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COMMITTEE ON BUDGET, APPROPRIATIONS AND FINANCE 10/08/2024-REASSIGNED TO THE COMMITTEE ON EDUCATION AND WORKFORCE DEVELOPMENT BILL NO. 35-0332 Thirty-Fifth Legislature of the Virgin Islands September 18, 2024 An Act amending title 24 Virgin Islands Code, chapter 1, section 4, increasing the Virgin Islands minimum wages PROPOSED BY: Senators Franklin D. Johnson and Marvin A. Blyden WHEREAS, the Government of the United States first established a minimum wage in 1 1938 with the enactment of the Fair Labor Standards Act of 1938; and 2 WHEREAS, the minimum wage has proven to be one of the most effective and enduring 3 public policy tools to ensure that working people enjoy an acceptable standard of living and 4 quality of life; and 5 WHEREAS, studies have demonstrated that increases in the minimum wage improve 6 worker productivity and workplace retention, and positively affects consumer demand; and 7 WHEREAS, although the federal minimum wage has been raised an average of every 8 three years between 1938 and 2009, it remains stagnant at $7.25 per hour since 2009; and 9 WHEREAS, the Virgin Islands and thirty-three other states and territories of the United 10 States have found it necessary to enact minimum wage increases through legislation or 11 automatic mechanisms for periodic increase; and 12 WHEREAS, studies have found that the highest rates of child poverty exist in states that 13 have not raised their minimum wages above the federal standard; and 14 2 WHEREAS, an economic impact study undertaken by the Virgin Islands Bureau of 1 Economic Research found that the minimum wage increases enacted by Act No. 7856 2 improved conditions for both workers and businesses in the Virgin Islands; and 3 WHEREAS, Act No. 7856 mandated the appointment of members to the Wage Board 4 which is tasked with periodically reviewing and revising the minimum wage; and 5 WHEREAS, the failure of successive governors to appoint members to the Wage Board 6 has resulted in the Virgin Islands minimum wage remaining at $10.50 since 2018; and 7 WHEREAS, housing market studies have found that housing rents rose by an average 8 of nearly 100% between 2017 and 2023; and 9 WHEREAS, the combination of rising prices and wage stagnation have created an 10 affordability crisis wherein many Virgin Islands families simply cannot meet their daily needs; 11 and 12 WHEREAS, a low minimum wage contributes to an emigration of labor and a reduction 13 in workforce capacity in the Virgin Islands; Now, Therefore 14 Be it enacted by the Legislature of the Virgin Islands: 15 SECTION 1. Title 24 Virgin Islands Code, chapter 1, section 4, amended as follows: 16 (a) In subsection (a): 17 (1) By inserting a comma after “students”; 18 (2) By striking “$8.35” and inserting “$12.00; 19 (3) By striking “$9.50” and inserting “$14.00”; 20 (4) By striking “June 1, 2017” and inserting “October 1, 2025”; 21 (5) By striking “$10.50” and inserting “$16.00”; 22 (6) By striking “June 1, 2018” and inserting “October 1, 2026”; 23 (7) By striking “June 1, 2019 and inserting “October 1, 2027”; 24 (8) By striking “2020” and inserting “2028”; and 25 (9) By inserting at the end of the subsection “, whichever is greater”. 26 3 (b) In subsection (b) by striking “December 31, 2018” and inserting “December 31, 1 2026”. 2 BILL SUMMARY 3 This bill amends title 24 Virgin Islands Code, chapter 1, section 4 by increasing the 4 Virgin Islands minimum wages. 5 BR23-0296/September 17, 2024 (Revised)/LMW 6