Ron Wyden, the chairman of the Finance Committee of the Senate, announced with regard to plan B of the minimum wage. The announcement came this Friday after the parliamentarian of the Senate gave his ruling. As per the ruling, the proposal made by the Democrats of the House was not feasible. They wanted a raise of 15 USD per hour in the minimum wage. It was declared that the plan failed to meet the rules of the special budget.
Minimum Wage Plan B Details
Chairman Ron Wyden, offered a solution to the problem. According to his proposal, all large corporations will have to pay a penalty of 5% if they fail to meet certain criteria. If their workers do not receive a stipulated amount, then the penalty applied will keep on increasing over time.
In simpler terms, there will be a financial incentive given to assigned to the corporate giants for the rise in wages. This will take place outside of the minimum wage law of the federal. According to the law, the minimum wage that is to be paid is just 7.25 USD.
The 71-year-old Wyden gave a statement with regard to plan B. He stated that the substitute plan was created keeping in mind the workers. He advocated that the plan would prevent the corporate giants from exploiting their workers. Wyden further claimed that his plan would cause the companies to pay a penalty of 5%. This would take place if any of the workers are paid less than a given minimum wage. The penalty would be charged on the total payroll of the companies. That is not it. Chairman Ron Wyden also added that the penalty would be made to increase with time. He also mentioned the fact that there is no way the companies can evade the penalty.