Would a state minimum wage in Iowa cost counties local control?

CEDAR RAPIDS — When Supervisors in four Iowa counties — including Johnson and Linn — passed their respective minimum wage ordinances, they knew state lawmakers would be watching.

When the General Assembly convenes this January, Johnson County's minimum wage will be at $10.10 an hour, Linn's will be $8.25 and Wapello County's rate will sit at $8.20. Polk County will increase to $8.75 an hour April 1.

But what changes, if any, will a Republican-led House and Senate propose? And how would they affect county decisions?

Rod Sullivan, a member of the Johnson County Board of Supervisors that passed the state's first countywide minimum wage increase, said he's cautiously optimistic.

'I'm particularly concerned now with the GOP in charge of all three — the Governor, House and Senate. I think it's fair to say this might be resolved in a way I would not be pleased with,' said Sullivan, a Democrat who was re-elected on Nov. 8. 'But you can see the cup half full or the cup half empty, and I guess I'm choosing half full.'

Iowa's minimum wage has remained at $7.25 an hour since 2009, and efforts in recent years to increase it have received little support — particularly from Republicans.

While Democrats traditionally call for an increase in the minimum rate to get residents closer to what some deem a 'livable wage,' Republicans tend to argue doing so can harm Iowa businesses.

Both sides, for the most part, however, have agreed the issue should be handled at the state level.

Minimum wage across U.S. (2016)

Source: U.S. Department of Labor

Meanwhile, Gov. Terry Branstad has said he is willing to consider an increase to the state minimum wage. He has not proposed a specific amount, but has said a $15 minimum wage was 'unrealistic.'

Tim Hagle, a University of Iowa associate political science professor, said it's impossible to predict what dollar amount may or may not be discussed this coming session.

'The question that might arise with the Republican control of the state legislature now is, would the state try to pass a law that requires a statewide conformity? Basically that all counties have to adhere to the same minimum wage statewide, that it can't be individual counties deciding for themselves?' Hagle said.

House Speaker Linda Upmeyer, R-Clear Lake, earlier this month told The Gazette she expects the Legislature to revisit the minimum-wage issue with an eye toward pre-empting local standards. Other legislators contacted for this story have been reluctant to speculate on possible outcomes beyond that.

Meanwhile, supervisors in Linn and Johnson counties have leaned on their home-rule authority to defend their ability to raise a countywide ordinance.

Some, including Iowa's labor commissioner, have questioned if raising the minimum wage falls under home rule, but so far the issue has not been challenged in court.

A 'HODGEPODGE' OF WAGES?

Branstad has said he'd prefer to bring Iowa back to a single statewide wage and pre-empt local jurisdiction's from creating a 'hodgepodge' of different wages.

Bill Peterson, executive director with the West Des Moines-based Iowa State Association of Counties, said that's something he finds concerning.

'We've heard that one of the things they've talked about doing is pre-empting the authority for a county to act in this area, or a city to act in this area,' Peterson said. 'I think we would be very strongly opposed to taking away that authority that some counties believe that they have.'

Peterson added that, 'We do encourage our members to use what we believe is their home-rule authority to move forward with issues of importance within their communities.'

City councils within Johnson, Linn, Polk and Wapello counties also have begun flexing their home-rule powers, with a handful in each county passing counter ordinances that essentially opt out of the higher minimum wage and stick with the state/federal rule.

So the 'hodgepodge' of wages already exists, but Peter Fisher, research director with the Iowa Policy Project, said that's not necessarily a bad thing.

'I guess one of the arguments that I find not compelling, and maybe disingenuous, is having a patchwork is a problem for businesses,' Fisher said. 'To suggest this is a burden to have different employees earning different wages is pretty silly.'

IOWA'S MINIMUM WAGE

Iowa's minimum wage last increased in 2007 when Democrats controlled both chambers of the Legislature and the Governor's Office. It went from $5.15 to $6.20, and then to $7.25 in 2008. Iowa has matched the federal rate — $7.25 — since 2009.

The topic of raising Iowa's minimum wage has come up in recent legislative sessions, but to little success.

Minimum wage across Iowa counties (2017)

City councils have the ability to pass counter ordinances, essentially opting out of the county rate. A handful of communities in each county have passed such ordinances.

*Ordinances in Polk and Wapello counties allow employers to pay youth workers -- those under the age of 18 -- 85 percent of the minimum wage.

Source: County documents

In 2014, bills to raise the minimum rate incrementally until it reached $10.10 in January 2016 were introduced in both chambers. Both failed to gain traction.

In 2015 a bill to raise the state minimum rate to $8.75 by July of this year passed the Senate, but never reached action in the House.

Last year, there was little formal discussion on the state minimum wage in either chambers.

With the Nov. 8 election, Republicans will go from a 23-seat minority to a 29-seat majority in the Senate. In January, House Republicans will hold a 59-to-51 advantage.

According to the National Association of State Legislatures, states bordering Iowa all have higher current or pending future minimum-wage rates, with the exception of Wisconsin, which is the same as Iowa's, at $7.25:

$7.80 in Missouri

$8.25 in Illinois

$8.55 in South Dakota

$9 in Nebraska

$9.50 in Minnesota.

UI's Hagle said it's possible Iowa lawmakers will opt to wait to see what results countywide minimum-wage increases have within their respective communities.

'It may be considered such a contentious issue that even though the Legislature — with a Republican majority in each chamber — does not like that places like Johnson and Linn have raised the minimum wage, but they just don't want to put their foot into that water,' Hagle said. 'Sometimes doing nothing is the best choice for legislators for a variety of reasons.'