LIVING WAGE BY 2020.

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View NCGA Bill Details2015-2016 Session
House Bill 1112 (Public) Filed Tuesday, May 10, 2016
AN ACT INCREASING THE STATE'S MINIMUM WAGE IN PHASES UNTIL 2020, WHEN THE WAGE SHALL BE ADJUSTED AUTOMATICALLY EACH YEAR BY INCREASES IN THE COST-OF-LIVING, CHANGING THE WAY TIPS ARE CREDITED TO PHASE-IN INCREASES IN THE WAGES OF TIPPED EMPLOYEES, AND GRANTING A FIVE PERCENT COST-OF-LIVING ADJUSTMENT FOR STATE RETIREES.
Intro. by Harrison, Fisher, Carney, D. Hall.

Status: Ref To Com On Rules, Calendar, and Operations of the House (House Action) (May 11 2016)

Bill History:

H 1112

Bill Summaries:

  • Summary date: May 11 2016 - View Summary

    Amends GS 95-25.3 by increasing the state's minimum wage yearly, beginning in 2017 and going through 2020. The first increase raises the minimum wage to $10 per hour effective January 1, 2017; the final increase is to $15 per hour, effective January 1, 2020. Every January thereafter, the minimum wage is to be adjusted based on an adjusted minimum wage rate calculated by the Commissioner of Labor using the Consumer Price Index, CPI-U, or its successor index.

    Effective January 1, 2017, prohibits the tip credit from exceeding 50% of the minimum hourly wage. Beginning January 1, 2018, requires the minimum cash wage paid directly to a tipped employee to be at least $5 per hour,with the tip credit not exceeding the difference between the minimum cash wage paid directly to the employee and the minimum wage. Raises the minimum cash wage paid directly to a tipped employee by $1 per hour, starting January 1, 2019, and on each January thereafter, until it reaches the same amount as the annually adjusted minimum hourly wage, except that if the minimum cash wage paid directly to a tipped employee is less than $1 less than the annually adjusted minimum hourly wage, it must be increased by the lesser amount.

    Amends GS 135-5 (concerning the Retirement System for Teachers and State Employees), GS 135-65 (concerning the Judicial Retirement ), and GS 120-4.22A (concerning the Legislative Retirement System) to provide a cost of living increase of 5% from and after July 1, 2016. Effective July 1, 2016.

    Appropriates $210 million for 2016-17 from the General Fund to the Reserve for Retiree Cost-of-Living Adjustments to implement the adjustment authorized in the act. Appropriates $6.4 million for 2016-17 from the Highway Fund to the Reserve for the Retiree Cost-of-Living Adjustments to implement the adjustment authorized in the act. Effective July 1, 2016.