Council proposes minimum wage plan

By Jerry Seale

[email protected]

Further discussion on a proposed plan to raise the minimum wage in Fayette County is still scheduled to resume on June 23 following the Urban County Council’s decision to cancel a sooner meeting.

The meeting was originally scheduled for April 20 by Vice Mayor Steve Kay to move the discussion of the proposal to raise the minimum wage over a three-year period along sooner rather than later, but was canceled following a 9-3 vote by the council during its March 19 meeting.

If passed, the bill would raise the minimum wage in Fayette County to $10.10 over a three-year period, which would specifically impact many students like UK business management sophomore Molly Norenberg, who works at Starbucks for minimum wage.

Norenberg said she was in favor of the bill, but also said raising the wage could potentially demotivate some from striving for higher paying positions.

A concern with some over the bill is that raising the minimum wage could result in layoffs.

Computer engineering senior Kyle Piper said, “There would be a short term benefit considering employees would receive more money, but some will pay for it in the end because of the higher cost of workers.”

UK economics professor and senior associate dean Kenneth Troske said, “Some students earning the minimum wage will get an increase in their hourly earnings, but some will lose their job or see a reduction in hours worked which will reduce their overall income.”

But Troske further stated the number of students who would be negatively affected would likely be small.

The council first discussed the proposed bill at its March 17 Budget, Finance & Economic Development Committee meeting, where many people testified before the council to share their thoughts on it.

Rob Ramsey, owner of Ramsey’s Diner, said he pays his servers $11.15 an hour on average, not including the tips they earn from customers, and was not worried about the minimum wage by itself.

However, Ramsey worried that in the process, the tips of waiters and waitresses could be drastically affected, which could ultimately spell trouble for restaurants all over the county.

There were also strong arguments in opposition to the ordinance.

Councilman Ed Lane, voiced his opinion that the free market system should be allowed to dictate wages, and that the council should avoid trying to interfere with it.

This would not be the only increase in minimum wage in the country.

According to the National Conference of State Legislatures, six states and Washington D.C. have enacted plans for future minimum wage increases to $10 or higher.

And a United States Department of Labor report shows that there are currently 26 states that have raised their minimum wage above $7.25.

The Council stated that unemployment in Fayette County is currently down to 3.8 percent, which will also be an important factor for the council to consider as they study the issue further in preparation for the discussion to resume in June.