment rates.
Most of us feel it to be a very solid compromise. Many of us had favored a package including indexing of the minimum wage, and we didn’t get that, but the increase is substantial and should help a lot. We can seek a further adjustment in a few years, depending on how the economy goes.
The elephant in the room is non-compliance on both minimum wage and UI. There is a lot of under-the-table compensation in our economy. The legislation creates a council on the underground economy.
Senator Dan Wolf led the conference process on behalf of the Senate. Please click here to view the more detailed explanation and analysis which Dan prepared for his colleagues..
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