Workforce

U.S. Senate kills the $15 minimum wage, for now

The upper chamber also cleared the way for package of a relief bill that includes $25 billion in restaurant aid.
Photograph: Shutterstock

The Senate last night derailed President Biden’s effort to double the federal minimum wage to $15 as part of his $1.9 trillion COVID relief measure, voting just before dawn to forego any increase during the pandemic, according to multiple media reports.

The legislative body also increased the chances of Biden’s aid package being passed by Congress. Included in his proposal is $25 billion in direct relief aid for restaurants, according to Democratic leaders and industry associations.

By a 51-50 vote, with Vice President Kamala Harris casting the deciding yea, the Senate approved a resolution right before dawn to treat the act as a budget reconciliation measure. Under Senate rules, reconciliation requires the approval of a simple majority of lawmakers, not the two-thirds majority otherwise needed for legislation of that sort.

The resolution now moves to the House of Representatives, where it is virtually certain to pass because Biden’s Democratic Party controls the chamber. The aid plan would then be subject to a straight up-or-down vote in both chambers.  

Because Democrats control 50 of the Senate’s 100 voting seats, and Harris able to cast a tie-breaking vote, the measure would likely pass. President Biden has given every indication that he would sign a measure into law.

Proponents of a big hike in the federal minimum wage said their efforts would not end with the resolution vote, which was conducted by voice rather than in the usual recorded form. The vote is non-binding, meaning that a proposed increase could be dropped into subsequent versions of the reconciliation bill.

Vermont independent Sen. Bernie Sanders gave an impassioned plea right before the final vote, noting that the start of a phased-in $15 minimum wage would not have to start until the pandemic is over, according to multiple media reports.

Last night’s dramatic developments also do not preclude consideration of a standalone bill raising the pay floor. One measure, the Raise the Wage Act, has already been introduced.

The surprising no-go on the wage hike was the result of an amendment proposed by Sen. Joni Ernst, R-Iowa. It was one of an estimated 800 amendments proposed for what would become the budget reconciliation measure.

Lawmakers dubbed it a “vote-a-rama.” The session ran all night, or for about 15 hours.

Members help make our journalism possible. Become a Restaurant Business member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.

Multimedia

Exclusive Content

Financing

Burger King proves that heavy discounts aren’t always necessary

The Bottom Line: The fast-food chain generated a strong first quarter, despite a tough environment, largely by focusing on its operations and its food.

Beverage

As cocktails hit $30-plus, consumers are opting to drink less—or stay home

Rising costs are pushing prices up at the bar, and consumers are pre-gaming to cut costs. Can restaurants and bars win them back with a more engaging experience?

Marketing

Raising a toast to the Mother’s Day traffic rush

Marketing Bites: The holiday is traditionally the busiest day of the year for restaurants, and the industry could use the bump.

Trending

More from our partners