DES MOINES, Iowa (AP) - The Republican-controlled Iowa Legislature on Monday approved a bill that would prohibit local governments from raising minimum hourly wages above the state level, effectively cutting some existing worker wages - an unusual result compared to other so-called pre-emption laws around the country.
The Senate voted 29-21 along party lines in favor of the measure, which passed this month in the House. The bill now heads to GOP Gov. Terry Branstad, who has indicated he supports it.
The legislation would ban cities and counties from adopting or enforcing ordinances that raise the minimum hourly wage above the state and federal level of $7.25. It’s been a top priority for Republicans this session amid a growing number of Iowa counties increasing their wages.
More than 20 states have laws that pre-empt local governments from raising wages, according to the advocacy group National Employment Law Project. But Iowa’s reversal of pay raises makes it unusual. Kentucky appears to be the only other state to retroactively decrease minimum wages, according to NELP and the National League of Cities.
The legislation in Kentucky involved two cities. Iowa’s bill would override wage increases approved recently in Polk, Johnson, Linn and Wapello counties that will top out at different rates, from $10.10 to $10.75 an hour. Lee County is considering an increase.
Polk County, the most populated in the state, was scheduled to have its first wage increase on Saturday. The three other counties had already started their scheduled raises.
Iowa Citizens for Community Improvement used data from the Iowa Policy Project to estimate that 100,000 workers in Iowa would be affected by the legislation. Emily Schott, a community organizer for Iowa CCI, likened the measure for workers to having “the rug completely pulled out from under them,” especially those who were within days of a pay increase.
“It’s a big business measure,” she said. “It’s something that actively makes Iowans poorer and does not represent working people at all.”
Republicans contend the legislation will ensure Iowa avoids a patchwork of rules regarding its minimum wage that could hurt businesses. The Iowa Association of Business and Industry, a key lobbying group, supports the measure.
Republican Sen. Randy Feenstra spoke ahead of the vote. He said the bill would create uniformity.
“This is not a minimum wage bill,” he added. “Businesses can hire people at hourly rates higher than the minimum wage, and in many cases do.”
Critics have shot down the point about uniformity, saying businesses deal with different wages across county and state lines.
“When arguments are made that these minimum wage increases are terrible on the economy and they bankrupt businesses, I just don’t think that there’s any evidence of that whatsoever,” said Tom Hockensmith, a Polk County supervisor who helped pass the ordinance to increase wages.
It’s been nearly a decade since Iowa last increased its minimum wage, and it’s unclear when the state may see another bump. Republican leaders in the House have indicated it’s not a priority this session. Branstad, who’s preparing to step down soon to become U.S. ambassador to China, has said he would support a “modest” minimum wage increase, noting most neighboring states have done so.
“I want to keep us competitive,” he said last month.
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