[media-credit name=’DEREK MONTGOMERY/Herald photo’ align=’alignnone’ width=’648′][/media-credit]The City of Madison’s minimum wage law was declared legal under Wisconsin state law Thursday after a Dane County judge awarded summary judgment in favor of the city in a lawsuit brought by an association of business groups.
The Main Street Coalition for Economic Growth, comprised of business groups including the Wisconsin Restaurant Association, Wisconsin Grocers Association and the Dane County Tavern League, filed the suit in January, claiming cities do not have the authority to set their own minimum wages under state law.
Mayor Dave Cieslewicz said he is pleased with the court’s decision, adding he is happy Madison has “led the way” for local minimum wage ordinances and prompted statewide discussions.
“It’s a great day for Madison,” Cieslewicz said during a press conference. “It’s a great day for working families in Madison.”
Ald. Austin King, District 8, spearheaded Madison’s minimum wage ordinance and said he expected the city’s file for summary judgment to be granted.
“We’re thrilled about the outcome obviously,” King said. “This lawsuit, from the very beginning, was a frivolous and wasteful attempt to subvert the outcome of local democracy.”
King said he is “sure” the coalition will file for an appeal on the summary judgment decision, although he said their claims do not hold much merit.
The coalition had claimed individual city laws regulating hourly pay are not good for the economy and are a poor precedent to set.
“We don’t think that [the] state can operate with a hodgepodge of minimum wages,” Wisconsin Restaurant Association President Ed Lump said. “Cities have finite borders. It’s hard for retailers close to those borders when, half a mile away, another business is operating under a different wage scale.”
But Cieslewicz said Madison’s ordinance is good for economic development in the city, adding that higher minimum wages will attract more workers who will stay on the job longer and be happier.
According to City Attorney Mike May, Dane County Judge Maryann Sumi took note of the specific political and policy arguments made against the minimum wage ordinances, and her role was to decide whether or not Madison has the authority to issue a minimum wage. She decided the city does.
Although an appeal may be filed by the coalition, May said he believes a court of appeals or the State Supreme Court, if necessary, will agree with Sumi’s ruling because the same issues will be at stake.
Cieslewicz noted May is a “top notch” attorney and he expects the city’s minimum wage ordinance will prevail.
“My administration is committed to defending minimum wage at every level,” Cieslewicz said.
Madison’s local minimum wage ordinance went into effect Jan. 1, raising the wage from $5.15 an hour to $5.70. Hourly wageworkers can expect to earn at least $7.75 an hour in 2008, with incremental increases in the upcoming years.
Since Madison increased its minimum wage, Milwaukee Mayor Tom Barrett approved an increased wage. LaCrosse recently followed.
The state Senate passed a bill last week that would prevent municipalities from setting a minimum wage different from the state’s.
Cieslewicz said the statewide minimum wage debate is occurring only because the minimum wages of municipalities have been increased recently.