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Legislature Delays Minimum Wage Increase Amid Budget Concerns

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The delay will push the first statewide minimum wage increase back by four months, to May 2021; some lawmakers view this delay as the lesser of two evils.

Labor advocates and Virginia legislators worried the recently passed bill to increase minimum wage might die during the reconvened General Assembly session Wednesday.

Gov. Ralph Northam’s amendment deferred the start date of the original bill by four months in response to the economic blow dealt to the state from the coronavirus pandemic. The recommendation was one of many made to trim the $135 billion, two-year budget passed in the spring. Republican lawmakers wanted to reject the amendment in order to stall the passage of the bill and have the governor amend it further.

During the relocated Senate floor session held at the Science Museum of Virginia, Sen. Mark Obenshain, R-Rockingham, argued that now is a risky time to consider raising the minimum wage given the COVID-19 crisis. He said the legislature should reject the governor’s recommendation and send the bill back for reconsideration.

“Voting ‘no’ on this amendment keeps this issue alive,” Obenshain said. “It sends it back to the governor, and the governor has one more chance to do what’s right, not just for businesses, but for workers.”

Lawmakers who oppose minimum wage increases argued that those working minimum wage jobs in Virginia are young people entering the workforce, not people trying to support families. Other legislators pointed to the essential workers now serving the public from the front lines of the coronavirus outbreak, many of whom make minimum wage. 

“Quite frankly I find it hard to believe we’ve got people in here who don’t think somebody working full time in any job should earn at least $19,600 a year,” said Senate majority leader Richard Saslaw, D-Fairfax. “There’s no one in here … that would work for that kind of wage. No one.”

There were impassioned pleas from several House members to accept the recommendation instead of risking the bill being vetoed, though one delegate voiced resentment at having to make the choice. Del. Lee Carter, D-Manassas, said the COVID-19 crisis has spotlit “one of the most glaring contradictions in our economy” — that workers paid the least are often deemed most essential to society.

“We are saying to these people ‘you are not worth a pay raise come January,’” Carter said. “I’m not gonna fault anyone that votes ‘yes’ on this, for taking the sure thing four months later rather than taking the chance, but if that’s what we’re gonna do … I can’t be any part of it.” Carter did not cast a vote on the amendment.

Del. Elizabeth Guzman. Photo via Facebook

Del. Elizabeth Guzman, D-Prince William, said that some legislators’ notion that families don’t depend on minimum wage is a myth.

“I’m glad they acknowledge that there are people in Virginia who cannot live off minimum wage,” Guzman said. “Actually, what they do is they get a second job, or a third job in order to make ends meet.” Guzman immigrated to the U.S. from Peru at the age of 18 and worked three jobs to afford a one bedroom apartment.

The House of Delegates voted 49-45 to accept Northam’s amendment to their bill. Lt. Gov. Justin Fairfax made the tie-breaking Senate vote when its version ended in a 20-20 tie.

The identical bills, introduced by Sen. Saslaw and Del. Jeion Ward, D-Hampton, originally would have raised the state’s minimum wage from $7.25 to $9.50 per hour on Jan. 1, 2021. The governor’s amendment pushes the start to May 1, 2021.

The wage will then increase to $11 in 2022, $12 in 2023 and by another $1.50 in 2025 and 2026. Every subsequent year the bill is to be re-amended to adjust the minimum wage to reflect the consumer price index.

Virginia’s cost of living index is very close to the national average, but it ranks in the top four among states where the minimum wage equals the federal rate of $7.25, according to an analysis of data from the Missouri Economic Research and Development Center.

Anna Scholl, executive director of Progress Virginia, said now is not the time for Virginia to turn its back on low wage workers.

“We have been fighting for a decade to push for people who are working hard to make ends meet, to support their families and to be able to do so with dignity,” Scholl said. “That’s what raising the minimum wage is about.”

Written by Will Gonzalez, Capital News Service. Top Photo by Josh Appel on Unsplash

Workers Urge Northam To Sign Minimum Wage Bill

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Workers and advocates are urging Gov. Ralph Northam to sign a bill that would raise the minimum wage to $9.50 at the start of next year. The General Assembly will reconvene on April 22, and lawmakers will reevaluate recently passed legislation as the state’s economy takes a blow and unemployment climbs during the COVID-19 outbreak.

Northam and state leaders anticipate the state’s economy will suffer a major hit from the coronavirus outbreak. Northam didn’t respond directly whether he is considering delaying the increase in minimum wage when asked at a recent press conference. 

“There are a number of pieces of legislation that we are looking at regarding our business environment, and I haven’t made any definite decisions, but we are talking to the patrons of those pieces of legislation,” Northam said. The governor said he will “make a decision in the best interest of Virginia and the best interest of our economy.”

Workers on the front lines of essential businesses continue to serve the public during the COVID-19 outbreak, including many workers who earn minimum wage — currently $7.25 in Virginia. 

Employees at a Virginia Kroger grocery store and an Amazon distribution center recently tested positive for the coronavirus. Many essential workers have asked for an increase in pay to reflect the increased need for their services and the elevated risks they take while working. 

Anna Scholl, executive director of Progress Virginia, an advocacy organization, said that raising the minimum wage is necessary to allow these workers to raise their families with dignity. 

“That’s especially true now when grocery store workers, delivery drivers, home health aids, and so many more are going to work for low wages and putting themselves at risk of getting sick so that we can stay home and healthy,” Scholl said in a press release. 

The group is asking Northam to sign House Bill 395 into law without amendments or delays that would water down the bill. HB 395 would raise the minimum wage to $9.50 in 2021, $11 in 2022 and $12 in 2023. The minimum wage could go up to $15 by 2026, if approved by the General Assembly. 

Some essential workers also argue that they are not being provided adequate protective gear and supplies to keep them safe from the coronavirus, another reason they are pushing for guaranteed wage increase.

Lisa Harris works at Kroger in Mechanicsville and is a member of the United Food and Commercial Workers International Union. She has been with Kroger for 13 years and said in a press conference organized by Progress Virginia that she would benefit directly from HB 395. She is urging Northam to sign the bill with no weakening amendments. 

“I find it fascinating how fast grocery store workers like me have gone from being considered unskilled labor to being recognized as essential personnel,” Harris said. 

She compared workers dealing directly with an increasingly infected public to being on the front lines like first responders, and said, “It would be nice to be paid accordingly.” 

Harris said Kroger is not observing the proper social distancing recommendation of six feet or providing workers with personal protective equipment. She said the staff is required to wipe down the self checkout scanners and screens every half hour but argues that this is impossible with the influx of customers visiting the store. Harris said the staff is given Windex to clean equipment and not a proper disinfectant. The company has given full-time workers a $300 bonus and part-time workers a $150 pay boost, but that’s not enough money, Harris said. 

“It means barely being able to support myself, it means making tough decisions about whether to pay a bill or skip a meal, it means calling on my family members to help me as I’m attempting to be a fully enfranchised 31-year old,” Harris said. 

Photo by Franki Chamaki on Unsplash

Allison McGee, corporate affairs manager for Kroger, said the grocery chain provided all hourly workers with a $2 pay increase for hours worked March 29 through April 18. McGee also stated that all Kroger stores in the Richmond area have been provided with Environmental Protection Agency-registered disinfectants to wipe down counters and cash registers. She said employees are required to wipe down surfaces frequently, and extra hand sanitizer bottles have been provided at each checkout station.

“As far as PPE, we are encouraging our associates to wear protective masks and gloves, and we’re working hard to secure these resources for our associates,” McGee stated in an email. “Supply has started to arrive for our associates, and we anticipate all locations having personal protective equipment within the next several weeks.”

Kroger said on its website that they want healthcare workers to get ahold of protective gear before they can properly distribute it to their workers. For now employees have limited access to such PPE and are encouraged to use their own.

Beginning April 7, Kroger will also start to limit the number of customers to 50 percent of the building code’s calculated capacity to allow for proper physical distancing in stores, the company announced this week.

Michael Cassidy, executive director of The Commonwealth Institute for Fiscal Analysis, said the coronavirus is a reminder that many essential workers are also minimum wage workers. 

“These individuals are providing a vital service to us right now and they deserve more than $7.25 an hour,” Cassidy said.

Cassidy said if the minimum wage increase were to go into effect in January, it would help 46,000 healthcare workers, 100,00 retail workers and over 100,000 restaurant and service industry workers. He said this would allow people to buy more and contribute to businesses and the economy as a whole. 

“That’s important. because consumer spending is the foundation of our economy. It’s about 72 percent of Virginia’s gross domestic product,” Cassidy said. 

Del. Danica Roem said in a tweet that she is extremely disappointed to see groups advocating for bills like HB 395 to be watered down or delayed. 

“We’re $1.50/hr behind West Virginia right now,” Roem tweeted. “You don’t see an uprising of West Virginian business leaders demanding the government lower their minimum wage to match ours.” 

Cassidy said history shows that increasing the minimum wage during a recession has been successful in bringing the economy back.

HB 395 is currently pending signature by Northam, with a deadline of April 11.

Written by Ada Romano, Capital News Service. Top Photo by WALK_ on Unsplash.

After Election, Virginia Dodges Medicaid Work Requirements

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The requirement that Medicaid recipients work was a Republican condition of the program’s expansion. But with the new Democrat-controlled General Assembly soon to be seated, Governor Northam no longer plans to enforce it.

Virginia residents with Medicaid will not be required to work in order to keep their policies since Gov. Ralph Northam halted the work requirements he previously agreed to implement nearly two years ago as a bipartisan agreement. 

House Republicans said in a statement that the previous agreement was made in “good faith” and Northam gave his “personal assurance” to implement Medicaid expansion with a work requirement, where most Medicaid recipients would have to work a certain amount of hours each month to keep their policy. 

“Broken promises like this are the reason so many people hate politics,” Del Todd Gilbert, R-Shenandoah, said in the statement.

In 2019, Virginia expanded eligibility for health coverage to 400,000 people. So far, 342,000 Virginians have signed up for health insurance coverage through Medicaid expansion. Work requirements for Medicaid could lead to between 26,800 and 74,000 people losing their health insurance coverage, according to The Commonwealth Institute. 

The work requirements previously agreed on would apply to able-bodied Medicaid recipients who would need to work and pay premiums. For the first three months, enrollees would start with a work requirement of 20 hours per month. The workload would increase to 80 hours per month after a person was enrolled for 12 months, according to the amended budget. 

“In order to work, you have to be healthy, so work requirements for Medicaid expansion make no sense at all,” said Anna Scholl, executive director of Progress Virginia, in a press release. “We’re thrilled that Democrats are taking steps to halt the implementation of punitive work requirements to qualify for Medicaid Expansion, and we hope that it means even more people will be able to benefit from the program.”

Virginia’s Capitol building. (Photo by Patricia Cason, via VCU CNS)

Arkansas was the first state to implement a work reporting requirement for Medicaid. The Center on Budget and Policy Priorities concluded that 18,164 people lost coverage within the first seven months of the program and approximately 23 percent of all people subject to work requirements lost coverage. There is no evidence that work reporting requirements led to any major increase in work participation or hours worked, the study found. The policy is no longer being enforced in Arkansas, due to a recent court decision. 

Ashleigh Crocker, communications director for Progress Virginia, thinks it doesn’t make sense to implement the plan.

“The vast majority of people who get insurance coverage through Medicaid are already working,” Crocker said. 

Stephen Farnsworth, professor of political science and director of the University of Mary Washington’s Center for Leadership and Media Studies, said that moving forward, Republicans have “little ability” to retain the previous agreement from a couple years ago. 

“This is an example of how elections have consequences,” Farnsworth said. “The new Democratic majorities taking office next month have little interest in the work requirement as a condition for Medicaid expansion, and seem very likely to abandon that provision in the next session.”

Written by Rodney Robinson, Capital News Service. Top Photo by Marcelo Leal on Unsplash

Richmond joins over 150 cities in ‘March for Truth’

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“We want a leader! Not a creepy tweeter!” more than 200 demonstrators chanted as they marched through downtown Richmond, demanding an investigation into President Donald Trump’s alleged ties to Russia.

Indivisible Richmond, whose mission is to “resist the Trump agenda,” organized the “March for Truth” rally at the Virginia Capitol. Similar events were held in over 150 cities nationwide on Saturday.

At the local rally, U.S. Rep. Donald McEachin of Richmond and other speakers called for an independent commission to conduct a transparent investigation into the Trump campaign’s purported connections with Russia and Russia’s supposed meddling in the U.S. presidential election.

“There is the truth that needs to be told. What is behind a president, a commander-in-chief, who can’t even acknowledge an attack on our sovereignty?” said McEachin, a Democrat who was elected last fall to represent Virginia’s 4th Congressional District. “What is that truth?”

McEachin urged the demonstrators to pressure Congress to conduct an independent investigation of the matter.

The role that Russia may have played in the 2016 election came under scrutiny when Trump fired James Comey as FBI director after Comey asked for more resources to investigate Russia’s influence in America’s electoral politics.

Congress appointed House Intelligence Committee Chairman Devin Nunes, R-Calif., to conduct an investigation into the claims. However, it was later revealed that Nunes had been corresponding with associates within the White House about the investigation. The FBI has appointed Robert Muller as special counsel to lead the investigation.

Trump and many Republicans say the investigation has no basis. The president has called it a witch hunt launched by Democrats who are angry about losing the election.

Kasey Landrum, co-chair of Indivisible Richmond, told the rally on the state Capitol grounds that Americans want government accountability.

“We’d like to hold our president of the United States and his administration accountable for their behaviors that aren’t appropriate in our democracy,” Landrum said.

Another speaker at the “March for Truth” was Rachna Heizer, a member of Lawyers for Good Government. The organization was created after the 2016 election and now has 130,000 members.

“We are a government of people, by the people and for the people,” Heizer said. “It is our government, and it is time that we take it back. It is time for us to remind our elected officials that they work for us!”

Fred Douglas, a protester who came out with two homemade “Russiagate” posters, accused the White House of a lack of transparency.

“We are looking for the truth. We are looking for the whole truth, no matter where it takes us,” Douglas said. “Our democracy cannot stand the uncertainty that this administration has created.”

Other speakers at the event included Corinna Lain, a University of Richmond law professor; Carolina O. (@RVAwonk), famous on Twitter for confronting Republican political strategist Roger Stone; and Jen Lawhorne, representing Progress Virginia.

Carolina O. is a behavioral scientist who has done research into the spread of information on social media and how it frames human perspective. In her speech, she addressed how she became involved in politics.

“Science rests on the principle of accountability, of transparency, of free flow of information – and so does democracy,” she said. “Both of them fail when those principles fail.”