Colorado Minimum Wage, Amendment 42 (2006)

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Colorado Minimum Wage, Amendment 42, appeared on the Colorado's 2006 ballot in Colorado as a citizen-initiated constitutional amendment, where it was approved. The measure increased the minimum wage to $6.85 per hour and provides for it to be adjusted annually based on the Consumer Price Index. The amendment further prohibited more than $3.02 per hour in tip income from being used to offset that minimum wage.

  • Yes: 823,526 (53%) Approved
  • No: 721,530 (47%)

Ballot wording

The official ballot title read:

An amendment to the Colorado constitution concerning the state minimum wage, and, in connection therewith, increasing Colorado's minimum wage to $6.85 per hour, adjusted annually for inflation, and providing that no more than $3.02 per hour in tip income may be used to offset the minimum wage of employees who regularly receive tips.

Lawsuit filed in 2008

In October 2008, a group of restauranteurs from Pueblo, Gunnison, Yuma, Crested Butte, Salida, Sedalia and La Junta filed a lawsuit against the amendment seeking to have it declared unconstitutional and nullified. The basis for their lawsuit is that the language of the amendment links minimum wage hikes in the state to "the Consumer Price Index used for Colorado." The lawsuit says there "is no CPI 'used for Colorado" but, rather, a CPI for regions, such as a 13-state Western area that includes Colorado, and an index for the Denver-Boulder-Greeley area.

Because of this, the lawsuit says there is "no data whatsoever relating to any rural areas of Colorado and no data from any of the areas in Colorado within which plaintiffs' businesses are situated." They also say, "the rate of inflation and cost-of-living is lower in the areas where plaintiffs do business than in the Denver-Boulder- Greeley metropolitan areas."[1]

Supporters

Groups supporting the measure included Coloradans for a Fair Minimum Wage, America Votes For A Fair Minimum Wage, Colorado Progressive Action Issue Fund, Civic Participation Campaign/Mi Familia Vota Committee For Working Families, the Bell Ballot Action, and People For The American Way Voters Alliance of Colorado.

Supporters argued that raising the minimum wage ensures that more Coloradans working full-time will earn an income above the poverty level. They said that an increase in the minimum wage was overdue, since the federal government has not raised the minimum wage for nine years. The proposed minimum wage of $6.85, they said, restores the wage to near its average buying power over the past 50 years. Adjusting the wage for inflation guarantees that the wage will not lose its buying power in the future.

They also argued that raising the minimum wage could benefit businesses and workers by increasing worker morale and productivity, as well as reducing turnover and absenteeism. Supporters offered evidence showing that states with minimum wages above the federal level have had favorable employment growth, indicating that an increase in the minimum wage can benefit low-income workers without harming the economy.[2]


Opponents

Groups opposing the measure included Respect Colorado’s Constitution and the Hospitality Issue Pac.

Opponents argued that raising the minimum wage may hurt the economy. They presented evidence showing that businesses respond to an increase in the minimum wage by raising prices, by hiring fewer workers, or both. An increase in the minimum wage, they claimed, could be particularly difficult for smaller businesses and restaurants with fewer financial resources.

Opponents also offered evidence showing that increases in the minimum wage cause employers to hire fewer less-skilled and inexperienced workers, leading to missed opportunities to earn money and gain skills and experience that would allow them to earn higher wages in the future. They added that businesses forced to pay higher wages may offer fewer benefits, raises, and training opportunities.

Opponents pointed out that many minimum wage workers do not live in low-income households or earn the minimum wage for long.

Opponents also noted that putting the minimum wage in the state constitution will make it difficult to respond quickly to future economic and labor conditions, since a change would require voter approval. Opponents also objected to businesses being required to pay workers higher wages each year regardless of their qualifications or performance and the financial condition of the business or the economy.[2]

Campaign finance

Donors for the campaign for the measure:[3]

  • Coloradans for a Fair Minimum Wage: $579,290
  • American Votes for a Fair Minimum Wage: $280,000
  • Civic Participation Campaign/Mi Familia Vota Committee for Working Families: $274,355
  • Colorado Progessive Action Issue Fund: $30,252
  • Bell Ballot Action: $5,000
  • People for the American Way Voters Alliance of Co: $100
  • Total: $1,168,997

Donors for the campaign against the measure:

  • Respect Colorados Constitution: $1,488,441
  • Hospitality Issue PAC: $1,056,800
  • Total: $2,545,241
  • Overall Total: $3,714,238

See also

External links


References

  1. ↑ Rocky Mountain News, "Wanted: A healthy dose of skepticism", October 4, 2008
  2. ↑ 2.0 2.1 2006 Colorado Blue Book
  3. ↑ Follow the Money, "Donors"
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