[Congressional Record Volume 159, Number 31 (Tuesday, March 5, 2013)]
[Senate]
[Pages S1131-S1132]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. HARKIN (for himself, Ms. Mikulski, Mrs. Murray, Mr. 
        Sanders, Mr. Casey, Mr. Franken, Mr. Whitehouse, Ms. Baldwin, 
        Mr. Murphy, Ms. Warren, Mr. Leahy, Mr. Levin, Mr. Rockefeller, 
        Mrs. Boxer, Mr. Wyden, Mr. Durbin, Mr. Reed, Mr. Schumer, Ms. 
        Stabenow, Mr. Lautenberg, Mr. Brown, Ms. Klobuchar, Mr. 
        Merkley, Mrs. Gillibrand, Mr. Blumenthal, and Mr. Cowan):
  S. 460. A bill to provide for an increase in the Federal minimum 
wage; to the Committee on Health, Education, Labor, and Pensions.
  Mr. HARKIN. Mr. President, for several years now I have come to the 
floor to talk about the need to bolster the middle class in this 
country and restore the American Dream. The American Dream is supposed 
to be about building a better life. If you work hard and play by the 
rules, you should be able to support your family, join the middle 
class, and provide a bright future for your children.
  But tens of millions of hardworking Americans who are earning at or 
near the minimum wage are not only struggling to reach the middle class 
and achieve the American Dream, they are falling behind. We need to do 
more to support these workers as they try to build opportunity for 
their families and their futures. A critical first step is to ensure 
that they earn a fair day's pay for a hard day's work. That is why 
today I am joining with Congressman George Miller to introduce the Fair 
Minimum Wage Act of 2013 to raise the minimum wage.
  Our bill will do three things: first, it will gradually increase the 
minimum wage to $10.10 an hour in three annual steps. Second, our bill 
will link future increases in the minimum wage to the cost of living, 
through the Consumer Price Index, so that people who are trying to get 
ahead don't fall behind as our economy grows. Finally, our bill will--
for the first time in more than 20 years--raise the minimum wage for 
workers who earn tips, from a paltry $2.13 per hour to a level that is 
70 percent of the regular minimum wage. This will be gradually phased 
in over the course of 6 years, which will give businesses time to 
adjust while providing more fairness for hardworking people in tipped 
industries.
  These raises are long overdue. Over the past several decades, average 
wages in this country have stagnated, but the minimum wage has actually 
declined in real terms. It has not kept up with costs, average wages, 
or rapid growth in productivity.
  Since its peak in 1968, the minimum wage has lost 31 percent of its 
purchasing power. That means minimum-wage workers are effectively 
earning almost a third less than they did four decades ago. In fact, if 
the minimum wage had kept up with rising prices for food, rent, 
utilities, clothing, and other goods, then the wage would be $10.56 
today. But instead it's $7.25. My bill will restore much of the buying 
power of the minimum wage.
  The minimum wage also used to be a meaningful standard compared with 
what most people earned and compared with what workers in the economy 
produced. In 1968, it was just over half of average production wages. 
But today the minimum wage has fallen to 37 percent of the average 
production wage.
  While Americans are working longer and harder than ever, their 
paychecks don't reflect their contribution. Workers are much more 
productive now than in the past. Productivity has risen more than 130 
percent since 1968. But average wages have not budged in real terms and 
the minimum wage has lost ground. So while companies have reaped the 
benefits of all this productivity growth, the people who actually do 
the work have seen none of these gains.
  As Congress has allowed the minimum wage to languish, working 
families have fallen below the poverty line. In the 1960s and 1970s, 
the minimum wage kept a family of three above the poverty line--20 
percent above it in 1968. But today, a family of three with one minimum 
wage earner working full-time, year-round, will bring home a paycheck 
that is 18 percent below the poverty line.
  The Fair Minimum Wage Act will restore the value of the minimum wage, 
bringing families back above the poverty line, to 106 percent of the 
poverty line for a family of three. With its provision to index the 
minimum wage to the cost of living in the future, the minimum wage will 
no longer lose value. It will rise as the economy grows, which will 
allow working families to keep up with rising costs.
  I think it is very important that we talk about the people who will 
benefit from the Fair Minimum Wage Act. There are 30 million Americans 
who will get a fair wage because of this bill, either directly by the 
legislation or indirectly through the ``trickle up'' effects of a 
higher wage floor. That's one out of five workers in our country that 
will be impacted.
  They do the hard, important jobs to keep our economy running. They 
are cashiers and sales help in stores; waiters, waitresses, bussers, 
runners and hostesses in restaurants. They care for our children, 
elders, and other loved ones. They help us at the gas station or in the 
parking garage. They clean offices and homes, and maintain buildings 
and grounds. They provide administrative support in offices. They work 
in the fields to bring food to our tables. They all deserve a fair 
wage.
  The families of these 30 million workers will also benefit. Eighteen 
million children have parents who will get a raise. This will be so 
meaningful for these families, who are working to build a better life. 
For a full-time, year-round worker earning right at the minimum wage, 
it will mean gradually moving from $15,000 a year to $21,000 a year. 
Think about that. Most of us in this Chamber would not take too much 
notice of a $6,000 raise. But for minimum wage workers, that's nearly 
40 percent more, and that will go a long way to buying groceries and 
school supplies, paying rent, and saving for college or retirement.
  Everyone in our country who works hard and plays by the rules 
deserves these opportunities: and not just to survive, but to aspire to 
the middle class.
  Raising the minimum wage will benefit our economy as well. With an 
increase in the minimum wage, workers will have more money to spend. 
This is just basic economics: increased demand means increased economic 
activity. They will spend their money in their local economies, giving 
a boost to Main Street. In fact, economists estimate that the Fair 
Minimum Wage Act will boost our GDP by $33 billion as it is implemented 
over the course of three years, generating 140,000 jobs in that time.
  We know we can afford this. Wages aren't stuck at rock-bottom levels 
because our economy isn't growing. Our economy is growing. The problem 
is that growth is going to profits, to shareholders and executives. 
Inequality is at the highest level we have seen since the eve of the 
Great Depression. CEOs are raking in millions, while the people who do 
the real work in this country are struggling just to get by. In 2011, 
S&P 500 CEOs earned an average of $13 million. The average CEO earns 
more before lunchtime on his first day of work than a minimum wage 
worker earns all year. That is simply appalling.
  Now some people, specially the big corporations with these lavish 
salaries, will criticize my bill, saying it will force businesses to 
lay off workers or cut back their hours. They say workers will be hurt 
if the minimum wage goes up. But history proves that these assertions 
are just plain wrong. We know from decades of rigorous research 
analyzing the real-life effects of minimum wage increases that minimum 
wage raises along the lines what I am proposing do not result in job 
losses or reduced hours. Second, these raises do, in fact, boost 
workers' earnings. This research applies to teenagers, too. I will say 
it again: minimum wage increases do not cause teenage unemployment.
  So we will not see negative effects from raising the minimum wage. 
But

[[Page S1132]]

we will see positive effects for businesses and our economy. We know 
that increased wages boosts productivity and morale. Turnover falls 
significantly, which saves businesses thousands of dollars in 
recruitment, hiring, and training costs. Moreover, all businesses would 
have the same minimum wage, meaning businesses that are doing the right 
thing by paying fair wages will not be undercut by competitors who pay 
rock-bottom wages.
  The American public knows that opponents' outlandish claims about 
raising the minimum wage don't hold water. That is why raising the 
minimum wage is incredibly popular among the American public. A 
national poll last year showed that 73 percent of Americans support 
raising the minimum wage to $10 an hour and linking it in the future to 
the cost of living. Even 50 percent of Republicans support raising and 
indexing the minimum wage. A 2011 poll showed that more than seventy 
percent of Americans believe that indexing the minimum wage to keep up 
with inflation will be good for the country.
  The Fair Minimum Wage Act has been endorsed by nearly 200 national 
and local organizations around the country, and the support is only 
growing. They represent a wide cross-section of the American community. 
They are working to end poverty, hunger, and homelessness; to increase 
community involvement; and to ensure fairness for women and people of 
color. They are organizations of people of faith and organizations of 
workers. They are retirees and moms and members of the LGBT community. 
They are social workers, direct care workers, and steelworkers. And 
they are small businesses. The bill has been endorsed by the US Women's 
Chamber of Commerce, representing 500,000 small businesses around the 
country; by the Main Street Alliance, with chapters in a dozen states 
and 12,000 small business members; by the American Sustainable Business 
Council, which along with its member organizations represents more than 
150,000 businesses nationwide, as well as more than 300,000 
entrepreneurs, managers and investors; and by Business for a Fair 
Minimum Wage and Business for Shared Prosperity.
  Because raising the minimum wage is so popular, and so necessary, 
many States have moved ahead of the Federal Government to do so. 
Nineteen states and the District of Columbia have raised their minimum 
wage above the federal level, all across the country. Ten states have 
already implemented annual indexing of the minimum wage to keep up with 
the rising cost of living. Thirty States have increased their minimum 
wage for tipped workers above the Federal level.
  I am proud to introduce the Fair Minimum Wage Act of 2013. It is long 
past time to give Americans a raise. Mr. President, I ask unanimous 
consent that the text of the bill be printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                 S. 460

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Fair Minimum Wage Act of 
     2013''.

     SEC. 2. MINIMUM WAGE INCREASES.

       (a) Minimum Wage.--
       (1) In general.--Section 6(a)(1) of the Fair Labor 
     Standards Act of 1938 (29 U.S.C. 206(a)(1)) is amended to 
     read as follows:
       ``(1) except as otherwise provided in this section, not 
     less than--
       ``(A) $8.20 an hour, beginning on the first day of the 
     third month that begins after the date of enactment of the 
     Fair Minimum Wage Act of 2013 Act;
       ``(B) $9.15 an hour, beginning 1 year after that first day;
       ``(C) $10.10 an hour, beginning 2 years after that first 
     day; and
       ``(D) beginning on the date that is 3 years after that 
     first day, and annually thereafter, the amount determined by 
     the Secretary pursuant to subsection (h);''.
       (2) Determination based on increase in the consumer price 
     index.--Section 6 of the Fair Labor Standards Act of 1938 (29 
     U.S.C. 206) is amended by adding at the end the following:
       ``(h)(1) Each year, by not later than the date that is 90 
     days before a new minimum wage determined under subsection 
     (a)(1)(D) is to take effect, the Secretary shall determine 
     the minimum wage to be in effect pursuant to this subsection 
     for the subsequent 1-year period. The wage determined 
     pursuant to this subsection for a year shall be--
       ``(A) not less than the amount in effect under subsection 
     (a)(1) on the date of such determination;
       ``(B) increased from such amount by the annual percentage 
     increase in the Consumer Price Index for Urban Wage Earners 
     and Clerical Workers (United States city average, all items, 
     not seasonally adjusted), or its successor publication, as 
     determined by the Bureau of Labor Statistics; and
       ``(C) rounded to the nearest multiple of $0.05.
       ``(2) In calculating the annual percentage increase in the 
     Consumer Price Index for purposes of paragraph (1)(B), the 
     Secretary shall compare such Consumer Price Index for the 
     most recent month, quarter, or year available (as selected by 
     the Secretary prior to the first year for which a minimum 
     wage is in effect pursuant to this subsection) with the 
     Consumer Price Index for the same month in the preceding 
     year, the same quarter in the preceding year, or the 
     preceding year, respectively.''.
       (b) Base Minimum Wage for Tipped Employees.--Section 
     3(m)(1) of the Fair Labor Standards Act of 1938 (29 U.S.C. 
     203(m)(1)) is amended to read as follows:
       ``(1) the cash wage paid such employee, which for purposes 
     of such determination shall be not less than--
       ``(A) for the 1-year period beginning on the first day of 
     the third month that begins after the date of enactment of 
     the Fair Minimum Wage Act of 2013, $3.00 an hour;
       ``(B) for each succeeding 1-year period until the hourly 
     wage under this paragraph equals 70 percent of the wage in 
     effect under section 6(a)(1) for such period, an hourly wage 
     equal to the amount determined under this paragraph for the 
     preceding year, increased by the lesser of--
       ``(i) $0.95; or
       ``(ii) the amount necessary for the wage in effect under 
     this paragraph to equal 70 percent of the wage in effect 
     under section 6(a)(1) for such period, rounded to the nearest 
     multiple of $0.05; and
       ``(C) for each succeeding 1-year period after the year in 
     which the hourly wage under this paragraph first equals 70 
     percent of the wage in effect under section 6(a)(1) for the 
     same period, the amount necessary to ensure that the wage in 
     effect under this paragraph remains equal to 70 percent of 
     the wage in effect under section 6(a)(1), rounded to the 
     nearest multiple of $0.05; and''.
       (c) Publication of Notice.--Section 6 of the Fair Labor 
     Standards Act of 1938 (as amended by subsection (a)) (29 
     U.S.C. 206) is further amended by adding at the end the 
     following:
       ``(i) Not later than 60 days prior to the effective date of 
     any increase in the minimum wage determined under subsection 
     (h) or required for tipped employees in accordance with 
     subparagraph (B) or (C) of section 3(m)(1), as amended by the 
     Fair Minimum Wage Act of 2013, the Secretary shall publish in 
     the Federal Register and on the website of the Department of 
     Labor a notice announcing the adjusted required wage.''.
       (d) Effective Date.--The amendments made by subsections (a) 
     and (b) shall take effect on the first day of the third month 
     that begins after the date of enactment of this Act.
                                 ______