Colorado minimum wage to drop as living costs fall

[onehandle]

Source: AP

DENVER – Colorado will become the first state to reduce its minimum wage because of a falling cost of living. The state Department of Labor and Employment ordered the wage down to $7.24 from $7.28. That's lower than the federal minimum wage of $7.25, so most minimum wage workers would lose only 3 cents an hour.

Colorado is one of 10 states where the minimum wage is tied to inflation. The indexing is thought to protect low-wage workers from having flat wages as the cost of living goes up.

But because Colorado's provision allows wage declines, the minimum wage will drop because of a falling consumer price index. It will be the first decrease in any state since the federal minimum wage law was passed in 1938.

"We can't see that there would be any other option" except lowering the wage, department spokesman Bill Thoennes said Tuesday. He said there will still be a public hearing on the question in early November, though the drop appears inevitable. The lower wage will take effect Jan. 1.

Read more: http://news.yahoo.com/s/ap/20091013/ap_on_bi_ge/us_minimum_wage_drop_2

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I wonder how many employers will actually adjust their workers hourly wage? I imagine it's actually up to them to make the adjustment. State workers would probably be automatically penalized.

[Renew Deal]

1. $.03 @ 40 hour/week 52 weeks/year is $62.

$1.20 a week.

[Freddie Stubbs]

2. Although I doubt that any employer would cut a current employees' wages by 3¢,

they may do so for new employees.

[Liberal_in_LA]

5. Walmart would probably drop wages. anything to save a penny.

[kenfrequed]

3. I wonder...

If this cost of living index includes health care and housing?

[quakerboy]

6. Or even food and fuel

[happygoluckytoyou]

4. ooops there goes another COORS LIGHT... back to DOS EQUIS for me ! (mexicans are better paid!!!)

[question everything]

7. Yeah, the ones living on min. wage are now getting too wealthy

:sarcasm:

I was going to post here - if not already posted - and searched for the best source at Google News.

One of them from Faux titled: Kudos for Colorado

:puke: