Governor signs minimum wage bill into law

As promised, Gov. Lou Leon Guerrero signed the minimum wage increase bill into law, raising the rate by 50-cents over the next two years, to $9.25 an hour. The governor says despite the protests of the local business community, she believes the hike will not be a drag on the economy.

The governor actually signed two bills: Sen. Joe San Agustin's minimum wage hike and Sen. Regine Biscoe Lee's measure to extend the Labor department's worker apprentice program.

Gov. Leon Guerrero says the new laws will work together.

"We're not just promoters of the minimum wage we're also promoters of opportunities that improve their skills," she said. "So I think passing these two bills at the same time just makes for a really good economic plan and economic support and enhancement through our community."

For supporters of the hike, it means more money in the pockets of those who need it most, but opponents argue it will result in higher prices for consumers when businesses pass on the added cost. A study conducted on the previous wage hike found minimal impact, as most workers here are paid more than the minimum.

"If you talk to an economist they will not say that this caused that, because they just won't," the governor said. "They just say, all we can say is that for this period of time gdp went up when minimum wage went up. They don't make the correlation."

But the Chamber of commerce has always opposed the government's intervening on wages, which the governor says is another point she disagrees with them on.

"They talk about letting the market forces do that, but if you look back historically market forces don't do that," the governor said. "If you look at minimum wage being increased it's always comes from government mandate, either federal, state or our territory. So I'm not convinced that market forces will increase the minimum wages and that's why government steps in."

The minimum wage increases from $8.25 an hour to 8.75 in March of next year, and to 9.25 in March of 2021.