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Guam hearing on Bill 4-38: business groups oppose automatic CPI index for minimum wage; committee sets follow-up
Summary
A public hearing on Bill 4-38 COR, which would tie Guam's minimum wage to the Guam CPI with annual adjustments, drew opposition from the Employers'Council, Guam Chamber of Commerce and Guam Hotel & Restaurant Association citing inflation, tourism weakness and business fragility; the committee recessed the hearing to Jan. 23 for more data and expert testimony.
A Guam legislative public hearing on Jan. 13, 2026 considered Bill 4-38 COR, a measure authored by Sen. Joe Saint Augustine that would add a new subsection to Title 22, Article 1 to require annual minimum-wage adjustments tied to the Guam consumer price index, with changes rounded to the nearest $0.25 and scheduled to take effect on the following March 1.
The bill's sponsor, Senator Joe Saint Augustine, said indexing would "ensure that the wages of Guam's workers keep pace with the cost of living" and cited U.S. jurisdictions that use CPI-based adjustments as models. He asked colleagues to consider design choices and invited amendments to address Guam's unique economy.
Business groups testified strongly against automatic CPI indexing. Catherine Gale, executive director of the Employers' Council, told the committee that linking wages to the CPI risks creating an inflationary feedback loop, citing an estimate that the proposal could raise the current $9.25 minimum wage to about $11.50…
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