North Liberty sticks with next minimum wage increase

NORTH LIBERTY - North Liberty is staying with Johnson County's minimum wage ordinance, which increases the threshold to $10.10 an hour in January.

With that third increase approaching, the City Council unanimously agreed Tuesday to do nothing about the rule - which means the city continues to follow Johnson County's minimum wage ordinance. Council member Jim Sayre was absent for the vote,

Mazahir Salih, president of the Center for Worker's Justice, described Tuesday's decision as a success for workers in the city.

'They will be very happy about this,” she said. 'This ordinance is doing exactly what it was meant to do.”

More than a dozen people spoke Tuesday on the minimum wage. All asked the council to stick with the ordinance.

North Liberty resident Dan Skemp argued the influence of Johnson County's ordinance, which he said has much larger implications.

'This is putting pressure on the state as a whole, who is going to put pressure on the federal government,” Skemp said. 'What we're doing here is important, it matters. And it doesn't just matter to the people of Johnson County, but the people of Iowa and the people of the United States as a whole.”

Earlier this year, supervisors in Linn, Polk and Wapello counties also passed their own minimum wage rules.

On Monday, Gov. Terry Branstad said he would be open to an increase to the state's current minimum of $7.25.

Council member Terry Donahue predicted action from the state, but cautioned that lawmakers also could restrict local governments' ability to set higher minimums in the future.

'It may be that going with $10.10 is the last local wage increase you may see,” he said.

Donahue said his one concern was the potential impact of the higher wage on small businesses, specifically those with five or fewer employees.

An existing exemption in state and federal minimum wage ordinances allows employers making less than $300,000 annually to pay their employees lower than the existing minimum wage.

North Liberty's council in March held a similar discussion and agreed then to continue with the county ordinance, which was passed by the Johnson County Board of Supervisors last year and increased the county minimum wage to $8.20 this past November and $9.15 in May. The rate is scheduled to increase to $10.10 in January.

After that, a county committee will analyze Consumer Price Index data to recommend any adjustments by April 1 of each year.

While the ordinance is countywide, councils have the ability to decide if they want to pass a counter ordinance that essentially opts out.

Councils in Oxford, Shueyville, Solon and Swisher have decided to stick with the state minimum, while Tiffin's council set a $9 rate.

While all the speakers Tuesday supported the $10.10 minimum wage, several said they want to see more done.

An April report by the non-profit Iowa Policy Project states that a single Iowa resident must earn at least $13.16 an hour to meet basic living expenses. The basic-needs wage jumps to $21.52 for a single parent with one child.