Culver Signs into Law $7.25 Minimum Wage

Tools

By Scott Sanborn

Story Created: Jan 25, 2007 at 7:08 AM CST

Story Updated: Jan 25, 2007 at 8:24 PM CST

DES MOINES (AP) - Gov. Chet Culver has signed into law a new minimum wage that will take effect next January, $7.25 an hour.

During a raucous ceremony on Thursday at the Statehouse rotunda, Culver signed his first bill as Iowa's governor. He cheered the broad bipartisan support and thanked Iowans for their patience in waiting a decade for a minimum wage boost.

Culver used 18 pens to sign the measure, passing them out to lawmakers who played a key role in the debate.

Under the new law, the state's minimum wage of $5.15 an hour will increase to $6.20 on April 1 and $7.25 on Jan. 1, 2008.

Culver says wages will increase for nearly 260,000 Iowans who work at or near the minimum wage. That's roughly 18 percent of the state's work force.

The measure won overwhelming support, clearing the House 79-19 on Tuesday and the Senate 40-8 Wednesday night.

The new law also boosts the training wage that businesses are allowed to pay new workers for a brief period, taking that $4.25 an hour rate to $6.35 by Jan. 1.

The bill would also increase the so-called training wage to $6.35 an hour from the current $4.25.The training wage allows employers to pay workers less than the minimum wage when they are first hired.

Supporters say roughly $100,000 to $125,000 Iowans are
working at the minimum wage.

Republican critics warn that businesses -- particularly small
ones -- would be hammered by the increase.

Next Article Hawkeyes Offensive Coordinator Ken O’Keefe Leaving

Conversation Guidelines

Be Kind

Don't use abusive, offensive, threatening, racist, vulgar or sexually-oriented language.
Don't attack someone personally. Keep it civil and be responsible.

Share Knowledge

Be truthful. Share what you know and what you are passionate about.
What more do you want to learn? Keep it simple.

Stay focused

Promote lively and healthy debate. Stay on topic. Ask questions and give feedback on the story's topic.

Report Trouble

Help us maintain a quality comment section by reporting comments that are offensive. If you see a comment that is offensive, or you feel violates our guidelines, simply click on the "x" to the far right of the comment to report it.

read the full guidelines here »

Commenting will be disabled on stories dealing with the following subject matter: Violent crime, sexual abuse, Amber Alerts, Operation Quickfinds and suicides.