The Virginia state minimum wage law does not contain current dollar minimums but instead adopts the Federal minimum wage rate of $5.15 per hour by reference. Since 1997 Virginia lawmakers have rejected efforts to raise the state’s minimum wage.
Recently, two Northern Virginia legislators urged their colleagues to raise the state’s minimum wage, but efforts have failed. They introduced a bill that would raise the state’s minimum wage to $6.15 per hour and increase it by $1.00 per hour in 2007 and again in 2008. In 2009 and each subsequent twelve month period the minimum wage rate would be adjusted by the rate of change in the Consumer Price Index as reported by the Bureau of Labor Statistics of the U.S. Department of Labor.
A similar bill was introduced in the House of Delegates by Delegate Vincent F. Callahan Jr., chairman of the Appropriations Committee. However, a Virginia House subcommittee killed Callahan’s bill. As a result, efforts to raise the minimum wage in Virginia are dead until next year’s session.
One of the objections to raising the minimum wage is based on Virginia’s low unemployment rate which is the second best in the nation. Many believe that this proves that the state’s business environment is producing desired results. However, many supports of the bill argued that the current minimum wage is not keeping up with inflation and many of the low income workers live below the poverty line. Testimony from a Norfolk shelter for the homeless stated that the shelter regularly serves patrons who are unable to afford a place to live even though they work full time at minimum wage.
By increasing the minimum wage even by $1.00 per hour several studies show that there is little or no effect on unemployment or job losses. Instead many states have seen an increase in revenues and cost savings in government assisted programs.
