Delaware bill would raise minimum wage to $10.25

Delawareans on the bottom rung of the state's economy have more reason for optimism.

Legislation to raise Delaware's minimum wage to $10.25 by June 2019, and index future wage hikes to cost-of-living increases, is expected to be introduced this week in Dover.

Sen. Robert Marshall, a Wilmington Democrat, will sponsor the bill.

Delaware's current minimum wage is $7.75 and will rise to $8.25 on June 1 under legislation signed last year by Gov. Jack Markell.

Business groups are opposing the new minimum wage proposal, saying it's too early to impose additional wage costs on companies doing business in Delaware.

"It's the wrong time to do it," said Rich Heffron, president of the Delaware State Chamber of Commerce, noting last year's increase. "It's not going to change the economy."

It's unclear whether Marshall has the support of Markell, a Democrat who has said lawmakers must focus on policies that grow the economy, not ones that seek to redistribute wealth.

Marshall said Tuesday that his legislation is a recognition of the "significant contribution" made by "those hourly wage earners who are at the foundation" of the Delaware and U.S. economies.

"I'm confident the governor will recognize the importance of the hourly wage earners at the foundation of our economic pyramid," Marshall said.

Delaware's lowest wage earners need additional money to cover the cost of "bread, milk and the day-to-day living requirements," Marshall said.

Marshall's legislation would raise Delaware's hourly minimum wage to $10.25 in four steps through June 1, 2019. It would then automatically link increases in Delaware's bottom wage to cost-of-living increases calculated for Social Security benefits.

Delaware's minimum wage would rise 90 days after those collecting Social Security payments see cost-of-living increases.

Kelly Bachman, a spokeswoman for Markell, said the governor has not discussed the new legislation with Marshall or other lawmakers. Bachman would not say whether Markell supported an additional minimum wage increase.

"He was proud to support a $1 increase in the minimum wage last year and looks forward to talking with the senator and his colleagues about this bill," Bachman said.

In a December interview, Markell questioned the broad economic impact of minimum wage increases.

Markell said Democrats should pursue an "agenda around growth rather than an agenda around redistribution," adding that "there aren't a lot of people with middle-class jobs who are aspiring to an increase in the minimum wage."

Last year's legislation passed only after Marshall removed a cost-of-living indexing provision, which helped secure Markell's support. Under that legislation, Delaware's bottom wage rose from $7.25 to $7.75 last June.

Delaware's new minimum wage push comes after the retail giant Walmart said in February it would raise its entry wage to $9 by April. Marshall's legislation also comes after protesters in Delaware, organized by the Service Employees International Union, have demanded higher wages from fast food restaurants.

A Delaware task force, co-chaired by Marshall, also in January recommended raising Delaware's bottom wage to $10.25 by 2017 with a target wage of $15.

Jose Blas, 29, who makes minimum wage as a cook at Wendy's in Elsmere, said earning $10.25 would help him pay the bills. Blas has a 15-month-old son and lives with his girlfriend's parents in Wilmington.

"It would help me get my own place," said Blas, who has joined in wage protests and sought changes from Delaware lawmakers. "It would help me do a lot."

Others, like Mike and Diane McCullough of Bear, say they worry about their children's future. Raising the minimum wage could only help workers, they said.

"We have two young sons entering the work market," Diane McCullough said. "They could never live on the current minimum wage."

Delaware Restaurant Association President Carrie Leishman said lawmakers should allow last year's minimum wage increase to take effect before considering new legislation.

"I don't understand why legislators would put forward policy before they implement the first law they did last year," Leishman said. "To me it's somewhat disingenuous. It feels overreaching."

The restaurant association is leading a coalition of business groups – which includes the Delaware and New Castle County Chambers of Commerce – in opposing additional increases to Delaware's minimum wage.

The group launched a "Delaware Wage Facts" website that says any increase would put thousands of service industry jobs at risk.

Leishman said it's "highly funded union dollars creating all the hoopla around this issue."

Lauren Petrick, vice president of Sweet-n-Sassy Cupcakes in Newark, said another minimum wage increase for all workers would prevent businesses from offering raises to high-performing employees.

"Good employees that would get that much money wouldn't get more than that," Petrick said.

Marshall said Tuesday there is no evidence that minimum wage increases result in layoffs.

The Democrat noted that Delaware's unemployment rate has fallen to 5 percent in recent months even as the state's bottom wage rose to $7.75, and as businesses prepared for the increase to $8.25 this June.

Marshall said he was committed to securing another increase in Legislative Hall.

"I plan to exert my political willpower and leadership to get this bill passed," Marshall said.

Contact Jonathan Starkey at (302) 983-6756, on Twitter @jwstarkey or at jstarkey@delawareonline.com.