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February 19, 2010

Minimum wage changes questioned

Lawmakers are considering a proposal that would increase Maine's minimum wage based on inflation, a move that business groups say could hurt job growth.

The Legislature's Labor Committee yesterday heard testimony on a proposal by Rep. John Tuttle, D-Sanford, to index Maine's minimum wage based on changes in the federal consumer price index, according to the Associated Press. Maine's minimum wage is $7.50 an hour, 25 cents higher than the federal minimum. Supporters -- including the Maine AFL-CIO, Maine People's Alliance and the Maine Women's Lobby -- say the bill would keep low-income workers from being gouged by inflation.

But the Maine chapter of the National Federation of Independent Business and other opponents say higher labor costs could prevent the creation of hundreds of jobs. Other groups, including the Maine State Chamber of Commerce and the Maine Merchants Association, told the committee automatic increases based on a formula are not the best way to ensure the minimum wage meets workplace conditions in Maine, according to the AP.

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