Sponsor Testimony — House Bill 69 Minimum Wage, Representatives Jarrells and Kelly (November 29, 2022)

Summary

Sponsor testimony of Representatives Dontavius Jarrells & Brigid Kelly to the Commerce and Labor Committee on House Bill 69, legislation to increase the minimum wage in the State of Ohio, dated November 29th, 2022. The testimony says H.B. 69 raises the basic state minimum wage rate to $10.00 per hour and increases it by $1.00 each year for the five years following the first increase. For tipped employees, it initially increases the state minimum wage to $5.00, then by $.50 each year for the five years following. It states that beginning January 1st, 2028, rates are to be adjusted annually based on the Consumer Price Index.

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              Commerce and Labor Committee
              House Bill 69 Sponsor Testimony
      Representatives Dontavius Jarrells & Brigid Kelly
      Legislation to Increase the State Minimum Wage

                          November 29th, 2022

Chairman Stein, Vice-Chair Johnson, Ranking Member Lepore-Hagan,
and members of the Commerce and Labor Committee. Thank you for
the opportunity to provide sponsor testimony on House Bill 69,
legislation that would increase the minimum wage in the State of Ohio.

There is no denying that the COVID-19 pandemic has exacerbated many
issues facing the people of Ohio. From the health and safety of our loved
ones to the increasingly urgent mental health crisis, this public health
emergency has upended life for many Ohioans in countless different
ways. Undoubtedly, the most painful of these problems is the economic
turmoil many families across Ohio are facing.

In June 2022, the inflation rate in the United States reached a staggering
9.1%, exceeding a 40-year high that has devastated the financial
situation of working families across the nation. Multiple unavoidable
crises have caused this tragic predicament, such as supply chain issues
and an unwavering war in Ukraine; however, avoidable in this situation
is our inaction as leaders in Ohio, and I believe raising the state
minimum wage is necessary to help those who are struggling.

Though the COVID-19 pandemic and the subsequent inflationary crisis
paining our nation have brought economic issues to the forefront, these
problems existed long before this virus’s existence. As a kid, I watched
my mom juggle multiple jobs, countlessly struggling to make ends meet;
these challenging circumstances are too often an everyday reality for so
many Ohio families. Because of my experience growing up, raising the
minimum wage is a personal journey for me. Everyone deserves a wage
that dignifies their contribution to our communities and covers basic
living expenses.

H.B. 69 raises the basic state minimum wage rate to $10.00 per hour. In
the original bill, this increase would have begun on January 1st, 2022,
but an amendment could easily address this timing issue to give the bill
impact. In addition to the initial increase, the bill also increases the basic
state hourly minimum wage by $1.00 each year for the five years
following the first increase.

As for tipped employees, H.B. 69 initially increases the state minimum
wage to $5.00. Further, the bill increases the state hourly minimum wage
for tipped employees by $.50 each year for the five years following the
initial increase.

Finally, H.B. 69 requires, beginning January 1st, 2028, the minimum
wage rates to be adjusted annually based on the Consumer Price Index,
in accordance with Ohio’s constitutional minimum wage requirements.

Proof of how effective this bill would be is in the numbers. A 2019
Policy Matters Ohio report found that increasing Ohio’s minimum wage
to $15 would lift wages for some 2 million Ohio workers, nearly 37
percent of the wage-earning workforce, with the average affected worker
taking home an additional $4,252 annually. Proponents of the wage
increase say it better aligns wages to increased productivity, which,
since 1979, has risen six times faster than hourly compensation for the
typical U.S. worker.
Before I turn it over to Representative Kelly for additional remarks, I
want to close by simply saying this – we must support Ohio working
families by alleviating the economic stress so many are facing. This is
how we build a better, stronger, and more equitable Ohio for all of
us.


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