Portland chamber taking city to court over new minimum wage ordinance
Photo / Renee Cordes
Backed by public demonstrations, a referendum passed Nov. 3 raises the minimum wage to $18 during public emergencies. But it's not clear when that rule might take effect.
The Portland Regional Chamber of Commerce, and five of its members, are taking the city to court to get clarity about Portland's new emergency minimum wage law passed by referendum Nov. 3.
Chamber officials announced at a news conference late Tuesday morning that the group is filing suit in Cumberland County Superior Court, seeking an expedited declaratory judgment against the city.
The Portland City Council has said the city won't enforce until January 2022 a minimum wage that requires time-and-a-half paid during a state of emergency. But People First Portland, the political action group that brought the new wage to referendum, said the hike must take place 30 days after vote's certification, which was on Nov. 6.
The city’s current minimum wage is $12. A time-and-a-half wage during the current pandemic-related state of emergency equals an $18 minimum wage.
“While the referendum, as written and passed, allows for gradual increases in the minimum wage through the year 2025 and beyond, there is debate about when the emergency wage increase takes effect and that presents either an immediate or delayed financial burden for our members,” said Quincy Hentzel, CEO of the Portland Regional Chamber, said in a news release.
She said businesses that comply now and pay $18 an hour will suffer "debilitating financial strain," but if they wait they could be subject to private lawsuits and high legal fees.
"We need this situation resolved," Hentzel said.
Joining the chamber as plaintiffs in the suit are the Alliance for Addiction & Mental Health Services, Play It Again Sports, Nosh Kitchen Bar, Slab Sicilian Street Food and Gritty McDuff’s Brew Pub.
Sixty percent of Portland voters approved the city minimum wage hike. It is set to take effect in January 2022, increasing the wage each year to $15 an hour by 2024. It also calls for the higher wage during declared states of emergency, whether by city or state. Maine has been in a state of emergency since March; Portland has also declared a state of emergency.
City officials, after meeting with legal counsel Nov. 10, said that the emergency wage won't take effect until the new wage does.
People First Portland, in an email to supporters Monday, said, "We have been hearing from workers in nursing homes, grocery stores, restaurants, hospitals, on and on. All making meager wages close to $12 an hour. Not enough to feed a family. Not enough to pay the hospital bills should they get sick. Not enough to build up savings if they need time off to quarantine. And the opposition's only answer to these workers is to make sure they never get hazard pay."
But Hentzel said the wage hike will hurt lower-wage workers.
“However well-meaning, the unfortunate irony of the emergency wage provision is that the people it was meant to help, the essential workers who can’t work from home, who are showing up during this pandemic, will be the ones hurt the most as businesses struggle under its financial burden,” she said.
“More than 85% of our members disclosed that they would be ‘extremely negatively’ affected by the emergency wage, including having to permanently or temporarily close, lay off their employees, reduce hours for their employees, reduce other benefits that they have been providing to their employees, or move out of Portland entirely.”
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Hooray for business leaders standing up to bureaucratic insanity and saying, hey, this law is on our backs not yours! During COVID no less! Furthermore public referendums on wages are ridiculous. If they would have requested $30 bucks an hour m/w it would have passed. Yes, employers need employees, yet they likewise need jobs. Instead of incentives for economic development you drive entrepreneurs away. Such irresponsibility in public office with no business acumen = abject failure.
I agree with this action. Or do I? What if instead of fighting these rebellious socialists, why not let their plan fail. That would settle the issue forever. Whenever a group comes together to initiate change without bringing accurate information to the table; anytime these radicals think they have a better way and can implement it overnight, let them face the consequences. Yes it will mess up the economy of Portland. But what is lost here will be found in the surrounding communities. Let these idiots fail. That may be the best form of success we could want. I would love to look back in five or ten years and point to our heroes, Ethan Strimling and Steve Biel - wherever they have moved to.
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