Sen. Brown Applauds Executive Order to Raise the Federal Minimum Wage, Reiterates Need to Pass Fair Minimum Wage Act

Nearly 1.3 Million Ohio Workers Would Benefit from Bill, Which Would Raise Minimum Wage to $10.10 an Hour in Three Steps and Provide First Raise for Tipped Workers in 20 Years

WASHINGTON, D.C. – In tonight’s State of the Union Address, President Obama announced an executive order to raise the minimum wage for all federal contractors, and called on Congress to raise the federal minimum wage for all workers. U.S. Sen. Sherrod Brown (D-OH) is a cosponsor of the Fair Minimum Wage Act, legislation that would raise the federal minimum wage for the first time in more than 20 years and would result in a raise for millions of Ohio workers. The Fair Minimum Wage Act would raise the federal minimum wage to $10.10 an hour in three steps and provide the first minimum wage increase to tipped employees in more than 20 years.

“I applaud President Obama’s executive order to raise the minimum wage for all federal contractors and his call for Congressional action to pass the Fair Minimum Wage Act. Ohioans who work hard and play by the rules should be able to take care of their families. But too many are working harder than ever – and barely getting by,” said Brown. “Working full-time in a minimum wage job in Ohio pays about $16,000 per year – which isn’t much to live on when you’re trying to put food on the table, fill your gas tank, send your children to school, and provide a safe place for them to live. Ensuring a fair wage is good for middle class families and good for our economy.”

Brown is the cosponsor of the Fair Minimum Wage Act of 2013, legislation that would raise the federal minimum wage. It would raise the minimum wage to $10.10 an hour from its current $7.25—in three steps of 95 cents—then provide for automatic annual increases linked to changes in the cost of living. The bill would also gradually raise the minimum wage for tipped workers—which currently stands at just $2.13 an hour—for the first time in more than 20 years, to 70 percent of the regular minimum wage.

Workers who are paid a minimum wage in Ohio earn only $16,000 per year, which is more than $3,000 below the poverty level for a family of three. The Fair Minimum Wage Act would boost the minimum wage to $21,000, lifting families above the poverty line. According to the National Employment Law Project, the minimum wage has lost more than 30 percent over the last forty years. If the minimum wage had kept up with inflation, it would be worth approximately $10.55 per hour today. Increasing the minimum wage would boost GDP by nearly $33 billion and generate 140,000 new jobs over the course of three years as workers spend their raises in their local businesses and communities.

For new research on the impact of the Fair Minimum Wage Act on Ohio, see HERE.

Over the past year, Brown has met with several Ohio businesses that support an increase in the federal minimum wage, including the Yankee Kitchen, a diner in Youngstown; Grounds for Thought, a coffeehouse and bookstore in Bowling Green; Dempsey’s, a restaurant in Columbus; Brothers Printing, a print shop in Cleveland; and Synergistic Systems, a computer consulting company also in the Cleveland area.

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