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Proposal to raise minimum wage to $12 an hour, eliminate two-tier structure clears first committee

Taylor Avery
Taylor Avery
Legislature
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A proposed constitutional amendment to eliminate Nevada’s two-tier minimum wage structure and raise the wage to $12 an hour cleared its first legislative hurdle in the Assembly Commerce and Labor Committee Thursday evening.

The resolution, AJR10, proposes amending the Nevada Constitution to raise the minimum wage to $12 an hour by July 1, 2024. The resolution, which was introduced Wednesday on the Assembly floor, makes no distinction between employers who provide health care and those who do not. Currently, employers who provide health insurance must pay their employees $7.25 per hour, while those who do not must pay their employees $8.25 per hour.

The resolution additionally requires employers to pay the federal minimum wage if it ever increases above $12 per hour.

The proposed constitutional amendment could either complement or take the place of AB456, which proposes raising the minimum wage by 75 cents a year until it reaches $12 an hour in 2024 by legislative action alone. However, because of the two-tier structure, companies that provide health insurance to their workers would be allowed to pay their employees $11 an hour.

If the joint resolution passes in both the Assembly and the Senate, it will be handed off to the 2021 session of the Legislature, where it will be voted on again. If the resolution passes for a second time, it will appear on the ballot in the 2022 election.

“This is not a vote for us to actually raise the minimum wage,” said Democratic Assemblywoman Maggie Carlton. “This is a vote to ask our constituents and we should always listen to them.”

Christine Saunders, the policy director for the Progressive Leadership Alliance of Nevada, also spoke in support of the bill.

“Right now hardworking Nevadans who make minimum wage — women, people of color, immigrants, and families — simply don’t make enough to make ends meet,” she said.

Others echoed their support, including Make the Road Nevada political director LaLo Montoya, Battle Born Progress executive director Annette Magnus and Washoe County Education Association president Natha Anderson.

However, there was some opposition to the bill.

“As we look at this issue, the chamber is concerned about the potential adverse impacts AJR10 may have on employers and employees and the overall job climate,” said Las Vegas Metro Chamber lobbyist Paul Moradkhan.

Moradkhan also shared statistics from a study conducted by the chamber that involved respondents from 30 different industry sectors.

“Sixty percent indicated that they would consider slowing down the hiring of new employees, 61 percent would consider the increase the price on goods and services, 57 percent said they would consider reducing employee hours,” he said.

Republican Assemblyman Chris Edwards also voiced concerns about raising the minimum wage.

“I understand the desire to have people earn more money but I’m always frustrated by the fact that people who make the distinction between a minimum wage in order to help entry level people get a job versus a living wage, which is what they strive towards over the course of their career,” he said.

Edwards also expressed concern for the number of jobs in his district, especially for those in rural areas.

“I’m going to have to be a no on this, because the case has been made that raising the minimum wage all too often kills jobs,” he said. “We just can’t afford to kill jobs, especially in my district.”

The resolution passed with an amendment altering the effective date, changing it to June 30, 2024. Edwards, along with Republican Assemblywoman Melissa Hardy, voted against the resolution.

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